Telecommunications Development Fund

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Telecommunications Development Fund
December 2004
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UNIVERSAL ACCESS

• In Chile there is no Universal Service obligation
  to any telecommunication service provider.
• Instead, Universal Access Policy.

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Telecommunications Development FundMain
Objective

• To promote telecommunications coverage in rural
  and low income urban areas, especially in distant
  or geographically isolated locations

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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

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Telecommunications Development FundOperation

• LEGAL FRAMEWORK
• General Telecommunications Law
• Telecommunications Development Fund Rules
• Budget Law of the Nation

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Telecommunications Development FundOperation

• MANAGEMENT
• Telecommunications Development Council
• DUTIES
• Definition of criteria to assess projects.
• Establishing a Yearly Project Programme
• Awarding Subsidies
• Preparing and distributing an Annual Report

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PROCEDURE

• Telecommunications Development Council
  establishes the terms and conditions required
• - Zone of service required
• - Maximum tariffs
• - Deadlines
• - Amount of subsidie granted

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PROCEDURE

• WHO MAY APLY?
• - Natural o juridical persons
• - Eligible to offer the service according with
  the Telecommunication Act

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PROCEDURE

• SELECTION AMONG APPLICANTS THAT FULFILL ALL THE
  REQUIREMENTS
• Those who required the minimun amount of subsidie
• Those who offer more additional services
• Those who will start sooner
• Drawing by lot

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FDT (Rural Telephony, First Phase)A Good
Example of Leverage
Phones awarded in 6.059 localities 2.2 million
beneficiaries Public subsidies US20
mm Private investment in rural telephony
US150 mm Succesful Leverage (1/7) 196 projects
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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)

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TeleCenter Contest2002

• First Contest (February)
• Telecenters partipating 102(Regions IV to X)
• Awarded 83
• Subsidies USD 1.3 mill
• Second Contest (June)
• Telecenters partipating 253 (Regions I to XII)
• Awarded 211
• Subsidies USD 3.3 mill

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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.

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What does a TLCC consist of?
Internet Dedicated line gt 64 Kbps
Local Content
Printer
Fax
Fax
Scanner
Scanner
PC-1
PC-1
PC-2
PC-2
PC-3
PC-3
PC-4
PC-4
PC-5
PC-5
Photocopier
-Support
20
Minimum
m2
-Operator
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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.

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Results
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Results
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Results
Distribution of users by profession
Housewives
Retired and
Technical Prof.
Farmers
Municipal
4
Unemployed
2
3
Officials
Economy and Commerce
4
2
Laborers
2
Education
Misc.
3
5
6
University Prof
2
Students
67
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Results
Services used at the Telecenter
Chat, games and
Education
Surf the Internet
music
10
24
5
Use of
Photocopier
15
Use word
processor
19
Check transactions
Use e-mail
website
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6
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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.

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2004Two ongoing projects under Telecom
Development Fund

• 1. Connectivity to southern isolated regions.
• Subsidie granted USD 0.5 mill
• Contest opened last friday
• 2. Broadband Connectivity to Rural Schools (1000)
• Subsidie granted USD 6.5 mill
• Contest will be opened tomorrow

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Telecommunications Development Fundlorenapineir
o_at_subtel.cl
December 2004