MTC proposes amendment to RDNFO rules

12 Jul 2019

Peru’s Ministry of Transport and Communications (Ministerio de Transportes y Comunicaciones, MTC) has opened a public consultation on a proposal to allow Azteca Communications, the operator of the National Fibre Optic Backbone (Red Dorsal Nacional de Fibra Optica or RDNFO), to offer end-user services. Under current rules the provider is prohibited from offering services to end users and is restricted to wholesale carrier services. The MTC notes, however, that the network has been underutilised and, as such, is not fulfilling its intended purpose of improving connectivity, lowering prices and bridging the digital divide. As noted by TeleGeography’s GlobalComms Database, a study of the RDNFO last year found that the projected capacity demand for the network by June 2018 was 137Gbps, but actual usage was just 21Gbps. The analysis blamed inflexible pricing – which had not been changed since 2012, despite shifting market conditions – and the duplication of infrastructure by private players for the underutilisation of the backbone. The MTC went on to launch a comprehensive review of the project to determine the best way to remedy the situation.