Projects for regions of peru 09.09.15

Technical Secretariat of FITELSeptember, 2015

FONDO DE INVERSI ÓN EN TELECOMUNICACIONES

FUND FOR INVESTMENTS IN TELECOMMUNICATIONSFITEL

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TumbesPiuraCajamarcaCusco

Telecommunication Projects for Regions of Perú

Telecommunications for development and social inclusion


Economic an political environment

Stability and business climate

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Fuente: MEF

Real GDP. Peru 2014-2019 (annual growth,%)

Peru average 2014-2019

3.1%

4.3%

Latin America average 2014-2019

Inflation. Peru 2014-2019 (average annual change,%)

Peru average 2014-2019

3.9%

2-0%

Latin America average 2014-2019

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Peru, economic growth (future): stable

Growth and stability

Peru: attractive country for investment

Investment grade

Grado de inversión Países



Aaa AAA AAAAa1 AA+ AA+Aa2 AA AAAa3 Chile AA- AA-A1 A+ Chile A+ ChileA2 A AA3 Perú A- A-

Baa1 BBB+ Perú BBB+ PerúBaa2 Brasil , Colombia BBB Colombia BBB ColombiaBaa3 Uruguay BBB- Brasil , Uruguay BBB- Brasil , UruguayBa1 BB+ BB+Ba2 Paraguay BB Bolivia, Paraguay BBBa3 Bolivia BB- BB- Bolivia, ParaguayB1 B+ B+B2 B Ecuador B VenezuelaB3 B- Venezuela B- Ecuador

Caa1 Venezuela C+ C+Caa2 Ecuador C CCaa3 CCC+ C-

Sin calificación Argentina Sin calificación Argentina Sin calificación Argentina

Moody´s S&P Fitch

Countries above the line have investment grade

Source: Moody´s

Coun

trie

s whi

ch h

ave

inve

stm

ent g

rade

Chile


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Sorce: Doing Business 2015, Worl Bank

Perú is the second country with the best environment for doing business in Latin America

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Perú: Business environment: favorable

Perú, environment for businessFONDO DE INVERSI ÓN EN TELECOMUNICACIONES


Legislation and Regulatoryenvironment

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Deployment of Optical Fiber Infrastructure RDNFO and Regional Projects

Network NeutralityFreedom to use

Foster E-GovernmentICT connection between the state and citizens

Foster the creation of contents, applications and digital skills training

Focused in areas as education and healthImpulse to the National Network of State (REDNACE)More…- National Plan for E-Government / e-Inclusion Plan- The Peruvian Digital Agenda

"Law for the Promotion of Broadband and Construction of the

National Fiber Optic Backbone“ (RDNFO) and its Regulations

State Policy towards the development of an information and knowledge society

Fuente: Ley 29904

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Promoting and favorable: Law 29904

Legal and Regulatory framework (I)FONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Measures to promote private investment in infrastructure; removes barriers to carry it out

• There are signed agreements with Regional Gobernors which undertake to facilitate procedures.

• Agreements with each of the regional governments to ensure payment for services to be provided to Local Schools and Health facilities will be signed

• Agreements with power companies for use of their infrastructure

Law 30228

Agreements

Law for the expansion of

telecommunications infrastructure

Agreements with key stakeholderss


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Favorable regulatory and political environment

Legal and Regulatory framework (II)

Telecommunications Market environment

Existing gap and growth opportunity

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Rural Internet: Low growth, coupled with a strong national dispersion (18 out of 24 regions, are below Peru average)

Density internet per household (%). Peru 2013

Density internet per household (%). Peru 2008-2013

Peru: 25%

Analysis of environment: state of the telecommunications sector in Peru. August 2014

Source: ENAHO

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¿FITEL challenge?


Computers: Low growth, coupled with a strong national dispersion (17 out of 24 regions, are below Peru average)

Perú: 35%

¿FITEL challenge?

Home computer density (%). Perú 2013

Home computer density (%). Peru 2008-2013

Analysis of environment: state of the telecommunications sector in Peru. August 2014

Source: ENAHO

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Source: Katz (2011)

5% 10% 20% 30%

USA

Peru

Bajo

Alto

Broa

dban

d im

pact

gro

wth

of G

DP

Broadband penetration 2013 (estimated)40%

Asia-OceaniaEuropeAmerica

Korea

Switzerland

Brasil

Japan

Colombia

México

CanadaChile

Germany

low penetration

average penetration

high penetration

Spain

4 IMPACTSINTERNET

ECONOMIC GROWTH

JOB CREATION

INCREASING PRODUCTIVITY

INNOVATION

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Impact of the Internet on economic growth. Countries with the highest penetration level has a greater impact

Broadband Divide and opportunitiesFONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Telecommunications market environment

Consumption pattern

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Average Internet speed (Mbps). Peru 2009-2013

Source: Akamai, OSIPTEL, FMI, Telecom operators

GDP per capita (USD) vs. Average Internet Speed (Mbps). Peru 2013

27%

Internet ARPU (US$/conecction/month). Perú 2010-2013

Average annual growth 2009-2013

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Peru fixed Internet market: development level "emergent"

Market: Data consumption patternFONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Broadband Projects

National Fiber Optic Backbone - RDNFO

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Source: MTC, FITEL, PROINVERSIÓN

State Vision:Expanding high-capacity network

Details of RDNFO:• Kilometers of Fiber Optic: 13500 Km

• Investment amount: USD 333 Millones

• 180 Provinces interconnected

• Buena Pro granted to: - Contractor/Operator:

AZTECA – COMUNICACIONES- Contract signed: june 17, 2014- Term concession: 20 years

• Start of installations: December 2014

• End of installations of RDNFO: June 201616

National Fiber Optic Backbone- RDNFOFONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Broadband projects

FITEL's Projects for Regions

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Regional access netwoks

FITEL

Institutions demand

School Health

Police

To build communication networks of high transmission capacity to contribute to the integral development of the towns.

Reduction of digital divide

Deployment of ICT broadband high capacity applications and services (e-government, tele-health, tele-education, etc.)

Integration of State (sectors of education, health), Local Governments.

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Objectives of Projects for Regions (I)

21 Projects

Financing

+US$1800million

3.9 millionBeneficiary Population

29000 KmOptical fiber deployment

+11 thousandState institutions

Contents and trainingEducation, Health y Safety

+6000beneficiary

localities

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Regional Projects: Dimension of total scopeFONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Installation is free of charge for the State Institutions

7060 3524 568 232

DownloadMinimum

guaranteed rate (%)

Monthly payment (Tax included)

(Peruvian currency)

2 Mbps 40% S/ 97.594 Mbps 40% S/. 142,06

HealthSchools Police stationsOther

institutions

Data rate and costs

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Regional Projects. Beneficiaries, speeds and tariffsFONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Fiber Optic Backbone (RDNFO)

Possibility of interconnection with operators in Lima or in any of the 180 capitals of province where reaches the RDNFO

Possible Output to Internet from Lima, supported by transport Network of RDNFO.

Deployment of the Transport Network

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Regional Projects. Beneficiaries, speeds and tariffs

Regional Projects: Networks (I)FONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Regional Fiber Optic Project

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Deployment of the Access Network

Regional Projects: Networks (II)FONDO DE INVERSI ÓN EN TELECOMUNICACIONES

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Increase access, use and appropriation of broadband in priority sectors: education, health and safety

Regional Projects: ServicesFONDO DE INVERSI ÓN EN TELECOMUNICACIONES

2Mb

Minimum

Internet(Broadband) Intranet

Regional Broadband Projects

4 Projects whose contracts were awarded in March 5, 2015

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Regional Fiber Optic Network connecting districts

765Thousand

295District capitals

1169 Localities

Districts connected to the OF

Beneficiary localities

Beneficiary population

State Institutions

Educational (Schools) 1543

Health 759

Police stations 107

04 Projects Total amount of financing awarded: US$ 345.6 Million

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04 Regional Projects: Apurimac, Ayacucho, Huancavelica, LambayequeFONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Regional Broadband Projects

4 New Projects in promotion

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4 Projects: Tumbes,

Piura, Cajamarca,

Cusco

Financing

+US$449million

+800 thousandBeneficiary Population

+6000 KmOptical fiber deployment

+2800State institutions

278 Education, Health and Safety

+1,494Beneficiary

localities

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4 Regional Projects in Promotion

Description Date Public Announce of Tender and publication of

Tender DocumentsSeptember 05

Submission of Envelope Number 1 (Bidders prequalification)

Until october 29

Publication of Financing Contract Until november 19 Submission of Envelopes Number 2 and Number 3 Until November 30 Buena Pro Until December 7

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Schedule of activities public tender - 2015FONDO DE INVERSI ÓN EN TELECOMUNICACIONES

281 thousandBenefitiary inhabitants

1648 Km Optical Fiber deployment

662 State institutions

Investment = US$ 26.5 millionTransport network

Investment + Subsidy = US$ 74.1 millionAccess networkTotal awarded financing is the addition of both quantities

371 Benefitiary localities

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Piura Regional ProjectFONDO DE INVERSI ÓN EN TELECOMUNICACIONES






51 Benefitiary localities

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Tumbes Regional ProjectFONDO DE INVERSI ÓN EN TELECOMUNICACIONES



1520State institutions



735 localidades beneficiadas

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Cajamarca Regional ProjectFONDO DE INVERSI ÓN EN TELECOMUNICACIONES






337 localidades beneficiadas

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Cusco Regional ProjectFONDO DE INVERSI ÓN EN TELECOMUNICACIONES


Conclusions

¿ Why invest in Peru?

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• Fixed broadband market Peru: level of development "emerging"• Potential growth of data consumption (Mbps) with a stable ARPU• Fixed broadband market structure: emerging operators as potential

clients of regional operator• Mobile Broadband Market structure: emerging operators as

potential customers of regional operator

Economic attractiveness

for investment in a favorable environment

Business Opportunitiesin wholesale

and retail, emerging segments

• Investment Grade: Peru, attractive country• Political and regulatory environment: favorable

Economic and political environment

Market environment

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Why invest in Peru?FONDO DE INVERSI ÓN EN TELECOMUNICACIONES

Key ideas

Fund for Investments in Telecommunications

Technical Secretariat of FITELE-mail: [email protected]

Phone: (511) 6157800 Ext 1234www.fitel.gob.pe

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mailto:[email protected]



http://www.fitel.gob.pe/

Projects for regions of peru 09.09.15

Technology

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