PPP AWARDS AND PROJECTS IN ASSETS OF TELECOMMUNICATIONS EXCEED US$ 5,400 MILLION

Lima - May 1, 2023.- In the last 21 years, PROINVERSIÓN has promoted and awarded 39 telecommunications projects for more than US$ 5,400 million, which has improved the quality of life of millions of Peruvians through the deployment of infrastructure and the modernization of networks that facilitate the offer of new services with better quality and greater reach in the country.

Of the total awarded between 2002 and 2023, 14 projects were awarded through the Public-Private Partnership (PPP) modality with an investment amount of US$ 3,664 million, and 25 through Projects in Assets with an aggregate investment and transaction amount of US$ 1,753 million.

A clear example of the positive impact of these awards is the expansion of telecommunications service coverage in the country. In 2015, 78% of the Peruvian population who lived in provincial capitals had access to Mobile Internet, while by 2022, it rose to 88%. Furthermore, in 2011, only 36% of the population used the Internet, while by 2022 this number will increase to 73%, according to INEI figures.

According to OSIPTEL, mobile lines have maintained a sustained growth from 2.3 million mobile lines in 2002 to around 41 million in 2022, which coincides with the growth of investments in the sector. This has been possible thanks to the extension of the fiber optic infrastructure network in Peru, which comprises 13,500 km of the backbone network, more than 30,000 km of regional sections, as well as around 70,000 km of networks of private operators.

In these 21 years, two important milestones have been achieved in the telecommunications sector with the intervention of PROINVERSIÓN, and they were the following: i) the entry of the fourth mobile operator to the market, with the award to Viettel of the 1,900 MHz Band (2011) and ii) the concession of the 700 MHz Band to the operators, Claro (América Móvil), Movistar (Telefónica) and Entel, which allowed the arrival of 4G technology to Peru. Both bands were granted by PROINVERSIÓN and represented more than US$ 1,000 million investment for our country.

It should be noted that the telecommunications sector contributes 5% of national production, and between 2021 - 2022, it has presented a growth rate of 12%, being a lever for the economic and social development of the country.

UPCOMING PROJECTS

In order to improve 4G mobile service (telephony and internet) in urban and rural areas of Peru, PROINVERSIÓN, in coordination with the Ministry of Transport and Communications (MTC), is promoting two Radio Spectrum Band Projects, which are expected to be awarded in June 2023.

This is AWS-3 Band, which is divided into two blocks (Block A of 2x15 MHz and Block B of 2x15 MHz); so that a bidder can bid for one or both blocks. Meanwhile, the 2.3 GHz Band maintains a single 30 MHz block.

The allocation of these blocks will be defined exclusively on the bidding terms of the offer made by the bidders of rural locations to be implemented within a certain period of time (Mandatory Investment Commitments).

In this regard, the awarding of both projects will allow a greater number of rural localities at the national level -which today have only 2G or 3G services- to also improve and have 4G mobile services, and thus have access to more information, improve the quality of their communications and receive distance education and telehealth services, which are of vital importance today.

Source: Press Release - PROINVERSIÓN