Peru - Telecom Market Trends, Key Statistics and Regulatory Overview

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.

Table of Contents

• 1. Synopsis
• 2. Key statistics
• 3. Country overview
  • 3.1 Outlook
• 4. Telecommunications market
  • 4.1 Overview of Peru’s telecom market
  • 4.2 Market analysis – 2011
• 5. Regulatory environment
  • 5.1 Background
  • 5.2 Regulatory authorities
    • 5.2.1 Ministry of Transport, Communications, Housing and Construction (MTC)
    • 5.2.2 Osiptel
  • 5.3 Telecommunications Investment Fund (FITEL)
  • 5.4 Multicarrier system
  • 5.5 Interconnect
  • 5.6 Differentiated interconnection charges
  • 5.7 Access
  • 5.8 Mobile Number Portability (MNP)
  • 5.9 Price cap regulations
  • 5.10 Single concession regime
  • 5.11 Telefónica del Perú’s contract
• 6. Related reports

• Table 1 – Country statistics Peru – 2011
• Table 2 – Telephone network statistics – 2011
• Table 3 – Internet user statistics – 2011
• Table 4 – Broadband statistics – 2011
• Table 5 – Mobile statistics – 2011
• Table 6 – National telecommunications authority
• Table 7 – Evolution of GDP in Peru – 2000 - 2012
• Table 8 – Fixed and mobile market share - 1997 - 2011
• Table 9 – Telecommunications revenue – 2001 - 2016
• Table 10 – Number of licences per service – 1997; 2001; 2007; 2010

• Chart 1 – Fixed and mobile subscribers in Peru – 1997 - 2011
• Chart 2 – Fixed and mobile subscribers in Peru by market share – 1997 - 2011
• Chart 3 – Evolution of telecom revenue in Peru – 2001 - 2016

• Exhibit 1 – Map of Peru