TEM subsidiaries hold 68.5% of Peruvian mobile market

10 Feb 2005

According to Peru’s telecoms watchdog Osiptel, following the merger of Telefónica Móviles Perú and BellSouth’s Peruvian division in 2004, Spain’s Telefónica Móviles now control 68.5% of the country’s mobile market. The enlarged entity’s subscriber base was expected to leap dramatically following the acquisition and secure 70% of the market by the year end, however, rival cellco TIM Perú surprised many by making significant gains over the year to end with a market share of 26.9%, up from 21.4% in December 2003. TIM Perú focused its efforts on adding pre-paid users in the provinces doubling this particular segment from 82,780 to 168,667 in the year. BellSouth, now renamed Comunicaciones Móviles, also added customers but not at a fast enough pace to maintain the gap to TIM. Meanwhile, Nextel del Peru saw its own share of the wireless market dip by half a percentage point to 4.5%. At the end of 2004 there were 4.09 million mobile users in Peru, up 40% year-on-year and translating to a cellular penetration of 14.47%.

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