Spotlight: Peru telecom investments

Fiber optics and datacenters account for the biggest recent investments of telecommunications companies in Peru.

Operators such as Claro, Movistar and Optical Networks have announced investments in fiber optics. Meanwhile, GTD, Optical Networks and Claro have investments in datacenters in their plans.

The latest data from regulator Osiptel indicates that the telecoms sector invested US$819mn in 2021, with Telefónica (Movistar) and Claro contributing 66.1%.

The figures for 2022 are not yet known, but private investment in Peru grew barely 1% in the first half of the year, mainly explained by a boost in mining, according to data shared by Telefónica in its latest results report.

Regarding public investment, the transport and communications ministry (MTC), through telecom program Pronatel, invested 413mn soles (US$107mn) between January and September.

The investment was mainly used for the deployment of fiber optics in rural areas. In November, the figure stood at 38mn soles, mainly for broadband projects in 18 regions of the country, the 911 emergency line and the fiber optic backbone network.

BNamericas reviews the main projects and investments of telecommunications companies in Peru.

TELEFÓNICA

Telefónica del Perú does not break down investments made in Peru, but in March Fitch estimated a capital intensity of 10% for the company during 2022.

In 2021 the company invested 816mn soles, according to Osiptel data.

The subsidiary of the Spanish company recently announced that it plans to reach 2mn homes passed with fiber optics by the end of 2022. 

The fiber network extension project began in 2017 and has already passed 1.7mn homes. In the next three years the company expects to reach 4mn homes.

Additionally, within the framework of its Internet para Todos (Internet for All) initiative, Telefónica announced that it has reached 3mn Peruvians with 4G mobile internet in more than 15,000 rural communities, or half the goal the company set in 2019 to reach 6mn users.

CLARO

The Peruvian subsidiary of Mexico’s América Móvil aims to have at least 50% of homes covered with fiber optics next year.

According to company data, Claro has deployed the most fiber this year and aims to accelerate deployment in 2023.

The operator is also planning a US$10mn investment for the first stage of a datacenter expansion in Villa El Salvador, on the southern outskirts of Lima.

The project is due to start up during the second quarter.

The company does not provide investment figures but in 2021 Claro Peru invested 1.1bn soles.

ENTEL

Entel invested US$88.1mn between January and September this year in Peru, according to its results report, down 4% compared to the same period 2021.

According to Osiptel, the company disbursed 450mn soles in 2021.

In April, the company had announced an investment of US$150mn in Peru for 2022, of which US$77mn would go to the mobile segment to strengthen the 4G network and begin the deployment of 5G.

The company also announced a disbursement of US$20mn for the corporate segment, mainly customer connectivity projects and digital businesses, with a focus on cloud, IoT, cybersecurity and big data.

DATACENTERS

GTD plans a US$50mn outlay for the installation of its second datacenter in Peru, which will be in the Lima region.

The tier III datacenter will have more than 6,000m2 of infrastructure and 2,000m2 of white space, with the capacity to house more than 900 racks, according to press reports.

Peru’s Optical Networks plans to increase its investments by 50% next year, according to newspaper Gestión.

The company has said that it plans to invest in two new local datacenters to meet the growth in demand for business services. In addition, it is mulling a third in Lima.