the peruvian telecom market
DESCRIPTION
France Telecom presentation [20-nov-2008]TRANSCRIPT
1 of 26Proyecto WiMax TISel: plan de negociosInforme final. Setiembre 2007 1 de 26
The Peruvian telecom market
Lima, November 20st 2008
Investor presentation
Agenda
•The Peruvian telecom market• Economic overview• Industry overview• Trends
2 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
0%
5%
10%
15%
20%
Per
Ecu
Pan
Chi
Méx Esa
Bra
Col
Bol
Uru
Hon
Gua Pa
r
Arg
Nic
Cos
Ven
0%
2%
4%
6%
8%
10%
12%
Ven
Pan
Arg Per
Cos
Uru
Hon
Col
Chi
Gua
Par
Bol
Bra Nic
ESv
Ecu
Mex
Consistently stable growthEconomic overview
Source: World Bank, IMF, Central Banks
Peru vs. Latin America. Key economic indicators 2005-2007
+6,6%
+5,9%
3 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
2005-2007
2007
GDP real growth (%)
Inflation (%)
LatAm 2005-07 avg
Crecimiento consistente de las inversionesDesarrollos recientes
23%
20%
18%18%18%18%
0
5 000
10 000
15 000
20 000
25 000
2002 2003 2004 2005 2006 2007e
10%
15%
20%
25%
US$ miles m % sobre PBI
Perú. Inversiones 2002-2007e (US$m, % sobre
PBI)
Fuente: BCRP, MEF
Impulso especialmente fuerte en los
últimos 2 años
TCC1: +17%
1 Tasa de crecimiento anual compuesta (TCC %) para el período
4 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Agenda
•The Peruvian telecom market• Economic overview• Industry overview• Trends
5 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
199
178
299
231
239
515
127
106
129
185
823
256
504
129
64Otros
TV paga
Datos &
internet corp
Internet
masivo
Larga
distancia
Telf móvil
Telf pública
Telf fija
Fuente: SIT A. Latina
13%
6%
6%
53%
8%
5%
4%
5%
10%
7 x cada mil hab.
84 min/mes
66%
3%
n.a.
n.a.
3%
2,7m líneas
184 mil líneas
1 542 m min
18,2 m líneas
797 mil suscriptores
16,9 mil enlaces
n.a.
861 mil suscriptores
Densidadde
mercado
Magnitud operativa
1%
-3%
9%
44%
40%
23%
32%
20%
TCC % 05-08
% del total
Consistent growth, mobile and broadband services drive growth
Industry overview
Ingresos por servicio2005-2008e (US$m, %
TCC)
Mercado telecom PerúUS$ 3 835m
(2,9% de PBI)
2 046
Indicadores operativos 2T08
Ingresos totales 2008e del mercado telecom Perú
2005
2008e
6 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Crecimiento consistente de las inversiones telecom
Desarrollos recientes
17%17%
15%
17%15%
0
100
200
300
400
500
2002 2003 2004 2005 2006
5%
10%
15%
20%
Inversiones telecom I / ing telecom (%)
Perú. Inversiones telecom 2002-2006 (US$m, % sobre
ingresos telecom)
Fuente: Osiptel, BCRP, estimaciones propias
Superiora estándarA. Latina:
~12-15%
TCC: +15%
1 Tasa de crecimiento anual compuesta (TCC %) para el período
7 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
26%
98%22%
51%
1%1%
L atAm P eru
26%
99%26%
48%
0,3%0,4%
L atAm P eru
28%
61%
39%
36%33%3%
L atAm P eru
5%
82%
15%
4%
80%
13%
L atAm P eru
Market concentrationIndustry overview
Peru & Latin America. Market share, by telecom service 2007 (%)
Source: TIS Latin America
Broadband Pay TV
TEF TMX / AMX Other
8 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Fixed Mobile
0%
2%
4%
6%
8%
2,000 8,000 14,000
Per capita GDP (US$ PPP)
% o
f GDP
Bra
Ven
Per (3%)
Col
LA 4%Mex
ChiCentralAm
Par
Ecu
Arg
Bol
Uru
Consistent growth, but still room for further expansion
Industry overview
Source: TIS Latin America
Peru vs. Latin America. 2007
Peru & Latin America (% of
GDP)
9 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
10%3%2%
56%
Fixed Mobile Broadband Pay TV
Penetration (%)
Average LatAm
69%
15% 2,6
%6,4%
1. Competition
a.Pricing deregulation in LD (Automatic subscriber segment).
b.Mobile operator obligations for number portability
c. Revision of interconnection charges (capacity charge).
d.New maximum pricing for leased lines (going into effect).
e.Changes in the Quality Rules Manual (new indicators and administrative sanctions have been included).
f. Infrastructure expansion: coordination with local governments to simplify administrative activities.
g.Policy changes driven by the Peru-US FTA: infrastructure sharing, LLU, interconnection among others
h.Minimize number of regulated services (“desclasificación”)
i. Voice over IP
10 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Regulation agenda (1 of 2)Industry overview
1. Universal access
a. Promote the development of a national backbone and broadband services.
b. Promote technological innovation
c. Payment of fees (“canon”) and contribution to FITEL according to minimized classification of services
d. Obligations to the Emergency Communications System.
11 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Regulation agenda (2 of 2)Industry overview
Agenda
•The Peruvian telecom market• Economic overview• Industry overview• Trends
12 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
In 2010, la mayoría de los operadores globaleshabrá concluido su migración hacia un mundo de convergencia.
TrendsConvergence technology, regulatory, commercial:
everything over IP
Source: Pyramid Research
13 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Key takeaways
14 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Trends
Convergence strategies. Mobile telephony in LATrends
TEF y AMX (11 countries)
Only TEF (2 contries)
Only AMX (2 countries)
None (2 countries)
Source: TIS Latin America
Deployment of 3G networks
Revenue from “data” representing approx 14% of totalRevenue from “data” representing approx 12% of total
15 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Convergence strategies. Fixed telephony in LATrends
Fuente: SIT América Latina, análisis propio
TEF y TMX (8 countries)
Only TEF (0 countries)
Only TMX (1 country)
None (8 countries)
Convergence in services, Telefónica and Telmex drive competition
Triple play package
Triple play package
16 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Convergence strategies. Mobile telephony in PeruTrends
Fuente: www.movistar.com.pe; www.claro.com.pe
Voice
Time
Now What comes next?
Texting
Smartphone devices
Broadband mobile
17 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Convergence strategies. Fixed telephony in PeruTrends
Fuente: www.telefonica.com.pe; www.telmex.com.pe
Voice
Time
Now What comes next?
Broadband
Convergence in
services
Convergence
tecnologhy
18 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008
Key takeaways• The last few years have been quite favorable for the economy and the telecom
sector in Peru.
• Service coverage and penetration rates have grown considerably and in a sustained manner. This is reflected in revenues. The highest growth services are broadband and mobile telephony, in that order.
• Despite the growth of recent years, the penetration rates in Peru are still low, resulting in a high degree of inequality, particularly between Lima and the rest of the country.
• Strong growth in the industry is foreseen over the next few years due to sustained economic growth of the country, technological convergence (giving rise to disruptive services: VoIP), and government policy promoting universal access and competition.
• Such growth will come through convergent business models developed by operators and promoted by the government.
• The arrival of these business models under the umbrella of a national broadband development model will contribute to the reduction of the digital gap in Peru, thus bringing about further development of the country.
Industry overview
19 of 18The Peruvian telecom markets in the Latin American context: a “glocal” perspective.Investor presentation. Lima, October 10th 2008