Expanding the frontiers of telecom markets through PPP in Peru

From GRIDLINES 5 (May 2006)

Peru introduced private participation in telecommunications in the early 1990s, along with wide-ranging reforms fostering competition and independent regulation. These efforts attracted some US$8.3 billion in private investment in the sector in 1990–2004. To help bring telephone service closer to Peru’s poorest and most isolated areas, where people still had to travel some 56 kilometers on average to reach a pay phone, a pioneering fund offered subsidies to attract investment by private operators. Initial efforts led to impressive achievements, though slow implementation left room for improvement. A PPIAF-funded assessment of the first projects helped design the next generation of initiatives— and pointed to lessons for other developing countries.

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