Telefónica extends its strategy of creating investment vehicles in different countries to promote fiber (fiberco) deployments. Now it is the turn of Peru, where it has established the PangeaCo company, which was born with the aim of extending these new generation networks to the entire Andean country.
But Telefónica is not going to be alone. The company is looking for investors to contribute capital to finance these infrastructure projects, as it has just done in Germany with Allianz, and plans to close soon in Brazil and Chile. In these two, the vehicles have already been created, denominated in the Chilean case as InfraCo.
The operator has opened the door to take the model to more countries. In the recent conference call When presenting the results of the third quarter, the financial director of Telefónica, Laura Abasolo, explained when talking about the aforementioned project in Chile that countries of this type could be launched in other countries of Latin America.
In the case of Peru, PangeaCo will expand the higher speed fixed internet in all regions of the country, with the aim of massifying the fixed high speed networks and closing the digital divide. Peru has a household internet penetration of 40%, according to INEI, behind other Latin American countries such as Argentina (61%) and Chile (60%). Broadband in the Andean country is concentrated in Metropolitan Lima, where there is a 63% penetration level compared to 6% in the interior of the country.
PangeaCo was created in March and applied for authorization in August. Last week, the Ministry of Transport and Communications granted the concession to the company.
With this initiative, Telefónica has two vehicles in Peru that aim to close the digital divide in the country. Together with the aforementioned PangeaCo, the operator launched Internet para Todos, in alliance with Facebook, IDB Invest and CAF, to connect Andean communities or rural population centers with mobile internet.
The operator has defended that the digital development that addresses the deployment of fiber optic broadband has a highly multiplier effect on populations, as it expands the possibility of accessing public services and information and health and education services, as well as doubling productivity and innovation of companies and government entities.
Peru, which contributes 4% of Telefónica’s revenues, was part of the Hispam division, which groups together the subsidiaries in the region with the exception of Brazil. The teleco seeks to improve the return on value, and handles different options, from the sale to the entry of investors, either in the whole of Hispam or by country, as well as the establishment of alliances with local partners. The creation of fiberco partnerships is a formula that seems to make its way into these strategies.