Regulation and Investment in Telecommunications: Peru Case Study
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In general terms Peru's telecommunication regulatory environment is seen to be on the threshold between efficient and inefficient. On the one hand, the most promising results are seen in the perception of the regulation of market entry while on the other hand improvements are required with respect to regulation of anti-competitive practices, with the regulator's actions perceived as inefficient. Overall the effect of Peru's regulatory environment on investment is perceived as neutral, with no relationship between perceived regulatory risk and investment.
Original Title: Regulación e Inversión en Telecomunicaciones. Estudio de Caso para Perú
Abstract
- Market entry,
- Access to scarce resources,
- Interconnection,
- Tariff regulation,
- Regulation of anti-competitive practices,
- Universal service obligations (USO).
From September 2006 to August 2007, the perceptions of telecommunications experts in Peru about TRE in that country was collected. Findings show that, in general, the quality of TRE in Peru, both for fixed and mobile telephony, is seen to be on the threshold between efficient and inefficient.
On the one hand, the most promissing results are seen in the perception of the regulation of market entry while on the other hand, improvements are required with respect to regulation of anti-competitive practices, since this dimension has been qualified as inefficient. According to the sector's experts there is no relationship between regulatory risk and investment (neutral assessment).
However, when comparing findings for fixed telephony on one hand and mobile telephony on the other, the TRE quality was perceived as higher for mobile telephon. Regulatory risk for mobile telepohony is smaller than the one for fixed telephony. This finding is consistent with the growth of investments in mobile telephony between 2005 and 2006 (46%), which contrasts with the reduction of investments on fixed telephony during the same period (-11%).
