Market Research Report
Peru: Expansion of National Fiber-Optic Backbone Network and LTE Extension by Operators to Support Telecom Growth
|Published by||GlobalData||Product code||493944|
|Published||Content info||37 Pages
Delivery time: 1-2 business days
|Peru: Expansion of National Fiber-Optic Backbone Network and LTE Extension by Operators to Support Telecom Growth|
|Published: April 21, 2017||Content info: 37 Pages||
In 2016, Peru generated telecom service revenue of US$4.3bn (equivalent to 2.2% of nominal GDP), a decline of 1.8% since 2015, due to depreciation of local currency against the US dollar. However, in local currency, it increased by 4.1% over 2015. The mobile market continues to be the largest contributor to total market revenue, accounting for 69.6% of overall telecom revenue in 2016.
3G remains the most adopted technology in Peru accounting for 54.2% of mobile subscriptions in 2016, and its share will further increase to 61.5% by 2021, owing to increasing availability of low priced smartphones and attractive data plans. 4G subscriptions will reach 15.0m by year-end 2021, or 36.1% of total mobile subscriptions in Peru. Operator investment in LTE network expansion along with the rising demand for faster mobile data speeds will boost LTE adoption.
The top two operators, Movistar Peru and Claro Peru, which provide fixed, mobile and pay-TV services, accounted for 84.2% of total service revenue in 2016. Movistar Peru will continue to maintain its leadership position through 2021 but will face increasing competition, mainly in the mobile segment, from Entel, Bitel and MVNOs. Operators are focusing on 4G network expansions and affordable consumer-centric mobile data offerings to compete in Peru's telecom market.
Broadband lines will grow at a CAGR of 5.4% during 2016-2021, with the penetration of population to increase from 6.9% in 2016 to 8.5% by 2021. Growth will be driven by the government's national fiber-optic backbone plan supporting FTTH expansion and adoption to improve Internet access in the country.
It is expected that overall service revenue to grow at a CAGR of 2.2% during 2016-2021. Growth will be driven by Internet services, in particular mobile data services revenue, as a result of increasing adoption of mobile data services supported by 3G and 4G network expansion and the availability of affordable bundled data packages. The fixed/mobile revenue split will be dominated by the mobile segment through 2016-2021, driven by rising mobile broadband adoption.
The report "Peru: Expansion of National Fiber-Optic Backbone Network and LTE Extension by Operators to Support Telecom Growth" provides an executive-level overview of the telecommunications market in Peru today, with detailed forecasts of key indicators up to 2021.
In particular this report provides the following analysis -
Companies mentioned in this report: Movistar, Claro, Entel, Bitel, OLO, DirecTV