Telecommunications Regulatory Environment: Peru 2007-2009

Series
TRE Studies
Publication date
2010
Pages
73
Language
Español
Publication type
Paper
Author
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Bossio, Jorge
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Original Title: Entorno regulatorio de las telecomunicaciones: Perú 2007-2009

The TRE methodology is based on the assumption that investment is a necessary condition for good telecom sector performance, and investment decisions are influenced by perceptions of investment risk. Using interviews and a questionnaire administered to a statistically significant cross-section of industry stakeholders and experts, the TRE assessment traverses six dimensions of regulatory risk for both the fixed and mobile sectors.

The new report, the second assessment of Peru's regulatory environment, reports that the overall influence of the regulatory environment in Peru has improved since the previous assessment (2006-2007) but remains neutral – neither encouraging nor discouraging investment. There is positive movement in the perception of market entry regulation, but also a perception that improvements are required in regulation governing anti-competitive practices.

Abstract

This document presents an application of the methodology proposed by LIRNEasia to assess the telecommunications regulatory environment (TRE) and its relationship with the sectoral level of investment. TRE assesses seven dimensions for fixed and mobile telephony:
  1. market entry
  2. access to scarce resources
  3. interconnection
  4. tariff regulation
  5. regulation of anticompetitive practices
  6. universal service obligation
  7. quality of service
As an input for the assessment, the perceptions of Peruvian telecommunications experts on the regulatory environment was collected between September 2007 and September 2009.

Results show that, in general, TRE quality in Peru has improvemed slightly from the previous assessment, covering 2006-2007, though its values are still very near the efficient/inefficient threshold.

The most encouraging results are in the perceptions on market entry regulation. On the other hand, improvements in regulating anti-competitive practices are needed, since regulation has been classified as inefficient in the cases of mobile telephony and broadband.
 
Overall, the result of the assessment is neutral, that is, according to sector experts’ perceptions there is no relationship between Peru's regulatory risk and investment in the sector. However, if we compare the findings for mobile and fixed telephony considered separately, we found that TRE’s quality was better for mobile telephony than for fixed telephony (with the exception of service quality).
 
The regulatory risk for mobile telephony is small compared to fixed telephony. This finding is consistent with the growth experienced by investments on mobile telephony between 2006 and 2009.