Telecommunications in Peru

An overview of the telecoms market

Telecommunications in Peru

Peru’s telecommunications market has grown significantly over recent years. Its economic development has attracted investments from local and international companies in all industries for geographic expansion and automation.

However, subscriptions are largely concentrated in urban zones, and the indigenous populations live in areas such as the Andean mountains and Amazon jungle which are inaccessible to phone lines and Internet connections.

As Peru’s GDP is expected to grow at a rate of 6% per year over the next seven years (from 2013), its telecom sector appeals greatly to potential investors.

The fastest developing telecom markets include mobile telephony, fixed and mobile broadband, and pay TV. In 2011, Peru had 3.7 million fixed telephone lines, 32.5 million mobile lines and 9.2 million Internet users.

The main telecom providers in Peru are the major groups in Latin America: América Móvil (under the ‘Claro’ brand), Telefónica S.A (‘Movistar’ brand) and NII Holdings (‘Nextel’ brand). Generally speaking, Telefónica S.A is the market leader, closely followed by its biggest competitor, América Móvil. However, Nextel has launched a 3G network in Peru, putting it back in the race.

Peruvian network operators currently face a challenge to expand 3G network coverage and  improve the quality of services. This will create opportunities for new advanced applications and services as well as increased revenue. Despite problems with inequality and population distribution with many isolated communities, new technologies are being adopted at the same rate as per capita GDP, increasing in turn the money spent on non-essential mobile and telecom services.

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