The telecommunications industry in Peru in recent years

Telecommunications

The telecommunications industry in Peru in recent years

Around the world, in the last two decades, the telecommunications industry has evolved in an exceptional way. This evolution is present since Peru made the transition from state monopoly to privatization in 1994, the telecommunications industry in the country has grown a lot from then until now.

According to information compiled in 2019 by Osiptel, the Supervisory Body for Private Investment in Telecommunications in Peru, approximately 97% of Peruvian households have mobile telephony and 75% have Internet access.

In the following article of Guinea Mobile we will analyze the impact of the telecommunications industry in Peru in recent years.

In the economy:

In 2020, the telecommunications market contributed substantially to the national economy, contributing 4.8% of the Gross Domestic Product.

In addition, telecommunications have a positive impact on the economy in several ways. To begin with, they increase productivity in individuals and companies. Telecommunications and connectivity provide efficient access to basic and relevant information. In addition, telecommunications are an important source of jobs in Peru, as they drive entrepreneurship and innovation, which generates more job opportunities. All of this has a positive impact that helps reduce poverty and generates economic growth.

Part of the success in the evolution of telecommunications is due to the regulations that the government has been inserting. That is, thanks to the regulatory framework to generate greater competitiveness, market players invest more in infrastructure and also improve their services.

Telecommunications in Peru

In South America, Peru is behind countries such as Brazil and Chile in terms of access to telecommunications. There is no doubt that a lot of progress in the country has been made, especially in the regulatory area. There are really good indicators, such as the fact that today in Lima there is up to 80% Internet connectivity. On the other hand, in rural areas the figure is only 20%. In terms of mobile telephony, Peru has around 20 million users, almost 80% of the total population.

telecommunications impact peru

Leading telecommunications companies in Peru

One of the great benefits of Peru having a competitive telecommunications industry is that customers have the ease of choosing from a range of large companies that offer their telephone services. Among the most important operators in Peru are:

Claro Peru:

It is an América Móvil company owned by billionaire Carlos Slim. Claro has been offering its telecommunications service in Peru since 2005. It entered the telecommunications market in the country being already a consolidated brand in the international market, especially in Latin America, and quickly became one of the leading telecommunications companies in Peru.

industria telecomunicaciones impacto peru

Bitel:

Bitel is a telecommunications company of Vietnamese origin. Bitel installed its operations in Peru in 2014 and by 2019 it reached 16.3% of the Peruvian market. It is the mobile operator with the largest fiber optic network in Peru. Fiber optics is the technology used to transmit data through fiber strands over long distances.

Entel Peru:

It is a branch of the Entel Chile group that arrived in Peru in 2014. Interestingly, according to figures from Osiptel, it has managed to become a leader in the telecommunications industry in Peru.

Movistar Peru

Movistar is the subsidiary of the multinational telecommunications company Telefónica. It is one of the largest telecommunications companies in the world with presence in 21 countries. It was a pioneer in the 1990s in Peru and today remains one of the leaders.

During the crisis:

The telecommunications industry in Peru had a very important growth during the pandemic crisis, growing at a rate of up to 6%. This was motivated by the growing need for connectivity during the quarantine. Therefore, the industry was not negatively affected but the opposite.

Improvement:

Despite the constant evolution that has taken place for telecommunications in Peru, there is still a lot to do for improvement. The most remote regions, such as the high mountains and the jungle, where there are communities that are still disconnected, need to be reached.

For example, in the capital of Loreto, Iquitos, a very important traditional city in Peru, was only integrated to 4G a few years ago. The goal we should be aiming for is to achieve the same high quality of telecommunications connection for all regions of Peru in the next decade.

Part of the responsibility for achieving total coverage in the country is attributed to the private sector as well as to the state. It will be an objective for regional governments in the coming years to achieve connectivity in their communities. The state will have a leading role in the expansion of telecommunications throughout Peru.

At Guinea Mobile we are aware of the latest technological trends. If you are looking to improve your company’s communication through mobile subscriptions, contact us and we will help you.

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