67% Increase in Fiber Optic Connections Boosts Competitiveness in Peru

The growth of fiber optic internet access in the regions of Peru has been remarkable during the first half of 2024, according to a recent report from the Supervisory Agency for Private Investment in Telecommunications (Osiptel). In just one year, fixed internet connections using this technology have increased by 67.08%, rising from 672,845 in June 2023 to 1,124,205 by the end of the first half of 2024. This figure highlights the ongoing advancement of fiber optics in the regions, which now account for 44.25% of the national total, amounting to 2,540,374 connections.

The report emphasizes that, in the competition for leadership in the fiber optic market, the company Wow has established itself as the main operator in fourteen regions of the country since entering the market in 2020. This company has surpassed Telefónica, which still remains the leader in five regions. Meanwhile, Claro and MiFibra have a smaller presence, leading in three and one region, respectively. This landscape reflects the competitive dynamics of the sector, where new companies have managed to capture a significant market share.

With an impressive 79.24% market share in Loreto, Wow has demonstrated its ability to attract users across various regions, including Tumbes, Huancavelica, Ica, and Apurímac, where its share exceeds 60%. Although Telefónica has lost ground to more recent competitors, it remains a key player, especially in regions like Madre de Dios and Puno, where it maintains a share of over 60%. This suggests that, despite the challenges, the company still has a loyal user base in certain areas.

On the other hand, Claro has managed to stand out in Cusco and Arequipa, where its share is around 37%. Although it does not lead in as many regions as Wow, its presence in the larger and more populated markets could be a strategic long-term advantage. MiFibra, despite its limited presence, has established itself in La Libertad, where it has 29.18% of fiber optic connections, demonstrating that even smaller companies can find niches in this expanding market.

The growth in fiber optic connections has not been limited to a single company but also reflects a general increase in demand for high-speed internet access. The regions that have shown the highest percentage growth in fiber optic connections include Arequipa, Junín, and La Libertad, with growth rates exceeding 140% in some cases. Arequipa, in particular, experienced explosive growth, rising from 28,208 connections in June 2023 to 83,356 a year later.

This increase in telecommunications infrastructure is crucial for the economic development of the regions, as access to high-speed internet allows local businesses to enhance their competitiveness and citizens to access more efficient educational and health services. Furthermore, it promotes digital inclusion, an increasingly necessary aspect in an ever more interconnected world.

However, the growth of the sector is not without challenges. Companies must face the need to maintain service quality as demand grows. The expansion of the fiber optic network requires significant investments in infrastructure, which could test the operators' capacity to meet consumer expectations.

On a national level, fixed internet via fiber optic has consolidated as the predominant technology, representing 65.45% of the total market, surpassing cable modem (30.11%) and other technologies (4.44%). This underscores users' preference for faster and more efficient connectivity solutions and indicates the direction the sector will take in the immediate future.

With sustained growth and evolving competition, the fiber optic market in the regions of Peru appears to be on a positive trajectory. Companies that manage to adapt quickly to changes in demand and provide quality service will position themselves favorably in this expanding sector. Connectivity has become a fundamental element for social and economic development, and the battle for leadership in this market will continue to be a topic of interest in the coming years.