Enabling 4gG/LTE Technology
In July 2013, the government awarded two spectrum blocks in the 1.7/2.1 GHz band (AWS) to Telefónica Móviles and Entel for more than US$255 million. The measure promoted deployment and implementation of mobile internet services with 4G-LTE technology with nationwide coverage. This technology allows mobile internet browsing at higher speeds than previous technologies. Moreover, it is worth mentioning that it established a minimum speed for the provision of internet services unparalleled in the country (1 Mbps per user).
In order to implement the mobile network in this band, operators have been investing around US$ 1.1 billion. To date, the 4G-LTE technology is offered in 90 provinces of the departments of Ancash, Arequipa, Cajamarca, Cusco, Ica, Junín, La Libertad, Lambayeque, Lima, Moquegua, Piura, Puno and Tacna. Subsequently, as part of its obligations within a period of four years, the coverage of this service will be national in all major cities and tourist places of the country (234 seats). It will benefit from 4G-LTE coverage approximately two thirds of the Peru’s population.
Expansion projects of the 4G-LTE Internet service
In June 2014, ProInversión was put in charge of managing a tender for awarding three spectrum blocks in the 700 MHz band (known as the Digital Dividend) to make 4G-LTE high-speed mobile internet services accessible to the masses, a process that started with the implementation of the AWS band.
This tender will contribute to extending high-speed broadband mobile internet service coverage to the most distant and poorest towns and villages of the country, because it can provide greater coverage at a lower cost than other spectrum frequencies. Moreover, it will improve the quality of the service, because it offers better coverage inside buildings.
(4G) LTE tender
Entel Perú and Telefónica Móviles: mobile internet services
- Awarding year: 2013
- Obligation per company: provide service in 224 districts and 10 towns and villages
- Base price: US$63.4 million
- Financial bids: US$105,511,176.00 (NEXTEL) and US$152,229,000.00 (TM)
- Concession period: 20 years as of signing date (September 30, 2033 for NEXTEL, and October 10, 2033 for TM)
- 20-year investment (2013 to 2033): US$885 million*
2015 to 2025: US$442.5 million (US$44.25 million per year)**
- TM started operations on January 2, 2014. Progress: provinces of Piura, Arequipa, Trujillo and Chiclayo
- Nextel began operations on September 24, 2014, having installed base stations in the district of San Borja, which promotes competition in the mobile communications market
- On September 25, Nextel del Perú SA changed its corporate name to ENTEL PERÚ S.A.
* Amount estimated by the Deputy Ministry of Communications. It has not been established in the concession contract.
** Annual estimate considering the total estimate.
Concession Contract signed with Telefónica Móviles SA – Block A
Concession Contract signed with Americatel Perú S.A. - Block B