telecommunications development fund december 2004

Telecommunications Telecommunications Development Development

FundFund

December 2004

(2)División Acceso Universal a la Sociedad de la Información - Subsecretaría de Telecomunicaciones

UNIVERSAL ACCESS

In Chile there is no Universal Service obligation to any telecommunication service provider.

Instead, Universal Access Policy.


Telecommunications Development Fund

Main Objective

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

especially in distant or geographically isolated locations


FDT Evolution

This Fund has two main phases:

- First Phase from 1994 until 2000. Created by Law 19.302 and focused in Public Rural Telephones

- Second Phase from 2001 for 10 years. Created by Law 19.724 and focused in a wider variety of telecommunication services


Telecommunications Development FundOperation

LEGAL FRAMEWORKGeneral Telecommunications Law

Telecommunications Development Fund Rules

Budget Law of the Nation


Telecommunications Development FundOperation

MANAGEMENT

•Telecommunications Development Council

DUTIESDefinition of criteria to assess projects. Establishing a Yearly Project ProgrammeAwarding SubsidiesPreparing and distributing an Annual

Report


PROCEDURE

Telecommunications Development Council establishes the terms and conditions required:

- Zone of service required- Maximum tariffs- Deadlines- Amount of subsidie granted


PROCEDURE

WHO MAY APLY?

- Natural o juridical persons

- Eligible to offer the service according with the Telecommunication Act


PROCEDURE

SELECTION AMONG APPLICANTS THAT FULFILL ALL THE REQUIREMENTS:

1. Those who required the minimun amount of subsidie

2. Those who offer more additional services

3. Those who will start sooner4. Drawing by lot


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


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)


TeleCenter Contest2002

First Contest (February)

Telecenters partipating: 102(Regions IV to X)Awarded: 83Subsidies: USD 1.3 mill

Second Contest (June)

Telecenters partipating: 253 (Regions I to XII)Awarded: 211Subsidies: USD 3.3 mill


What is a Community Telecenter?

A Community Telecenter (TLCC) is a multi-purpose center equipped with technologies that provide affordably priced information and communication services to the residents of a community, the content of which is relevant to the community.


What does a TLCC consist of?

FaxFax ScannerScannerPrinterPC-4PC-4 PC-5PC-5

-Support-Operator

PC-1PC-1

Internet: Dedicated line > 64 Kbps

PC-2PC-2 PC-3PC-3

Minimum 20 m2

Local Content

Photocopier


Survey Results

The number of users who have used Telecenters before increased by 83%.

Perception of the usefulness of the Internet for Internet users has change from just a source of information to a place where learning can happen.

Transactions carried out by Internet tripled.


Results

Distribution of users by age bracket

Older Adults 1%

Children49%

Adults50%


Results

Distribution of users by gender

Women41%

Men59%


Results

Distribution of users by profession

Laborers3%

Students

67%

Municipal Officials

2%

Farmers3%

Retired and Unemployed

4%

Misc.

6%

Education5%

Economy and Commerce2%

Housewives4%

University Prof2%

Technical Prof.2%


Results

Services used at the Telecenter

Use e-mail

21%

Check transactions

website

6%

Use word

processor

19%

Surf the Internet

24%

Chat, games and

music

5%

Education

10%

Use of

Photocopier

15%


Current Status

Despite ongoing projects there is still a large amount of ‘non-connected’ localities, especially in rural and economically disadvantaged areas (5,000 localities).

A great concern has to do with connectivity for the 2,324 Rural Schools in the country.


2004Two ongoing projects under Telecom Development Fund

1. Connectivity to southern isolated regions. Subsidie granted: USD 0.5 millContest opened last friday

2. Broadband Connectivity to Rural Schools (1000)Subsidie granted: USD 6.5 millContest will be opened tomorrow

Telecommunications Telecommunications Development Development

FundFund

[email protected]@subtel.cl

December 2004

telecommunications development fund december 2004

Documents

divisin acceso universal

informacin subsecretara

nation slide

lot slide

telecomunicaciones survey

universal service obligation

telecommunication act

universal access policy