The launch of Vietnamese based Viettel into the Peruvian market by offering low cost, prepaid services has intensified competition and there are signs that Entel's recent shakeup has forced the company to adopt an aggressive strategy that will increase competition. In the fixed sector, BMI supports the view that Azteca's Fibre Optic Backbone Network, set to be completed in March 2016 , will significantly boost broadband coverage, although mobile broadband will continue to be a key growth area. Despite telecoms penetrations lagging behind many other countries in the region, the market is innovative with mobile banking and OTT TV launching. Due to Peru's size, stronger long-term growth can be achieved if infrastructural problems and piracy are overcome.
|Primed for Take-Off: Smart Growth & Falling ARPU|
Latest Updates and Industry Developments
163,000 new mobile subscriptions were added in H115, taking the total to 31.189mn, reaching a penetration rate of 100.1%. This is solid growth and we anticipate higher growth towards the end of 2015 and 2016 and Vietnam based Viettel aggressively adds new subscriptions in the rural and agrarian areas of Peru.
4G LTE technology will become a primary driver of growth, especially with Movistar now having over 1mn LTE subscribers as of September 2015. We estimate 6.9mn 3G and 4G subscribers at the end of 2015, a number growing to 11.78mn at the end of 2019.
Bitel, Vietnamese Viettel's, Peruvian company has added an impressive 526,000 subscriptions from beginning operations at the end of 2014 till H115. We estimate Bitel and the upcoming MVNOs, some of which could launch operations at the end of 2015, will energize competition, lower ARPUs and drive significant growth in the market towards the last months of 2015 and well into 2016.
The Peru Telecommunications Report features BMI Research's independent industry forecasts on the future strength of Peru's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Peru Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Peru.
- Benchmark BMI's independent telecoms industry forecasts for Peru to test other views - a key input for successful budgeting and strategic business planning in the Peruvian telecoms market.
- Target business opportunities and risks in Peru's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Peru.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
BMI Industry Forecast Scenario
Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
- Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
- Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.
BMI’s Telecommunications Risk Reward Index
BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:
- Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
- Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.