Countries › Peru › Guide › 12. Sectors › Telecommunications in Peru: the single concession, 20 year terms, spectrum, the 0.5 percent operating charge and the 1 percent FITEL contribution
Telecommunications in Peru: the single concession, 20 year terms, spectrum, the 0.5 percent operating charge and the 1 percent FITEL contribution
Last verified: 2026-10-28 · Status: Stable
Public telecommunications services in Peru are provided under a single concession granted by the Ministry of Transport and Communications (MTC) by contract, which covers all public telecom services; spectrum is assigned on request or, where it is scarce, by public tender. Concessions for public services last up to 20 years, renewable on the contract's terms; broadcasting licences last 10 years and private service authorisations 5 years. Concession holders pay a one time concession right of 2.5 per thousand of the initial investment (at least 1 UIT, S/ 5,500 in 2026), an annual charge of 0.5 percent of gross billed and collected revenue, a 1 percent contribution to the rural fund FITEL and the spectrum canon.
USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 October 2026, from the Banco Central de Reserva del Perú statistics series PD04640PD. UIT based amounts use the 2026 UIT of S/ 5,500 set by Decreto Supremo Nº 301-2025-EF, as cited in SUNAT Resolución de Superintendencia Nº 000016-2026/SUNAT. Conversions are for orientation only.
Key facts
| Maximum term of public telecom concessions | 20 yearsDS 013-93-TCC art. 56, as of 2026-10-28 · in force |
|---|---|
| Maximum term of broadcasting authorisations | 10 yearsDS 013-93-TCC art. 56, as of 2026-10-28 · in force |
| Concession right, share of planned initial investment (minimum 1 UIT) | 0.25 %DS 020-2007-MTC art. 227, as of 2026-10-28 · in force |
| Annual charge for commercial operation, share of gross billed and collected revenue | 0.5 %DS 020-2007-MTC art. 229, as of 2026-10-28 · in force |
| FITEL contribution, share of qualifying revenue | 1 %DS 020-2007-MTC art. 238, as of 2026-10-28 · in force |
The rule
1. Public carrier, final and broadcasting services are provided under a concession, granted after meeting the requirements of the law and the regulation and perfected by a written contract approved by the Minister. In one concession contract the Ministry grants the right to provide all public telecommunications services. Concessions and the matching spectrum are granted on request or by public tender; a tender is mandatory where frequencies for a public service are restricted in an area, where the national frequency plan (PNAF) says so, or where the number of concessionaires is limited for technical reasons.
Cost to do it: Concession right in rule 3; tender bases set any additional amount by best offer (Reglamento art. 228).
Example: A new mobile virtual operator can hold one concession contract that grants the right to provide fixed, mobile and data services. / A foreign group entering the 3.5 GHz band in Lima competes in an MTC tender, because that spectrum is scarce.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, art. 53 as replaced by Ley Nº 28737; TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Ley art. 53; Reglamento art. 121 to 123, 2007-07-04 official text · verified 2026-10-28 · changed: Ley 28737 (18 May 2006) replaced the service by service concession with the single concession, effective with the new TUO of the regulation (DS 020-2007-MTC).
Cost to do it: Concession right in rule 3; tender bases set any additional amount by best offer (Reglamento art. 228).
Example: A new mobile virtual operator can hold one concession contract that grants the right to provide fixed, mobile and data services. / A foreign group entering the 3.5 GHz band in Lima competes in an MTC tender, because that spectrum is scarce.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, art. 53 as replaced by Ley Nº 28737; TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Ley art. 53; Reglamento art. 121 to 123, 2007-07-04 official text · verified 2026-10-28 · changed: Ley 28737 (18 May 2006) replaced the service by service concession with the single concession, effective with the new TUO of the regulation (DS 020-2007-MTC).
2. Concessions and authorisations have maximum terms of 20 years for public telecommunications services, renewable on the terms of the contract or authorisation; 10 years for broadcasting, renewable automatically for an equal period at the holder's request; and 5 years for private services, renewable on request.
Cost to do it: Renewal fees follow the concession right rules (rule 3).
Example: A concession signed in 2010 for 20 years runs to 2030, and renewal must be sought on the contract's terms well before then. / Twenty year terms are shorter than typical tower or fibre asset lives, so renewal risk belongs in valuation.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, Art. 56, 1993-04-28 official text · verified 2026-10-28
Cost to do it: Renewal fees follow the concession right rules (rule 3).
Example: A concession signed in 2010 for 20 years runs to 2030, and renewal must be sought on the contract's terms well before then. / Twenty year terms are shorter than typical tower or fibre asset lives, so renewal risk belongs in valuation.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, Art. 56, 1993-04-28 official text · verified 2026-10-28
3. The concession right is 2.5 per thousand of the initial investment planned for the service, and in no case less than 1 UIT; independent operators whose concession covers rural areas and places of preferential social interest pay 5 percent of a UIT. Authorisations for private telecommunications services and their renewal cost 25 percent of a UIT. Where concessions are awarded by tender, the right is set by the tender bases according to the best offer.
Cost to do it: Concession right: 0.25 percent of initial investment, minimum 1 UIT (S/ 5,500, about US$1,593, in 2026); rural independent operators S/ 275; private service authorisation S/ 1,375.
Example: A concession with a planned initial investment of S/ 20,000,000 pays S/ 50,000; one with an investment of S/ 1,000,000 pays the 1 UIT minimum of S/ 5,500. / About US$14,484 for a US$5,793,743 rollout; about US$1,593 minimum.TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Art. 227 and 228, 2007-07-04 official text · verified 2026-10-28
Cost to do it: Concession right: 0.25 percent of initial investment, minimum 1 UIT (S/ 5,500, about US$1,593, in 2026); rural independent operators S/ 275; private service authorisation S/ 1,375.
Example: A concession with a planned initial investment of S/ 20,000,000 pays S/ 50,000; one with an investment of S/ 1,000,000 pays the 1 UIT minimum of S/ 5,500. / About US$14,484 for a US$5,793,743 rollout; about US$1,593 minimum.TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Art. 227 and 228, 2007-07-04 official text · verified 2026-10-28
4. Concession holders pay an annual charge for commercial operation of the services equal to 0.5 percent of their gross revenue billed and collected in the year, including, for public services, settlements between companies for incoming and outgoing international traffic, paid in monthly instalments on account. Independent operators pay 0.2 percent of gross revenue billed and collected in rural areas and places of preferential social interest.
Cost to do it: 0.5 percent of gross billed and collected revenue a year (0.2 percent for rural independent operators), paid monthly on account.
Example: An operator with S/ 80,000,000 of billed and collected revenue pays S/ 400,000 a year. / About US$115,875 on about US$23,174,971 of revenue.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, art. 55; TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Ley art. 55; Reglamento art. 229 and 230, 2007-07-04 official text · verified 2026-10-28
Cost to do it: 0.5 percent of gross billed and collected revenue a year (0.2 percent for rural independent operators), paid monthly on account.
Example: An operator with S/ 80,000,000 of billed and collected revenue pays S/ 400,000 a year. / About US$115,875 on about US$23,174,971 of revenue.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, art. 55; TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Ley art. 55; Reglamento art. 229 and 230, 2007-07-04 official text · verified 2026-10-28
5. Operators of carrier services, public final services, cable broadcasting and internet access contribute a share of annual billing to the Fondo de Inversión en Telecomunicaciones (FITEL), which funds services in rural areas and places of preferential social interest and may fund transport networks. The regulation sets the contribution at 1 percent of revenue billed and collected from public carrier and final services, including international correspondent and settlement revenue, after deducting interconnection charges, IGV and the Impuesto de Promoción Municipal. FITEL also receives at least 20 percent of the spectrum canon collected for public services.
Cost to do it: 1 percent of qualifying revenue net of interconnection charges, IGV and IPM.
Example: With S/ 80,000,000 of revenue of which S/ 8,000,000 are interconnection charges, the FITEL base is S/ 72,000,000 and the contribution S/ 720,000. / About US$208,575 a year on that base.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, art. 12 as replaced by Ley Nº 29904 (20 July 2012); TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Ley art. 12; Reglamento art. 238, 2012-07-20 official text · verified 2026-10-28
Cost to do it: 1 percent of qualifying revenue net of interconnection charges, IGV and IPM.
Example: With S/ 80,000,000 of revenue of which S/ 8,000,000 are interconnection charges, the FITEL base is S/ 72,000,000 and the contribution S/ 720,000. / About US$208,575 a year on that base.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, art. 12 as replaced by Ley Nº 29904 (20 July 2012); TUO del Reglamento General de la Ley de Telecomunicaciones, Decreto Supremo Nº 020-2007-MTC (El Peruano 4 July 2007), text as published, Ley art. 12; Reglamento art. 238, 2012-07-20 official text · verified 2026-10-28
6. The radio spectrum is a limited natural resource that belongs to the Nation; the Ministry administers, assigns and controls it. Its use gives rise to a canon payable by holders of transmitting stations and of receiving stations that need spectrum reserved, in amounts set by supreme decree.
Cost to do it: Spectrum canon amounts are set in separate supreme decrees for each service and were not verified here.
Example: A mobile operator pays the canon for its assigned bands each year on top of the 0.5 percent charge and the FITEL contribution. / Spectrum is never owned; it is assigned for use by the Ministry, so its value rests on the assignment and the concession.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, Art. 57, 58 and 60, 1993-04-28 official text · verified 2026-10-28
Cost to do it: Spectrum canon amounts are set in separate supreme decrees for each service and were not verified here.
Example: A mobile operator pays the canon for its assigned bands each year on top of the 0.5 percent charge and the FITEL contribution. / Spectrum is never owned; it is assigned for use by the Ministry, so its value rests on the assignment and the concession.TUO de la Ley de Telecomunicaciones, Decreto Supremo Nº 013-93-TCC (dated 28 April 1993), SPIJ text updated to 29 October 2015, Art. 57, 58 and 60, 1993-04-28 official text · verified 2026-10-28
| Charge | Base | Rate | Amount | USD |
|---|---|---|---|---|
| Commercial operation charge | Gross billed and collected revenue | 0.5% | S/ 400,000 | US$115,875 |
| FITEL contribution | Revenue less interconnection, IGV and IPM | 1% | S/ 720,000 | US$208,575 |
| Total before spectrum canon | S/ 1,120,000 | US$324,450 |
Recurring charges on a telecom operator with S/ 80 million revenue and S/ 8 million interconnection charges (2026)
Worked example
- A foreign backed fibre and mobile operator investing S/ 20,000,000 (about US$5,793,743) pays a concession right of S/ 50,000. With S/ 80,000,000 of annual revenue and S/ 8,000,000 of interconnection charges it pays S/ 400,000 of operating charge and S/ 720,000 to FITEL, S/ 1,120,000 in total (about US$324,450), plus the spectrum canon for its bands.
Step by step
- Apply to MTC for a single concession with the requirements of the law and its regulation, stating the planned initial investment, which sets the concession right.
- If spectrum is scarce in the target area, bid in the MTC tender instead (Reglamento art. 123).
- Pay the concession right (0.25 percent of planned initial investment, at least 1 UIT) and sign the contract.
- Pay the 0.5 percent operating charge monthly on account and the FITEL contribution; pay the spectrum canon each year.
- Plan renewal well before the 20 year term ends.
Common traps
- The 0.5 percent charge is on gross billed and collected revenue, not profit, and includes international settlements (Reglamento art. 229).
- The FITEL base allows deducting interconnection charges, IGV and IPM only, not other costs (Reglamento art. 238).
- The SPIJ text of the law is updated only to October 2015 and the regulation copy is the 2007 publication; check later amendments, especially to fines and procedures.
Sources
- TUO Ley de Telecomunicaciones DS 013-93-TCC, SPIJ text on gob.pe
- TUO Reglamento General DS 020-2007-MTC, El Peruano 4 July 2007 on gob.pe
Related pages
- taxes/digital-services
- investing/restricted-activities-and-screening
- regulation/regulatory-compliance-essentials
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