📋 Tender Overview
Operating companies that access the allocation mechanism will be subject to compliance with mandatory investment commitments to close digital gaps in rural areas. According to the announcement made by the Minister of Transport and Communications, Raul Perez Reyes, Legislative Decree No. 1627 was published today in the official newspaper El Peruano, which establishes measures to promote the deployment of public telecommunications services through fifth generation technology (5G) or higher.
The new rule authorizes the Ministry of Transport and Communications (MTC) to assign radio spectrum directly to interested companies, after calling for expressions of interest, provided that the demand by said companies does not exceed the spectrum available in the corresponding frequency band.
Currently, the initial deployment of 5G technology in the country is being carried out under the NSA (Non-Stand Alone) standard, which implies 5G stations through an existing 4G LTE network, as has occurred in other countries around the world in its early stages.
The legislative decree seeks to assign a sufficient amount of spectrum in the frequency bands, as stipulated by the international standard, to achieve the optimal level of 5G service. This will allow the SA (Stand Alone) standard to be achieved and the speed offer will increase by up to 10 times.
5G will allow the massification of connections by devices without losing quality in the transmission, enabling applications such as the Internet of Things, telemedicine, tele-education, automation and remote management, among other applications, highlighted Minister Perez Reyes.
The head of the sector stated that the legislative decree states that, as compensation for the allocation of the aforementioned resource for 5G technology, companies will be subject to compliance with mandatory investment commitments aimed at closing gaps in public telecommunications services in rural areas or places of preferential social interest.
They [the companies] will pay commitments with obligations [through coverage] of 4G services throughout the North and South Pan-American Highways and the main national roads. Today there is 4G, but not continuously. They will also be asked for infrastructure associated with the Pan-American Games, said the head of the MTC.
In this sense, the regulation approved by the Executive seeks to improve the provision of telecommunications services to users and it is projected that with 5G mobile networks will support more users, more connections and higher speeds.