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PRESS RELEASE

Broadband Connections Grow 9.4 Percent in Peru During First Half of 2010

Broadband Growth in Rural Areas Exceeded Growth in the Capital; Peru Reaches a Penetration of 3.3 per 100 Inhabitants as of June

LIMA, Peru, Dec. 10, 2010 – Cisco announced today the results of a new Cisco® Broadband Barometer study, reporting a growth of 9.4 percent in the number of fixed broadband connections in Peru during the first six months of 2010.

According to the study, commissioned by Cisco and conducted by the independent research firm IDC, 78,741 broadband connections were added in the country during the first six months of 2010. Peru had 912,323 fixed broadband connections by June 2010, with a penetration of 3.33 per 100 inhabitants. While reporting strong growth, Peru's broadband penetration is still much lower than other countries in Latin America, such as Chile (9.7 percent), Argentina (9.3 percent) and Uruguay (8.5 percent).

As of June 2010 the rural areas of the country had experienced a growth in broadband connections of 18.5 percent, a higher rate than the level for Lima, which experienced 15.7 percent growth. This is a major milestone and is evidence of the huge appetite for high-speed broadband connections in rural areas and demonstrates tangible results from service providers' investments in these regions.

Highlights:

  • Almost two-thirds (64 percent) of the fixed broadband connections are concentrated in Lima; 36 percent are in the rest of the country. However, rural broadband uptake is growing faster.
  • The number of connections with a speed higher than 512 kilobits per second continues to increase significantly. Half of the fixed broadband connections (51.6 percent) are concentrated in speeds between 512 Kbps and 1 megabit per second.
  • According to the conclusions of the Cisco Broadband Barometer, speeds of 1 Mbps and higher will grow the most in the coming years in Peru. Last year, these connections grew 111 percent and represented 18.8 percent of the fixed connections in the country.
  • The broadband market in Peru is offering connections of 512 Kbps as the minimum speed for ADSL connections. The price of this kind of connection decreased significantly, from 91 soles per month last year to 42 soles per month this year.
  • There was also an increase in the maximum speed for ADSL connections, from 2 Mbps to 4 Mbps. While a 2 Mbps connection had an average cost of 192 soles in June 2009, a 4 Mbps connection in June 2010 had an average cost of 352 soles.
  • Fixed wireless connections increased in terms of the minimum speeds offered to the market, from 400 Mbps to 500 Mbps. The cost of this kind of connection was the same during the first six months of the year as it was last year.
  • The Barometer also foresees that the deployment of fiber optic infrastructure in the interior of the country during the next three years will accelerate the broadband penetration in the sierra central and the south.
  • During the first six months of 2010 the growth in mobile broadband connections was 64.4 percent.
  • As of June 2010, mobile subscriptions reached a total of 162,295. Sixty-four percent of the mobile broadband connections are concentrated in Lima, while 36 percent are in the rest of the country.

Supporting Quotes:

  • Alvaro Merino Reyna, general manager, Cisco Peru
  • "The Cisco Broadband Barometer established a country goal of 88,000 fixed broadband connections by December 2010. With the pace of growth that we have been experiencing, it is very likely that we can reach this goal. However, in order to reach parity with our regional peers, Peru needs a more ambitious goal and a national broadband agenda that promotes further investment in high-speed broadband networks."

    "The main challenge to the country regarding connectivity is the development of its network infrastructure in the rural areas. Broadband connections are still concentrated in the capital of the country. In order to make broadband widely available and to reach more citizens with its benefits, public and private projects must be generated to bring connectivity to rural areas."

About Barometer

Cisco Broadband Barometer is a Cisco initiative to promote and encourage broadband connectivity in Latin America. It sets goals regarding the number of connections, establishes a periodical measurement of progress, publishes these results, and develops strategies with service providers and governments.  

Currently, Cisco Barometer measures broadband growth in Argentina, Chile, Brazil, Colombia, Costa Rica, Venezuela, Peru and Uruguay. The Barometer has been supported in each case by the national government.

About Cisco

Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Cisco celebrates 25 years of technological innovation, operating excellence and corporate social responsibility. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com/latam.

# # #

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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