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A brief review of the history of telecommunications in Peru

Nowadays it has become essential to have a Smartphone. A Smartphone is defined as a cell phone with a touch screen that allows the user to connect to the internet, manage their email accounts and also install other applications and resources.

At Guinea Mobile, we want you to learn more about telecommunications, so we present a brief review about the history of telecommunications in Peru.

Telecommunications are defined as “all transmission, emission or reception of signs, signals, writings, images, sounds or information of any nature by wire, radio electricity, optical means or other electromagnetic systems”.

1998: Telecommunications as part of a state monopoly

In 1998 in Peru there was a telecommunications monopoly run by the government. The quality of the service provided by the state was very basic and also having a telephone was considered a luxury. The experience of talking on the telephone was very poor. Furthermore, there was no actor in charge of supervising or improving the quality of the service. The state companies that controlled the monopoly were “Compañía peruana de teléfonos” and Entel.

1991: New telecommunications law

A new telecommunications law was enacted. This law would now allow private investment and free market competition, setting the standard for what would come later, the development of telecommunications in Peru.

1993: The creation of Osiptel

Osiptel (Supervisory Agency for Private Investment in Telecommunications of Peru) is created, the entity in charge of regulating and supervising the market of public telecommunications services in Peru.

1994: The arrival of Telefonica to Peru

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In 1994, Peru had one of the lowest telecommunications penetration indicators in Latin America. The country was going through an economic crisis and the state telephone company was at the level the country was looking for. An actor with enough power and influence to bring connection to the whole country was desperately needed.

This is how Telefonica arrived, acquiring the two state companies (CPT and Entel) in an operation worth 2,002 million dollars with the ambitious plan of bringing connectivity to every city in Peru. Telefonica started growing at a much faster and more efficient rate than it would have taken a state-ran telecommunications company. They started with the capital and their next objective was reaching the most remote provinces of the country with a service of good quality.

In 1994, the law of progressive De monopolization was also signed, which promoted free competition in the industry.

1997: Pre-paid alternative comes into action

The pre-payment method was introduced in Peru. With prepayment, the customer in advance in exchange for access to minutes of service.

1998: The opening of the telephone market

Between 1998 and 2005, Peru experienced the opening of the telephone market plus the expansion of the fixed internet and mobile telephone services occurred. As a result of the opening of the market, the number of operating companies and services increased. The number of users began to grow more than ever. Competition started encouraging companies to provide better services, and now there were a few brands competing in Peru.

The Interconnection Regulation is approved. Interconnection is mandatory for a country to join the world of telecommunications. This way a smaller operator can use the local carrier network to provide its services.

The Opening of the Telecommunications Market in Peru is agreed.

2001: The arrival of Tim to Peru

The telecommunications company Telecom Italia Mobile TIM entered the Peruvian market, becoming the third operator in Peru.

2005: Claro’s arrival to the country

In 2005, the America Movil brand arrived in Peru from Mexico, bringing the operator Claro to join the telecommunications industry in Peru.

Starting in 2005, development and innovation increased thanks to the growth of telecommunications services. The new competitive scenery led to brands significantly improving their services.

At this point, telecommunications in Peru were already implementing much more than just a telephone service. The internet led telecommunications to evolve.

2008: The 3G network

In April 2008 Claro installed itself as the first company in Peru to launch the 3G service on a GSM platform. GDM refers to the Global System for Mobile Communications.

2011: New competitors in the market

Viettel Group is awarded a concession, becoming the fourth mobile phone operator in Peru.

2010-2020: Competition leads to development and quality

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The number of users has risen from 56,000 in 1994 to around 30 million today, almost the entire population of Peru. In this time, we now have high quality telecommunications that reach all territories which is key for the development of a country, in this case Peru. Today 80% of metropolitan Lima is connected to the internet. When we go to the suburbs and rural areas this percentage is lower.

In the present, the leaders in the Peruvian telecommunications market are Bitel, Claro, Entel and Movistar. The increase in competition in recent years forced Claro and Movistar to rethink their strategies to prevail in the market.

In addition, MVNOs are currently on the rise in the Peruvian market. An MVNO refers to a Virtual Mobile Operator, which in telephony is a company operating under the infrastructure of a larger company. This means that they can provide their mobile phone service without the need of their own network, since they use the network of another operator.

You might also be interested: What is an MVNO or mobile virtual network operator?

What are the benefits of using an MVNO?

Having an MVNO gives the consumer more freedom, since they are no longer committed and attached to a rate plan. Another benefit of MVNOs compared to traditional companies is that they have a greater diversity of offers and can compete with better prices. In an MVNO you will find an operator that specifically suits your needs. For example, if you only want minutes for long distance calls, you can find an option that satisfies you and therefore you only pay for the service you use.

If you want to install your own Virtual Mobile Operator, at Guinea Mobile we can help you by offering several significant digital solutions. Contact us if you are interested in increasing your customer loyalty, information and revenue through mobile subscriptions.

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