Peru to Offer Spectrum in Exchange for Coverage Commitments
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Loading... - Angela Auge
- 04 Nov 2024
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Just to enhance telecommunications infrastructure, the government of Peru has approved a plan to assign spectrum directly to telecommunications operators in exchange for commitments to improve coverage, particularly in underserved areas. This initiative aims to facilitate the deployment of 5G services using Standalone (5G SA) technology, which promises to revolutionize connectivity across the nation.
Direct Spectrum Allocation
The new regulation, issued by the Ministry of Transport and Communications (MTC), allows operators to invest in closing telecom gaps in rural regions or areas of social interest as compensation for the spectrum they receive. This approach is designed to promote the expansion of public telecommunications services without requiring operators to pay cash upfront for the spectrum.
The MTC will call for expressions of interest from companies wishing to acquire spectrum, and it will directly assign radio frequencies to those operators, provided that their demand does not exceed the available spectrum in the designated frequency bands.
Current State of 5G in Peru
As of now, the initial rollout of 5G technology in Peru is being conducted under the Non-Standalone (5G NSA) standard. According to MTC data, only 30 out of Peru’s 1,891 districts had partial 5G coverage last year, highlighting the need for further investment and infrastructure development.
Minister of Transport and Communications, Raul Pérez Reyes, emphasized the transformative potential of 5G technology, stating, “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.”
Coverage Commitments
Under the new plan, telecommunications companies will fulfill their commitments by ensuring the availability of 4G services along key routes, including the Panamericana Norte and Sur, as well as other major national roads. This requirement aims to enhance connectivity in critical areas while simultaneously expanding the reach of 5G technology.
Future Spectrum Tender
Looking ahead, Peru plans to conduct a spectrum tender to award 5G frequencies in January 2025. This tender is expected to involve 300 megahertz of spectrum in the 3.3-3.4 GHz and 3.6-3.8 GHz bands, along with 800 megahertz in the 25.9-26.7 GHz band, all aimed at achieving national coverage.
Investment promotion agency ProInversión has estimated a reference price of $759 million for the 3.5 GHz band and $85.8 million for the 26 GHz band. The concessions granted through this tender will be valid for a period of 20 years, providing operators with a long-term opportunity to invest in and develop Peru’s telecommunications landscape.
Peru’s telecommunications market is dominated by several major operators, including Claro (owned by America Movil), Movistar (owned by Telefonica), Entel Peru, and Bitel. These companies are expected to play a crucial role in the rollout of 5G services and the expansion of coverage across the country.
Peru’s initiative to offer spectrum in exchange for coverage commitments represents a strategic effort to enhance telecommunications infrastructure and promote the adoption of 5G technology. By focusing on underserved areas and ensuring that operators invest in critical infrastructure, the government aims to bridge the digital divide and unlock the full potential of modern connectivity for all Peruvians. As the country prepares for the upcoming spectrum tender, the future of telecommunications in Peru looks promising, with the potential for significant advancements in connectivity and technology.
