Peru's government telecommunications fund Fitel plans to provide a subsidy of as much as US$ 15.5 million for a rural broadband tender it will award in October or November, Fitel general manager Jesús Guillén said.
According to Guillén, 20% of the subsidy will be for training and marketing campaigns to increase demand. Fitel now has US$ 60 million in financial resources, which is enough to finance all rural telecommunications projects planned for 2005.
"The rural broadband project is expected to benefit 2.1 million Peruvians living in the 3,010 locations that have already been selected. Deployment is expected for next year in order to have it running by the second half of 2006," Guillén said.
The broadband project requires an initial investment of US$ 17.7 million for its first stage, and will eventually include public telephony, local telephony for subscribers, broadband and virtual private networks using a next generation network platform.
Through the bidding process, Peru's telecommunications regulator Osiptel will select the operators to provide the connectivity, while the services for end users will be provided by local entrepreneurs. This is a similar method to the one used to provide public internet access.
Another important project for this year is the satellite broadband project with which the government plans to provide telecommunications services to those isolated areas that have not benefited from Osiptel's previous projects.
"This initiative takes advantage of the fast development of technologies and the reduction of investment costs so these areas can be benefited with a vast variety of services to be provided with a satellite broadband platform," Guillén added.
Osiptel plans to launch a tender for this project during the second half of 2005 or the first half of 2006.
Source: Business News Americas - WDR/Intelecon Regulatory News
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