C H I L E

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Program of APEC Telecenter Training Camp

Taipei, Taiwan January 2005

CHILE

Information and Communication Technologies Opportunities in Chile

C H I L E

Luis Pérez

Institute of Youth

Marcel Silva

Undersecretariat of Telecommunications

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C H I L E

Situating Chile in the Map

On the western side of the south american continent, facing the Pacific Ocean.

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C H I L E

GENERAL FACTS

• Spanning more than 4,000 kilometers of coast from North to South.

• 15 million inhabitants

• Spanish Speaking Population

• Strong Macroeconomic Fundamentals

• Economy open to International Trade

• Strongly taking steps into becoming a port for ICT in Latin America.

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C H I L E

Private Investment in Telecommunications

An average of nearly US$ 1 Billion from 1996 to date

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C H I L E

13,2

15,6

18,3

20,4 20,6 21,6 22,4 22,1 21,7

- 500.000 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000 3.500.000 4.000.000

1995 1996 1997 1998 1999 2000 2001 2002 2003

-4,0 1,0 6,0 11,0 16,0 21,0 Lines on Service Penetration 26,0

3.266.588 lines, (March/2004)

Fixed Telephone Lines

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C H I L E

0,6 0,8 1,4 2,2 2,8

15,0

22,2

34,0

41,1 46,1

6,5

- 1.000.000 2.000.000 3.000.000 4.000.000 5.000.000 6.000.000 7.000.000 8.000.000 9.000.000

1993 1995 1997 1999 2001 2003

0,0 6,0 12,0 18,0 24,0 30,0 36,0 42,0 48,0 Mobile Telephony Penetration

7.929.860 cellphones, more than 50% penetration (March/2004)

Mobile Telephony

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C H I L E

0.00 5.00 10.00 15.00 20.00 25.00 30.00

Argentina Bolivia Brasil

ChileChile

Colombia Costa Rica Ecuador Mexico Paraguay Peru Uruguay Venezuela

PC / 100 Internet Users / 100

Source: ITU

CHILE has a leadership position in Latin America

Internet and Computers

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C H I L E

0 50000 100000 150000 200000 250000 300000 350000

Sep.99 sep. 00 ago. 01 sep. 02 sep. 03 jun. 04 Evolution

Broadband

Exclusive xDSL, WLL, Cable modem

ICT STATUS

BROADBAND

Broadband connections have increased 40.7% in relation to previous year.

340.509 Connections (June/2004)

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C H I L E

Regulatory Framework: encouraging competition in Telecom

• Freedom of enterprise

• All telecoms companies are private

• No restrictions to foreign investment

• Regulatory authorities cannot inhibit private- sector initiatives

Ð regulation applies only under specific market conditions (according to the Telecoms Law);

Ð concessions are granted free of charge (contest instead of auctions);

Ð no limitations to license granting, unless spectrum is limited;

Ð vertical integration is allowed

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C H I L E

The Digital Agenda is a Public-Private partnership for the national development through the use of ICTs, in order to enhance democracy and citizens rights, to strengthen equality of opportunities and individual liberties;

and to improve government efficiency and transparency.

Digital Agenda

Government CIO:

Carlos Alvarez, Undersecretary of Economy

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C H I L E

Purpose: contribute towards Chile’s

development, through the use of ICTs in order to:

- increase competitiveness and efficiency, - increase equal access to opportunities y

quality of life,

- increase transparency, privacy and security, - increase cultural development

Objective: take a 2nd digital leap by the year 2006 and reach a level of digital development comparable with OECD countries, by the

Bicentennial (2010)

Digital Agenda

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C H I L E

1. A solid and secure Broadband infrastructure.

2. Digitally literate population and a work force with world class standards in the use of ICTs.

3. On-line Government to service citizens.

4. A highly developed e-commerce.

5. To develop a critical mass of ICT businesses, capable of international competition.

6. A modern legal framework to facilitate information society development.

Digital Agenda

Goals for 2010

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C H I L E

1. Universal Access

2 million households with PCs (44%)

1 million households with Internet access (22%) 150.000 business firms with Internet access

Development of broadband infrastructure

2. Education

500.000 digitally literate adults

10% of labor force with one year of ICT training 80% of public schools has broadband access

Digital Agenda

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C H I L E

• 300 services on line

• e-Services platform (www.tramitefacil.gov.cl)

• Health services: medical e-appointment, e-sick leave, biometric information and id, broadband for all primary health care units.

• Training for 341 local governments and digital development for the 100 smaller and more

needy municipalities

On-line Government

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C H I L E

• Expanded use of e-Invoice.

• Expantion of e-procurement (www.chilecompra.cl)

• 80 business services on - line

• Development of payment media for e- commerce

ICT Businesses

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C H I L E

• ICT Certification of enterprises: 70% of ACTI affiliated businesses certified or in progress (ISO 9000 or CMM)

• 500 ICT professionals certified in the use of english yearly, beginning at 2005

• Promote R&D in the ICT industry

• Facilitate ICT services exports

Development of the ICT Industry

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C H I L E

• Promotion of the use of digital signature

• e-Invoice legislation.

• Safeguards for consumer rights in e- commerce.

• Updated copyright protection laws.

Legal Framework

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C H I L E

To promote telecommunications coverage in rural and low income urban areas,

especially in distant or geographically isolated locations.

Telecommunications Development Fund

Main Objective

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C H I L E

FDT (Rural Telephony, First Phase):

A Good Example of Leverage

Phones awarded in 6.059 localities 2.2 million beneficiaries

Public subsidies:

US$20 mm Private investment

in rural telephony:

US$150 mm

Succesful Leverage (1/7) 196 projects

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C H I L E

After Rural Telephony...

A Law Reform (Law No 19.724)

− Extended Fund Operation for another 10 years

− Diversified Eligible Projects to:

• TeleCenters (“InfoCenters”)

• Sound and Television Broadcasting, and

• Other Telecommunication Services

− Incorporated Community participation through

City Councils (municipalities)

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C H I L E

25 (3%)25

27 27 (4%)

5959 (8%)

6969

(9%) ₅₅₅₅

(7%)

72

72 (10%)

90 90 (12%) 69 (9%)69

72 (10%)72

18 18 (2%)

22 (3%)22

146146 (20%)

24 (3%)24

748 infocenters (Jan/2005)

Community Access to Internet

(Subsidized PC Bangs)

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C H I L E

Current Status

− Connecting rural school to Internet

− 667 rural schools will connecting free to Internet for 3 years

− 108 thousands students

− Schools into the localities with 0% Internet penetration

− Connecting Palena province

− Transmition Systems to improve the quality and price for the service of telecommunications into the province.

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C H I L E

Transmition System to Hornopirén

Huito

Microwaves Optic Fibre

RP Lobos La Silla

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C H I L E

Transmition System to Futaleufú and Palena

Fibra optica: 8 filamentos

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Thank you for your attention

Information and Communication Technologies Opportunities in Chile

C H I L E