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Peru: Osiptel believes small operators and wireless to increase teledensity Print E-mail
Tuesday, 31 January 2006
Jaime Cárdenas – general manager of Peru’s telecommunications regulator Osiptel –believes that small operators and wireless technology will facilitate an increase in teledensity.

Cárdenas had previously said that expanding fixed line penetration would be Osiptel's top priority for 2006, but now it appears they will attempt to increase teledensity by whatever means necessary.

"(Osiptel) considers having a connected country to be its highest priority, be it with wireless or fixed lines," said Cárdenas. "However, we think that mobile telephony will grow more dynamically, as is happening everywhere."

In order to encourage the creation and expansion of small operators operating in under-served areas, Osiptel intends to implement a strategy of attracting small private operators, using wireless to promote fixed-line competition, and using the Fitel fund.

The Fitel fund is key to Osiptel's strategy. Most recently, local operator Valtron was granted US$ 295,000 in Fitel funds to create a wireless network in Huarochirí province. The project, worth US$ 1.2mn in total, will provide fixed, mobile and public telephony, as well as internet service.

Osiptel currently estimates Peru's 2005 mobile penetration at 19.33%, slightly lower than previously published figures, and calculates fixed line penetration at 7.9%. Public telephone penetration is far higher, at 57%, but most of these phones use satellite uplinks and cannot be expanded to handle subscriber lines, Cárdenas explained.

Source: Business News Americas - WDR/Intelecon Regulatory News