MVNOs could influence Peru's mobile regulations

Wednesday, January 3, 2018

The growing number of mobile virtual network operators (MVNOs) in the Peruvian mobile market could have an impact on costs that affect the sector, according to Carlos Huamán, head of Peruvian consultancy DN Consultores.

Four MVNOs are expected to operate in Peru this year. Huamán said MVNOs could pressure the authorities to cut the costs of biometric ID equipment and modify interconnection rates.

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Telecom regulator Osiptel proposed reducing interconnection rates to US$0.002 per minute for rural areas and US$0.006 for urban areas, not including tax (18%). In Huamán's view, this could foster the entry of more MVNOs, reported daily El Comercio.

Even though MVNO Virgin Mobile failed to survive in the Peruvian market, the number of MVNOs in the country is going up.

Spanish operator Inkacel inherited Virgin's assets and subscribers.

Tetra-based trunking service provider Dolphin Telecom was cleared to use Chilean telco Entel's network, despite the latter's reservations.

Finally, Newcomer Famagusta is expected to begin commercial operations in May and local player Cuymobile was granted an MVNO license in September.

Peru's traditional operators consist of Spanish telco Telefónica, who had a m 39.5% market share in 3Q17, Claro (33%), Entel (16%), and Bitel (12%).