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Peru Telecommunications Report Q4 2009Product Type: Market Research ReportPublished by: Business Monitor International Published: September 2009 Product Code: R302-7968 Description The Peruvian mobile market continues to grow apace with the imminent introduction of a new operatorcreating further growth prospects for the market. Although growth slowed in the first quarter of the year,a new mobile operator should bring back some growth to the market. The two companies interested inacquiring the spectrum will certainly have their work cut out to compete against Telefónica’s Movistarand América Móvil’s Claro, the operators that control over 95% of the market. However, BMIwelcomes the addition of a new operator into the market and expects that the company will invest heavilyin order to make its mark on the Peruvian mobile segment. Meanwhile, the existing operators in themarket, which includes corporate-focused Nextel, have reported continual declines in ARPUs as theycompete to boost their subscriber bases and encourage greater usage. This news will of course be ofconcern to the new entrant, but, with such high scope for growth, the Peruvian market continues topresent strong opportunities.Meanwhile, Peru’s fixed-line market retains its upward trend even as the market is affected by theexpansion of mobile services. As many subscribers cannot afford mobile services, the alternatives offeredby a fixed line, particularly fixed wireless, enables more Peruvians to gain access to telecoms services. This has seen the market continue to rise despite a tendency across the region for declining demand forfixed-line services. Although some fixed-line markets have seen slow declines, the interest in broadbandservices continues to grow, helping to maintain the market to some extent. Increasingly, bundled servicesare important for driving up broadband subscriptions, encouraging subscribers to spend more on theservices they use. Telefónica del Perú (TdP) continues to report strong growth for its pay-TV servicesalso, adding a further option for subscribers. Peru fell one place in our Business Environment Rankings in Q409 displaced by Colombia’s strongershowing. The market’s continually falling ARPU impacted its ability to retain its position in the middle ofthe table and saw Colombia overtake it for the first time in several quarters. Peru’s continued growth hadheld its position firmly in the centre of the table, but slower forecast expansion of the market and seeingthe country as one of the few to record a decrease to its Country Risk score brought it down to eighthplace. While Peru remains one of the few markets with considerable growth potential remaining,operators have lowered prices heavily in order to drive this growth and are therefore experiencing theeffects on their results. New competition should spur further market growth and help Peru climb back upin the rankings. Table of Contents
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