Program of APEC Telecenter Training CampTaipei, TaiwanJanuary 2005

CHILE

Information and Communication Technologies Opportunities in Chile

C H I L E

Marcel SilvaUndersecretariat of Telecommunications

Luis PérezInstitute of Youth

C H I L E Situating Chile in the Map

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

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.

C H I L E Private Investment in Telecommunications

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

C H I L E

13,2

15,6

18,3

20,4 20,621,6 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

26,0Lines on Service Penetration

3.266.588 lines, (March/2004)

Fixed Telephone Lines

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

C H I L E

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Arg

en

tin

a

Bo

liv

ia

Bra

sil

Ch

ileC

hile

Co

lom

bia

Co

sta

Ric

a

Ec

ua

do

r

Me

xic

o

Pa

rag

ua

y

Pe

ru

Uru

gu

ay

Ve

ne

zue

la

PC / 100 Internet Users / 100

Source: ITU

CHILE has a leadership position in Latin America

Internet and Computers

C H I L E

0

50000

100000150000

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)

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 regulation applies only under specific market

conditions (according to the Telecoms Law); concessions are granted free of charge (contest

instead of auctions); no limitations to license granting, unless spectrum

is limited; vertical integration is allowed

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

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

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 AgendaGoals for 2010

C H I L E

1. Universal Access2 million households with PCs (44%)1 million households with Internet access (22%)150.000 business firms with Internet accessDevelopment of broadband infrastructure

2. Education500.000 digitally literate adults10% of labor force with one year of ICT training 80% of public schools has broadband access

Digital Agenda

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

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

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

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

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 FundMain Objective

C H I L E

FDT (Rural Telephony, First Phase):A Good Example of Leverage

Phones awardedin 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

C H I L EAfter 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)

C H I L E

25 25 (3%)

27 27 (4%)

5959(8%)

6969(9%) 5555

(7%)

72 72 (10%)

90 90 (12%)

69 69 (9%)

72 72 (10%)

18 18 (2%)

22 22 (3%)

146146(20%)

2424(3%)

748 infocenters (Jan/2005)

Community Access to Internet(Subsidized PC Bangs)

C H I L ECurrent 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.

C H I L ETransmition System to Hornopirén

Huito

Microwaves

Optic FibreRP Lobos

La Silla

C H I L ETransmition System to Futaleufú

and Palena

Fibra optica: 8 filamentos

Thank you for your attention

Information and Communication Technologies Opportunities in Chile

C H I L E