IV World Congress of Computer LawIV World Congress of Computer Law

Session: Policies for the information societySession: Policies for the information society

Developing access to theDeveloping access to theInformation society inInformation society in

Latin America: The case of PeruLatin America: The case of Peru

Edwin San RománPresident, OSIPTEL Governing Board

Friday, 15 October 2004Friday, 15 October 2004

¿What is Regulatel?¿What is Regulatel?

Regulatel is the Latin American Forum of Telecommunication Regulatory Authorities, set up for the purpose of fostering cooperation and the coordination of efforts to promote telecommunication development in Latin America.

Regulatel comprises 19 regulatory bodies representing: Argentina, Bolivia, Brazil, Colombia, Costa Rica, Cuba, Chile, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Dominican Republic, Uruguay and Venezuela.

ObjectivesObjectives

Facilitate the exchange of information between member countries on the telecommunication regulatory framework and management, services and the market.

Promote the harmonization of telecommunication regulation as a contribution to regional integration.

Identify and safeguard regional interests by adopting common positions in international forums.

Organization chartOrganization chart

President: José Rafael Vargas - INDOTEL, Dominican Republic

Board of Administration: INDOTEL, Dominican Republic; ANATEL, Brazil; OSIPTEL, Peru; SITTEL Bolivia;

CONATEL; Honduras; and ERSP, Panama.

Secretary-General: Gustavo Peña

Regulatel is administered by the Association of Regulatel Regulators AD, reporting to the forum

Each member freely establishes its own internal organization. The only requirement is at least an

official contact for each regulatory body200

3 a

20

04

200

3 a

20

04

Members (19)

Non-members

Overview of the regionOverview of the region

Costa Rica

Uruguay

Paraguay

EcuadorColombia

39%

40%

52%

70%

73%

0% 20% 40% 60% 80% 100%

Región Árabe

África

Asia Pacífica

Europa

America

Privado Estatal

Reform of the telecommunication Reform of the telecommunication sector in Latin Americasector in Latin America

Americas

Europe

Asia Pacific

Africa

Arab Region

Private State

PrivateSector

Government

Society

Develop training through the use of new technologies.

Secure a stable regulatory framework in order to accelerate the development of ICTs.

Stimulate development

of the information

society.

Harmonize regulatory frameworks to promote the development of ICTs, connectivity and people’s access to the information society.

Vision of the information societyVision of the information society

Connectivity: improve quality and penetration

Technology: Development of new

applications and facilities for competition

Content: Development of

new market services

Technology: make standards and competitivity Technology: make standards and competitivity

more more

uniform.uniform. Conectividad: Mejorar la calidad y penetración.

Content: Development of new market services

Phases of the process

Latin America is confronting these three challenges in an unstable political and economic climate

Current situation inLatin America

Information society in Information society in Latin AmericaLatin America

Connectivity: Improve quality and penetration

Study to determine the universal accessStudy to determine the universal accessgap in Latin Americagap in Latin America

The results of the project will benefit the regulators of 19 member countries of Regulatel and will help them in their efforts to implement an effective and sustainable universal access programme.

In addition, the result will contribute in the following areas:• Helping to create incentives for innovation encouraging the

private sector to improve accessibility of services in low-income areas;

• Promoting competition, reducing isolation, improving connectivity and expanding economic opportunities;

• Simplifying implementation processes for national projects by providing methodologies and specific task lists.

Objectives of the PPIAF

Expected outputs of PPIAFExpected outputs of PPIAF

Report on principles, global best practices and conceptual frameworks for universal access.

Conceptual and methodological framework for evaluating universal access programmes and quantifying the universal access gap.

Catalogue of universal access programmes. Report on the current status of the universal access

gap in a sample of Latin American countries. Evaluation of universal access programmes in the

region. Report on best practices and implementation guide.

Towards the information society:The case of Peru

Telefonía fija

Telefonía Pública (TdP)

Telefonía Pública (Fitel)

Telefonía Móvil

Broadband(ADSL exchanges)

Geographical coverage by typeGeographical coverage by typeof serviceof service

Source: OperatorsProduced by: OSIPTEL

Fixed telephony

Mobile telephony

Public telephony (TdP)

Public telephony (Fitel)

Market gapsMarket gaps vs. vs. rreal gapeal gap

Current access

Povert

y

Geographic isolation

ComCommerciallymercially viableviable

Marketefficiency

deficit

Real access deficit

Requiressupport

0

25

50

75

100

125

150

175

200

225

250

275

300

325

350

375

400

425

450

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Market efficiency

gap

Access to ICTs by incomeAccess to ICTs by income

Traditional switched accessS/243 month (6%)

Narrowband accessS/220 month (6,2%)Flat-rate-tariff switched

accessS/168 month (9,4%)

Shared broadband access S/32 month (44%)

Source: Apoyo (2003)Produced by: OSIPTEL

Real universalaccess gap:Over 50% of

thePeruvian

population

3.6

% M

on

thly

in

com

e (

sole

s)

% of population

Traditional shared accessS/68 month (18%)

120.1133.6

173.6

212.7

269.2

35.5

90.7

1.1 3.3 6.2 6.1

190.1

130.2

14.67.70.8 6.3

0

70

140

210

280

1999 2000 2001 2002 2003

Thou

sand

s of

sub

scri

bers

Dial-up Acceso móvil ADSL + Cablemodem Líneas dedicadas

Internet by type of accessInternet by type of access

Source: OperatorsProduced by: OSIPTEL

Mobile access Dedicated linesADSL + Cable-modem

Access to Internet by public phonesAccess to Internet by public phones

1,3721,973

2,907

10,785

0

2000

4000

6000

8000

10000

12000

1999 2000 2001 2002 2003

Líneas dedicadas alámbricas Líneas dedicadas inalámbricas

Nuevas tecnologías

Source: OperatorsProduced by: OSIPTEL

Hourly rate

S/. 5.00

Hourly rateBetween

S/. 1.00 and S/. 1.50

Wireline dedicated lines

New techologies

Wireless dedicated lines

Costs of public phones fallingCosts of public phones falling

0

5000

10000

15000

20000

25000

1998 2004

Gastos corrientes Instalaciones Equipos Conectividad (1 año)

Fir

st

year

of

op

era

tion

(U

SD

)

Current costs Installation Equipment Connectivity (1 year)

Internet booth: CharacteristicsInternet booth: CharacteristicsAdministrator:Owner, family or

friend

Lifetime:1.2 years on

average

No. of computers:12 on average (mostly

assembled)

Trades association:95% independent5% in associations

Type of premises:70% rented30% owned

Tariff:S/. 1.50 per hour(range: S/. 1.00 - S/. 2.5 per hour)

Type of connection:

ADSL

Additional service:IP telephony

No. of users:55 persons per day on average

Types of problem:Strong competition,

informality, security issues

Source: OSIPTEL

Universal access to telecommunicationservices

Role of the TelecommunicationInvestment Fund

Projects awardedProjects awarded

Projects awarded to Gilat- To-Home

Projects awarded to Avantec - C&G Telecom

Amount of subsidy

requested from Fund

USD 4 730 000.00(Net present

value)

USD 10 999 888(For the three

projects)

USD 7 079 000

USD 9 365 959

USD 11 409 441

Source and produced by: OSIPTEL

Project awarded to Gilat- To-Home

Pilot project in North Frontier

Projects awarded to TELEREP

PPR – South

PPR – Centre South

PPR – Northern Forest

PPR – North

PPR – Centre West

PPR – Centre North

PPR = Rural Projects Programme

Quantitative resultsQuantitative results

Pilot project in Northern Frontier

Projects:South, Centre

South and Northern

Forest

Projects: North, Centre

North and Centre East

Project: Expansion

of PT in the

country’sinterior

Total

Amount (USD) 4.725.844 10.990.888

27.854.400 11.396.300

54.967.432

USD per village 8,609 5,674 12,163 7,052 8,627

Villages with telephoneinstallations

214 2,208 2,461 1,616 6,499

Internet booths - 260 255 - 515

Before: Distance to public telephone (km)

90 54 24 - 40.69

After: Distance to public telephone (km)

5 8 4 - 5.83

Source: OSIPTEL

Financial balance on Investment Financial balance on Investment Fund projects Fund projects

Source and produced by: OSIPTEL

ProyectoMonto del Subsidio

Desembolso (31/Jul/2004)

Saldo (31/Jul/2004)

Proyecto Piloto en la Frontera Norte

$4.725.844 $4.226.612 $499.232

Programa de Proyectos Rurales para las zonas Selva Norte, Centro Sur

y Sur del país

$10.990.888 $6.432.251 $4.558.637

Programa de Proyectos Rurales para las zonas

Norte, Centro Norte y Centro Oriente del país

$27.854.400 $17.232.024 $10.622.376

Proyecto de Incremento de Telefonía Pública

$11.396.300 $9.117.040 $2.279.260

TOTAL $54.967.432 $37.007.927 $17.959.505

Project Amount of subsidy

Disbursed (31 July 2004)

Balance(31 July 2004)

Pilot project in Northern Frontier

Rural Projects Programme for Northern Forest,

Centre South and South areas

Rural projects programme for the North, Centre

North and Centre East areas

Project to expand public telephony

USD 4 725 844

USD 10 990 888

USD 27 854 400

USD 11 396 300

USD 54 967 432

USD 4 226 612

USD 6 432 251

USD 17 232 024

USD 9 117 040

USD 37 007 927

USD 499 232

USD 4 558 637

USD 10 622 376

USD 2 279 260

USD 17 959 505

Benefits of rural Benefits of rural telecommunicationstelecommunications

Cost/benefit for society: 1.64 Consumer surplus: S/. 13.00 per month Reduces the isolation of rural localities Promotes trade Diversifies the production structure in rural areas Improves market efficiency Reduces communication costs Reduces the costs of providing other public

services Contributes to greater national security

Innovative pilot projectsInnovative pilot projects

Information system for rural development in Cajamarca – ITDG• Establishment of infocentres providing access to

information of interest (agricultural sector, livestock, local management) using ICTs and the telephone service.

Telemedicine in the High Amazon – EHAS • Implementation of an information and communication

system for medical staff in rural health establishments.• Winner of the Stockholm Challenge Award in the health

category.

Agricultural information over the Internet for farmers in the Río Chancay-Huaral Valley Users Group• Installation of 14 telecentres to provide information on

agricultural and water resources to farmers in the area.

Other uses of ICTsOther uses of ICTsPractical case examplesPractical case examples

Source: AEDES

Cotahuasi - ArequipaCotahuasi - Arequipa

A 12-hour drive from Arequipa at 3 600 metres above sea level.

One of the lowest UNDP human development indices.

Connection to the world through the public telephone and organization of the community.

Marketing:• Agroecological products• Processed organic

products Winner of the Betinho

Communications Prize 2003

Challhuahuacho library centreChallhuahuacho library centre

Launched by the Callpas Association Scope: education and capacity-

building Achievements:

• 120 schoolchildren use the library centre daily.

• 95% of regular schoolchildren at the library centre successfully completed the school year.

• Four neighbouring villages have requested a similar project for their communities.

Major challenges and opportunities from Las Bambas mining project

Winner of the IDB prize for innovative projects (2003)

Antabamba CICsAntabamba CICs(information and training centres)(information and training centres)

Centre for Research (Information Technology) of the UNITEC University of New Zealand.

The idea of the project is to increase the productive value of activities and markets through the implementation of telecentres.

Achievements:• Improving the price of alpaca wool

from S/. 1.00 previously paid by buyers to S/.7.5 for first-grade wool and S/. 4.50 for fourth-grade wool.

• Enhance the negotiation strengths of potato producers through the information obtained on the Mi Chacra portal

(children in Antabamba using computers)

www.osiptel.gob.pe