In the fourth quarter of 2006, Telmex Peru launched “Explora”, a double-play offer which includes fixed telephony and broadband services using WiMAX. The bundle offer “Explora” is available in Lima and areas such as Miraflores, San Isidro, San Miguel, La Molina, Santa Anita, San Borja, and Los Olivos. “Explora” is a differentiated value proposition mainly targeting the business segment and the high-end of the residential market. The commercial offer leverages Telmex’s positive experience with the “Paquete Telmex” bundled offerings of local voice, long-distance, and broadband Internet services with discounted prices in Mexico.
Exhibit: Explora Packages Offered by Telmex Peru (March 2007)
Bundle Package
Fixed Voice
Broadband Internet
Monthly Price (US$)
Explora 500
1 fixed telephony line
500 local or domestic long-distance minutes
Up to 400Kpbs
$77
Explora 1000
2 fixed telephony lines
1,000 local or domestic long-distance minutes
Up to 600 Kbps
$112
Explora 2000
2 fixed telephony lines
2,000 local or domestic long-distance minutes
Up to 800 Kbps
$179
Explora 3200
4 fixed telephony lines
3,200 local or domestic long-distance minutes
Up to 1Mbps
$310
Note: Prices include free installation and other value-added services such as e-mail accounts. Minutes of fixed voice include just fixed-to-fixed calls.
Source: Telmex Peru, Pyramid Research.
Telmex sees an opportunity in Peru, due to its low broadband penetration. The penetration of Internet broadband accounts in the business segment is just 24%, leaving ample room for growth. Other Latin American countries have evolved to higher penetration rates; this is the case in Mexico, where the broadband penetration in the business segment reached 47% in YE2006. Telmex has stated its intentions to attack the business segment with WiMAX technology and the residential segment with cable platforms. Recently, the company announced the acquisition of Boga (Cable Express), a cable company with more than 20,000 subscribers distributed (for the most part) in Lima and Chiclayo.
