Supervisory Agency for Private Investment in Telecommunications (OSIPTEL) Current situation of the Broadband Market in Peru and Innovative Rural projects APECTEL 27 24-28 March, Kuala Lumpur, Malaysia AGENDA Ø CURRENT SITUATION OF THE BROADBAND MARKET IN PERU ü Technologies used in Peru ü Short-term problems ü Long-term vision Ø INNOVATIVE RURAL PROJECTS ü EHAS ALTO AMAZONAS ü INFORMATION SYSTEMS FOR RURAL DEVELOPMENT Current Situation of the Broadband Market in Peru DEFINICIÓN Ø There is currently no formal definition of broadband. Ø For the purposes of this presentation, broadband shall be considered as refering to those conections permanently available to the end-user which permit access to servers and the full range of on-line multimedia services at faster speeds than those offerd by dial-up connections.. Technologies used in Peru ADSL ADSL (1) Ø Competition in the offering of services based on ADSL technologies and the possibility of entrants accessing to the incumbent´s telephone companies’ networks have been significant factors in the development of ADSL services in countries with high users concentration. Ø In general new external telephone plant is difficult to deploy. We have different paradigms: ü Incentives aimed at the investment in and development of networks ü Use of existing networks and non-duplication of existing infrastructure ADSL (2) Ø Many countries apply systems which make use use of the local telephone operating company’s network: ü bitstream access or “indirect access”: connecting the new service provider to the “concentration points” of the local operating company’s network . ü “direct access” or “unbundling” of the local loop, in order to allow new service providers to request that the established operating company rent the use of their customer copper cables. Ø The “indirect access” model is used in Peru - regulated by the October 2000 Pricing Resolution, which permits the implementation of “Virtual ATM Circuits with ADSL Access” services. ADSL (3) Ø This service allows any final services operator to offer its services to the general public, using Telefonica del Peru’s access infrastructure. Ø Telefónica was allowed to be one of these final service providers. Ø At this moment, only Telefónica offers ADSL-ATM services, which are as follows: ü “Speedy” - Internet connection service. (Available since August 2001) ü “Speedy WAN” - Virtual private networks service. Ø These are considered “value added” services, and as such not subject to pricing controls. ADSL (4) Ø It is considered that the size of the market and the pricing conditions to access to the concentration points (PoPs) of Telefonica’s network are holding back the participation of new operators. In order to address this problem, the general ADSL situation will be reviewed, and changes may well be made to current technical and pricing conditions. Ø We witnessed great growth in these services during 2002. “Speedy” was offered in four separate speed packets: 128/64, 256/128, 512/128 y 2048/300 kbps and fixed rate packages of US$ 47, 82, 135 y 295 respectively, with a quality of PCR/SCR=10% Ø There has been great penetration not only in private homes but also in the area of public access Internet cabins, which have been replacing their traditional dedicated lines with these new forms of dedicated access ADSL Internet Access Basic Telephone network End-user New operator’s access point DSLAM POP´s Modem ADSL SPLITTER SPLITTER Telephone line ... ATM Network IP Network Internet Data Transmission Services using ATM Virtual circuits with ADSL access Asymmetric Digital Access Prepared by: OSIPTEL ATM network for Asymmetric Digital Access Internet Conection using ADSL Access CABLE MODEM Cable (1) Ø In Peru, Internet access through cable television networks is provided in the following varieties: ü Cablemódem (“CableNet” service, provided by Telefónica Multimedia), ü WorldGate (“TVNet” service, provided by Telefónica Multimedia). Ø In Peru, in December 2001 there were over 6000 subscribers to Internet access through cable televison network services. Ø Nonetheless, coverage was limited to certain districts of the city of Lima. Cable (2) CableNet Service Ø Cablemodems with CableLabs DOCSIS technology. Ø Internet access speed per client of up to 128/64 kbps. Ø Service includes Internet access, email accounts, and server space for the creation of web pages, provided by Terra. Ø Fixed monthly rate of US$ 35. TVNet. Ø Worldgate system. Ø A variation of cable modem technology providing access to certain Internet services, such as WWW, e-mail, etc. Ø A PC is not required, simply a“set top box” and a television. Ø Limited Service – neither data saving nor printing capabilities. Ø Fixed monthly rate of US$ 15. Bidirectional Cable Television HFC Network with Cable Modem Support splitter INTERNET TV Cable modem WAN / Internet Gateway Satelite TV TV PC “tap box” CABECERA Parabolic antena Fibre optic Transport TV Signals Fibre optics TVNet Coaxial cable Bidirectional amplifier Electrical optical converter TV SetTopBox SATELLITE Satellite (1) Ø Using mainly VSAT technology, all kinds of geographical difficulties can be resolved. Facilitates access in virtually any part of the country. Ø Often the best, or in some cases the only one solution for isolated rural or difficult to reach zones. Ø In Peru, GTH (Gilat to Home) company offers this service, downstream (or OUTBOUND) speeds of up 100 kbps upstream (or INBOUND) speeds of up to 56 kbps, but different user categories and prices. In December 2001, users subscribed to this service. with and with 485 MOBILE TELEPHONES Mobile (1) Ø In Peru, there has been a considerable increase of the number of users of mobile Internet access, mainly by means of dial-up (using a mobile phone as a modem for PC or PDA, and also by the direct access from the mobile terminal (WAP). Ø Access to 2.5 generation services should also be mentioned, specifically using the IS-95B standard, which evolved from the current CDMA IS-95A system, having the capability of grouping various channels (codes) which can be used temporarily, in accordance with user requirements, offering speeds of up to 64 kbps, and permitting the connection of PCs (laptops) and PDAs. Mobile (1) Ø Internet Access through this system is available at a fixed monthly rate of US$ 35. Ø Connection with corporative and virtual private networks is also offered through this system. FIXED WIRELESS ACCESS FWA Ø Users are connected via the radioelectric spectrum. Ø Permits fast deployment, requiring no more than the installation of antennas. Ø Offered by various companies with connection speeds of between 128 kbps and 2 Mbps, at competitive rates. Ø More than 2600 subscribers in Decenber 2001. PUBLIC INTERNET CABIN ACCESS (CYBERCAFES) Public Internet Cabin Acess (1) Ø 80% of peruvian Internet users use the Public Internet Access Cabins (Cybercafes) Ø Bandwidth is “shared” between the PCs simultaneously used by clients, enabling higher speeds than those offered by the dial-up system. Ø Cabins have several PCs and a high speed dedicated line connection. Cabin users are charged by usage time. Ø In December 2001- largely due to the high diffusion of dedicated line Internet access services provided by various ISPs, the gradual fall off in PC prices, and increased public demand - there were around 1970 Public Internet Access Cabins all over the country. SHORT-TERM RESTRICTIONS Ø URBAN AREAS ü At this time, only the main operator (Telefonica) offers ADSL y Cable modem services, which prevents these services from being competitive ü While there is a legal framework for free competition in the ADSL market, in practice competition has not been materialized, due to over-demanding entry conditions, which are currently under review. ü Additionally, the use of ISM frequency bands is also being reviewed by the MTC, in order to promote broadband access services (Wireless LAN). SHORT-TERM Ø RURAL AREAS ü There is no specific legal framework for rural telecommunications services, although this is a topic which is now under study. ü The implementation of state of the art technology implies heavy investment. ü broadband via satellite systems imply high operating costs. ü The country’s uneven terrain makes use of certain types of technology difficult. LONG-TERM VISION Ø Growth is expected in the area of ADSL and Cable Modem urban systems, as is competition form new service operators. Ø Use of KA band is expected to lower radio-electric spectrum costs in the case of satellite systems. Ø New technology such as WiFi, PLC and FO through electrical supply networks is expected to form part of the national panorama once the legal framework has been made more flexible. Ø Greater technological development in rural zones is expected once the corresponding specific regulations have been prepared. INNOVATIVE PROJECTS EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS http://central.ehas.org. EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS 1.- Participating Institutions Ø Ingeniería sin Fronteras – ISF (España) Ø Bio-engineering and Tele-medicine Group from the Universidad Politécnica de Madrid (UPM). Ø Universidad Peruana Cayetano Heredia (Peru)(UPCH) Ø Pontificia Universidad Católica del Perú (PUCP) Ø Ministry of Health (MINSA) Ø Supervisory Agency for Telecommunications (OSIPTEL) Private Investment in EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS 2.- Project Objective The objective of the project is to contribute to the improvement of the public health system in rural zones in Peru, through improved working conditions for rural health workers. EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS 3.- Project Description Ø Interconnection of Health Posts and Health Centers by means of radio VHF links (using both voice and data services) serving as a gateway to the Internet using telephone systems financed by OSIPTEL. Ø The use of a combined network (VHF radio and satellite) reduces the cost of phone calls and the sending/receiving of emails. Ø Depending on the type of information, the centers can communicate with either the National Coordinating Center or the MINSA network, via the server of the Universidad Católica del Perú, which will route the communications received between the rural health centers, MINSA and the Universidad Cayetano Heredia or any other relevant address. The following diagram illustrates this system: EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS 4.- Evaluation of Project Viability a. Technical Feasibility: Ø Medical consultations are easier and quicker. Each center is now able to deal with 23 consultations per month, as opposed to the 3 that were previously possible. Ø Courses on health matters can be conducted by email, thus reducing attendance courses by 50%. Ø Urgent Medical transferals can be more easily coordinated. 60 cases have been reported where the communications system has been a crucial factor in saving a patient’s life. Ø The number of trips required for the delivery of administrative and epidemiological reports has been reduced by 75%. EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS b. Institutional Feasibility Ø 100% of local managers interviewed have commented that the EHAS system has been useful in solving the communication and information access problems that affect rural health care workers in the province. Ø Users are highly satisfied with the functioning and use of the equipment provided (employees daily work load has been reduced). Ø There is a growing sense of security amongst patients who can now communicate directly with doctors from health centers or hospitals. c. Economic Feasibility Ø EHAS equipment operating costs (paper, distilled water for batteries, printer ribbon, etc.) stand at approximately US$ 25.00 per annum, which can easily be assumed by rural health centers (according to 96.7% of those interviewed). EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS 6.- Evaluation of Project Impact a. Impact in the Clinic Process Ø The diagnostic capacity of the health posts has increased: 254 consultations have been satisfactorily resolved. Ø Communications systems have been used to quickly obtain medicines, enabling patients to be treated more quickly and efficiently (previously patients had to be transferred to other centers or travel personally to pick up medicines). Ø Vaccination campaigns have been better coordinated and there has been a wider coverage attained. EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS b. Impact on patients’ Health and Welfare Ø The system has been absolutely crucial in saving the lives of patients needing urgent transfer to other centers. The majority of these cases are related to pregnancy (cesareans, placenta retention, fetal death, etcetera) as well as gunshot wounds, serious accident/injury and malaria. c. Impact in the Accessibility Ø The need for workers to travel has been reduced by 42%, with a corresponding reduction in the sensation of their having to leave their center too long unattended. Ø Health center personnel have better opportunities of interchanging experiences and knowledge with their colleagues, and also are able to learn and do new things at work. EHAS ALTO AMAZONAS PROJECT: COMMUNICATIONS SYSTEMS FOR RURAL HEALTH CENTERS d. Economic Impact Ø The fact that health workers need to travel less between center and hospital represents a saving of US $ 44,06 per worker, as they themselves have to generally face the costs of these trips. The most important saving -thanks to communications systemsis the reduction in the number of urgent transferals. e. Impact on Public Perception of the Health Service Ø 100% of those interviewed consider that the system of epidemiological surveillance has begun to function better over the last few months, as has the coordination and management of the health care network. INFORMATION SYSTEMS FOR RURAL DEVELOPMENT PROJECT http://caj.itdg.org.pe/telefonia/ Information System for Rural Development Project 1.- Participating Institutions Ø Intermediate Technology Development Group – ITDG Ø The World Bank Ø Supervisory Agency for Private Investment Telecommunications (OSIPTEL) in 2.- Project Objective Ø The objective of the project is to design and install a system to supply information to small scale farmers and local authorities. Through the integration of both non-conventional information services, traditional libraries, local farmers’ knowledge and ICTs, rapid access to information can be provided, helping to improve production levels and lead to better management. Information System for Rural Development Project 3.- Project Description Ø Implementation of rural information centers (Info-centers), in six communities located in the province of Cajamarca, providing a rural information system based on the needs of the target communities, and installing a data line (Internet Access) in each center. Ø The data line enables the system of information to be placed on-line and used for interactive communication with the Information Center Coordinator based in the city of Cajamarca. A public telephone will also be installed in each center, aiding self-sustainability. The following diagram illustrates the system applied: Information System for Rural Development Project Printer PC`s Hub Info-center Info-center PC`s Internet Printer Data ITDG Center Lima PC`s Data Hub ITDG Center Cajamarca Info - center Information System for Rural Development Project 4.- Training Program Ø Training handouts and support materials were prepared to aid better understanding of the specific rural environment. Ø Courses: Use and maintenance of computers, office software, management and marketing. Ø Methodology: participative workshops, practical and theory classes. Ø Phases: ü Phase One: Training in Cajamarca ü Phase Two: in situ training with own infrastructure ü Phase Three: Training reinforcement: training the trainers. Ø Participants: 5 selected from each community Information System for Rural Development Project 6.- Management Model: ØSet-up: Info-center Administrator (operator), Fiscalization Committee and Legal Equipment Ownership Committee. ØSelection of administrator: by mean of Public Tender (looking for the person most suitable and able to run the center) Points are given for business experience, administrative and technical knowhow, live in the area, and other similar factors. ØAdvantages: üInvolves local people in the setting up and running off the Infocenter. üHelps users to ensure that a quality service is offered. üEncourages member of the community to accept the challenge of assuring the efficient running of the Info-center. üPromotes team-work among community leaders. Visit our web-page: www.osiptel.gob.pe