Along the first yearly quarter, BellSouth was awarded a license to offer wireless fixed telephony to residential clients through pre-paid cards. Thus, the cellco wants a new source of income in a market controlled by Telefónica.
However, TIM Peru (100% Telecom Italia Mobile) decided to support growth in the country with mobile communication businesses. “We won’t enter the fixed telephony business; we believe the future of communications –and facts are on our side– lies in mobility, thus prompting the development of creative and innovative solutions for all our clients, both pre and post-paid”, said Sergio Bartoletti, Director General Manager and CEO in TIM Peru, to Alacel Revista.
The company will focus efforts on the opportunities of its GSM network to stand out over rivals, and grow within the cell segment. For Bartoletti, main value added for TIM lies in the European standard –competitors operate CDMA-, that allowed them to develop innovative services to integrate clients in a global network. And, in the short term, the firm will add GPRS for data transmission. The executive asserted that after the entrance of TIM in the market, “rates went down some 30%”.
Bartoletti stated that “GSM is the greatest driver for more and better services and apps worldwide”. He added that “given economies of scale, GSM may become the universal standard, thus structuring the region as a whole, rather than as separate markets”.
Facing tough rate debates ongoing within the Peruvian market, the executive considered the fairest scheme would be billing per second, and in Soles (Peruvian currency). Favoring market and competition dictates as regards rates, Bartoletti asserted the regulator shall exert effective and technical check-ups. “State intervention to reduce fixed-to-mobile rates won’t be intelligent, as game rules may be altered, thus affecting business plans, as well”, he pointed.
To May, TIM Peru had 480,000 clients, with a market share of 19.1%, following BellSouth (24%), and Telefónica Móviles (52%). Nextel got hold of the remaining 5%. During 2002, TIM revenues reached US$ 88 million, and the 1Q 2003 ended with turnover of US$ 31 million. The company expects to two fold sales this year, to US$ 173 million, and reach 650,000 users.
Last Month, Corporación Financiera Internacional, an autonomous arm of the World Bank, announced investments of US$ 70 million in the Italian unit. The loan will be effective to December 2009, and will be used to fund the expansion plans of TIM Peru, aimed at expanding coverage and improve network quality. The operator plans outlays of US$ 500 million in Peru for the 2002-2004 period.