📋 Tender Overview
The demand for connectivity continues to show sustained growth in the country. The fixed public internet service in Peru reached 3,362,558 connections reported by operating companies in the first half of the year, an annual advance of 5.1%, reported the Supervisory Agency for Private Investment in Telecommunications (OSIPTEL).
This result demonstrates the importance acquired by this service in the lives of millions of Peruvians. According to the computer portal PUNKU, in the last twelve months, fixed internet connections increased by more than 163 thousand and the total reached by June 2023, represents more than double the number of connections registered ten years ago nationwide.
According to the information published on the PUNKU computer portal, at the end of the first half of 2023, the connections of the residential fixed internet segment, dedicated to the home, totaled 3,134,227, increasing by 5.5% compared to the same period of 2022 and representing 93.2% of total connections. While the commercial fixed internet segment grew by just 0.2% in the analyzed period reaching 228,331 connections, equivalent to 6.8% share.
FIBER OPTICS DRIVES THE GROWTH OF FIXED INTERNET NATIONWIDE
The growth of fixed internet connections, evidenced as of June 2023, has been driven by the increase in connections using fiber optics (+76.6% in the last year), as a result of the technological change in the service offer of the operating companies with more years in the market, but, above all, the exclusive use of this technology by new competitors.
Cable modem technology, known as HFC (Hybrid Fiber Coaxial), fell in volume and share to 46.62% of the total; Thus, by a minimal difference, it gave way to fiber optics (46.63%) as the most used technology of fixed internet service.
Meanwhile, the use of xDSL technology (the one used by the telephone line for data transmission), as well as Wimax technology, of wireless type, fell to 1.68% and 0.01% of the market share, respectively, to June 2023. Other technologies reach 5.06% share.
TELEFONICA'S MARKET SHARE RETREATS, WOW AND WIN ADVANCE
According to information processed by the Directorate of Regulatory Policies and Competition (DPRC) of OSIPTEL, the increase in fixed internet connections also led to a variation in the participation of operating companies. As of June 2023, Telefónica reported 244,206 fewer fixed internet connections (-13.65%) than June last year, which also reduced its market share by about 10 percentage points in the last twelve months. While Entel decreased by 24 896 (-25.65%) fixed Internet connections since June 2022, which shortened both its participation in the first half of this year.
Meanwhile, Claro's fixed internet connections grew by just 4151 (0.5%), but its market share fell by 1.17 percentage points.
The ground lost in the market share by Telefónica in that period was mainly taken advantage of by the company Wow, which reported an increase of 201,944 connections (+374.6%) than June 2022 (which meant an additional 5.9 percentage points in its share) and by the Win group that added 164,229 connections (+74.3%) in the last year (increasing its fixed internet market share by 4.5 percentage points).
Despite this, Telefónica del Perú continued to lead this market with a share of 45.95%, followed by Claro (25.56%), the Win group (11.45%), Wow (7.61%), Entel (2.15%) and the group formed by Fiberlux, Fiberlux Tech and Fiberline (1.23%).
CONNECTIONS WITH SPEEDS OF MORE THAN 100 MBPS DOUBLED IN THE LAST YEAR
At the end of the first half of 2023, Peruvians are still interested in accessing higher speed ranges of fixed internet download. Thus, in just one year, the number of connections with a download speed range equal to or greater than 100 Mbps (megabits per second), more than doubled, growing 15.22 percentage points in participation at the level of total fixed internet connections, reaching 25.94% as of June of this year.
TUMBES AND LORETO REGISTER GREATER GROWTH IN FIXED INTERNET CONNECTIONS
Fixed internet penetration continues to advance in regions. Without considering Lima and Callao, at the end of June 2023, they grouped 41.37% of the total connections, equivalent to almost 1.4 million connections. This meant a share of 2.44 percentage points (145,515 connections) more than in June last year. Meanwhile, although connections in Lima and Callao increased by 0.91% (17,699) compared to the previous year, representing 58.63% of the total at the end of the first half of 2023.
Regions such as Tumbes (+66.09%), Loreto (+51.25%), Ica (+36.35%) and Apurimac (+33.80%) were the ones that registered the greatest increase in the number of fixed internet connections during the last twelve months, unlike Callao (-9.73%), Madre de Dios (-9.35%), Pasco (-7.11%), Cusco (-2.42%) and Junín (-1.88%) which were the regions that registered the greatest reduction.
The information in this report corresponds to the analysis prepared by the Directorate of Regulatory Policies and Competition (DPRC) of the regulatory entity, based on the information reported by the operating companies within the framework of the Periodic Information Requirements Standard (NRIP).
