Fees for coverage and works for taxes: The aces up the sleeve of Peru's IpT

Changes to the Peruvian coverage fee regime have allowed the wholesale mobile network Internet para Todos (IpT) to expand its services and reach lower-population localities.

The coverage fee is an initiative of the government to allow mobile companies to pay the rights to use spectrum through investments.

“We’re able to go [with connectivity] to much more complicated places,” said Teresa Gomes, CEO of IpT, during the second meeting on digital inclusion that took place on Monday in Colombia.

Created in 2019, IpT is a company jointly owned by Telefónica, Meta, CAF and IDB Invest to bring mobile coverage to rural areas of Peru.

While IpT initially deployed networks in localities with between 1,000 and 2,000 inhabitants, this year it has been able to start deploying the infrastructure in areas with lower population density, including between 50 and 100 residents.

Gomes did not provide details of the number of sites deployed by the company this year.

In March, IpT CTIO Alessandro Defilippi told BNamericas the company planned to invest US$20mn this year to reach 2,800 sites, some 200 more than end-2023.

This year, Peru’s transport and communications ministry (MTC) made changes to the coverage fee regime so operators could pay up to 60% of spectrum in investment commitments.

In addition, the use of a similar mechanism for the technological reconversion of the network was enabled and benefits were granted to those who had to contract satellite services or deploy energy infrastructure for the new radio base stations.

According to the MTC, infrastructure was deployed in 425 new rural locations this year through coverage fees, 85% more than in 2023.

Since its creation, more than 1,090 rural communities and 210,000 inhabitants have benefited from mobile services. The model has attracted investment of 500mn soles (US$133mn) from the private sector.

Gomes also announced that work is underway on an initiative to use the system of works for taxes, which allows for income tax to be paid in community investments.

"We want to be the first operator to have a works for taxes project," said Gomes.

According to the executive, this year changes have been made to the mechanism, making telecommunications projects, which until now have not been promoted through this vehicle, more feasible.

In addition to being the only private wholesale operator focused on rural areas, IpT is the operator with the greatest use of satellite technologies for backhaul services in Latin America, according to José Juan Haro, director of wholesale services and public affairs at Telefónica.

The company currently has 50 radio base stations connected to satellite services.

OTHER OPERATORS

In September, Telefónica announced that 150 4G internet base stations have been installed nationwide over the past four years through the coverage fee mechanism.

This year, the company plans to install a total of 72 new base stations using the mechanism. In addition, 30 stations will upgrade technology from 2G to 4G.

Claro, meanwhile, has deployed 217 base stations through the mechanism in four years. The deployment allows for 4G services in adjacent population centers, benefiting a greater number of residents in the towns located in the regions of Cusco, Puno, La Libertad, Amazonas, Huancavelica, Cajamarca, Áncash, Ayacucho, Piura and Huánuco, among others, the company reported in September.