Peru’s mobile penetration, approaching 110% in early 2016, is on a par with the regional average though this hides the fact that about a fifth of the population has no mobile phone at all, while many Peruvians – especially urban dwellers – have multiple mobile subscriptions.
Four companies now compete in the mobile market: Telefónica, trading as Movistar, is the leading player with about 54% of the market. It is followed by América Móvil, trading as Claro, in second place and by the rebranded Entel Perú (formerly Nextel Peru) in third place. Vietnam’s Viettel, trading as Bitel, is Peru’s fourth mobile network operator, with a service launch in mid-2014. Viettel reported having signed up one million subscribers by the end of 2015. The company has also launched LTE services, complementing its existing 3G network which covers more than 85% of the country.
In mid-2015 the regulator published rules on the market entry of Mobile Virtual Network Operators (MVNOs), with Virgin Mobile among the first to express an interest to launch services. Virgin Mobile is expected to offer voice and data services later in 2016.
After lengthy negotiations, Movistar’s licences were renewed in January 2013. Under the terms of the agreement, Movistar must invest about $1.15 billion to expand coverage to unserviced areas, and it must provide free broadband connections to state schools, healthcare centres, and police stations.
Peru’s mobile market still has considerable potential to expand, especially if economic growth continues to lift people out of poverty. Furthermore, due to the country’s low fixed broadband penetration, 3G and LTE services are expected to continue boom in coming years. With the expansion of networks and the declining price of laptops and smartphones, the use of mobile broadband and phone-based internet browsing is expected to escalate strongly.
Accompanied by key market statistics and analyses, this report provides an overview of the market and a brief profile of mobile operators. It also contains scenario forecasts to 2020.
Virgin Mobile Latin America aiming to set up as an MVNO by March 2016; growth in number portability stimulating competition; new rules enforced to streamline deployment of mobile infrastructure; Claro Peru deploys TD-LTE in remote areas; Movistar Peru expands LTE to rural communities in the Amazon; DirecTV launches LTE services; Entel Peru rebrands and launches LTE; Viettel launches LTE under the Bitel banner; National Bank Association ASBANC selects Ericsson’s Wallet Platform for mobile financial services; government delays plans to auction 700MHz spectrum for LTE to early 2016; report update includes the regulator’s market data updates to October 2015, telcos’ financial and operating data for Q3 2015, recent market developments.
Companies mentioned in this report:
Telefónica del Perú (Movistar), América Móvil Perú (Claro), Entel Perú, Viettel Peru (Bitel), Virgin Mobile.