Peru to review economics of national backbone project

Sydney, April 24, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on Peru outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/Peru-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

This report provides a comprehensive overview of trends and developments in Peru’s telecommunications market. The report analyses the fixed-line, mobile and broadband sectors. Subjects include:

• Market and industry analyses, trends and developments;
• Facts, figures and statistics;
• Industry and regulatory issues;
• Infrastructure developments;
• Major Players, Revenues, Subscribers, ARPU, MoU;
• Mobile Voice and Data Markets;
• Broadband (FttP, DSL, cable, wireless);
• Mobile subscribers and ARPU;
• Broadband market forecasts;
• Government policies affecting the telecoms industry;
• Market liberalisation and industry issues;
• Telecoms operators – privatisation, IPOs, acquisitions, new licences;
• Mobile technologies (GSM; 3G, HSPA, LTE).

Researcher:- Henry Lancaster
Current publication date:- November 2018 (17th Edition)

Executive Summary

Peru to review economics of national backbone project

Peru’s fixed-line teledensity remains among the lowest in South America, with obstacles to fixed-line growth including widespread poverty, fixed-to-mobile substitution, expensive telephone services, and geographical inaccessibility in the rugged Andean mountains and lowland Amazon jungles.

The government is addressing these shortcomings via ambitious investment plans to deploy telecom infrastructure and services in underserved areas. Most of the work was complete by the end of 2017, when eight regional fibre-based networks were connected to the National Fibre-Optic Backbone. However, there remain delays in connecting supplementary infrastructure to the network, while competition from private networks prompted the Ministry of Communications in late 2018 to re-evaluate the economic modelling of the project.

Broadband penetration in Peru is considerably lower than the Latin American average, despite government efforts to encourage the development of the sector.

Mobile penetration is on a par with the regional average, though high penetration is attributed to the popular use (especially among urban dwellers) of multiple mobile subscriptions. This phenomenon is becoming less pronounced as network operators respond to market competition by providing generous data and voice bundles (so obviating the need for SIM cards from different networks) and as the regulator endeavours to remove illegal devices and unregistered SIM cards from the market.

Telefónica Perú (trading as Movistar Perú) is the leading player in the mobile market, followed by Claro Perú, Entel Perú and Viettel (trading as Bitel). The market still has considerable potential to expand, especially given the country’s low fixed broadband penetration which has encouraged the take-up of mobile data services. The auction of spectrum in the 700MHz band and the release of spectrum in the 2.6GHz range has enabled the MNOs to expand the reach and capability of LTE services nationally.

This report provides an overview of Peru’s telecom infrastructure, together with profiles of the major fixed-line operators and a wide range of relevant statistics and analyses. The report also reviews the mobile market, including data on the key operators and their strategies in a highly competitive environment in addition the report covers the fixed and fixed-wireless broadband segments, including subscriber forecasts.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

• MTC reviews economic conditions of the public fibre backbone network;
• Movistar and Google extend balloon-based broadband trials;
• Government funds more regional broadband projects;
• Movistar deploys converged DOCSIS3.1 and FttP network;
• MTC to re-assign spectrum allocations in 2019 to facilitate 5G deployment;
• Regulator appoints new management company for number portability database to 2024;
• MTRs to be reduced from January 2019;
• Mobile roaming deal agreed with Chile;
• New rules enforced to streamline deployment of mobile infrastructure;
• Report update includes the regulator's market data to June 2018, telcos' operating data to Q3 2018, recent market developments.
• Assessment of the global impact of COVID-19 on the telecoms sector.

Companies mentioned in this report:

Telefónica del Perú (Movistar), América Móvil Perú (Claro Perú), Nextel Perú, Americatel Perú, Terra Perú, EMax, Olo del Perú (Olo), VelaTel/Perusat, Star Global Com, Best Cable Peru, DirecTV, Entel Perú, Viettel Peru (Bitel), Virgin Mobile, Gamacon, IDT, Convergia, Gilat To Home Perú, Rural Telecom, Valtron

• Key statistics
  • Country overview
• COVID-19 and its impact on the telecom sector
  • Economic considerations and responses
  • Mobile devices
  • Subscribers
  • Infrastructure
• Telecommunications market
  • Historical overview
  • Market analysis
• Regulatory environment
  • Historical overview
  • Regulatory authorities
    • Ministry of Transport, Communications, Housing and Construction (MTC)
    • Osiptel
  • Telecommunications Investment Fund (FITEL)
  • Interconnect
  • Access
  • Number Portability (NP)
  • Single concession regime
• Fixed network operators
  • Overview
  • Movistar Perú (Telefónica)
  • Claro Perú (América Móvil)
  • Americatel Perú
  • Gilat To Home Perú (GHP)
• Telecommunications infrastructure
  • National telecom network
    • Fixed-line statistics
    • Wireless Local Loop (WLL)
  • International infrastructure
    • Submarine cable networks
    • Satellite networks
• Broadband market
  • Introduction and statistical overview
    • Market analysis
    • Broadband statistics
  • Forecasts – fixed broadband market - 2019; 2021; 2023
    • Government initiatives
  • Hybrid Fibre Coax (HFC) networks
  • Asymmetrical Digital Subscriber Line (ADSL)
  • Fibre-to-the-Premises (FttP) networks
  • Other fixed broadband services
    • WiMAX
    • Satellite broadband
• Digital economy
  • e-Commerce
• Mobile communications
  • Market analysis
  • Mobile statistics
    • General statistics
    • Mobile voice
    • Mobile data
    • Mobile broadband
    • Forecasts – mobile subscribers – 2019; 2021; 2023
  • Regulatory issues
    • Spectrum regulations
    • Spectrum auctions and awards
    • SIM card registration
    • Roaming
    • Mobile Number Portability (MNP)
    • Mobile Termination Rates (MTRs)
  • Mobile infrastructure
    • 4G (LTE)
    • 3G
    • 2G
    • Other infrastructure developments
  • Major mobile operators
    • Movistar Perú (Telefónica Móviles Perú)
    • Claro Perú (América Móvil)
    • Entel Perú
    • Viettel Peru (Bitel)
    • Mobile Virtual Network Operators (MVNOs)
  • Mobile content and applications
    • m-commerce
• Glossary of abbreviations

List of Tables

• Table 1 – Top Level Country Statistics and Telco Authorities - Peru – 2018 (e)
• Table 2 – Evolution of GDP in Peru – 2000 - 2018
• Table 3 – GDP and telecom revenue (S/.) – 2006 - 2015
• Table 4 – Historic - Fixed and mobile market share of connections - 1997 - 2009
• Table 5 – Fixed and mobile market share of connections - 2010 - 2018
• Table 6 – Percentage of households with access to ICT services - 2005 - 2017
• Table 7 – Operator concessions by service - 2007 - 2015
• Table 8 – Telecommunications revenue – 2001 - 2017
• Table 9 – Telecommunications sector investment – 2010 - 2015
• Table 10 – Annual change in telecom service connections, by type – 2010 - 2015
• Table 11 – Fixed lines in service – operator market share – 2001 - 2018
• Table 12 – Movistar financial data by service (S/.) – 2014 – 2018
• Table 13 – Movistar financial data (€) – 2013 - 2018
• Table 14 – Movistar – fixed-line accesses – 2001 - 2018
• Table 15 – Claro – fixed line RGUs – 2001 - 2018
• Table 16 – Claro – fixed-line revenue – 2009 - 2018
• Table 17 – Americatel Peru revenue (ChS/) – 2012 - 2017
• Table 18 – Americatel Peru fixed lines – 2011 - 2018
• Table 19 – Fixed-line subscriptions – 2001 - 2018
• Table 20 – Fixed wireless lines in service –2008 - 2018
• Table 21 – International bandwidth –2000 - 2016
• Table 22 – Fixed broadband market share by operator – 2007 - 2018
• Table 23 – Historic - Internet users and user penetration rate – 1997 - 2009
• Table 24 – Internet users and user penetration rate – 2010 – 2018
• Table 25 – Historic - Broadband subscribers and penetration rates – 1999 - 2009
• Table 26 – Fixed-line broadband subscribers and penetration rates – 2010 - 2018
• Table 27 – Fixed broadband technologies – market share – 2000 - 2018
• Table 28 – Forecast broadband subscribers –2019; 2021; 2023
• Table 29 – Cable modem subscribers – 2000 - 2018
• Table 30 – DSL subscribers – 2000 - 2018
• Table 31 – Telefónica broadband subscribers – 2005 - 2018
• Table 32 – WiMAX broadband subscribers – 2010 - 2018
• Table 33 – Entel Peru fixed wireless subscribers – 2017 - 2018
• Table 34 – Other broadband subscribers – 2012 - 2018
• Table 35 – Satellite broadband subscribers – 2010 - 2016
• Table 36 – Historic - Mobile subscribers and penetration rate – 1997 - 2009
• Table 37 – Mobile subscribers and penetration rate – 2010 - 2018
• Table 38 – Mobile market share by operator – 2001 - 2018
• Table 39 – Mobile prepaid/postpaid subscribers – 2004 - 2018
• Table 40 – SMS traffic – 2004 - 2018
• Table 41 – MMS traffic – 2004 - 2018
• Table 42 – Mobile broadband subscribers (modem, USB) and penetration – 2009 - 2018
• Table 43 – Forecast mobile subscribers – 2019; 2021; 2023
• Table 44 – Accumulated mobile number portings by operator – July 2014 - Sept 2018
• Table 45 – Movistar Peru – mobile subscribers – 2001 - 2018
• Table 46 – Movistar Peru mobile revenue – 2001 - 2018
• Table 47 – Claro Peru mobile revenue – 2009 - 2018
• Table 48 – Claro Peru – mobile subscribers – 2001 - 2018
• Table 49 – Entel Peru mobile subscribers – 2001 - 2018
• Table 50 – Entel Peru revenue (ChS/.) – 2013 – 2017
• Table 51 – Entel Peru revenue ($) – 2013 – 2018
• Table 52 – Entel Peru mobile ARPU (US$) – 2017 – 2018
• Table 53 – Viettel Peru mobile subscribers – 2014 - 2018
• Table 54 – Virgin Mobile Peru mobile subscribers – 2016 - 2018

List of Charts

• Chart 1 – Percentage of households with access to ICT services - 2005 – 2017
• Chart 2 – Fixed lines in service – operator market share – 2001 – 2018
• Chart 3 – Movistar financial data by service (S/.) – 2014 – 2018
• Chart 4 – Fixed-line subscriptions – 2000 – 2018
• Chart 5 – Fixed broadband market share by operator – 2007 - 2018
• Chart 6 – Internet users and user penetration rate – 2005 – 2018
• Chart 7 – Broadband subscribers and population penetration – 2005 – 2018
• Chart 8 – Fixed broadband technologies – market share at a glance – 2000 - 2018
• Chart 9 – Mobile subscribers and penetration rate – 2005 – 2018
• Chart 10 – Mobile market share by operator – 2001 - 2018
• Chart 11 – Mobile prepaid/postpaid subscribers – 2004 – 2018
• Chart 12 – Movistar Peru mobile revenue – 2014 – 2018

List of Exhibits

• Exhibit 1 – Map of Peru
• Exhibit 2 – Bands and spectrum

Read the full report: https://www.budde.com.au/Research/Peru-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses