Telecenters in PeruTelecenters in Peru

Bridging the Digital DivideBridging the Digital Divide

APEC Telecenter Training CampAPEC Telecenter Training Camp

Jesús Guillén Marroquín – FITEL´s Manager (OSIPTEL)

Karol Pereyra Dueñas – Economist (MTC)

STATE OF PERUSTATE OF PERU

January 2005January 2005

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

Development GoalDevelopment 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.

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 PerúInternet 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

Nú

me

ro d

e s

usc

rip

tore

s

Broadband Access Evolution

600715093

27002

20412

63733

788170032

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2000 2001 2002 2003Years

Su

bsc

rip

tors

ADSL

Cable

Internet accessInternet access

Internet kiosk69%

Home of a relative or

friend1%

Work12%

Home6%

Colleges, schools,

universities6%

Places of Internet access (2003)

Fuente: APOYO Opinión y Mercado. Lima Metropolitana, 2003

Internet AccessInternet Access

Internet users by age

18 a 2423%

12 a 1725%

8 a 118%

51 a 703%41 a 50

12%

25 a 4029%

Internet users by socio-economic level

C30%

B32%

A6%

E8%

D24%

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

ADSL benchmark: Perú in LAADSL 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

ADSL market growth in PerúADSL market growth 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

0100002000030000400005000060000700008000090000

100000

5-1

1-0

1

13

-2-0

2

24

-5-0

2

1-9

-02

10

-12

-02

20

-3-0

3

28

-6-0

3

6-1

0-0

3

14

-1-0

4

23

-4-0

4

1-8

-04

Lin

es

ADSL Cable

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

ADSL growth per departments of Perú.

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Am

azonas

Ancash

Apurim

ac

Arequipa

Ayacucho

Cajam

arca

Cusco

Huancavelica

Huánuco

Ica

Junín

La Libertad

Lambayeque

Loreto

Madre de D

ios

Moquegua

Pasco

Piura

Puno

San M

artín

Tacna

Tum

bes

Ucayali

Lima y C

allaoA

DS

L/P

ho

ne

s

1T2003 2T3003 3T2003 4T2003 1T2004

Source: Osiptel

DiagnosisDiagnosis

32% of peruvian population lives and have access to::• 66% of nationwide telephone lines• 70% of nationwide mobile lines• 52% of payphones

The other 68% of the population have access to only:• 34% of nationwide telephone lines• 30% of nationwide mobile lines• 48% of payphones.

Situation analysisSituation analysis

87% of internet users access through internet kiosks 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.

The estimated number of internet users by 2003 is 3,6 million. The model has generated 25,000 direct employment and investments of around

US$ 50 million. The access cost per hour in Perú is US$ 0.50 in urban areas. But, Internet kiosk has a potential in the area of development that is not yet

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

rural and underserved areas.

Transforming the vision of Internet Transforming the vision of Internet Kiosks to TelecentersKiosks to Telecenters

Internet kiosk

Commercial vision and self employment.

Internet Access Service.• Messenger• Chat• Mail• Games• Others

Printing and copying. Basic training for users. Selling Groceries &

beverages

Telecenter

Development vision. Social gathering point Services:

• Information Literacy.• Capacity building.• Appropriate Information

services (rural technology, opportunities, prices, weather, irrigation, agricultural planning, etc.)

Teleservices:• e health.• e learning.• e government.• e commerce.• Others.

Strategic ObjectivesStrategic Objectives

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

Promote the evolution of the internet kiosks into telecenters.

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

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.

Development of an action plan to support production sectors and services using ICTs.

Peru Peru About Rural TownsAbout Rural Towns

PERU MapPERU Map

1,294,000 km21,294,000 km226 millons inhabitants26 millons inhabitants32 % rural inhabitants32 % rural inhabitantsLima, 8 millon inhabitantsLima, 8 millon inhabitants25 Regions25 Regions194 provinces194 provinces1828 districts1828 districts70 000 Minor towns70 000 Minor towns

Rural small villagesRural small villages

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. Without telecommunications services. Low demographic density. Isolated villages. High level of poverty.

PUBLIC SECTOR STRATEGIES PUBLIC SECTOR STRATEGIES FOR BRIGING DIGITAL DIVIDEFOR BRIGING DIGITAL DIVIDE

General Data MTCGeneral Data MTC Main Task:

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

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.

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.

Activities executed by MTCActivities executed by MTC

ERTIC - HuancavelicaERTIC - Huancavelica

Project managed by MTC and INICTEL (government organization)

Telecentres and libraries in 10 rural towns in the andes

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

Web site:http://ertic.inictel.net/

Objectives

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

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 ProgramTelecommunication Rural Program Internet Rural (1) Internet Rural (1)

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 RuralProgram Telecommunication Rural Internet Rural (2) Internet Rural (2)

OSIPTELOSIPTELPeruvian National Regulatory Peruvian National Regulatory

Agency for TelecommunicationsAgency for Telecommunications

General DataGeneral Data

Main Task:• To promote the development of more and better public

telecommunications services, in a free and fair competition framework.

Objectives:• To increase competition in telecommunication markets.• To promote Universal Access to telecommunications services.• To advise users and to protect their rights.

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.

Experiences in the implementation of Experiences in the implementation of TELECENTERSTELECENTERS

Pilote Projects funded by FITELPilote Projects funded by FITEL

“ 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

“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/ “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/hi/technology/4071645.stm

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

New projectsNew projects

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

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.

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

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

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

Rural Broad Band Access ProjectRural Broad Band Access Project

The most aggressive project for bridging the digital divide in Perú

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

The objective is to promote investment and the participation of rural SME through telecenters deployment.

The amount of investment estimated for each SME is US$ 3,500 in addition to the US$ 15 million of subsidy provided by FITEL.

How it worksHow it works

National program for capacity National program for capacity buildingbuilding

In former projects, FITEL installed 541 internet kiosks in rural villages

The next step is to support local capacities in their efforts to transform internet kiosks into telecenters

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

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

Other experiencesOther experiences

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.

Plan Puyhuán – Junín, promoted by Puyhuán NGO.• Further information: http://www.ids.ac.uk/ids/particip/networks/

workshop/torrejon.pdf Bibliocentro Challhuahuacho

• Promoted by Callpas Asociationa, local NGO• Awarded by IADB as “Youth innovation experience” (2003)• Web site: http://www.asociacioncallpas.org

UNITEC, Antabamba, Apurimac, prometed by University ...• Web site: http://www.unitec-peru.org/

Llaqtared, prometed by Telefónica del Perú.• The first stage started in 2004 with 20 rural towns• Web site: http://www.llaqtared.com