The Peruvian telecom regulator, OSIPTEL, has today published its decision on the analysis of the Pay TV market. The report assesses the competitive situation of the industry in Peru. Frontier (Europe) advised a Pay TV operator in Peru throughout the investigation.
The report identifies that the main issue affecting market structure and competition within the industry is the presence of providers who offer Pay TV services to consumers unlawfully (also known as ‘Informality’). Informality is a problem because it reduces the target market of the “formal” operators. It also limits OSIPTEL’s understanding of the market as it does not have any information about the informal operators. The regulator has also found that the concentration in the market has decreased with Telefonica losing market share to its competitors.
In light of the evidence both of decreased concentration and the impact of informality, OSIPTEL has concluded that there is no market dominance within the industry and therefore has decided not to regulate this market.
Frontier regularly advises organisations and regulators on competition and policy issues in the telecommunications sector.
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