Lewes, DE -- (SBWIRE) -- 05/30/2014 -- Peru's fixed-line teledensity is the third lowest in South America after Bolivia and Paraguay. A number of obstacles to growth in the sector remain, exacerbated by the popularity of mobile services as a preferred alternative in many rural areas where fixed-line infrastructure remains poor. The Telecommunications Investment Fund FITEL provides subsidies for telecom services in rural areas and other places that are considered uneconomical for telcos.
Telefnica del Per (trading as Movistar) dominates the telephony market, followed by Amrica Mvil's Claro division and Americatel Per.
Although Peru's mobile penetration is below the regional average, the market remains very uneven, with low penetration in rural areas while multiple SIM card use is popular in urban areas. The market is a triopoly of Telefnica (Movistar), Amrica Mvil (Claro) and Americatel Per (Emtel). Vietnam's Viettel is expected to launch services later in 2014, following many delays, while Virgin Mobile also plans to enter the market as a Mobile Virtual Network Operator (MVNO). The market has considerable potential to expand, especially if economic growth continues in coming years.
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Broadband penetration is considerably lower than the regional average. The country remains affected by wide-scale poverty, limited levels of literacy, low computer penetration, and poor competition, which has made broadband services among the slowest and most expensive in the region. Nevertheless, strong broadband growth is predicted during the next five years at least as a result of the government's national broadband plan which aims to provide internet connectivity via a fibre-optic backbone to many less urbanised regions. Mobile broadband will be the main growth platform.
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