Conecta Peru 2025 – Are MVNOs the answer to Peru’s telecommunications market challenges?

Peru’s telecommunications market is highly competitive with low ARPU, increasing amounts of network traffic, and regulatory obligations. However, the country is primed to benefit from MVNO expansion.

Conecta Peru brings communication service providers and vendors together to explore solutions to complex industry and network challenges. Squire Technologies is proudly bringing its core network optimisation solutions to Conecta Peru, offering first-class network efficiency, flexibility, and scalability.

Arrange a meeting

Peru’s telecommunications market challenges

Peru’s telecommunications market faces several challenges, such as:

Increased competition due to lower barriers to entry and regulations making it easier to switch networks. Competition-based price cuts reduce average revenue per user (ARPU), undermining network investment capital.
Expanding coverage to remote, difficult-to-access areas, like the Amazon Rainforest, increases the need for strategic trade-offs. Investment in these areas may also have a low return on investment due to low ARPU.
Rising demand for OTT and streaming services is increasing data loads on networks. Low ARPU and investments in coverage make it hard to undertake network capacity and efficiency investments.

Are MVNOs the answer to Peru’s telecommunications market challenges?

In some remote parts of Peru, adoption of mobile connectivity is on a par with parts of Africa. Affordability is a big problem for some citizens. The answer could be to establish more MVNOs that can provide rates that suit different segments of society.

It’s now easier to launch an MVNO in Peru thanks to:

Lower barriers to entry.
Advanced technology.
Easier switching between networks.
National digitalisation initiatives.

Recognising the positive potential of national digitalisation, Peru’s government is undertaking a significant project to improve the digital economy. The government is focused on delivering digital transformation, equitable access to information, and building digital skills and inclusion.

The Peruvian government is investing heavily in fibre optic deployments to reach underserved areas. While microwave connections are cheaper to install, a fibre optic backbone will provide reliable data transport for growing data demands.

However, the problem is that providing coverage to underserved areas doesn’t necessarily ensure adoption of connectivity. Where affordability is the main barrier to mobile adoption, citizens need cost-effective options, which is where MVNOs come in.

Mexico has seen incredible success with MVNOs thanks to government investment driving national digitalisation and coverage extension. The merger of Mexico’s Altán Redes with the government-run CFE-TEIT created a wide state-controlled network, benefiting MVNO growth. The move enables a range of new MVNOs to enter the market and extend tailored offers to underserved areas.

Managing increasing network traffic

Increasing network traffic from additional subscribers and IoT devices is a further problem for operators. Data traffic on Latin American networks is expected to increase from 11GB per month per smartphone in 2023 to over 40GB by 2028. The nature of multi-generation networks further complicates the situation.

Managing traffic on multi-generation networks and enabling network scaling and flexibility will be critical for the nation’s digital transformation. Squire Technologies’ Sigla platform unifies multi-generation network mediation, routing, and interworking, security, and measurement, reducing network complexity and operating costs.

In recent years, Telesur, in Suriname, undertook a digital transformation, enabling greater network flexibility. Sigla’s forward-and-backward compatibility was integral in delivering customer self-service options across all of Telesur’s network generations. Furthermore, it enabled the quick creation and delivery of new offers for customers.

Telesur’s interworking solution goes live in Suriname

Conclusion

Peru’s telecommunications market faces considerable challenges with network data demands, high competition, low ARPU, and obligations of equal access. MVNO expansion could be one way to address the challenges, providing affordable options for people in underserved areas.

MVNEs like Guinea Mobile understand the need for MVNOs and enable MVNOs to launch in just three months. Guinea Mobile targets many segments through several MVNO brands covering eSIMs, IoT, roaming contracts for tourists, and more.

“By embracing MVNOs, telcos in Peru can facilitate more affordable contracts for specific underserved segments. However, they must be careful not to cannibalise their own customers.

“Government buy-in is essential. Although the promise of equal access for all increases the pressure on telcos. So, network efficiency solutions will also play a role, saving money, scaling up coverage, and democratising networks.”

Luis Ricardi, Business Development Manager at Squire Technologies

Squire Technologies is delighted to bring its range of network optimisation solutions to Conecta Peru.

Arrange a meeting with our team and download a copy of Core Network Optimisation 2025 to find out more about our solutions.

Arrange a meeting

References

https://www.trade.gov/country-commercial-guides/peru-digital-economy

https://www.fitchsolutions.com/bmi/telecommunications/mexicos-mvno-market-growth-shows-state-infrastructure-ownership-is-reshaping-10-10-2025?mkt_tok=NzMyLUNLSC03NjcAAAGdxYFi3t-KmRYxAV7-X0X5n9hy66TgtBHwBl1jfhAzXRApeURjXVlKYvwK2A2zwZR98p512jTtzTdoAb48nl0RDNK3a-8zHGXvwETAxW3IsEnC–TfDg

https://guinea.pe/blog/replicando-exito-mejor-omv/

https://www.gsma.com/solutions-and-impact/technologies/networks/gsma_resources/mobile-backhaul-an-overview/

https://www.computerweekly.com/news/366586404/Nokia-Global-Fiber-Peru-aim-to-close-digital-divide-in-Amazon-rainforest