The government of Peru has unveiled a new plan to allocate spectrum directly to telecommunication operators, contingent on their commitments to expand coverage, rather than making cash payments. This initiative aims to bolster the deployment of public telecommunications services using 5G Standalone (SA) technology.
Through a decree from the Ministry of Transport and Communications (MTC), operators will be able to invest in bridging telecom gaps in underserved rural areas and other significant locations. This approach mitigates the financial burden on operators while promoting infrastructure growth.
The regulation permits the MTC to allocate radio spectrum directly to companies that express interest. This allocation will depend on the spectrum availability versus the operator’s demand. Currently, Peru’s 5G rollout adopts the Non-Standalone (NSA) architecture. Recent MTC data shows only partial 5G coverage in 30 of the nation’s 1,891 districts.
Raul Pérez Reyes, Minister of Transport and Communications, underscored the transformative potential of 5G. “5G will allow for the massification of connections by devices without losing quality in transmission, enabling applications such as the Internet of Things, telemedicine, tele-education, automation, and remote management, among other applications,” he said. Minister Reyes also mentioned that operators would meet their obligations by providing coverage along vital national highways.
Looking ahead, Peru plans a spectrum tender in January 2025 to assign 5G frequencies. This tender includes 300 megahertz in the 3.3-3.4 GHz and 3.6-3.8 GHz bands, and 800 megahertz in the 25.9-26.7 GHz band, covering the entire nation. ProInversión, Peru’s investment promotion agency, initially estimated a reference price of $759 million for the 3.5 GHz band and $85.8 million for the 26 GHz band. These concessions will be valid for 20 years.
Major telecom players in Peru include Claro, owned by America Movil; Movistar, owned by Telefonica, Entel Peru, and Bitel. This new strategy by the Peruvian government promises to reshape the telecom landscape by incentivizing operators to focus on infrastructure development, especially in rural and underserved areas. This approach not only accelerates technology adoption but also aims to narrow the digital divide in the country.
