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Peru: National Broadband Plan and Spectrum Auction to Fuel Growth

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Broadband penetration in Peru is expected to double from 4.7 percent in 2011 to 9.3 percent in 2016, driven by the government's national broadband plan to bring Internet connectivity via fiber optic cables to isolated regions, according to a new report from Pyramid Research.

"In 2011, broadband penetration will reach 4.7 percent, still among the lowest in the region just ahead of Ecuador, Paraguay, Bolivia, Guatemala and Nicaragua," says Pyramid Research Analyst, Juliana Gomez.

Broadband penetration will be driven by the government's national broadband plan, which aims to bring Internet connectivity via fiber-optic cables to isolated regions such as the Sierra and Selva. As economic development touches cities outside Lima in the Sierra region of the country, competition for new subscribers will expand the reach of fixed networks. Telefonica and Telmex are both offering double- and triple-play bundles, including fixed telephony, broadband Internet and pay-TV services.

"Given the low penetration of Internet services and the government support for developing broadband networks, broadband has great potential to fuel bundles," she indicates.

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