National Broadband Policy

BROADBAND AND ICT VISION TOWARDS PERU 2021 Harold Forsyth Ambassador of Peru to Japan

Tokyo, November 2018 CONTENTS

1. OVERVIEW OF COMMUNICATIONS IN PERU

2. VISION TOWARDS 2021

3. NATIONAL BROADBAND POLICY

4. INSTITUTIONAL IMPROVEMENTS

1 CONTENTS

1. OVERVIEW OF COMMUNICATIONS IN PERU

2. VISION TOWARDS 2021

3. NATIONAL BROADBAND POLICY

4. INSTITUTIONAL IMPROVEMENTS

2 Infrastructure: Progressive but insufficient expansion of networks

Projection to 2021 Broadband networks in deployment Public Investment: USD ~2,150 mm

Optical Fiber Backbone

• Investment: USD ~350 mm • Length: ~13,500 Km • Scope: 180 provinces (capitals) • Model: neutral operator Areas of high Regional broadband networks geographical complexity and • 21 projects low demand. • Investment: USD ~1,800 mm • Length: ~30,000 Km • Scope: 1,529 districts (capitals)

Source: MTC, FITEL

3 Services: Internet penetration in Peru and America

100

70 America average 60

0 Argentina Bolivia Brasil Chile Colombia Ecuador EEUU Mexico Paraguay Perú Uruguay

ITU, 2017 Percent houses with PC Percent houses with internet access Percent internet users 4 Services: Telephone subscriptions in Peru and America

(per 100 inhabitants)

Uruguay

Perú

Paraguay

Mexico Fixed telephone EEUU Mobile telephone Ecuador

Colombia

Chile America: 24.4% America: 114% Brasil

Bolivia

Argentina

0 20 40 60 80 100 120 140 160

5 ITU, 2017 Mobile telephone subscribers per 100 inhabitants Fixed telephone subscribers per 100 inhabitants The ICT Development Index Peru and America

Population: 31,550,163 Population density: 24.55 GNI per Capita: 5,950

The ICT Development Index – America countries

Uruguay Perú Paraguay Mexico EEUU Ecuador Colombia Chile Brasil Bolivia Argentina 0 2 4 6 8 10 Average: 5.21

ITU, 2017 6 ICT at home

2012 2017 2012 2017 Fixed telephone Internet

7.5 PP1 8 PP

29.4% 21.90% 20.2% 28.2%

PCs Cable TV 5.5 PP 3.3 PP 29.9% 31.9% 37.4% 33.2%

Mobile 10.5 PP

1/ PP: Puntos porcentuales 90.2% Fuente: INEI-Encuesta Nacional de Hogares 79.7% Elaboración DGRAIC-MTC 7 CONTENTS

1. OVERVIEW OF COMMUNICATIONS IN PERU

2. VISION TOWARDS 2021

3. NATIONAL BROADBAND POLICY

4. INSTITUTIONAL IMPROVEMENTS

8 OUR VISION

VISION TOWARDS 2021 A country with better social welfare and competitiveness, which promotes equal opportunities, thanks to the intensive use and development of broadband services and Information and Communication Technologies (ICT) 9 How to achieve it?

With the NATIONAL BROADBAND POLICY

General Specific Actions and Objectives Objectives Goals

10 CONTENTS

1. OVERVIEW OF COMMUNICATIONS IN PERU

2. VISION TOWARDS 2021

3. NATIONAL BROADBAND POLICY

4. INSTITUTIONAL IMPROVEMENTS

11 National Broadband Policy: Six (6) general objectives

1) Increase deployment and ensure appropriate Infrastructure telecommunications transport and access infrastructure

2) Ensure sufficient coverage and continuity of telecommunication services Services 3) Encourage competition in telecommunications services

4) Improve the management and use of Radio Spectrum

5) Encourage the use of broadband and the development of Users culture and digital literacy

Applications 6) Promote the development of digital content and applications

12 Actions and Goals for the General Objective 1

1) Increase deployment and ensure appropriate Infrastructure telecommunications transport and access infrastructure.

2) Ensure sufficient coverage and continuity of telecommunication services Services 3) Encourage competition in telecommunications services.

4) Improve the management and use of Radio Spectrum.

5) Encourage the use of broadband and the development of Users culture and digital literacy.

Applications 6) Promote the development of digital content and applications.

13 Action: Implement 21 regional projects for the expansion of infrastructure

2016 2021 Goal in 2021

INDICATOR 2016 2021

Percentage of districts with at least one node 19% 94% of optical fiber1

Includes nodes of RDNFO, Regional Projects y operators

PARTNERS: MTC, Regional Governments, operators

Source: MTC

14 Action: To use the telecommunication infrastructure provided by power transmission networks.

2021 Goal in 2021

Power Transmission Line INDICATOR 2016 2021 Moyobamba-Iquitos 18 fibers1 belongs to Percentage of use of the State optical fiber installed in 0% 100% power transmission networks

PARTNERS: MTC, Osiptel, Proinversión, 1 Network is being Minem, operators implemented

Source: MTC

15 Opportunity: Implement alternative connectivity schemes for areas of high geographical complexity and low demand.

2021

Areas with high geographic complexity ➢ OPPORTUNITY: To use satellite capacity, and low demand 17MHz, Andean Satellite Simón Bolívar 2

➢ PARTNERS: MTC, Proinversión, CAN, operators

Source: MTC

16 Actions and Goals for the General Objective 2

1) Increase deployment and ensure appropriate Infrastructure telecommunications transport and access infrastructure.

2) Ensure sufficient coverage and continuity of telecommunication services

Services 3) Encourage competition in telecommunications services.

4) Improve the management and use of Radio Spectrum.

5) Encourage the use of broadband and the development of Users culture and digital literacy.

Applications 6) Promote the development of digital content and applications.

17 Action: Implement 21 regional projects to extend broadband services (1/2)

21 Regional Projects 3.8 millons +11 000 State entities People benefited conected

+29 000 km 1,529 districts capitals Of deployed optical fiber Conected by optical fiber

Financing: US$ 1,800 millons

Beginning of operations 2018: Lambayeque, Huancavelica, Apurímac, Ayacucho and Cusco Beginning of operations 2019: Cajamarca, Piura and Tumbes Beginning of installations 2018: Lima, Ica, Amazonas, Junín, Puno, Moquegua, and Tacna Pending award 2018: Áncash, Arequipa, Huánuco, La Libertad, Pasco and San Source: FITEL Martín

18 Action: Implement 21 regional projects to extend broadband services (2/2)

2021 Goal in 2021

INDICATOR 2016 2021

Penetration of Fixed 7% 14% Internet (%) Houses with Fixed 28% 50% Internet (%) Public Entities with 20% 59% Fixed Internet (%)

PARTNERS: MTC, Osiptel, Proinversión, MEF, international institutions, regional/local government, operators Source: FITEL

19 Opportunities in order to consolidate 3G and 4G mobile internet. Partners: MTC, Osiptel and operators

Number of subscribers Mobile broadband

Coverage (2G, 3G, 4G) Coverage evolution mobile internet (3G, 4G)

50.8% 25000 de Centros Poblados cuentan con Cobertura al 2017 20000

Coverage mobile broadband 15000 5,338 9,189

% de Centros Poblados que cuentan con Cobertura por tipo de tecnología 10000 2,810 Technology 2017 2016 677 20% 5000 11,814 10,075 2% 7,614 8,598 umber of connections (thousands) connections of umber N 3G 0 19% 36% 2014 2015 2016 2017 3G 4G 20 Información preliminar al IV Trimestre de 2017 Fuente: DGRAIC – MTC Actions and Goals for the General Objectives 3 and 4

1) Increase deployment and ensure appropriate Infrastructure telecommunications transport and access infrastructure.

2) Ensure sufficient coverage and continuity of telecommunication services

Services 3) Encourage competition in telecommunications services.

4) Improve the management and use of Radio Spectrum.

5) Encourage the use of broadband and the development of Users culture and digital literacy.

Applications 6) Promote the development of digital content and applications.

21 Promote the growth of emerging Internet operators through the National Network of Optical Fiber and regional projects (new markets)

Market share of Fixed Internet service. Peru 2011-16

1% 1% 1% 1% 1% 1% 9% 10% 13% 15% 18% 20% Goal in 2021

INDICATOR 2016 2021

Market share(%) of 90% 89% 86% 84% 81% 79% emerging 1% 5% operators (Others)

2011 2012 2013 2014 2015 2016-3T PARTNERS: MTC, Osiptel, operators

Movistar Claro Otros Source: Osiptel

22 Action: Promote the efficient and effective use of the radio spectrum. Partners: MTC, Osiptel

1) Establish and demand the fulfillment of goals and commitments for the appropriate use of Radio Spectrum by the concessionaires

2) Promote the entry of new operators into future awards.

3) Improve the use of financial resources from the auctions of Radio Spectrum

23 Actions and Goals for the General Objective 5

1) Increase deployment and ensure appropriate Infrastructure telecommunications transport and access infrastructure.

2) Ensure sufficient coverage and continuity of telecommunication services Services 3) Encourage competition in telecommunications services.

4) Improve the management and use of Radio Spectrum.

5) Encourage the use of broadband and the development of Users culture and digital literacy.

Applications 6) Promote the development of digital content and applications.

24 Action: Implement Demand Aggregation Centers (DAC) in 180 province capitals of Peru

COMPONENTS OF THE DAC

Connectivity Room Trainning Room Goal in 2021

Profit Room INDICATOR 2016 2021

Province Capitals 0% 100% (%) with one DAC

PARTNERS: MTC, regional/local governments, operators

25 Actions and Goals for the General Objective 6

1) Increase deployment and ensure appropriate Infrastructure telecommunications transport and access infrastructure.

2) Ensure sufficient coverage and continuity of telecommunication services Services 3) Encourage competition in telecommunications services.

4) Improve the management and use of Radio Spectrum.

5) Encourage the use of broadband and the development of Users culture and digital literacy.

Applications 6) Promote the development of digital content and applications.

26 Carry out campaigns for the generation of applications in the DACs, in order to contribute to the social welfare and competitiveness of the province

Campaigns for the generation of applications

Goal in 2021

INDICATOR 2016 2021

Percentage of DAC (%) developing 0% 100% applications

Generation of applications to promote equal opportunities PARTNERS: MTC, Ministries, academy, regional/local governments, operators, Examples • Education • Industry • Health • Logistic ICT entities and civil society

Image: https://certificationgame.com/reflections-from-the-certificationgame-hackathon/

27 Generations of applications to promote equal opportunities: Telemedicine CONTENTS

1. OVERVIEW OF COMMUNICATIONS IN PERU

2. VISION TOWARDS 2021

3. NATIONAL BROADBAND POLICY

4. INSTITUTIONAL IMPROVEMENTS

29 CHALLENGES FOR ICT DEVELOPMENT

• Dispersion of actors and roles: Different institutions

• Re-focusing of the State towards the citizen as the main objective

• Act as facilitator: According to MTC role in implementation and deployment of broadband networks

Need to create integrated services with participation of entities at national, regional and local level.

30 INTERNATIONAL COOPERATION: PERU - JAPAN

Memorandum of Cooperation NOV 2016 Object : Sustainable cooperation for the implementation of joint projects in the field of ICT Topics : 1. Digital Terrestrial Television - ISDB-T + EWBS 2. Pilot projects for logistic improvement in Peru 3. Disaster Risk Reduction through ICT 4. High-level meetings on new technology projects 5. Conduct seminars, send missions for specific topics and create joint working.

31 INTERNATIONAL COOPERATION: OFFICIAL VISIT OF MINISTER OF TRANSPORTS AND COMMUNICATIONS. October 12-16, 2018

Traffic control system

32 THANK YOU! DOMO ARIGATOU GOZAIMASHITA ご清聴ありがとうございました