Steve Logue, CEO of Virgin Mobile, said about 75,000 Peruvians already pre-registered with the company, a testament that there is enough room for a new player in the South American nation.
“We intend to capture 2% of the market, close to 500,000 users, in three years, and in the medium term, Peru will become our most important operation in the region,” Logue told local business and economy portal Semana Económica.
In December last year, Virgin became the fifth mobile player in Peru after the country’s transport and telecommunications ministry Ministerio de Transportes y Comunicaciones (MTC) granted the company a license to operate.
After a three-month wait, Virgin Mobile begins operations in Peru. #telecom July 6, 2016
Peru is the fourth country in the region to launch Sir Richard Branson’s mobile service company, which already established a presence in Mexico, Colombia and Chile.
In line with Virgin’s mission in Latin and South America, Virgin Mobile Peru will cater to young people between 18 and 34 years old.
“We design our brand and proposition to appeal to the digital youth and young-at-heart in Latin America’s most vibrant markets,” the British telecommunications company said on its website.
“Virgin Mobile makes data plans accessible to youth through a convenient and secure online experience. Our tariffs and plans are ‘straight up’ honest and simple with no tricks.”
Virgin and Telefónica entered into a five-year agreement that allows Virgin to use the Spanish operator’s network.
Since the agreement is not exclusive, Logue said Virgin can sign deals with other operators.
“While we are happy for now with the agreement [with Telefonica], which lasts five years, this is not exclusive. We can have simultaneous agreements with other operators to maximize returns,” he said.
Although a fifth of Peru’s population has no mobile phone, BuddeComm said the country’s mobile penetration was at 110 percent as of early 2016, a figure on a par with the regional average.
“Peru’s mobile market still has considerable potential to expand, especially if economic growth continues to lift people out of poverty. Furthermore, due to the country’s low fixed broadband penetration, 3G and LTE services are expected to continue [to] boom in coming years,” BuddeComm said.
“With the expansion of networks and the declining price of laptops and smartphones, the use of mobile broadband and phone-based internet browsing is expected to escalate strongly.”
