Telecenters in Peru Bridging the Digital Divide

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Telecenters in Peru Telecenters in Peru

Bridging the Digital Divide Bridging the Digital Divide

APEC Telecenter Training Camp APEC Telecenter Training Camp

Jesús Guillén Marroquín – FITEL´s Manager (OSIPTEL)

Karol Pereyra Dueñas – Economist (MTC) STATE OF PERU

STATE OF PERU

January 2005

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Public Policy for Bridging the Digital Public Policy for Bridging the Digital

Divide

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Development Goal Development Goal

Build an Information Society based on the principles of equity, non-discrimination and integration that uses effective and efficiently

the information on their development

processes through intensive use of information

and communication technology.

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December 2003:

212,000 dial-up clients 6,122 leased lineas

27,002 clients of cable-módem 63,733 clients of ADSL

14,000 Internet Kiosks in urban areas: (2004)

Internet market in Perú Internet market in Perú

Dial-up subscribers

120,134133,560

173,583

237,236

212,685

0 50,000 100,000 150,000 200,000 250,000

1999 2000 2001 2002 2003

Número de suscriptores

Broadband Access Evolution

6007 15093

27002 20412

63733

788 32 1700 0

10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

2000 2001 2002 2003

Years

Subscriptors

ADSL Cable

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Internet

Internet access access

Internet kiosk

69%

Home of a relative or

friend 1%

Work 12%

Home 6%

Colleges, schools, universities

6%

Places of Internet access (2003)

Fuente: APOYO Opinión y Mercado. Lima Metropolitana, 2003

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Internet Access Internet Access

Internet users by age

18 a 24 23%

12 a 17 25%

8 a 11 8%

51 a 70 41 a 50 3%

12%

25 a 40 29%

Internet users by socio-economic level

C 30%

B 32%

A E 6%

8%

D 24%

Internet penetration rate in Lima

18%

33%

47%

63%

54%

45%

19% 13%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2003

Use unless once a month

Know obout internet but do not use Do not know about internet

Source APOYO Opinión y Mercado.

Lima Metropolitana, 2003

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ADSL benchmark: Perú in LA ADSL benchmark: Perú in LA

México Brasil

España

Argentina Chile Perú

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

0 5000 10000 15000 20000

PBI per cápita ADSL/lín tele

ADSL density (ADSL/phones)

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

Mexico Brasil España Argentina Chile Venezuela Perú

Source: Osiptel

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ADSL

ADSL market growth market growth in Perú in Perú

• 2003 Growth rate 220%. Top in America.

• Inland towns represent 26 % of ADSL lines but 30% of bandwidth.

• 80% of internet users already use broadband in Perú. Nearly all “cabinas internet” have changed to ADSL.

• Force new investments in infraestructure(FO/Radio,

DWDM)

Source: Osiptel

Broadband CAGR in Perú

0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

5-11-01 13-2-02 24-5-02 1-9-02 10-12-02 20-3-03 28-6-03 6-10-03 14-1-04 23-4-04 1-8-04

Lines

ADSL Cable

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ADSL

ADSL density density (ADSL/ (ADSL/ Phones Phones ) )

ADSL growth per departments of Perú.

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Amazonas Ancash Apurimac Arequipa Ayacucho Cajamarca Cusco Huancavelica Huánuco Ica Junín La Libertad Lambayeque Loreto Madre de Dios Moquegua Pasco Piura Puno San Martín Tacna Tumbes Ucayali Lima y Callao

ADSL/Phones

1T2003 2T3003 3T2003 4T2003 1T2004

Source: Osiptel

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Diagnosis Diagnosis

9 32% of peruvian population lives and have access to::

• 66% of nationwide telephone lines

• 70% of nationwide mobile lines

• 52% of payphones

9 The other 68% of the population have access to only:

• 34% of nationwide telephone lines

• 30% of nationwide mobile lines

• 48% of payphones.

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Situation analysis Situation analysis

9 87% of internet users access through internet kiosks

9 The “cabinas de Internet” phenomena has produced a broad impact in the world, the model known as “modelo Perú de Acceso a Internet” is being replicated in several countries.

9 The estimated number of internet users by 2003 is 3,6 million.

9 The model has generated 25,000 direct employment and investments of around US$ 50 million.

9 The access cost per hour in Perú is US$ 0.50 in urban areas.

9 But, Internet kiosk has a potential in the area of development that is not yet maximized.

9 Our goal is to make them evolve to be telecenters and increase penetration in

rural and underserved areas.

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Transforming the vision of Internet Transforming the vision of Internet

Kiosks to Telecenters Kiosks to Telecenters

Internet kiosk

9 Commercial vision and self employment.

9 Internet Access Service.

• Messenger

• Chat

• Mail

• Games

• Others

9 Printing and copying.

9 Basic training for users.

9 Selling Groceries & beverages

Telecenter

9 Development vision.

9 Social gathering point 9 Services:

• Information Literacy.

• Capacity building.

• Appropriate Information services (rural technology, opportunities, prices, weather, irrigation, agricultural

planning, etc.) 9 Teleservices:

• e health.

• e learning.

• e government.

• e commerce.

• Others.

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Strategic Objectives Strategic Objectives

9 Build up infrastructure of telecommunications adapted to bridge the internal digitad divide

9 Promote the evolution of the internet kiosks into telecenters.

9 Improve the access to the Information Society by means of generating capacities and competition in the use of ICTs.

9 Contribute to the development of the Peruvian society through the access to qualified social services, the promotion of new forms of work, stimulation of research and technological innovation, as well as.

9 Development of an action plan to support production sectors and

services using ICTs.

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Peru Peru

About Rural Towns

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PERU Map PERU Map

1,294,000 km2 1,294,000 km2

26 millons26 millons inhabitantsinhabitants 32 % rural inhabitants 32 % rural inhabitants Lima, 8

Lima, 8 millon millon inhabitantsinhabitants 25 Regions

25 Regions 194 provinces 194 provinces 1828 districts 1828 districts

70 000 Minor towns 70 000 Minor towns

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Rural small villages Rural small villages

9 According to Universal Access Policies “Rural towns” are:

• Towns denominated as “rural” by the National Institute of Statistics and Data Processing (INEI).

• District capitals with 3000 inhabitants, even if they are considered “urban” by INEI.

9 Without telecommunications services.

9 Low demographic density.

9 Isolated villages.

9 High level of poverty.

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PUBLIC SECTOR STRATEGIES

FOR BRIGING DIGITAL DIVIDE

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General Data MTC General Data MTC

9 Main Task:

• Design and implement strategies and policy to integrate the country through transport routes and communications services.

9 Vice Ministry Telecommunications Objectives:

• To promote sustainable development of the communications services and the universal access to them, as well as to increase innovation

technology and distribute properly the resources and use them efficiently.

9 The Office of

Projects of Communications: is responsible for designing,

implementing and evaluating projects in order to contribute to spread

out the coverage area of the telecommunication services in extreme

poverty regions of the country.

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Activities executed by MTC

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ERTIC

ERTIC - - Huancavelica Huancavelica

9 Project managed by MTC and INICTEL (government

organization)

9 Telecentres and libraries in 10 rural towns in the andes

9 The main objetive is to use ICT to support social, economic and cultural development as well as impulsing and improving sectors of production and services

9 Web site:

http://ertic.inictel.net/

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Envío de Información

HUB MTC

Request

Poblados Rurales

Internet

Red IP Privada

9 Objectives

• To continue with Universal Access Policy providing Internet access to rural areas where this kind of services do not exist.

9 Scope:

• Infrastructure, Operation and Maintenance

• Designing, implementation, operation and maintenance of a telecom network to provide Internet access to 1050 rural towns.

• Includes a training and promotion component as a key factor

Telecommunication Rural Program

Internet Rural (1)

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9 Implementation Program 2005

Pilot Project where 30

telecenters are going to be installed

2006-2007

A network of 1,050 telecenters is going to be installed in

extreme poverty areas of Peru.

Program Telecommunication Rural Program Telecommunication Rural

Internet Rural (2)

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OSIPTEL OSIPTEL

Peruvian National Regulatory

Agency for Telecommunications

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General Data General Data

9 Main Task:

• To promote the development of more and better public telecommunications services, in a free and fair competition framework.

9 Objectives:

• To increase competition in telecommunication markets.

• To promote Universal Access to telecommunications services.

• To advise users and to protect their rights.

9 OSIPTEL administrates the fund for rural investment in telecommunication (FITEL).

• created to finance telecommunications services in rural areas and areas considered as preferential social interest places.

• Contributions to the fund represent one percent (1%) of gross income received by final service suppliers and carriers.

• FITEL subsidize CAPEX and OPEX needed to bridge market failures.

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Experiences in the implementation of Experiences in the implementation of

TELECENTERS

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Pilote Projects funded by FITEL Pilote Projects funded by FITEL

9 “Information System for Rural Development”, presented by Intermediate Technology Development Group (ITDG). Cajamarca.

• Business Case at ITU-D web site:

http://www.itu.int/ITU-D/study_groups/SGP_2002- 2006/SG2/CaseLibraryRuralTel/documents/Peru.pdf

• Project’s Website:

http://www.infodes.org.pe/telefonia/infocentros.htm

9 “Information and Communication System for personnel of rural health centers”, presented by EHAS Enlace Hispano Americano de Salud.

• The project was awarded by the Stockholm Challenge in 2004 http://www.ehas.org/portal_en/Awards/

9 “Agricultural Information Service, for the Valley of Huaral-Chancay, Lima”, presented by CEPES, Centro Peruano de Estudios Sociales.

• Further Information about the project in:

http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/h i/technology/4071645.stm

• Project website: http://www.cepes.org.pe/huaral/

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New projects

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Internet Access in District Rural Internet Access in District Rural Capitals Capitals

9 Objectives

• Promoting adoption of development vision in telecenters deployment.

• To provide rural towns with the means required to take advantage of the Information and Communication Technologies (ICTs) using it as tool for both, local and national development.

9 Scope:

• Infrastructure, Operation and Maintenance

• Design, implementation, operation and maintenance of a telecom network to provide Internet access to 68 district capitals.

• Training and promotion component as key factor.

• A Second Stage for 467 telecenters is planned to start after the results of the first stage bid process

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Internet Access in District Rural Internet Access in District Rural Capitals Capitals

9 Stakeholders involvement

• Operator: responsible for promoting and training tasks.

• Operator will select the telecenters manager (local resident).

• The manager has to:

• select the place to install the data ports

• invest for the implementation of the establishment.

• buy PCs and furniture, etc.

• The manager can provide additional services to support the profitability of the telecenters.

• OSIPTEL will establish parameters for the services provided by the operator.

• The project includes a capacity building program

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Rural Broad Band Access Project Rural Broad Band Access Project

9 The most aggressive project for bridging the digital divide in Perú

9 Use the ADSL infrastructure and WiFi technology to expand broadband access to 2,900 rural towns for Telephony and internet access

services for more than 2 million rural inhabitants

9 The objective is to promote

investment and the participation of rural SME through telecenters

deployment.

9 The amount of investment estimated for each SME is US$ 3,500 in

addition to the US$ 15 million of subsidy provided by FITEL.

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How it works

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National program for capacity National program for capacity

building building

9 In former projects, FITEL installed 541 internet kiosks in rural villages 9 The next step is to support local capacities in their efforts to transform

internet kiosks into telecenters 9 Project objectives:

• Stimulation and improvement of local content production

• Design and implementation of local capacity building programs

• Development of local capacities to use and produce appropriate information

• Involvement of local stakeholders in the design process

• Guarantee of social and economic sustainability of telecenters

• Creation of consciousness of the importance of ICTs in development processes, therefore increasing the number of local organizations making use of ICTs 4 development

9 Deduction of a project model for sensitization and capacity building for telecenters in rural areas

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Other experiences Other experiences

9 Cotahuasi – Arequipa, promoted by AEDES, a local ecological NGO that works with farmers to improve production

• The experience was awarded with the “Betinho award in 2003”

• Website: http://www.aedes.com.pe/index.shtml.

9 Plan Puyhuán – Junín, promoted by Puyhuán NGO.

• Further information:

http://www.ids.ac.uk/ids/particip/networks/workshop/torrejon.pdf 9 Bibliocentro Challhuahuacho

• Promoted by Callpas Asociationa, local NGO

• Awarded by IADB as “Youth innovation experience” (2003)

• Web site: http://www.asociacioncallpas.org

9 UNITEC, Antabamba, Apurimac, prometed by University ...

• Web site: http://www.unitec-peru.org/

9 Llaqtared, prometed by Telefónica del Perú.

• The first stage started in 2004 with 20 rural towns

• Web site: http://www.llaqtared.com