The purpose of this research is to assess whether the privatization of telecommunications in Peru was regressive or not and to determine what types of households, classified by their observable characteristics, bear a greater part of the burden or enjoy a greater part of the benefits. The results show a significant welfare improvement among most of Peru's socioeconomic strata, as well as an enormous improvement in terms of efficiency, access and quality of service during the postprivatization period. Despite these welfare improvements since 1998, there is an important reversion in household consumer surplus. We identify two factors that can help to explain this fall in consumer surplus: increase in tariffs due to the change in the pulse duration of local calls from three to one minute, and a permanent increase in the price of the monthly fix rent.