Newcomers eat into incumbents’ market shares

1 Apr 2015

Newcomers to the Peruvian wireless market are beginning to erode the market shares of their entrenched rivals, particularly in the pre-paid and ‘control’ (hybrid pre-paid/post-paid tariffs where customers pay a small amount each month but are charged on a pay-as-you-go basis) segments, according to new statistics published by Peruvian telecoms watchdog Osiptel. Peru was home to 31.86 million mobile users at the end of 2014, up from 29.95 million twelve months earlier and of which 54.4% were Movistar subscribers compared to 39.2% signed up to plans from Claro. The rebranded Entel, formerly Nextel del Peru, represented 5.4% of the nation’s wireless user base at that date whilst Vietnamese-backed Bitel claimed a market share of 1.0%.

Of the nation’s 22.1 million pre-paid users, Movistar and Claro claimed 56.8% and 38.8% respectively, down from 57.7% and 39.6% in September 2014, whilst Entel and Bitel controlled 3.7% (2.6% in Q3 2014) and 0.8% (0.1%). Control subscriptions totalled 4.1 million lines at the end of 2014, and Movistar and Entel claimed the lion’s share of these users with 75.8% (81.1%) and 20.3% (18.2%), whilst Claro represented a meagre 0.1%. Bitel, meanwhile, saw its share of control lines increase by 3.2 percentage points quarter-on-quarter to 3.8%.

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