Synopsis
In 2010, Peru’s telecom sector grew 13%, generating revenues of US$4.5 billion, and sales are likely to reach more than US$4.9 billion in 2011. Between 2011 and 2016, we see the market expanding at a Compound Annual Growth Rate (CAGR) of 6.5%. The fastest growing telecom markets are mobile, broadband, and pay TV. These three sectors account for an ever-increasing portion of the country’s total telecom revenues, while traditional telephony sales stagnate. We expect this pattern to continue in 2011/12. Mobile broadband, in particular, has enormous growth potential in Peru, where it is able to fulfil a need that the fixed infrastructure has been unable to satisfy. While mobile subscribers have passed the 100% penetration milestone, fixed teledensity is only 10%. Competition is lively in the mobile market, but despite liberal licensing policies, the incumbent Telefónica del Perú (TdP) – trading as Movistar – continues to dominate Peru’s fixed-line sector. The regulator has tried to increase competition mainly by regulating tariffs and charges. Although it succeeded in reducing TdP’s monthly fixed-line charges by about 30%, these rates are still among the highest in Latin America.
This report provides an overview of Peru’s telecommunications and regulatory environment, accompanied by statistical data, analyses, and outlook.
Key developments:
Osiptel reviews mobile termination tariffs and adopts differentiated interconnection charges for rural areas; mobile numbers are no longer attached to a geographical region but to a national ‘Mobile Virtual Area’; thanks to liberal telecom regulations and one of the highest GDP growth rates in Latin America, Peru’s telecom sector is a profitable investment target.
Companies covered in this report include:
Telefónica del Perú (trading as Movistar), Claro Perú, Nextel Perú.
