IV World Congress of Computer Law Session: Policies for the information society

1. 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 informationsociety. 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: make standards and competitivity more uniform. Cone ctividad: Mejorar la calidad y penetración. Content: Development of new market services 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 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 accessgap 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 typeof service Fixed telephony Telefonía fija Telefonía Móvil Mobile telephony Telefonía Pública (TdP) Public telephony (TdP) Telefonía Pública (Fitel) Public telephony (Fitel) Broadband (ADSL exchanges) Source: Operators Produced by: OSIPTEL

13. Market gaps vs. real gap Commercially viable Real accessdeficit Marketefficiencydeficit Currentaccess Poverty Requiressupport Geographicisolation

14. Access to ICTs by income Traditional switched access S/243 month (6%) Narrowband accessS/220 month (6,2%) Flat-rate-tariff switched accessS/168 month (9,4%) Traditional shared accessS/68 month (18%) Shared broadband access S/32 month (44%) Market efficiencygap Real universalaccess gap: Over 50% of the Peruvian population 3.6% Monthly income (soles) % 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/. 1.00 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/. 1.50 per hour (range: S/. 1.00 - 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 telecommunicationservices Role of the TelecommunicationInvestment Fund

20. Projects awarded Amount of subsidy requested from Fund USD 4 730 000.00 (Net present value) USD 10 999 888 (For the threeprojects) Projects awarded to Gilat- To-Home USD 11 409 441 USD 9 365 959 Projects awarded to Avantec - C&G Telecom USD 7 079 000 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 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 4 725 844 USD 4 226 612 USD 499 232 Rural Projects Programme for Northern Forest, Centre South and South areas USD 10 990 888 USD 6 432 251 USD 4 558 637 Rural projects programme for the North, Centre North and Centre East areas USD 27 854 400 USD 17 232 024 USD 10 622 376 Project to expand public telephony USD 11 396 300 USD 9 117 040 USD 2 279 260 USD 54 967 432 USD 37 007 927 USD 17 959 505 Source and produced by: OSIPTEL

23. Benefits of rural telecommunications • 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

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 ICTsPractical case examples

26. Cotahuasi - Arequipa • A 12-hour drive from Arequipa at 3 600metres 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/. 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)

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