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Telecommunication business giant Telefonica revealed its intention to invest 2 billion US dollars in Peru. The money will be utilized to expand Telefonica’s fiber optic infrastructure in the Latin american country over a period of two years from now.

Telefónica is operating under the brand name Movistar in Peru and is largest mobile service provider in the country. Other players are América Móvil operating as Claro and Mobile Perú. Vietnam based Viettel has also entered in to Peru telecommunication market by offering mobile services. Virgin Mobile had also announced their entry to the market as a Mobile Virtual Network Operator(MVNO).

Peru has more than 3.4 million fixed telephone lines in use as of 2012, which accounts to a teledensity of 12 per 100 people. Peru has more than 15.2 million unique mobile subscribers and has 29.4 million mobile lines. South America-1 (SAm-1) and Pan American (PAN-AM) submarine cables link Peru to other parts of Central and South America, the Caribbean, and the United States. Peru’s fixed-line penetration is the third lowest in South America after Bolivia and Paraguay.

Reports says that Telefonica CEO Cesar Alierta met with Council of Ministers chairman Pedro Cateriano on Friday and expressed “confidence” in Peru, vowing to maintain the company’s level of investment and expand information and communications technologies in the country.

Alierta visited and witnessed Telefonica’s operations in Latin America in recent weeks and was convinced of the solid fundamentals and potentials of Peruvian economy. Telefonica wants to lead the digital revolution in the country by building new telecommunications infrastructure and focus on the new needs of its customers.

Telefonica owns and operates a fiber optic network that spans more than 10,000 kilometers in Peru. The future investments in expanding will focus on new potential regions and business sectors that will generate revenue.

Telefonica is the first operator to offer 4G LTE service in 2014, allowing more than 900,000 of its customers to currently use this service.

Telefonica has operated for more than 20 years in Peru and has invested more than 8.5 billion US dollars to develop the country’s communications infrastructure. Telefonica is a Spain based telecommunication company offering its services mainly in Europe, North and South American continents.