Formalization of ISPs in Peru: Strategy to Reduce the Digital Divide and Expand Connectivity (#1290)

Authors

Fuentes Maza, David Juan

Abstract

he formalization of Internet Service Providers (ISPs) in Peru represents a key opportunity to close the digital divide and improve connectivity in underserved regions. However, this is an understudied topic with scattered information, addressed mainly by government entities and experts with experience in reducing the digital divide. Despite the absence of systematic studies, empirical evidence suggests that these ISPs, although operating informally, have significantly contributed to improving Internet access in rural and marginalized communities. Currently, a high percentage of ISPs lack official recognition, which limits their access to financing, infrastructure, and regulatory compliance. To quantify this problem, this study carries out a preliminary analysis based on official data from Peruvian statistical entities, such as the National Institute of Statistics and Informatics (INEI) and the Supervisory Body for Private Investment in Telecommunications (OSIPTEL). Based on this information, the number of informal ISPs in the country is estimated and the main challenges and opportunities for their formalization are identified. Through a SWOT and PESTEL analysis, strategies are presented to strengthen regulation, encourage investment and promote public-private partnerships. It is concluded that the formalization of ISPs will not only impact the quality and sustainability of the service, but will also boost economic and social development