Peru’s 5G Rollout: A Strategic Leap into the Digital Future

The Peruvian government has taken a bold step toward digital transformation by clearing five operators—Telefónica Peru, Bitel, Claro, Entel, and a new entrant, Integratel Perú—to participate in its upcoming 5G spectrum tender. This move is part of a broader strategy to accelerate 5G deployment, bridge the digital divide, and position Peru as a leader in Latin America’s connectivity landscape. The tender, set to be the largest in the country’s history, will allocate spectrum across multiple bands, including the 3.5 GHz, 2.3 GHz, and 600 MHz ranges, ensuring a balanced approach to coverage and capacity.

Peru’s 5G strategy is not just about faster internet speeds; it’s a calculated effort to foster economic growth, attract investment, and enhance connectivity in underserved regions. The government’s shift from traditional cash-based spectrum auctions to a model based on coverage commitments is a game-changer. By incentivizing operators to expand networks into rural areas, Peru aims to ensure that the benefits of 5G extend beyond urban centers. This approach aligns with global best practices, where spectrum allocation is increasingly tied to tangible societal benefits rather than purely financial gains.

A Spectrum Strategy for the Future

The cornerstone of Peru’s 5G rollout is its spectrum allocation strategy. The Ministry of Transport and Communications (MTC) has already cleared the 3.5 GHz band, a mid-band spectrum ideal for balancing coverage and capacity. Additionally, plans are underway to tender 60 MHz in the AWS-3 (1,750-1,780MHz and 2,150-2,180MHz) and 2.3GHz (2,300-2,330MHz) bands, further expanding the available spectrum. The upcoming auction in the first quarter of 2025 will include 600 MHz in the 26 GHz band, 300 MHz in the 3.5 GHz band, and 500 MHz in the 6 GHz band for Wi-Fi 6. This comprehensive approach ensures that Peru’s 5G networks will be future-proof, capable of supporting a wide range of applications from ultra-fast mobile broadband to IoT and smart city initiatives.

The government’s decision to prioritize coverage commitments over cash payments is a strategic departure from traditional models. By requiring operators to invest in expanding networks to underserved areas, Peru is addressing a long-standing challenge in developing nations: the digital divide. This model is particularly beneficial for sectors like mining and METS (Mining Equipment, Technology, and Services), which rely on robust connectivity for operations. The inclusion of universities, hospitals, and sports facilities in the coverage commitments ensures that 5G benefits extend beyond commercial interests, fostering societal development.

Operators Step Up to the Challenge

The five operators cleared for the tender—Telefónica Peru, Bitel, Claro, Entel, and Integratel Perú—have already shown their commitment to Peru’s 5G vision. Telefónica Peru, now operating as Integratel Perú, has constituted guarantees of $102 million to secure 5G spectrum, signaling confidence in the government’s strategy. This financial commitment underscores the operators’ belief in the long-term benefits of 5G deployment, particularly in enhancing connectivity for businesses and consumers alike.

The government’s decree specifically targets these major operators, urging them to accelerate their 5G rollout plans. This proactive approach is attracting attention from foreign investors, particularly those in sectors reliant on robust connectivity. The mining industry, for instance, stands to gain significantly from 5G-enabled automation and real-time data analytics, which can improve efficiency and safety. Similarly, the METS sector can leverage 5G to develop and deploy advanced technologies that enhance productivity and innovation.

Beyond Connectivity: Driving Digital Transformation

Peru’s 5G strategy is not just about improving internet speeds; it’s about driving digital transformation across multiple sectors. The successful implementation of 5G is expected to foster innovation, create new business opportunities, and enhance public services. The government’s commitment to facilitating this transition through innovative spectrum allocation mechanisms and a supportive regulatory environment positions Peru as a leader in 5G deployment within the Latin American region.

The planned auction, described as the “largest spectrum auction in the country’s history,” underscores the scale of this undertaking. While LTE networks currently form the foundation of mobile connectivity in Peru, the transition to 5G represents a fundamental shift, opening doors to new applications and services. The government’s focus on investment commitments rather than purely financial gains demonstrates a forward-thinking approach, prioritizing long-term societal benefits over short-term revenue.

Conclusion: A Blueprint for the Future

Peru’s 5G rollout is a strategic leap into the digital future, one that prioritizes connectivity, innovation, and inclusivity. By clearing five operators for the upcoming spectrum tender and shifting away from traditional cash-based auctions, the government is setting a new standard for spectrum allocation. This approach ensures that the benefits of 5G extend beyond urban centers, bridging the digital divide and fostering economic growth.

The comprehensive spectrum strategy, coupled with the operators’ commitment to coverage expansion, positions Peru as a leader in Latin America’s connectivity landscape. As the country prepares for the largest spectrum auction in its history, the focus on long-term societal benefits over short-term gains highlights a visionary approach to digital transformation. Peru’s 5G journey is not just about faster internet; it’s about building a more connected, innovative, and inclusive future for all.