Why Peru’s environmental regulation could delay deployment of 5G networks

A recently approved environmental management regulation for Peru’s communication sector could significantly delay the rollout of 5G networks and hinder investments in telecommunications.

Peru plans to auction 5G spectrum concessions in the first quarter of 2025, with spectrum potentially assigned directly in exchange for coverage commitments.

“5G will require between five and ten times more antennas than 4G. To achieve this level of densification, agile conditions for installation are essential. This will be very challenging with the implementation of the environmental standard approved in Peru,” Lucas Gallitto, head of GSMA Latin America, told BNamericas.

Supreme decree 023-2024, issued by the transport and communication ministry (MTC), introduces a requirement for prior environmental evaluations, replacing the previous “positive silence” policy for approving telecommunication infrastructure.

“Prior evaluations and authorizations with negative silence will make it difficult to sustain a consistent pace of deployment. This represents a setback compared to the dynamism achieved with [telecommunications] law 29022,” Gallitto added.

Maryleana Méndez, secretary general of telecommunications association Asiet, also voiced concerns, warning that the decree could delay 5G projects.

“Infrastructure deployment, which mostly occurs in previously intervened areas, doesn’t cause negative environmental impacts, and companies comply with environmental standards,” Méndez told BNamericas.

The explanatory statement accompanying the decree cites various environmental impacts from expanding ICT networks, including noise, soil quality issues, resource depletion, landscape alterations and changes in non-ionizing radiation levels. However, the MTC did not provide supporting data or examples for these claims.

Peruvian associations AFIN, AmCham and Comex released a joint statement criticizing the regulation, calling it a “serious hindrance” to telecommunications infrastructure expansion.

The associations warned that the rule would “unjustifiably slow down telecommunications projects, increase the costs of bringing internet to Peruvians and create excessive bureaucracy.” They also reiterated their commitment to environmental compliance but argued that such burdensome measures were unnecessary, given that telecom infrastructure has not been shown to cause significant environmental harm.

Asiet recommended reconsidering the regulation and implementing a single-window system to streamline infrastructure deployment in the country. 

The digital divide

“The telecommunications sector is committed to expanding connectivity in Peru, and significant progress has been made in recent years, including growth in fiber optics, antenna construction and government-led efficiency measures, such as payment of the coverage fee and automatic approval of projects with subsequent control processes, among others,” Méndez said.

From 2013 to 2022, the country’s fiber optic network grew from 13,400km to 81,000km, while the number of 4G antennas has increased by 145% since 2017.

Despite this progress, 54.2% of Peruvian households still lack fixed internet access, with the figure rising to 86.5% in rural areas. Regions like Loreto (4.5%), Amazonas (5%) and Huánuco (15.6%) have the lowest levels of connectivity.

According to the MTC, an additional 33,535 antennas, representing 55% of the connectivity gap, are needed to meet connectivity goals by 2025, excluding the requirements for 5G implementation.