Peru has one of the lowest rates in fixed-line infrastructure in South America. Obstacles fordevelopment of the telecom sector in the country include widespread poverty, expensive telephoneservices, and geographical inaccessibility in the rugged mountain areas and in the Amazon jungles.The government provides subsidies for telecom services in rural areas and other places that aremarginal for private providers through a specialized agency, plus a long-term investment plan todeploy telecom infrastructure and services in underserved areas.
Peru has a relatively poor internet penetration, with almost a 67% rate by the end of 2018. Fixed-line teledensity is only about 10 per 100 persons. Mobile-cellular teledensity reached 125 telephones per 100 persons in 2018 thanks to harsh competition.
The incumbent still dominates the fixed telephony market. Peru’s mobile penetration is on a par with the regional average, though high penetration is attributed to the popular use (especially among urban dwellers) of multiple mobile subscriptions. Four mobile network operators compete in the mobile market. Broadband subscriber penetration in Peru is much lower than the Latin American average, partly due to poverty, limited levels of literacy among some demographics, low computer penetration, and rugged terrain. With the expansion of networks and the declining price of laptops and smartphones, the use of mobile broadband and phone-based internet browsing is escalating. The technical regulator of communications in Peru is the Presidency of the Minister Council, through OSIPTEL(acronym in Spanish for Supervisory Agency for Private Investment in Telecommunications).
The Spain-based Telefónica Group, trading as Movistar, has been in the country since 1994 andowns the largest fixed-line operator in the country after buying a large share of State-owned CPTand Entel Perú. The local subsidiary offers local, long-distance, and broadband services nationwide.The mobile business is run by Telefónica Móviles through a local subsidiary.
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