Peru Communication Profile 2012

Convergence, Broadband & Internet Market - Overview, Statistics & Forecasts
Internet user penetration in Peru is considerably higher than average for Latin America, a remarkable achievement compared with the country's other economic indicators. The success of the Internet in Peru is primarily due to the mushrooming of cheap public Internet facilities known as cabinas publicas. In fact, Peru is a world leader in terms of users who access the Internet in public places. Several government-subsidised broadband projects are underway or up for tender, and a WiMAX auction is to be held in 2009. The broadband market is expected to continue growing despite the global economic downturn.

Fixed-Line Market & Infrastructure - Overview, Statistics & Forecasts
Peru's fixed-line teledensity is among the lowest in Latin America; telecom infrastructure reflects the country's poverty map, with most of the fixed lines concentrated in Lima. Despite liberalisation, Peru's local telephony market is still dominated by the incumbent Telefenica del Peru. Movistar, also owned by Telefenica, is in second place, offering local telephony over fixed-wireless technology. As a result, Telefenica controls around 97% of Peru's basic fixed-line market. Long-distance services, on the other hand, are very competitive, stimulated by a multicarrier system. Although teledensity is increasing, many rural municipalities are still unserviced.

Mobile Market - Overview, Statistics & Forecasts
Peru's mobile penetration is about 17% lower than average for Latin America, and this compares favourably with the country's other economic indicators, but there are huge discrepancies between urban and rural regions. Mobile penetration ranges from 102% in the capital city to 8% in some of the poorer parts of the country. Three companies compete in the Peruvian mobile market: Telefenica, trading as Movistar, is the leader; America Mevil is in second place; and third is Nextel Peru, primarily catering to corporate customers. The government is planning a mobile spectrum auction in 2009 to increase competition and expand mobile coverage. Accompanied by key market statistics and analyses,

Telecom Market Trends, Key Statistics & Regulatory Overview
Mobile telephony, broadband, and pay TV have been the fastest growing telecom sectors in Peru, accounting for an increasing portion of the country's total telecom revenues. Estimates for 2008 indicate sustained growth, particularly in the broadband and mobile markets. We expect Peru's telecom industry to continue growing in 2009-2011, albeit at a slower pace. The government aims to bridge the digital divide through rural projects sponsored by FITEL, a fund that finances rural operators under the rule of less-bid subsidy. Competition is strongly encouraged. A single concession regime was adopted in July 2007, and an infrastructure sharing law was issued in July 2008. Mobile number portability will be compulsory for all operators starting from January 2010.