CASE STUDY: PERUVIAN TELECOM INDUSTRY

This case represents an analysis of the telecommunications industry in Peru. We begin by reviewing the history of this industry prior and after its privatization. This overview will facilitate a better understanding of the industry, its development and the main participants in this sector. We continue by exploring the market structure, its nature, its characteristics and the supply and demand forces. We discuss the establishment of various regulations by the Peruvian government and their evolution from their creation to their present form. The industry has been traditionally a monopoly; however, due to the rapid advances in technology, the market for substitutes has been gaining importance daily. Thus, we review the products that have become the new substitutes and explore the issue of how their development has created new challenges and threats to the traditional products.