Outdated Margin Squeeze Regulation Threatens the MVNOs in Peru

Peru’s mobile telecommunications market faces a significant hurdle, a regulatory bottleneck that threatens to stifle competition and delay the adoption of digital-first technologies.

Mobile Virtual Network Operators (MVNO) industry leaders, argue that current oversight by the regulator, Osiptel, is preventing new players from entering the market and hindering the modernization of the sector.

An MVNO is a company that provides mobile services by renting network capacity from traditional mobile network operators (MNOs) like Claro, Movistar, Entel, and Bitel.

While MVNOs are designed to increase market diversity through specialized digital offerings, innovations and personalized service, their ability to compete in Peru is currently constrained by outdated regulatory frameworks regarding wholesale pricing.

Mariano de Osma, CEO of Guinea Mobile, the company behind the MVNO Cuy Móvil, notes that the current system forces MVNOs to operate with significant financial disadvantages. Under existing rules, there is often a six-month gap between the publication of wholesale reference rates and their actual implementation. Because the market moves much faster than the regulation, MVNOs are frequently forced to sell services at outdated prices.

This creates a margin squeeze. As major carriers increase the amount of data included in their plans by as much as 40% annually, MVNOs face rising costs while struggling to negotiate proportional discounts on the wholesale capacity they need to function.

If a large operator doubles the data offered for the same price without a corresponding decrease in the wholesale cost paid by an MVNO, the smaller operator’s profit margins can quickly disappear.

Industry representatives have held multiple meetings with Osiptel to advocate for faster, more flexible updates to these regulations. While Osiptel updated its MVNO framework in 2024, stakeholders argue that the changes have not gone far enough to address the slow negotiation processes and rigid tariff structures.

The contrast with neighboring markets is stark. In Brazil, more than 200 MVNOs are currently active. Similarly, Mexico and Colombia have seen a rapid acceleration in MVNO growth driven by regulators who understand the ecosystem, suggesting that Peru’s slower progress is a result of local policy barriers rather than a lack of consumer interest.

Despite these obstacles, the push continues. Guinea Mobile, manages 8 different mobile brands ranging from eSIM-focused services to tourism and corporate solutions. The company aims to triple its customer base to 300,000 active lines by the end of 2027.

It is striking that a regulator like Osiptel appears to be unaware of the standard annual decline in mobile data pricing that is common in virtually all global markets. Because this downward trend is an industry standard, most wholesale contracts are designed to account for it, either by including automatic price adjustments or by mandating that an additional amount of data capacity be provided over the course of the year.

For Osiptel, and others – here is a guide to MVNO Wholesale Models