1. Developing access to the Information society in
IV World Congress of Computer Law
Session: Policies for the information society
Developing access to the
Information society in
Latin America: The case of Peru
Edwin San Román
President, OSIPTEL Governing Board
Friday, 15 October 2004

2. ¿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.

3. Objectives
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.

4. Organization 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.
2003 a 2004
Secretary-General: Gustavo Peña
Each member freely establishes its own internal organization. The only requirement is at least an official contact for each regulatory body
Regulatel is administered by the Association of Regulatel Regulators AD, reporting to the forum

5. Overview of the region
Non-members
(19)
Members

6. Reform of the telecommunication sector in Latin America
Americas
Europe
Asia Pacific
Africa
Costa Rica
Colombia
Arab Region
Ecuador
Paraguay
Private
State
Uruguay

7. Vision of the information society
Harmonize regulatory frameworks to promote the development of ICTs, connectivity and people’s access to the information society.
Stimulate development
of the information society.
Private
Sector
Society
Government
Secure a stable regulatory framework in order to accelerate the development of ICTs.
Develop training through the use of new technologies.

8. Information society in Latin America
Technology: Development of new applications and facilities for competition
Content: Development of new market services
Connectivity: improve quality and penetration
Phases of the process
Current situation in
Latin America
Technology: make standards and competitivity more uniform.
Cone
ctividad: Mejorar la calidad y penetración.
Content: Development of new market services
Connectivity: Improve quality and penetration
Latin America is confronting these three challenges in an unstable political and economic climate

9. Study to determine the universal access gap in Latin America
Objectives of the PPIAF
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.

10. Expected 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.

11. Towards the information society:
The case of Peru

12. Geographical coverage by type of service
Fixed telephony
Telefonía fija
Mobile telephony
Telefonía Móvil
Telefonía Pública (TdP)
Public telephony (TdP)
Telefonía Pública (Fitel)
Public telephony (Fitel)
Broadband
(ADSL exchanges)
Source: Operators
Produced by: OSIPTEL

13. Market efficiency deficit
Market gaps vs. real gap
Commercially viable
Real access deficit
Market efficiency deficit
Current access
Poverty
Requires support
Geographic isolation

14. Access to ICTs by income
Market efficiency gap
Traditional switched access
S/243 month (6%)
Real universal access gap:
Over 50% of the
Peruvian population
Narrowband access S/220 month (6,2%)
3.6% Monthly income (soles)
Flat-rate-tariff switched access S/168 month (9,4%)
Traditional shared access S/68 month (18%)
Shared broadband access S/32 month (44%)
% of population
Source: Apoyo (2003)
Produced by: OSIPTEL

15. Internet by type of access
Mobile access
ADSL + Cable-modem
Dedicated lines
Source: Operators
Produced by: OSIPTEL

16. Access to Internet by public phones
Hourly rate
Between S/ and S/. 1.50
Hourly rate
S/. 5.00
Wireline dedicated lines
Wireless dedicated lines
New techologies
Source: Operators
Produced by: OSIPTEL

17. Costs of public phones falling
First year of operation (USD)
Current costs
Installation
Equipment
Connectivity (1 year)

18. Internet booth: Characteristics
Administrator:
Owner, family or friend
Tariff:
S/ per hour
(range: S/ S/. 2.5 per hour)
Type of premises:
70% rented
30% owned
No. of computers:
12 on average (mostly assembled)
Additional service:
IP telephony
Type of connection:
ADSL
Lifetime:
1.2 years on average
Types of problem:
Strong competition, informality,
security issues
Trades association:
95% independent
5% in associations
No. of users:
55 persons per day on average
Source: OSIPTEL

19. Universal access to telecommunication services
Role of the Telecommunication Investment Fund

20. (For the three projects)
Projects awarded
Projects awarded to Gilat- To-Home
Projects awarded to Avantec - C&G Telecom
Amount of subsidy
requested from Fund
USD
(Net present value)
USD
(For the three projects)
USD
USD
USD
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 = Rural Projects Programme
PPR – Centre North
Source and produced by: OSIPTEL

21. Quantitative results Amount (USD) 4.725.844 10.990.888 27.854.400
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’s interior
Total
Amount (USD)
USD per village
8,609
5,674
12,163
7,052
8,627
Villages with telephone
installations
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

22. Financial balance on Investment Fund projects
Amount of subsidy
Disbursed (31 July 2004)
Balance (31 July 2004)
Project
Pilot project in Northern Frontier
USD
USD
USD
Rural Projects Programme for Northern Forest, Centre South and South areas
USD
USD
USD
Rural projects programme for the North, Centre North and Centre East areas
USD
USD
USD
Project to expand public telephony
USD
USD
USD
USD
USD
USD
Source and produced by: OSIPTEL

23. Benefits of rural telecommunications
Cost/benefit for society: 1.64
Consumer surplus: S/ 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
Entre los principales beneficios sociales que están asociados a la disposición de telecomunicaciones en los pueblos rurales se pueden identificar aquellos que tienen que ver con el menor aislamiento y la integración y, por otro lado, aquellos que permiten reducir y mejorar la calidad del gasto de los pobladores.
Genera una mayor comunicación e integración de las zonas rurales a los mercados urbanos contribuyendo a que se genere un mayor comercio en desmedro del autoconsumo.
Se genera la posibilidad de diversificar la estructura productiva de las zonas rurales hacia actividades más integradas a los mercados urbanos (artesanía, turismo, etc). 21

24. Innovative 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.

25. Other uses of ICTs Practical case examples

26. Cotahuasi - Arequipa
A 12-hour drive from Arequipa at 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
Source: AEDES

27. Challhuahuacho 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)

28. Antabamba CICs (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/ previously paid by buyers to S/.7.5 for first-grade wool and S/ 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)