Peru held its auction of 4G spectrum during July 2013, successfully selling two blocks of frequencies to Telefonica and Entel, through their respective subsidiaries Movistar and Americatel Peru. While this is a strong step forward for the market, the decision to auction just two blocks has left the second-largest player Claro, without 4G spectrum. This could pose a problem over the medium term, as mobile broadband growth in Peru has been driven by the Movistar-Claro competition. However, the government announced plans to auction another batch of frequencies by end-2013, leaving the door open for Claro to enter the market, albeit at a later date and at a disadvantage to its rivals. There are the foundations for strong growth in the second half of 2013 and into 2014, with entrance of new players Entel and Viettel into the mobile sector. A high level of postpaid growth is another positive sign for the market and indicates there is growing demand for higher value services and penetration rates below 100% show there is good growth potential remaining.