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Peru Telecommunications Report Q2 2008Product Type: Market Research ReportPublished by: Business Monitor International Published: April 2008 Product Code: R302-2788 Description Peru’s mobile market showed remarkable growth in 2007, reporting a 77% increase year-on-year to reach15.55mn subscribers by YE07. Penetration reached 54% for the year, far ahead of any forecasts. While itremains the country with the lowest penetration rate, it has closed the gap on its regional peers andoutshone all in terms of growth. Competition between the two largest operators remains fierce, withAmérica Móvil’s Claro chipping away at Movistar’s market leadership position. However, in Q307Movistar reported a recovery in its market share, regaining 0.7pps in the quarter. Both operators recordedhigh prepaid subscriber additions, although Claro has recorded a faster growing postpaid segment, butthis has yet to have a positive impact on ARPUs. However the operator’s MOU figures continue to riseand show positive growth. Owing to strong growth in the mobile and fixed-line sectors BMI has revised forecasts upwards andincluded forecasts through to 2012, when we expect mobile penetration to be over 90%. We do not expectthe market to grow as fast as 2007, as operators begin to recoup the costs of expansion and concentrate onthe prepaid sector. Although the regulator has given no indication of introducing further competition intothe market there have been moves to enforce network infrastructure sharing and a timetable forintroducing mobile number portability by 2010 has been confirmed by the regulator.5We have also revised forecasts upwards for fixed-line telephony as growth has continued despite themobile substitution rate and the incredible increase in mobile subscriptions. We expect that the marketwill continue to see growth beyond 2012, although population increases will see penetration rates flatten.However, Peru’s fixed-line market remains one of the few in the region where we expect growth tocontinue. Table of Contents
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