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March 2008

REPORT ON THE SITUATION OF

INFORMATION AND COMMUNICATION

TECHNOLOGIES (ICT) IN THE

AMERICAS REGION

Inter-American Telecommunication Commission

Organization of American States

2

CONTENTS

1. INTRODUCTION TO AND OBJECTIVES OF THIS DOCUMENT......................................... 6 2. SITUATION OF ICTs IN THE AMERICAS ..................................................................... 6

2.1. Fixed service networks .........................................................................................8 2.2. Mobile and third generation networks .....................................................................9 2.3. Internet infrastructure........................................................................................ 13 2.3.1. Internet access and broadband............................................................................ 13 2.3.2. Computers ....................................................................................................... 15 2.3.3. Servers (hosts) ................................................................................................. 16 2.3.4. Internet domain names/addresses ....................................................................... 16 2.4. Alternative networks and technologies.................................................................. 19 2.4.1. Satellite systems ............................................................................................... 20 2.4.2. WiMAX Technology for broadband ........................................................................ 20 2.4.3. Digital terrestrial television (DTT) ........................................................................ 21 2.4.4. Cellular telephony for rural fixed solutions............................................................. 22 2.4.5. Wi-Fi to expand Internet coverage ....................................................................... 22 2.4.6. Broadband voice over IP..................................................................................... 23

3. PROSPECTS FOR ICTs IN THE 2007-2012 PERIOD.................................................... 24 3.1. International Telecommunication Union “Measuring the Information Society” ............. 24 3.1.1. Application of the conceptual model: the indicators................................................ 26 3.1.2. Results of the 2007 ICT Opportunity Index............................................................ 28 3.1.3. ICT-OI and the digital divide ............................................................................... 30 3.1.4. ITU 2007 ICT-OI Assessments............................................................................. 32

4. MARKET STRUCTURE............................................................................................ 33 4.1. Regulatory framework........................................................................................ 34 4.1.1. Financial aspects of access to telecommunications.................................................. 34 4.1.2. Investment in ICTs ............................................................................................ 38 4.1.3. Revenue of ICTs, prices of telecommunication services, price trends ......................... 40

5. CHALLENGES OF ICT SECTOR TRENDS ................................................................... 41 5.1. Digital broadcasting services ............................................................................... 41 5.2. Implementation of IP telephony........................................................................... 42 5.3. Universal Service/Access .................................................................................... 45 5.3.1. Telecenters (public access centers) ...................................................................... 53 5.4. Accessibility and access to information and communication via information and

communication technologies (ICTs) ............................................................................... 58 6. ICT APPLICATIONS............................................................................................... 61

6.1. Telehealth ........................................................................................................ 61 6.2. Cyber government ............................................................................................ 65 6.3. E-learning ........................................................................................................ 67 6.4. Cybersecurity.................................................................................................... 69

7. CONNECTIVITY PROJECTS IN THE REGION.............................................................. 71 7.1. Connectivity projects of OAS in the Americas ........................................................ 71 7.1.1. Regional project to bridge the digital divide and incorporate populations in the IS ....... 71 7.1.2. Project to establish the ICT Application Research and Development Center ................ 72 7.2. Plan of Action eLAC 2007 and eLAC2010 ............................................................... 74

8. STRATEGIES TO INCREASE CONNECTIVITY AND TELECOMMUNICATION DEVELOPMENT78 9. CONCLUSIONS AND RECOMMENDATIONS............................................................... 80 BIBLIOGRAPHY......................................................................................................................... 82

3

ACRONYMS.............................................................................................................................. 83 ANNEXES ................................................................................................................................ 84

ANNEX 1: Table of World Indicators ............................................................................. 84 ANNEX 2: OAS Connectivity projects for the Americas .................................................... 86 ANNEX 3: OAS Member States .................................................................................... 92 ANNEX 4: Links of Interest .................................................................................... 93

4

FIGURES

Main telephone lines in the OAS countries (2006)...................................................9 Total number of cellular and fixed telephones in the OAS Member States (per 100

inhabitants) .............................................................................................. 10 Cellular subscribers in 2006 (per 100 inhabitants) ................................................ 11 Cellular subscribers in OAS countries (2006) compared. Total: 554 million ............. 12 Internet and broadband in the OAS countries....................................................... 13 Presence of computers in households and Internet access in CITEL ......................... 14 Internet users (estimated) in the Americas per year ............................................. 14 Broadband subscribers in the Americas in 2006: 80.2 million ................................ 15 Computers per 100 inhabitants in OAS countries .................................................. 16 Distribution of IPv4 addresses per organization in April 2007 ................................. 17 Number of Internet resources assigned in Latin American and the Caribbean............ 17 Distribution of IP addresses by country ............................................................... 18 Distribution of IPv4 blocs each year by country .................................................... 18 IPv4 address allocations ................................................................................... 19 IPv6 initial allocations issued............................................................................. 19 Diagram of the conceptual model....................................................................... 26 ICT Opportunity Index with averages.................................................................. 30 Percentage of countries by region that authorize and regulate VoIP (2004) .............. 44 International switched and VoIP traffic, by region of destination, 2004 .................... 45 Growth in global VoIP traffic.............................................................................. 45 Content of Ministry of Health websites in 2006..................................................... 65 RedCLARA topology map (April 2007)................................................................. 69 Framework of action of the project..................................................................... 73 Distribution of 1,541 ICT projects registered with PROTIC.org, by eLAC 2007 thematic

area......................................................................................................... 76 Comparison of the main international indicators in CITEL countries ......................... 84

5

TABLES

OAS countries with the largest number of cellular subscribers in 2006..................... 11 OAS countries with 3G technology presence ........................................................ 12 Main OAS countries with broadband subscribers as of 2006 ................................... 15 The main countries of Latin America and the Caribbean with WiMAX technology........ 20 ICT-OI for OAS countries in the 2001-2005 period, values and rankings (2005) ........ 29 Regulatory aspects and competition in OAS countries ........................................... 34 Percentages of disbursements of Funds in OAS countries....................................... 35 Principal sources of the Funds of the OAS countries in 2005................................... 36 Strategies for the funding of Universal Service in Latin America.............................. 38 Expenditure on ICTs as a percentage of GDP in OAS countries in 2005 .................... 39 Priority of governments of the OAS countries for the ICT sector in 2005 .................. 40 Countries that have adopted DTT standards in the region ...................................... 41 Regulatory aspects for telephony ....................................................................... 42 Application of universal access funds in 2005 in OAS countries ............................... 47 Rural population as a percentage of total population in the countries of the Americas

(2005) ..................................................................................................... 51 Average number of potential users per public ICT access center ............................. 53 Total number of PIACs (governmental and private) identified ................................. 55 Estimated number of inhabitants potentially served by PIACs and estimated population

without ICT access..................................................................................... 55 Virtual libraries on health in 2006 ...................................................................... 64 Adoption of telehealth policies in OAS countries in 2005 ........................................ 64 E-government readiness rankings of CITEL countries in 2005................................. 66 ICT learning centers in CITEL ............................................................................ 68 Progress with eLAC 2007 .................................................................................. 75

6

REPORT ON THE SITUATION OF INFORMATION AND

COMMUNICATION TECHNOLOGIES (ICT) IN THE

AMERICAS REGION

1. INTRODUCTION TO AND OBJECTIVES OF THIS DOCUMENT

At its thirty-seventh regular session, the OAS General Assembly gave the Inter-American

Telecommunication Commission (CITEL) and, in particular, the telecommunication sector, a unique

opportunity to create a succinct and readily understood document presenting the current situation

of and progress made with connectivity, challenges it faces, and possible approaches to meeting

them.

This report will examine the challenges faced by governments of the region in improving

connectivity and access in the process of integration to the Information Society (IS).1 It will also

include a series of scenarios describing how the market could be developed in the future.

A three-step approach was taken: a review of background and related information, compilation of

information from Administrations on connectivity, and concrete proposals about how to improve the

status of information and communication technologies (ICTs) to reduce the digital divde in the

countries in the framework of CITEL.

The statistics presented herein are obtained directly from specialized international organizations to

avoid duplicating efforts. The most up-to-date and consistent data possible have been sought when

drawing up the present report.

2. SITUATION OF ICTS IN THE AMERICAS

Telecommunication infrastructure is constantly evolving. The technology has moved from a system

in which most revenue was generated from long-term investments in voice services, which were

evolving slowly and provided over fixed lines, to a system where, in the future, the source of

revenue will primarily be telecommunication services and applications that utilize the Internet

protocol (IP) based mobile technologies.

At the same time, an impressive transformation of the sector’s organization has taken place, since,

as a result of the convergence of networks and services, operators formerly specializing in specific

communications segments are being strengthened in their original sphere and are making

incursions into others. Local telephony, even where maintained, for the most part in countries with

monopolistic control, now faces competition from mobile telephony, cable television operators, and

even electricity companies, which are considering the possibility of utilizing their networks for

communications.

1 Defined as economic and societal networks that exchange information using digital technologies

(networks and ICTs) (ECLAC, 2003).

7

Technological convergence and the new technologies are affording the sector new opportunities.

However, their implementation may pose a major challenge for some developing economies owing

to their limited telecommunication infrastructure which, in turn, widens the gap between “the

haves” and the “have nots” in terms of access to the opportunities afforded by information and

communications technologies (ICTs).2

Statistics show that in recent years, the digital divide between the developed and the developing

countries has grown smaller, although the degree varies with the type of technology considered and

the country’s economic situation. However, much remains to be done compared to developed

countries, and also at the national level. Factors affecting the digital divide are the public’s lack of

financial resources, limited investment in information and communications infrastructure (an aspect

where there is great disparity between urban and rural areas), difficult geographical conditions,

regulatory problems, low educational level of the population, low levels of training in ICT use, socio-

cultural or language aspects, and lack of electricity.3 In particular, with the numerous new

technologies that are emerging, there is concern that the problem of unequal distribution of access

to information and communications technologies will grow more acute worldwide.

The most important coordination of ICT initiatives was effected at the World Summit on the

Information Society (WSIS)4, an initiative organized by the International Telecommunication Union

(ITU), whose objective was to eliminate the worldwide digital divide in access to ICTs, specifically

telecommunications and the Internet, and to prepare action plans and policies to reduce this

inequality.

Participants were national governments, the private sector, civil society organizations, the United

Nations, and its specialized agencies.

The Summit comprised two phases:

1. The first on December 10 to 12, 2003 in Geneva, Switzerland. The Declaration of Principles

and Plan of Action were outcomes of this phase.

2. The second on November 16 to 18, 2005 in Tunis. The Tunis Commitment and Tunis

Agenda for the Information Society were its outcomes.

In parallel, the most recent political declarations on ICT use have also made proposals, but most

have not materialized as projects. The most important activities were:

• ECLAC: Florianopolis Declaration (July 2000)

• Itacurucá Declaration (October 2000)

• The Rio Group’s Proposal for Latin America’s integration into the Information Society (March

2001)

2 CITEL, IV Meeting of the Assembly of CITEL: Declaration of San José (February 2006) 3 ECLAC Report: “Public policies for the development of information societies in Latin America and

the Caribbean” 4 http://www.itu.int/wsis/index-es.html

8

• Regional Ministerial Conference of Latin America and the Caribbean in Preparation for the

Second Phase of the World Summit onthe Information Society: Rio de Janeiro Declaration

on ICTs for Development (June 2001)

• OAS/CITEL: Agenda for Connectivity in the Americas and Plan of Action of Quito (August

2002)

• First Meeting of the Latin American and Caribbean Regional Network (LACNET) of the United

Nations ICT Task Force (February 2003)

• Bávaro Declaration (January 2003)

• Declaration of Rio de Janeiro (2005)

• ECLAC: Regional Action Plan to strengthen the Information Society eLAC 2007 and eLAC-

2010.

2.1. Fixed service networks

It is important to examine telephone density from one country to another in the region. Account

must be taken of the fact that advances with broadband and, hence, the Internet, have partially

depended upon the development achieved with fixed network infrastructure.5

The region’s rate of fixed telephony penetration rose at a sustained pace from 1995 to 2006,

enabling telephone density of 23% to be achieved in 2006.6 This probably was a consequence of

the opening of the least developed countries.

As may be seen in Figure 1, the United States and Canada have over 60% fixed telephony

penetration. To be noted are the cases of Saint Kitts and Nevis and Barbados, where this figure

exceeds 50%.

Haiti, Nicaragua, and Paraguay have the lowest percentages in their respective subregions and are

countries that are benefiting from wireless technologies to extend the telecommunication networks

more rapidly.

5 Although recently there has been a global trend towards wireless broadband solutions, such as

WiMAX, as will be explained below. 6 “Monitoring eLAC2007” ECLAC, 2007, http://www.itu.int/ITU-D/icteye/Default.aspx. ITU, 2006

9

Source: ITU

Figure 1: Main telephone lines in the OAS countries (2006)

2.2. Mobile and third generation networks

Mobile networks are among the ICTs with highest penetration in the region. Even in 2002, mobile

exceeded fixed telephony in various countries of Latin America,7 as may be seen in Figure 2.

Cellular alternatives are starting to meet many of the needs for fixed networks, especially in less

developed countries.

7 According to ECLAC data, by 2005, mobile penetration in Bolivia and Paraguay was already 10

times higher than fixed telephony penetration.

Main telephone lines - 2006

43,54

24,17

41,19

50,14

12,32

7,13

20,54

64,12

20,20 17,00

30,72 29,40

13,07 14,81

60,60

31,75

10,49

14,66

1,70

9,62 12,03

18,33

4,43

13,17

5,25 8,22

9,94

59,26

32,58

19,03 18,03

24,87 28,31

15,49

0

10

20

30

40

50

60

70

ATGARG BHS BRB BLZ BOL BRA CAN CHL COL CRI DMA ECU SLV USA GRD GTM GUY HTI HND JAM MEX NIC PAN PRY PER DOM KNA LCA VCT SUR TTO URY VEN

Countries

P E R 1 0 0 i n h a t a n t s

10

Source: ITU

Figure 2: Total number of cellular and fixed telephones in the OAS Member States (per 100 inhabitants)

By 2003, cellular telephony in the region’s countries was beginning to catch up with that of the most

developed countries, and its rate of growth was increasing, according to ECLAC y CITEL. See Figure

3: ITU.8

8 See note 6.

Total mobile cellular and fixed telephones per 100 inhabitants in the 2000 – 2006 period

350

550

750

950

1.150

1.350

1.550

1.750

1.950

2000 2001 2002 2003 2004 2005 2006 Year

Totals

TOTAL CELLULAR TOTAL FIXED

11

Source: ITU

Figure 3: Cellular subscribers in 2006 (per 100 inhabitants)

Brazil and Mexico remain the countries with the largest mobile markets in Latin America and the

Caribbean (LAC), as may be seen in Table 1.

COUNTRY QUANTITY

United States 233 million

Brazil 99.92 million

Mexico 57.02 million

Argentina 31.5 million

Colombia 29.8 million

Source: ITU

Table 1: OAS countries with the largest number of cellular subscribers in 2006

Cellular subscribers - 2006

105,55

80,52

70,50 76,65

43,01

28,85

52,90 52,51

75,62

64,31

32,82

58,68 63,23

55,03

77,40

42,36

55,60

37,47

5,87

30,44

105,78

52,63

32,68

52,46 51,31

29,95

51,05

23,70

65,72 73,64

70,80

126,42

66,83 69,04

0

20

40

60

80

100

120

140

ATG ARG BHS BRB BLZ BOL BRA CAN CHL COL CRI DMA ECU SLV USA GRD GTM GUY HTI HND JAM MEX NIC PAN PRY PER DOM KNA LCA VCT SUR TTO URY VEN

Countries

per 100 inhabitant

12

Source: ITU

Figure 4: Cellular subscribers in OAS countries (2006) compared. Total: 554 million

Based on ECLAC data,9 Peru and Honduras have the highest mobile rates.

The year with the steepest rise in third-generation (3G) technology in the region has been 2007,

with somewhat conservative efforts, which have given rise to some expectations and which

especially are awaiting low terminal prices. Only 11 operators in the Americas, of the 191 recorded

with 3G UMTS worldwide, have planned or developed these cutting edge wireless networks. See

Table 2.

COUNTRY OPERATOR START DATE

CTI Móvil Nov-07

Telefónica Móviles (Movistar) July-07

Argentina Telecom Personal May-07

Brazil Telemig Celular Nov-07

Canada Rogers Wireless Nov-06

Chile Entel PCS Dec-06

United States AT&T July-04

Paraguay América Móvil - Claro Nov-07

Ancel July-07

Telefónica Móviles / Movistar July-07

Uruguay CTI Móvil / AM Wireless Nov-07

Source: 3G Americas

Table 2: OAS countries with 3G technology presence

Coverage in the region initially tended to be confined to high income areas, such as specific areas of

the capital cities. Only in the United States and Canada has it been extended to wider areas.

In Latin American and the Caribbean, the service that has been most successful is mobile

broadband for portable computer connections, rather than cellular telephony, owing to its high

costs.

9 See note 6.

Mobile subscribers for the year 2006: 554 millones

42%

18% 10%

6%

5%

19% United States

Brazil

Mexico Argentina

Colombia

Others

13

2.3. Internet infrastructure

2.3.1. Internet access and broadband There has been great expansion of the Internet since the mid-1990s, achieving in 2006 penetration

of nearly 23.4 % in the Latin American countries,10 as may be seen in Figure . Compared to

broadband, a large divide may still be noted, since it is one of the most expensive ICT services

compared to prices in developed economies (tariffs remain high).

According to ECLAC data,11 the highest Internet tariffs are found in Honduras, Guatemala, and

Bolivia.

Source: ITU

Figure 5: Internet and broadband in the OAS countries

In Canada and the United States, the level of Internet penetration is very similar to the number of

computers per household, whereas in Latin America and the Caribbean, in 2005, Internet

penetration exceeded that of computers, indicating a trend toward shared use of this technology.

See Figure .

10 See note 6. 11 See note 6.

0

10

20

30

40

50

60

70


Countries

Internet and broadband per 100 inhabitants

Internet users per 100 inhabitants - 2006 Broadband subscribers per 100 inhabitants - 2006

14

Source: ITU

Figure 6: Presence of computers in households and Internet access in CITEL

An examination of Figure shows slow growth in Internet access in the region. Levels of broadband

penetration remain low, although by 2005 and 2006, there had been was a steep rise in broadband

penetration.

Source: ITU

Figure 7: Internet users (estimated) in the Americas per year

The United States, Canada, and Brazil remain the countries with the largest broadband market in

Latin America, as may be seen in Table and Figure .

0

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

300.000.000

350.000.000

2000 2001 2002 2003 2004 2005 2006

Year

Number of users

0

10

20

30

40

50

60

70

80

90


Countries

Presence of computer in the household and Internet access, per 100 inhabitants

Computers per 100 inhabitants - 2005 Internet users per 100 inhabitants - 2006

15

COUNTRY QUANTITY

1. United States 58.1 million

2. Canada 7.7 million

3. Brazil 5.9 million

4. Mexico 3.7 million

5. Argentina 1.6 million

Source: ITU

Table 3: Main OAS countries with broadband subscribers as of 2006

Source: ITU

Figure 8: Broadband subscribers in the Americas in 2006: 80.2 million

2.3.2. Computers By 2005, computer penetration was rising steadily in the countries of the region (Figure ), although

Canada and the United States had numbers of computers per 100 inhabitants (87.31 and 76.22) far

above the average for the remaining area of the CITEL region (10.06).

Broadband subscribers in 2006: 80.2 million

United States

Canada

Brazil Mexico

Argentina

Other

16

Source: ITU

Figure 9: Computers per 100 inhabitants in OAS countries

2.3.3. Servers (hosts) One difficulty of compiling these statistics has been that Internet servers may be located anywhere

in the world, not specifically in the countries of origin. For that reason, in 2004, the ITU stopped

calculating this figure. That year, the United States held 68% of servers in the region of the

Americas.

2.3.4. Internet domain names/addresses The region’s two organizations involved in administering these Internet resources are the American

Registry for Internet Numbers (ARIN) and the Latin American and Caribbean Internet Addresses

Registry (LACNIC).

ARIN is a nonprofit organization that provides services related to Internet number resources in its

region, which includes Canada, different islands of the Caribbean,12 as well as the United States. Its

headquarters is in Virginia, United States.

LACNIC is the organization that administers Internet Protocol (IP) address spaces, Autonomous

System numbers (ASN), inverse resolution, and other resources for Latin America and the

Caribbean (LAC) on behalf of the Internet community. LACNIC’s headquarters is in Montevideo,

Uruguay.

Figure shows that LACNIC still holds a very low percentage of IP version 4 (IPv4) addresses,

whereas ARIN may approach the world average per organization.

12 In the case of OAS: Antigua and Barbuda, Bahamas, Barbados, Dominica, Granada, Jamaica,

Saint Kitts and Nevis, Saint Lucía, and Saint Vincent and the Grenadines.

Computers per 100 inhabitants

302.49330.49 354.11

396.69443.70

485.32

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005

Year

17

Source: LACNIC

Figure 10: Distribution of IPv4 addresses per organization in April 2007

Translation: Central registry. Special uses. Measured in units of 1/8. 1/8 = 1/256 of total IPv4

addresses.

Use of IPv6 addresses declined in 2006, probably because the tests begun in earlier years continue,

and while awaiting greater implementation worldwide (Figure ).

Source: LACNIC

Figure 11: Number of Internet resources assigned in Latin American and the Caribbean

In allocations of IP addresses, in the region covered by LACNIC, distribution of the use of IP version

6 is fairly uniform; however, for IPv4, Mexico consumes the largest amount these resources. See

Figure 12.

18

Source: LACNIC

Figure 12: Distribution of IP addresses by country

Translation: IPv4 allocations. IPv6 allocations.

With regard to allocation of IPv4 blocs, Brazil and Mexico remain the leaders of the region

administered by LACNIC, as is shown in Figure 13.

Source: LACNIC

Figure 13: Distribution of IPv4 blocs each year by country

19

Figure 14 and Figure 15 show the same cases in ARIN for IPv4 and IPv6, where the pattern of use

per year is also irregular, probably because of the implementation of mechanisms to optimize the

use of these resources and of tests of the new versions

Source: ARIN

Figure 14: IPv4 address allocations

Source: ARIN

Figure 15: IPv6 initial allocations issued

2.4. Alternative networks and technologies This section specifies alternative networks and technologies that might reduce the digital divide,

although it is important to note that, based on Latin American Forum of Telecommunications

Regulatory Bodies (REGULATEL) data13, there are regulatory barriers that have impeded the

development of this type of innovative initiative that might reduce cost and improve access to ICTs

in rural areas.

13 Composed of the regulatories bodies of Argentina, Bolivia, Brazil, Colombia, Costa Rica, Cuba,

Chile, Dominican Republic Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama,

Paraguay, Peru, Uruguay, and Venezuela.

20

2.4.1. Satellite systems Systems such as very small aperture terminals (VSAT)14 are satellite communication networks that

make it possible to establish links between large numbers of remote stations with small antennas

and a central station. These systems used for data transfer, video signal distribution, and also to

provide telephony services.

Projects to provide universal service with these services, for example in Brazil, Chile, Colombia15,

and Peru have been awarded to operators.

2.4.2. WiMAX Technology for broadband

Worldwide Interoperability for Microwave Access (WiMAX16) is a standard for wireless data

transmission that provides concurrent accesses in areas of up to 48 km in radius and at speeds of

up to 70 Mbps (in theory), utilizing technology that does not require terminals to have clear line of

sight to base stations (there may be obstacles to communication).

It is generally for fixed use in the region, although the Dominican Republic has mobile pre-standard

versions that it is launching commercially, and in Chile a local wireless telephony concession has

been granted and this would also be exploring this variant.

WiMAX might be the alternative to be used in seeking broadband availability in rural areas, although

terminal prices could be an obstacle.

Country Company Launch Date

Ertach 2005

Argentina Velocom 2005

Telmex 2007

Chile Entel 2006

Orbitel 2006

Colombia Telebucaramanga17 2005

RACSA 2006

Costa Rica ICE 2007

El Salvador CTE Telecom 2007

Paraguay Telecel (marca TIGO) 2005

Telecable 2005

Peru Telmex 2006

ONEMAX 2007

Dominican Republic Wind Telecom 2007

Venezuela Omnivisión 2005

Source: web site Latinwimax.com

Table 4: The main countries of Latin America and the Caribbean with WiMAX technology

14 Very Small Aperture Terminals 15 Has more than 20,000 points operating thanks to the Compartel Program. 16 Footnote only applies to spanish 17 Initially PreWiMAX.

21

2.4.3. Digital terrestrial television (DTT) In the Americas, analog television reaches over 90% of households in most countries. In recent

years, technological updates thereof towards digitization have been proposed and in some case

implemented, which would significantly improve technical image and sound quality, and would

facilitate the inclusion of new applications.

CITEL has been working in the area of digital TV since 2001. In October 2003, it urged the member

States of the Organization of American States (OAS) to implement digital television as rapidly as

local conditions permitted, using a common hemispheric standard.

With Digital Terrestrial Television (DTT), 20 million bits per second can be transferred over each 6

MHz television broadcasting channel. This is equivalent to two High Definition Television (HDTV)

programs18, or multiple Standard Definition (SDTV) programs, per channel. HDTV programs may

not be obtained by terrestrial broadcasting alone, but also by cable and satellite.

Societal benefits of DTT that might satisfy urgent public needs:

1. Access to information by wireless broadband

2. Possibility of an interactive platform on the same television, facilitating the delivery of

Internet content to the public without the need for a computer

3. Interactive educational and telehealth applications

• Educational and literary resources

• Early childhood development services

• Training of teachers, professors, and their assistants

• Lifelong learning for adults

• Diagnostic resources

• Educational games

4. Services for persons with disabilities

5. E-commerce

6. Public and emergency information

• Weather

• Security

• Government communications

Brazil, Canada, Honduras, Mexico, United States, and Uruguay have adopted a DTT standard,

whereas Argentina, Barbados, Bahamas, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador,

El Salvador, Guatemala, Jamaica, Panamá, Peru, and Venezuela are assessing plans and policies for

the introduction of DTT.

DTT broadcasting makes efficient use of electromagnetic spectrum, even increasing the number of

channels that can be broadcast, and making it possible to free up a valuable range of frequencies

(698 MHz to 806 MHz) for other possible innovative wireless services that would promote the

expansion of ICTs in the region, for security and public health applications, mobile communications,

and broadcasting. Additionally, it enables transmitter broadcasting power to be used more

efficiently.

18 All HDTV is digital television, but not all digital television is HDTV.

22

DTT could constitute an effective medium for immediate use in promoting social inclusion across the

region and in reducing the “digital divide,” given that it facilitates ICT access because it makes it

possible to access the world’s large information markets and interact using a television set.

The success of DTT could be impacted by the reduction of receiver and converter prices; widespread

use of DVD burners, which has raised consumer expectations; competitive pressure from promoters

of the standards; the availability of high definition content and of rules favorable to broadcasting

companies; and such models as may be defined for free and paid television.

2.4.4. Cellular telephony for rural fixed solutions Cellular services have moved from being a luxury to a basic necessity, in part as a result of the

decline in terminal prices and the establishment of the prepaid method, which typically offers tariffs

more affordable to the public and the possibility of controlling expenditure, not to mention the

facilities made available through the rapid deployment of wireless technologies compared to cable

networks, especially for rural, semi-urban, and remote areas.

The difficulty for operators would be the economic feasibility of projects, but there are even

initiatives to install public telephones using this cellular technology. Additionally, such extensions of

cellular networks are accompanied by universal service initiatives. Examples of this type of

specialized network are those developed in various countries among which we can point out:

Bolivia, Nicaragua, and Peru.

It must also be borne in mind that SMS text messaging create opportunities for communication at a

lower cost than the cost of a telephone call. In addition, use of the wireless application protocol

(WAP) facilitates Internet browsing from cellular networks.

As a reference, in Colombia, only in the first phase of the Project of Community Rural Telephony of

the Compartel Program the 24.2% of 6.745 points (1.632 points) were implemented as cellular

telephony.

2.4.5. Wi-Fi to expand Internet coverage Wi-Fi wireless network technologies operate based on the family of IEEE 802.11 standards.

Although such networks can transmit data, voice, and video (as well as traditional Internet traffic),

it must not be forgotten that they are data-dedicated networks. They are established as an

alternative to the cellular technologies of Time Division Multiple Access (TDMA), Global System for

Mobile Communications (GSM), Code Division Multiple Access (CDMA) or other wireless voice

technologies, since the cost of their use is beyond the reach of most community projects.

Utilizing inexpensive equipment, high speed transmission networks can be built to connect remote

areas, to provide broadband access where there is no other connection, and in this way to connect a

group of persons to the Internet.

Local materials can be utilized to manufacture network components, thus creating reliable links with

a very small budget.

One example of projects using this modality is the Agricultural Information System of the Chancay-

Huaral Valley in Peru, projects of the Chilesincables.org group in Chile, wireless transmission of data

of the state of Mérida, Venezuela, and the Hispanoamerican Health Link (EHAS) in a remote rural

area of Cuzco in Peru.

23

2.4.6. Broadband voice over IP Voice over IP (VoIP) services reduce the cost of telephone calls to the Internet access tariff which,

in general, is lower than conventional switched telephony tariffs. But many countries have not yet

authorized or regulated VoIP calls as a result of the conflict that arises between operators that have

invested to create networks and have rights to transmit this type of traffic and new VoIP service

providers.

Since the elements that control VoIP calls are connected to the IP network, they are inherently

accessible to other information servers (such as mail, web, etc., servers). Since they are mounted

on the same communications infrastructure, interoperabilitry is facilitated. They provide various

services: e-commerce, voice virtual private networks (PABX IP and Centrex, IP call centers, Internet

call centers, multiconferencing and upgrading of telecommuting.

The IP networks, including VoIP, do not provide any broadband guarantee or traffic prioritization in

the network, all the traffic receives a best-effort type of service. The users are at the mercy of each

other and the resulting final quality is highly variable and could, in certain cases, reach acceptable

values. Nevertheless, the technology is constantly evolving (IPv6 and next-generation networks

NGN).

24

3. PROSPECTS FOR ICTS IN THE 2007-2012 PERIOD

A summary of the main prospects for ICTs presented by organizations expert in the subject is

provided below.

3.1. International Telecommunication Union “Measuring the Information Society”

The world is being characterized

increasingly as a global Information

Society, where the importance of

expanding access to information and

communication technologies (ICTs) is

considered essential to economic and

social development. The achievement of

internationally agreed development goals,

including the Millennium Development

Goals (MDGs), by means of ICT access has

been well documented. Different studies

have been able to demonstrate the

positive micro and macroeconomic impact

of investment in ICTs, with particular

benefits in connection with productivity

that appropriate use of information and

communication technologies affords

economies.

ICT policy and strategy play predominant

parts in creating an appropriate

environment to promote the expansion

and use of ICTs. Information and data on

the development and progress of ICTs are

important pillars for policy creation based

on evidence and for those with

responsibility for selecting appropriate

policies. Information and data help to

identify goals, monitor their fulfillment,

and evaluate their progress.

The ITU has always drawn up the report of World Telecommunication/ICT Indicators (WTI), which

provides the most recent statistical information on telecommunication/ICT indicators. This data,

which at present is available up to 2006, describes the growth of telephony network, mobile

communications, tariffing, revenue, and investment, for some 200 economies worldwide.

Several years after the review of the use of ICTs by countries was addressed internationally with

different approaches and methods of study, the ITU has published the ICT Opportunity Index (2007

Case of Guatemala: On the basis of the report of the Internet and ICT Penetration and Adoption Project in Guatemala, Guatemala has a suitable infrastructure to develop the ICT industry and also has an ICT industry in the software sector, which exported US$100 million worth of software in 2006, with a growth rate of over 30% compared to 2005, and growth of the hardware and web services industry was steady. Guatemala’s legislation, which dates back to 1996, is a comparative advantage owing to the State’s limited intrusiveness on the market; this has favored explosive growth of the telecommunication sector, which provides a wide range of options that are being supplied by more than 23 registered telecommunication operators. In December 2007, the Government of Guatemala adopted a National Strategy for Reducing the Digital Divide with the support of the National Competitiveness Program and the National Science and Technology Council (http://www.sit.gob.gt/sit/docs/GUATE_CSM_FINAL.pdf). The projects Technology for Education (recycling computers for public schools), Schools of the Future, and Computers for Teachers (60,000 teachers out of the current 85,000 purchased personal computers at a low price during 2007) and others implemented by the Ministry of Education set milestones that have enabled the qualitative leap that the sector required. The establishment of the National Committee to Reduce the Digital Divide, the Cybersecurity Event Response Equipment, the Guatemala Space Agency, the Technology Cluster and others have supported achievement of the Millennium Goals, the Plan of Action of Tunis, and the goals set in the framework of e-LAC2007.

http://www.sit.gob.gt/sit/docs/GUATE_CSM_FINAL.pdf�

25

ICT-OI)19 based on 10 carefully selected indicators and which combines multiple factors in a single

total value, for the purpose of harmonizing the efforts made and to draw up more effective

agreements and understandings, inherent to a common language.

The ICT-OI is the result of merging two well-known initiatives, ITU’s Digital Access Index (DAI) and

the conceptual framework and model of Orbicom: Monitoring the Digital Divide/Inféstate. The ICT-

OI was recognized by the WSIS and is an excellent example of a successful cooperation and

international partnership. Apart from international comparisons, the methodology of the Index

highlights the relative movements of countries and shows to what extent and how quickly each

country that is listed is progressing. The Consumer Price Index (CPI), for example, has been used

to analyze inflationary trends and provides important input for wage and salary adjustments for

companies.

A composite index such as the ICT-OI is particularly useful in making comparisons within a specific

time period and between countries of similar income levels, or with similar social, regional, or

geographic characteristics. Since the ICT-OI is composed of a number of indicators, which are

grouped into four subindices, it is possible to gain awareness of weaknesses and strengths in

different areas and then to address them appropriately.

According to the ITU, the sole criterion for not including a country in the ICT-OI is lack of data on

the country for several of the indicators utilized to calculate this index.

While a single index undeniably has advantages, presentation of a large amount of information in a

single composite index value also has limitations. Other defects may be estimated values and a

limited number of indicators. Therefore, while indices provide a useful tool for making comparisons,

they should be used wisely with regard to drawing excessively simplistic conclusions.

Conceptual framework of the ICT Opportunitied Index

This conceptual framework is based on each economy’s socioeconomic, geopolitical, cultural

environment and is composed of underlying variables that define the concept of ICT opportunity.

Opportunities for ICTs depend on the degree of info-density and info-use of ICT resources in each

economy.

Info-density means the economy’s productive skills and capacity in terms of ICT labor force and ICT

capital. The quality and quantity of these two inputs are factors essential to growth and economic

development. ICT capital is composed of ICT network infrastructure as well as ICT network

machinery and equipment. ICT labor force is the total sum of ICT skills of an economy’s labor force.

Info-use means an economy’s consumption (or use) of ICTs within a given period. Since the

components of ICTs are a prior requirement to use the services offered, a distinction is made

between “appropriation” of ICTs and intensity of ICT use.

It should be noted that both subindices, info-density and info-use, may continue to grow and

expand with ICT capital or labor force, and with new ICTs introduced over time. This also implies

that ICT Opportunities have no upper limit.

19 ITU’s Measuring the Information Society 2007, 2007 ICT Opportunity Index

http://www.itu.int/ITU-D/ict/publications/ict-oi/2007/index.html

26

3.1.1. Application of the conceptual model: the indicators

The model is based on two subindices, info-density and info-use. The first has as components ICT

capital (network infrastructure) and ICT skills; the second, appropriation of ICTs and intensity of ICT

use.

Source: ITU

Figure 16: Diagram of the conceptual model

Translation: ITU 2007 ICT-OI. Subindex. Info-density. Subindex. Info-use. Sub-index.

Networks. Subindex. Skills – country. Subindex. Appropriation. Subindex. Intensity. Telephone

lines per 100 inhabitants. Cellular subscribers per 100 inhabitants. International Internet bandwidth

(kbps per inhabitant). Adult literacy. Ongoing evaluation (primary, secondary, tertiary, according

to UNESCO). Internet users per 100 inhabitants. Percentage of households with TV. Computers

per 100 inhabitants. All broadband Internet subscribers per 100 inhabitants. Outgoing per capita

international telephone traffic (minutes).

Info-density

The extent of network and infrastructure development was measured with indicators of fixed

telephony line penetration (per 100 inhabitants), mobile cellular subscribers (per 100 inhabitants),

and international Internet bandwidth (Kbps per inhabitant).

Both fixed telephone lines and of mobile subscribers are widely recognized as major indicators to

measure a country’s telecommunication/ICT infrastructure base. The bandwidth indicator also

27

involves investment in infrastructure and facilities for rapid and efficient voice and data transmission

around the world.

While dissemination of ICT and appropriation thereof are realities clearly impacted by societal and

educational factors, indicators of public participation in primary, secondary, and tertiary education

were taken as an inclusive projection of better productive and societal opportunities for ICT

penetration.

Together, educational participation and literacy figures constitute the best indicators available to

reflect the extent to which the development of “knowledge” in turn enhances understanding of ICT

elements and services which, in consequence, have impact on access to and use of ICTs.

The information provided by UNESCO indicates participation in the primary, secondary, and tertiary

segments of countries’ educational systems.

Info-use

To measure ICT appropriation (parameters related to the use and consumption of ICT elements and

services), three popular and widely available ITU indicators were used: Internet users, computers

per 100 inhabitants, and percentage of households with television sets.

Although this last indicator (households with TV) is not very significant for developed countries,

where penetration rates approach 100% in most cases, it remains an important indicator for

developing countries.

Ideally, other indicators of household ICT use could have been included. However, since only a

limited number of countries compile data on household ICT use, account was taken of such

limitations.

Although not all countries in the world have marketed broadband services, the ICT Opportunity

Index includes as one of its indicators the number of broadband subscribers (per 100 inhabitants).

Broadband appropriation is relevant since it is highly correlated with intensity of use.

The choice of indicator also reflects the importance attached to the dissemination of broadband

technologies, especially since many important applications (distance learning, telehealth,

government online) in the area of ICTs for development are related to broadband appropriation.

Although two indicators were chosen to measure ICT intensity (total number of broadband Internet

subscribers per 100 inhabitant and outgoing per capita international telephone traffic (minutes)),

these indicators are limited and provide only a partial view of the intensity of ICT use, mainly as a

result of data limitations.

Data quality

An important criterion in choosing indicators to comprise the ICT Opportunity Index is the

availability and quality of data. The ICT Opportunity Index comprises a total of 10,980 pieces of

reference data: five years (2001-2005), 183 countries, and 10 indicators. Although most of the

data was provided directly by the countries, there are some considerations regarding the quality

and availability of some data. For example, in some cases, the data was derived from estimates or

projections.

28

In particular, excluded from this study (2007 ICT-OI) were those countries that did not supply three

or more figures, for the five years, for the “telephone lines” and “cellular subscribers” indicators.

Reference year and reference country

For effective monitoring of the digital divide, a reference year and reference country must be

defined. As reference country, the average of all countries in each ICT Opportunity Index

component was utilized. The reference year for the 2007 ICT Opportunity Index is 2001, for which

the most data is available. This promotes optimal measurements.

The reference year, 2001, provides an important standard of comparison for systematic

quantification and monitoring of trends in the ICT Opportunity Index among countries and within a

given time period. It is also important for the digital divide to be monitored.

The reference country (the average) has a value of 100 for the reference year throughout the

exercise – for each indicator, each component, and the overall level of the ICT Opportunity Index.

3.1.2. Results of the 2007 ICT Opportunity Index

Now that the scope is known of the ICT Opportunity Index (ICT-OI) published by the ITU in January

2007, covering 183 economies worldwide, we analyze that index here, but for the CITEL Member

States included in said ITU study,20 a total of 30.

Groups within the 2007 ICT Opportunity Index (ICT-OI)

For analytical purposes, the 30 CITEL economies covered may be divided into four categories, based

on their historical information. These categories are based on the results of the most recent data

available (2005). The basis used for categorization is the index’s reference country (average

value), which has the value of 146.25 of the ICT-OI (values of the 2007 ICT-OI for CITEL range

from a minimum of 40.92 (Haiti) to a maximum of 337.16 (Canada)). The eight economies that are

above the average were subdivided into two categories: High and Upper, with four economies in

the High and four economies in the Upper category. The same was done for all economies that

were below the average: the 22 economies below the average were subdivided into two categories,

middle and lower, each having an equal number of countries:. This division into four categories also

provides another perspective for analysis of the digital divide over the years.

High (ICT-OI values of 244 and above): The four economies in the category have achieved a high

level of access to, and use of, ICTs.

20 According to the ITU, the only reason why an economy was not included in the 2007 ICT-OI was

lack of data for three or more years, from 2001 to 2005.

29

2005 2005

ECONOMY 2001 2002 2003 2004 2005

RANK

CITEL Rank

Canada 252.19 265.54 297.63 325.75 337.16 1 11

United States 224.63 250.80 276.47 305.67 323.85 2 13

Barbados 126.77 138.26 221.50 249.92 264.85 3 25

Antigua & Barbuda 127.06 132.07 158.22 190.37 244.92 4 31

HIGH AVERAGE 182.66 196.67 238.46 267.93 292.70

Bahamas 140.45 152.01 163.62 175.05 184.13 5 43

Jamaica 82.82 112.05 117.89 128.61 165.16 6 47

Chile 115.78 128.58 141.73 154.14 157.65 7 50

Grenada 102.89 124.66 149.25 152.15 156.79 8 51

UPPER AVERAGE 110.49 129.33 143.12 152.49 165.93

Reference Country 100.00 109.41 121.18 133.41 146.25

Uruguay 104.10 105.06 108.21 123.52 143.31 9 59

Argentina 101.84 103.57 111.17 126.98 140.40 10 60

Brazil 87.22 97.14 104.41 122.56 136.44 11 64

Costa Rica 93.30 105.83 117.23 123.92 130.58 12 66

Trinidad & Tobago 93.72 95.68 101.36 114.46 127.22 13 68

Belize 88.75 94.13 102.64 115.70 127.06 14 69

Mexico 88.04 96.67 103.38 113.21 124.68 15 70

Venezuela 83.44 87.31 93.87 101.91 114.03 16 76

Colombia 70.47 76.97 83.12 89.75 105.32 17 80

Peru 71.58 75.71 82.36 92.69 104.50 18 81

Guyana 79.20 82.03 88.32 91.55 100.69 19 85

MEDIUM AVERAGE 87.42 92.74 99.64 110.57 123.11

Suriname 79.13 83.63 89.65 94.37 97.30 20 89

Panama 79.70 84.15 87.16 94.65 96.69 21 91

Ecuador 63.86 73.75 80.29 91.34 96.42 22 92

El Salvador 64.37 69.31 79.86 88.98 95.27 23 93

Dominican Rep. 71.91 74.19 79.47 84.67 94.50 24 95

Paraguay 60.44 66.68 69.37 74.78 77.59 25 110

Bolivia 58.87 63.71 66.30 70.23 73.24 26 116

Guatemala 50.30 56.82 60.64 68.28 72.34 27 117

Nicaragua 47.26 50.85 55.11 59.69 64.18 28 124

Honduras 46.68 51.20 53.47 58.20 63.35 29 125

Haiti 25.47 30.45 35.54 39.95 40.92 30 147

LOW AVERAGE 58.91 64.07 68.81 75.01 79.25

Source: ITU

Table 5: ICT-OI for OAS countries in the 2001-2005 period, values and rankings (2005)

Upper (ICT-OI values from 156 to 184): The four economies in this category have achieved a fairly

high level of access to, and use of, ICTs for most of their inhabitants.

Of the eight CITEL economies above the ICT-OI average, five are islands of the Caribbean

(Barbados, Antigua and Barbuda, Bahamas, Jamaica, and Grenada), together with Canada, the

United States, and Chile.

Middle (ICT-OI values from 100.69 to 143.31): The 11 economies in this category are

characterized by competitive markets and major advances in the mobile sector.

30

While nearly all the economies in this category have marketed broadband services, penetration

remains very low (under 1%) for nearly all.

Lower (ICT-OI values from 40.92 to 97.30): This category includes the economies with least

access to the Information Society, with few broadband services, and fixed line penetration

remaining low.

3.1.3. ICT-OI and the digital divide

The 2007 ICT-OI is obtained on the basis of 10 indicators, grouped in four subindices: the network

index, the skills index, the technologies appropriation index, and the intensity index.

Figure 17: ICT Opportunity Index with averages

The first objective of the ICT Opportunity Index is to identify the digital divide and help understand

how this gap has developed since the beginning of this century.

The index values clearly show that nearly all economies have made substantial progress since 2001.

The DIGITAL DIVIDE IN CITEL ICT Opportunity Index by averages

0

50

100

150

200

250

300

350

YEAR

O P P O R T U N I T Y I N D E X

HIGH AVERAGE 182.66 196.67 238.46 267.93 292.70

UPPER AVERAGE 110.49 129.33 143.12 152.49 165.93

Reference country 100.00 109.41 121.18 133.41 146.25

MIDDLE AVERAGE 87.42 92.74 99.64 110.57 123.11

LOWER AVERAGE 58.91 64.07 68.81 75.01 79.25

2001 2002 2003 2004 2005

31

Apart from comparisons between countries, the ICT Opportunity Index method can emphasize

relative movements of different ICT-OI groups over the five years (2001-2005). According to the

ITU, it also demonstrates how rapidly the four ICT-OI groups are making progress by comparing

one to another, and that these standardized values are especially useful in analyzing the trend in

the digital divide.

It may be seen that the digital divide between the High group and all other groups has increased

throughout the five year period 2001-2005.

The digital divide has also grown between the Upper group and the Middle and Lower groups.

Of the four groups, that which has grown least in the ICT-OI in the five years is the Lower group.

Eventual cellular telephony saturation in CITEL’s more developed economies will enable the digital

divide partially to be reduced to the extent that the other, less developed, economies show high

rates of growth in mobile services.

The digital divide grows more acute when economies introduce broadband services and increase

penetration thereof. This impacts those cases of the Lower group where broadband services are

virtually nonexistent.

The ITU indicates that categorization into ICT Opportunity Index groups provides a useful tool to

analyze the trend and complexity of the digital divide, but that more specific country analyzes are

needed to understand why some countries are doing it better than others. To than end, the 2007

ICT-OI index and its subindices constitute a useful working framework.

According to the WSIS, “special attention should be given to the particular needs of people of:

• Developing countries,

• Countries with economies in transition

• Less developed countries (LDCs)

• Small island developing states (SIDS)

• Landlocked developing countries

• Heavily Indebted Poor Countries (HIPC)

• Countries and territories under occupation,

• Countries recovering from conflicts, and

• Countries and regions with special needs, and those in circumstances with severe impact on development, such as natural disasters.

The foregoing points to the difficulties faced by the less developed economies that also have very

low ICT Opportunity Index rankings.

At the global 2007 ICI-OI level presented by the ITU, which includes 183 economies, only three

CITEL Members are found in the Lower category. The WSIS status is also shown below:

• Nicaragua: HIPC

• Honduras: HIPC

• Haiti: LDC, SIDS, HIPC, Disaster

32

In its 2007 ICT-OI 2007 report, the ITU points to

a remarkable result for the Small Island

Developing States (SIDS), 60% of which overall

have higher ICT-OI values than their per capita

GDP would suggest. It is noted that the fact

that these economies occupy relative small land

areas is certainly an advantage at the time of

providing and expanding ICT access. Another

positive characteristic of the SIDS to be taken

into account is that, with high population

density, it is more difficult to provide ICT

infrastructure and access to a very widely

scattered population (as is the case in different

CITEL Member States with large populations and

territories, which appear below the ICT-OI

average for the region).

3.1.4. ITU 2007 ICT-OI Assessments

According to the ITU in its above-mentioned report, the ICT Opportunity Index (ICT-OI) is the ITU’s

most recent product in the area of international benchmarking.

The ICT-OI Index, which has benefited from the experience of different international and research

organizations, is based on a carefully selected list of indicators and a methodology. It is an

important tool for monitoring the digital divide by measuring the relative difference in ICT

Opportunity Index levels between economies over time. It also constitutes an important step in

achieving the objectives identified by WSIS by helping countries and regions to make realistic

evaluations of their performance. Apart from inter-country comparisons, the methodology of this

index underscores relative movements over the 2001-2005 period and indicates which countries are

making progress and how rapidly they are doing so.

The ICT Opportunity Index has shown the significant progress being made in all economies in all

areas of the telecommunications/ICT sector since the beginning of this century. But is also reflects

the fact that a digital divide continues to exist between the economies with better ICT-OI indices

and those with low values of this index.

The ITU, in examining the indicators, points out that most countries are remaining behind in terms

of appropriation of broadband and that the indicator with the most significant differences between

the economies with high ICT Opportunity Index indicators and the other economies is “broadband

penetration.” For policymakers, this suggests that more efforts need to be made to integrate and

consolidate broadband policies and strategies.

Lastly, the usefulness is underscored of the ICT Opportunity Index as a guideline to indicate those

countries that are achieving more over time. And, based on an appropriate definition of indicators

and their yearly review, the index will enable the impact of new policies and regulatory changes to

be evaluated.

Case of Nicaragua: Over the past few years in Nicaragua, the digital divide has been reduced although levels vary depending on the type of technology considered and the country’s economic situation. Nevertheless, to reach the development level of other countries much still needs to be done in the country. The elements that have an impact on this digital divide are the population’s lack of financial resources, geographically limited investment in communication and information infrastructure (where there is a clear difference between urban and rural areas), difficult geographical conditions, low level of education of the population, low levels of training in the use of ICTs, socioeconomic and cultural aspects, as well as the absence of electricity coverage in rural and marginal urban areas.

33

4. MARKET STRUCTURE

Connectivity in the region varies with the country considered. Two of the factors that have

contributed to ICT sector expansion have been privatization and competition (with the exception of

special cases, such as Costa Rica and Uruguay for certain services). It has been noted that, in

opening their telecommunication markets through “well-designed” reforms, government can create

competitive markets that grow rapidly, costs are low, innovation is facilitated, and user needs can

be more easily addressed.

Regulation of a country’s ICT sector is a key factor impacting Information Society (IS) penetration.

The existence of a regulatory framework establishes, promotes, and ensures investment in

infrastructure, technologies, and services, and plans for the inclusion of the population in the IS.

The process of convergence of networks and services is creating a new landscape, which means that

consideration must be given to creating regulatory and legislative conditions for uniform treatment

of the different networks, since digitization and informatization make possible their use in providing

different services.

Some presence of the state as the main fixed line operator may still be noted in the region. With

regard to levels of competition, it is important to note that in international calls, mobile telephony,

and the Internet, there is a strong trend toward full competition.

COUNTRY Separate

telecommu

nications

regulator

Situation of

main fixed

lines

operator

Level of

competition:

international

calls

Level of

competitio

n: mobile

Level of

competitio

n: Internet

provider

ANTIGUA and BARBUDA … Public M C C

ARGENTINA Si Private C C C

BAHAMAS No Public P M C

BARBADOS No Mixed … C …

BELIZE Yes Private C C C

BOLIVIA Yes Private M C C

BRAZIL Yes Private C C C

CANADÁ Yes Private C C C

CHILE .. Private C C C

COLOMBIA Yes Mixed C P C

COSTA RICA Yes Public M M M

DOMINICA … Mixed M M …

ECUADOR21 Yes Public P P C

EL SALVADOR No Mixed C C C

UNITED STATES Yes Private C C C

GRENADA … Mixed M M …

GUATEMALA Yes Private C C C

GUYANA … Mixed M C …

HAITI Yes Mixed P P C

HONDURAS Yes Public M M …

JAMAICA No Mixed C P C

21 At present in the country there is competition in mobile services.

34

COUNTRY Separate

telecommu

nications

regulator

Situation of

main fixed

lines

operator

Level of

competition:

international

calls

Level of

competitio

n: mobile

Level of

competitio

n: Internet

provider

MEXICO Yes Private C C C

NICARAGUA Yes Private C C C

PANAMA Yes Mixed C P C

PARAGUAY Yes Public M C C

PERU Yes Private C C C

DOMINICAN REPUBLIC Yes Private C C C

SAINT KITTS AND NEVIS … … … … …

SAINT LUCIA Yes Private M C M

SAINT VINCENT AND THE

GRENADINES

Yes Private C C C

SURINAME Yes Público M M P

TRINIDAD AND TOBAGO Yes Mixed P M C

URUGUAY Yes Public P C C

VENEZUELA Yes Mixed C C C

TOTALES SI=25

NO=4

Private=1

4Mixed=1

1

Public=8

C=16

M=11

P=5

C=20

M=7

P=5

C=24

M=3

P=1

C=Competition, M=Monopoly, P=Partial competition

Note:The presence of Mixed capital in the Fixed column is included when at least one operator is Mixed

and there are no Public operators.

Sources:

o ITU – EYE ON ITCs 2007 http://www.itu.int/ITU-D/icteye/Indicators/Indicators.aspx o World Bank. 2006 Information and Communications for Development. Global trends and

policies. World Bank. 2006 o World Bank - ICT at a Glance 2005.

http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0..contentMDK:20459133˜menuPK:1192714˜pagePK:64133150˜piPK:64133175˜theSitePK:239419.00.html

Table 6: Regulatory aspects and competition in OAS countries

In Central America, privatization is delayed vis-à-vis other countries of the region.

Privatization of telephone monopolies and telecommunication development are not directly related.

Countries where privatization has not taken place show some of the highest fixed telephony

penetration and connectivity rates in the region. Consequently, difficulties in telecommunication

modernization and development seem to be related to factors other than decisions to privatize.

4.1. Regulatory framework

4.1.1. Financial aspects of access to telecommunications One fundamental aspect is universal service/access, the means called upon for greatest

effectiveness in increasing access to telecommunications.

Most countries have opted for establishment of a universal service fund to finance these types of

initiatives, whereas a minority have opted for universal service obligations for which

35

telecommunication service licensees have responsibility (especially where monopolies still exist). It

is important to note that Chile, Guatemala, and Mexico utilize financing from public funds.22

Another case is the Dominican Republic, where the contribution is made directly from user invoices

(2%), according to ITU data.23

The problem therefore lies specifically in creating projects for the disbursement and use of the

respective funds in each country. Accordingly, it may be noted that, as of 2005, the percentage of

utilization of funds was relatively low: only 32%, which implies that full financial advantage is not

being taken of them.

Country

Name of

Fund

Disbursements

in relation to

2005

Argentina FFSU 0%

Bolivia FNDR 0%

Brazil FUST 0%

Chile FDT 100%

Colombia FCM 37%

Costa Rica No fund -

Cuba No fund -

Dominican Republic FDT 16%

Ecuador FODETEL 0%

El Salvador FINET 0%

Guatemala FONDETEL 43%

Honduras No fund -

Mexico FCST 100%

Nicaragua FITEL 19%

Panama No fund -

Paraguay FSU 96%

Peru FITEL 32%

Uruguay No fund -

Venezuela FSU 0%

AVERAGE OF COUNTRIES WITH FUND 32%

Source: Regulatel, 2006

Table 7: Percentages of disbursements of Funds in OAS countries

According to REGULATEL data, these same countries in 2005, had collected $2.6 billion in their

funds, but had spent only $297 million (10%, if countries that have not disbursed funds are

included). Chile, Mexico, and Paraguay have utilized over 90% of their funds, and failure by

countries to make disbursements may partially be attributed to legal disputes, diversion to other

uses, and restrictions imposed on the funds. The main delays have been than funds were specific

funds for specific projects, overestimation of the respective subsidies, bureaucratic procedures and

the reviews to which they are subject, limitations on operators themselves, or delays as a result of

studies and fulfillment of preliminary requirements.

22 Private financing, on the other hand, is based on the contribution of a percentage of operator

revenue or taxes on concessions or the administration thereof. 23 Although REGULATEL indicates that it is through taxes levied on operators.

36

As indicated above, there are several alternatives in establishing a telecommunication funds: taxes

on operators, contributions, fines, government budgetary allocations, and concessions. As may be

seen in Table 8, most countries in Latin America have used the direct telecommunication operator

taxation approach more than any other type of financing.

Country

Taxes on

operators Contributions Penalties

Government

budget Concessions

Argentina x

Bolivia x X

Brazil x

Chile x

Colombia x

Costa Rica

Cuba

Dominican Rep. x

Ecuador24 x

El Salvador x X X

Guatemala x X

Honduras

Mexico x

Nicaragua x

Panama

Paraguay x

Peru x

Uruguay

Venezuela x


Table 8: Principal sources of the Funds of the OAS countries in 2005

Country N.C Strategy Name Creation Funding Services

Argentina C Universal Service

Fund

Universal Access Trust Fund

(Fondo Fiduciario del Acceso

Universal* - FFSU)

* 1% of operators’

earnings

Mainly

telephony and

secondly

Internet

Bolivia M Universal Service

Obligations

Rural coverage obligations 1995 Charged to

concession

holders

Telephony

Brazil C Universal Service

Fund

Telecommunication Services

Universalization Fund (Fondo

de Universalización de los

Servicios de

Telecomunicaciones—FUST)

2000 1% operators’

billing

Telephony

Chile P Universal Service

Fund

Telecommunications

Development Fund (Fondo de

Desarrollo de las

Telecomunicaciones—FDT)

1994 Government

funding

Telephony and

Internet

Colombia P Universal Service

Fund

Communications Fund 1999 Government and

private-sector

funding

Telephony and

Internet

24 Although the country reports that it is by means of contributions.

37


Costa Rica M Universal Service

Fund

Universal

Telecommunications Service

Fund

** ___ ___

Ecuador P Universal Service

Fund

Telecommunications

Development Fund (Fondo

para el desarrollo de las

Telecomunicaciones—

FODETEL)


billing

Telephony and

Internet

El Salvador C Universal Service

Fund

Electricity and Telephony

Investment Fund (Fondo de

Inversión en Electricidad y

Telefonía—FINET)

1998 Government

funding

allocations,

98.5% of the

earnings from

concessions and

other

administrative

procedures and

part of the

earnings

obtained from

concessions on

energy

resources

Telephony and

Electricity

Guatemala C Universal Service

Fund

Telephony Development Fund

(Fondo para el desarrollo de

la telefonía—FONDETEL)

1996 70% of the

revenues from

the auction of

spectrum use

rights

Telephony

Honduras M No plan ___ ___ ___ ___

Mexico*** C Universal Service

Fund

Telecommunication Social

Coverage Fund (Fondo de

Cobertura Social de

Telecomunicaciones—FCST)

2002 Government

funding

Telephony***

*

Nicaragua C Universal Service

Fund

Telecommunication


Inversión en

Telecomunicaciones—FITEL)

2004 20% of TELCOR

earnings

Telephony and

Internet

Panama****

*

C Universal Service

Obligations

Universal Service Obligations 1997 Until 2004,

charged to

Cable &

Wireless, which

had exclusive

rights to provide

basic

telecommunicati

on services

Telephony

Paraguay M Universal Service

Fund

Universal Services Fund 1995 40% of the

contributions

from the

business

development

rate

Telephony and

Internet

38


Peru P Universal Service

Fund

Telecommunication


Inversión en en

Telecomunicaciones—FITEL)


gross earnings

billed and

collected,

special public

funding

allocations

Telephony and

Internet

Dominican

Republic

C Universal Service

Fund

Telecommunication

Development Fund (Fondo de

Desarrollo de las

Telecomunicaciones—FDT)

1998 Charged to the

users, who pay

2% on the

amount of their

bills

Telephony and

Internet

Uruguay M Not established by a

regulatory framework

___ ___ Charged to

ANTEL

Telephony and

Internet

Venezuela C Universal Service

Fund

Universal Service Fund

(Fondo de Servicio

Universal—FSU)

2000 1% of gross

earnings of

operatorss

Telephony and

Internet

M=Monopoly; D=Duopoly;P=Partial Competition;C=Free Competition. Source: ITU World Telecommunications Regulatory

Database (data for 2004)

* Provided for by Decree 764/2000 but not yet operating.

** Under way. Telecommunication sector is in the process of being reformed.

*** It is not a universal access or service fund in the strictest meaning of the term. It involves a temporary fund comprised of

government resources used to fund specific projects.

**** Government and residential telephony on networks with data transmission capacity.

***** Draft bill for a Universal Service Act.

Data source: Regulatel and Universal Access in Latin America: Status and challenges of the ITU.

Table 9: Strategies for the funding of Universal Service in Latin America

4.1.2. Investment in ICTs

According to ECLAC data,25 the LAC countries each year spend on ICTs nearly six times less than do

the developed countries. Low per capita income in the region is jeopardizing ICT expansion.

As may be seen in Table 10, Jamaica has committed one of the highest percentage of gross

domestic product (GDP) for expenditure on ICTs, whereas Ecuador has the lowest percentage for

this same item.

25 “Políticas públicas para el desarrollo de la Sociedad de la Información en América Latina y el

Caribe” (Public policymaking for the development of the Information Soceity in Latin America and the

Caribbean).

39

Country

Spending on ICT

2005 (%)

Jamaica 10.6

Colombia 8.5

Panama 8.4

Uruguay 7.9

Brazil 7.8

Costa Rica 7.7

United States 7.3

Argentina 7.1

Peru 6.6

Chile 6.1

Canada 5.9

Bolivia 5.5

Honduras 4.6

Venezuela 3.9

Mexico 3.3

Ecuador 3.2

Source: World Bank

Table 10: Expenditure on ICTs as a percentage of GDP in OAS countries in 2005

This is also related to the priority attached by governments to initiatives developed in the ICT

sector.

Table 11 shows the United States as the country with the highest percentage, whereas Paraguay

and Ecuador are at the bottom of the table.

Country Priority - 2005

United States 5.3

Chile 4.9

Jamaica 4.9

Canada 4.5

Venezuela 4.4

Dominican Republic 4.3

Brazil 4.0

El Salvador 4.0

Mexico 4.0

Trinidad and Tobago 3.8

Colombia 3.7

Nicaragua 3.7

Uruguay 3.6

Honduras 3.4

Panama 3.4

Argentina 3.2

Guyana 3.2

Peru 3.2

Costa Rica 3.1

Bolivia 3.0

40

Country Priority - 2005

Guatemala 3.0

Ecuador 2.4

Paraguay 2.4

Source: World Bank

Table 11: Priority of governments of the OAS countries for the ICT sector in 2005

4.1.3. Revenue of ICTs, prices of telecommunication services, price trends With regard to telecommunication service prices and their trends, it is important to refer to the

study “Affordability of Mobile Telephony Services in Latin America,”26 since this is the ICT cellular

service that has contributed most to reducing the digital divide in the Americas. It analyzes

Argentina, Chile, Colombia, Mexico, and Peru, which account for 78% of the total mobile market

(although it also refers to their fixed telephony tariff plans).

The results confirm the high costs of accessing this telephony service, despite the reduction in

tariffs that competition has promoted. It also recommends the implementation of new commercial

practices involving per second tariffs or the possibility of making small refunds (micro refunds).

Even so, the lowest income segments show some preference for mobile services owing to the

marketing models (prepaid and “caller pays”).

26 Sponsored by the Regional Dialogue on the Information Society (DIRSI).

41

5. CHALLENGES OF ICT SECTOR TRENDS

This section will set out challenges posed by trends in the telecommunication, information, and

broadcasting sectors, among which we emphasize the following:

5.1. Digital broadcasting services

These being a vital part of the information and communications infrastructure of the region, it is

expected that during the next decade, the region’s national broadcasting systems will be updated

from analogue to digital technology, keeping pace with digital advances that are redefining all types

of world telecommunications.

Thus far, three main standards are being adopted worldwide for DTT:

– ISDB-T: Terrestrial Integrated Services Digital Broadcasting (Japanese standard)27

– DVB-T/H: Digital Video Broadcasting Terrestrial/Handheld (European standard)

– ATSC: Advanced Television System Committee (United States standard)

One difference between these standards is that portable and mobile applications (cellular television

reception or high speed PDAs) are not included in ATSC, since it was oriented towards meeting fixed

needs, but these may be implemented via other alternatives using the same channel or separate

channels,28 unlike DVB-T and ISDB-T, which do include them in the standard. Even DVB-T

incorporates some synergy by integrating these characteristics with GSM. This is summarized in

Table 12.

COUNTRY STANDARDS ADOPTED29

Brazil SBTVD (modified version of ISDB)

Canada ATSC

United States ATSC

Honduras ATSC

Mexico ATSC

Uruguay DVB-T / DVB-H

Table 12: Countries that have adopted DTT standards in the region

Based on the experiences of some countries and national DTT broadcasting policies, it is

recommended that at least the following aspects be taken into consideration:

1. License eligibility and spectrum use criteria;

2. Licensing and channel assignment procedures;

27 The Brazilian Digital Terrestrial Television System (SBTVD) is the Brazilian modified version of

this standard. 28 For example, Digital Multimedia Broadcasting (DMB) in South Korea. 29 Sources:http://www.atsc.org/ and http://www.dvb.org/about_dvb/dvb_worldwide/index.xml

42

3. Terms and conditions for such licenses (whether or not linked to analog television licenses,

license duration, permitted services, and obligations to the public sector);

4. Transition and spectrum recapture plans and schedules;

5. Minimum technical requirements for DTT receivers;

6. Anti-piracy mechanisms (authorized redistribution).

It is important to note that in the case of Brazil, research for DTT was financed by the

Telecommunication Technology Development Fund (FUNTTEL), which might encourage other

countries to adopt this type of initiative.

5.2. Implementation of IP telephony

Data networks are becoming the universal transport medium for all types of communication services

– voice, video, or data. Regulatory bodies are considering a wide array of issues, such as the

advisability of creating a regulatory framework for the implementation of IP telephony and the need

for regulation thereof. Adding voice to the traffic of IP-based networks poses challenges regarding

the strategies to be followed in implementing the transition from some networks to others.

Voice over IP has been one of the dynamizing aspects of the world cable market, specifically

because over such networks “triple play” services may be provided easily, only needing to be

completed with telephony. The following table summarizes some of the regulatory aspects for

telephony in three different areas: VoIP, public telephony, and universal service.

Regulations VoIP (PC

to PC)

without

numbering

VoIP (PC to

telephone)

with

numbering

Public

telephony

Universal

service

Service interconnection and

interoperability

Yes Yes Yes

Access to emergency services ? Yes Yes

Access to directory and guidebook

services

Yes Yes

Call tapping (nationwide) ? Yes Yes

Number portability Yes Yes Yes

Use of telephone numbering Yes Yes Yes

Spending monitoring (detailed

rates)

Yes Yes Yes

Shutdown rates in certain services

(for example: additional tariff

setting)

Yes Yes Yes

Consumer protection in contracts,

service quality, billing or claims

Yes Yes Yes

Network security and integrity ? Yes Yes

Services for the disabled ? ? Yes

Source: Technical Notebook 2 CITEL (2006-2007)

Table 13: Regulatory aspects for telephony

43

The status of regulation in some countries is based on information from the Technical Notebook

of CITEL (2006-2007) on the topic:

• Argentina: “Telephony via IP protocol” is not classified as a service as such and,

as a result, it has not been specifically regulated.

• Brazil: Service provision is permitted using the IP protocol, only by

telecommunication companies with a license (concession, permit or authorization)

granted by ANATEL (www.anatel.gov.br).

• Canada: it has classified this service as “another type of telephone service;” nevertheless,

it was incorporated into its regulatory structure in 1997 because providers of international

telephony service over IP required a license from CRTC30 to provide the public with this

service. The decisions taken by the regulatory agency about telephony over IP are

governed by the principles of technological neutrality.

• Colombia: In April 2006, the Ministry of Communications enacted a concept in which VoIP

service is classified as a value-added service, as this service does not require regulation.

• Costa Rica: VoIP is not regulated and the delivery of telecommunication services

is governed by the state enterprise Costa Rican Electricity Institute (Instituto

Costarricense de Electricidad—ICE).

• Chile: Local public telephony service concessions have been granted to companies

that use IP protocol based technology (not Internet) in dedicated network

architecture, with the same regulatory framework as for those that use traditional

means. Voice-over-Internet services, however, are different. In Chile, for these

services, domestic and foreign companies are operating, providing voice-over-

Internet services on the basis of the PC-to-PC or PC-to-phone models. These

services are operating in the understanding that they are services on Internet,

which is a network that is not regulated.

• Dominican Republic: INDOTEL does not regulate technology, but it does regulate services

pursuant to Law 153-98 (see: www.indotel.org.do). To provide voice service via IP

technology, a concession is required.

• Ecuador: Because CONATEL deems that voice over Internet is a technological

application that is developed and available on Internet, it adopted Resolution 491-

21-CONATEL-2006, whereby it establishes the existence of various modalities for

its use and expressly declares that voice, video, data and multimedia provided

over Internet are technological applications. Therefore it eliminated the

restrictions imposed on the provision of these applications by cybercafes in order

to promote their use and the use of Internet.

• United States: VoIP services are closely related to broadband access. The 1996

Telecommunications Law defines telecommunications as the transmission, between points

specified by the user, of information that the users exchange, without any change in format

or content of the information. Likewise, it defines information services as the supply of

capacity to generate, acquire, store, transform, process, retrieve, use or make available

information via telecommunications. It must be pointed out that the United States does not

consider the term telephony over IP, rather it recognizes the term Voice IP. The FCC

published a notice (NPRM: WC Dockett No. 04-36) on VoIP activities.

• Mexico: The legal and regulatory framework is clearly aimed at regulating the delivery of

telecommunication services and is neutral with respect to the technological means whereby

30 Canadian Commission for Radio-Television and Telecommunications.

44

these services are provided. This makes it possible for telecommunication service providers

to freely choose the technology and, as a result, they will have the capacity to introduce, on

a timely basis, new technologies into their networks for better delivery of services to users,

on the basis of their business plans. As set forth by the Federal Telecommunication Law,31

for the installation and operation and a public telecommunication network whereby

telecommunication services are provided, a concession must be granted by the Secretariat

of Communications and Transportation. As for the Telecommunication Regulations,32 it

establishes that voice services are a basic telephony public service, and therefore the

delivery of these services is subject to obtaining a concession as referred to above.

• Paraguay: Telephony over IP is not specifically classified as a telecommunication service,

and therefore the provision of telephony service is classified as a basic service. As a result,

it can only be provided by the Basic Service Concession Holder, regardless of the

technology used. Furthermore, CONATEL has included Access to Internet Service under the

general category of telecommunication services, and Service Regulations do not envisage

the possibility of providing telephony over IP.

• Peru: Internet is a value-added service. Peruvian legislation excludes voice traffic in real

time from its value-added service classification. In other words, ISPs are forbidden to

provide voice in real time. As a result, the discussion focuses on whether the IP voice

service takes place in real time or not. Finally, in Peru, it is the service not the technology

that is considered to be regulated.

In 2004, OSILAC had also indicated that Latin America was behind in authorizing and regulating

VoIP (Figure 18), which may partially be explained by the steep growth in traffic (legal and illegal)

towards this region, as may be seen in Figure 19.

Figure 18: Percentage of countries by region that authorize and regulate VoIP (2004)

Translation: Authorized VoIP calls. VoIP regulation. Caribbean. Latin America. OECD.

Source: OSILAC, based on ITU data from the Regulatory Knowledge Centre, official website.

31 Federal Telecommunications Law (Ley Federal de Telecomunicaciones), published in the Official

Registration of the Federation on June 17, 1995. 32 Telecommunication Regulations (Reglamento de Telecomunicaciones), published in the Official

Register of the Federation on October 29, 1990.

45

Note: In the case of authorized VoIP calls, the data correspond to 15 Caribbean, 17 Latin American,

and 28 OECD countries. In the case and regulation of VoIP, the data correspond to 9 Caribbean, 10

Latin American, and 20 OECD countries.

Figure 19: International switched and VoIP traffic, by region of destination, 2004

Translation: Switched. Middle East. Latin America and the Caribbean. Source. Official website.

Note: The graphs represent the total percentage of incoming, switched, and VoIP traffic, by region.

Voice over IP (VoIP) traffic includes all international calls transmitted over IP networks ending in

switched telephony networks. PC to PC calls are excluded.

Lastly, it is important to note that North America is showing steep annual growth in global traffic

and that in the countries of Latin America and the Caribbean there is a lag.

Source: Regulatel

Figure 20: Growth in global VoIP traffic

5.3. Universal Service/Access Not all countries have a universal service/access policy and, where they exist, they differ with

regard to their application towards rural or low purchasing power areas. Architecture and objectives

46

also differ from country to country. Initially oriented toward fixed telephony, with the advancement

towards access to advanced services, there are now efforts to incorporate the Internet and

broadband as a priority objective (such as in Chile and Uruguay), whereas other countries are

directing it towards access to cellular telephony and community Internet access.

The choice of a specific universal service/access provision system is a complex matter that depends

on the country’s general ICT policy; the status of the telecommunication environment, regulations,

subsidies, and taxes.

Universal access means achieving greater access to public communications media, e.g.,

communities provided with public telephones or community telecenters. Universal service seeks to

convert most of the population into subscribers of some telecommunication service. This latter case

is still not a goal in the region, according to REGULATEL.

CITEL was given a lead part so as to contribute to actions to ensure and facilitate universal

access/service policies in the Americas. In that context, through Permanent Consultative

Committee I: Public Telecommunication Services (PCC.I) and the Working Group on Basic and

Universal Service (WGBUS), it has been providing assistance in developing guidelines to implement

and/or increase existing programs in an effort to bring basic telecommunication services to all

inhabitants of the Americas. The WGBUS became an active forum for sharing information and

experiences, examining universal service programs in the region.

Universal service and universal access are different concepts distinguished as follows:

“Universal access: Refers to reasonable telecommunications access for all. Includes

universal service for those that can afford individual telephone service, and … provision of

public telephones within a reasonable distance for others.”

“Universal service: Refers to availability, non-discriminatory access and wide-spread

affordability of telephone service. The level of universal service is statistically measured as

the percentage of households with a telephone.” 33

Regulations in the countries of the Americas, in their respective environments, include definitions of

different terms and, for the most part, focus only on telephony service. In very few cases does the

legislation of the countries reviewed expressly regulate universal service or provide a specific

definition. Similarly, in all countries, universal service policies have been implemented based on

objectives of existing legislation or instruments adopted to restructure the telecommunication

sector.

Regulatory strategies have essentially only been oriented toward establishing universal service rules

in a competitive environment.

In this context, but broadening the panorama to include other technologies, there are four public

policy alternatives to provide universal access:

(i) Expansion and deepening of mobile telephony;

33 ITU: World Telecommunications Development Report: Universal Access.

47

(ii) Extension of connectivity by means of other wireless networks (such as Wi-Fi, WiMAX,

and 3G);

(iii) Establishment of computer networks with broadband Internet access by means of

wireless networks in public access centers and other access sites;

(iv) Exploration of new alternatives, such as digital terrestrial television.

The countries of the region have implemented initiatives that have employed some combination of

the following mechanisms:

1. Market liberalization and regulatory initiatives including universal access obligations;

2. Universal service funds: Partial subsidies for specific programs and projects;

3. Other financing methods and projects assumed by national, state, and local governments,

cooperatives, and NGOs;

4. State mandates and state control through cross-subsidies and other means.

As indicated earlier, the first generation of universal access programs were simple programs focused

on establishing public telephony, although it is recommended that the next generation of programs

should be more complex and focus on infrastructure for services that use convergent IP platforms,

such as community telecenters (also called infocenters, Internet kiosks, community centers, or

intelligent centers).

This trend may be seen in Table 14, where telecenters are being incorporated as a new alternative

beyond telephony:

Country

Public

Telephony Tele-centers

Argentina x X

Bolivia x X

Brazil x

Chile x X

Colombia x X

Dominican Republic x X

Ecuador X

El Salvador X

Guatemala x

Mexico x

Nicaragua x X

Panama - -

Paraguay x

Peru x X

Uruguay - -

Venezuela X


Table 14: Application of universal access funds in 2005 in OAS countries

The 27,131 public telephones installed at 12,927 sites have benefited nearly 10.7 million people

who formerly had to travel hundreds of kilometers to communicate, according to REGULATEL. One

of the countries most benefited has been Peru, where the average distance to a public telephone

48

has been reduced from 60 to 6 km. Such funds also financed 19,190 telecenters, which benefited

9.77 million people.

Case of Colombia: Compartel Program in Colombia The Compartel Program was born in 1998 with the implementation of Community Rural Telephony projects aimed at meeting the basic telecommunication needs of those years. Afterwards by 2000 Internet access center, telecenters, started being installed, and by 2004 it became apparent that State also needed to implement ICTs in its institutions. As a result, the Broadband Connectivity for Public Institutions Project was drawn up; to date, it has established connections in 10,695 institutions throughout the country. In other words, when the Rural Telephony Program became the Broadband Connectivity Project, the goal also shifted. Other projects have also been carried out and they are described below. As for universal access, two thematic lines have been developed as a strategy to reach the goals that were set. Initially, as of 1999, the Community Rural Telephony Project was developed, bringing benefits to 100% of the municipalities in the country, achieving 10,045 community rural telephony points with 13,572 lines functioning for telephony service. As for connectivity and Internet access, work is being done on two lines of projects; the first is known as community telecenters, with 1,530 telecenters installed and benefiting 100% of the country’s municipalities, with an impact on more than 5 million Colombians. The second line of projects focuses on what is known as Broadband Connectivity for Public Institutions, which at December 31, 2007 reported connectivity installed in 10,695 institutions, of which 8,723 are public schools, 1,026 mayor’s offices (out of the 1,098 existing), 703 public hospitals, 51 town councils, 76 ICBF centers, 57 Provincial Business Management Centers, 42 military units, 15 Emergency and Security Centers (Centros de Emergencia y Seguridad—SIES), and two penitentiaries. As for Universal Service, the Compartel Program has developed two projects: one is a line of projects aimed at expanding and replacing switched basic public telephony lines, which has installed 146,871 telephone lines suitable for broadband connectivity (xDSL) in 62 municipalities of 15 departments. For 2008, the goal is to install 72,424 additional lines already under contract in 73 municipalities in 17 departments, amounting to 219,295 telephone lines suitable for broadband connectivity (xDSL) in Colombian households. Furthermore, in 2007, the Compartel Program contracted the enlargement of broadband connectivity networks for the benefit of the productive sector (MMSEs) and households in strata 1 and 2 and rural areas, all of which requires the installation of 79,644 new access (for the most part using xDSL technologies), of which 39,456 pertain to strata 1 and 2 and rural areas and 40,188 MMSEs. Mostly satellite solutions have been implemented in the various telephony and Internet projects because of difficulties of gaining access to the country’s rural population, geographical location, and security matters in isolated cases. More then 20,000 points in VSAT systems are currently operating. Regarding the Compartel Program in Colombia, US$876,887 million pesos m/cte have been invested in the various telephony and Internet projects.

49

The most commonly used mechanism used to

allocate universal access funds has been to

award projects to companies whose bids

provide for the least subsidy and the

payment of subsidies over a period of time,

based on results obtained.

The recommendations made by REGULATEL,

complemented by CITEL, for a next

generation of universal access programs are:

1. To update and redefine universal

access and establish new goals:

a. To develop a new structure

that includes more detailed

concepts and definitions that

make decisions clearer and

more explicit.

b. To establish measurable goals

for time periods of at least five

years (reviewed every two).

c. To identify compensations and

opportunity costs arising from

selection from among different

goals and priorities.

d. To define which basic services

and/or infrastructures may be

included in universal access,

universal coverage, and

universal service programs.

e. To promote the rapid

expansion of backbone

networks and wireless access

technologies in rural and low

income areas.

2. To step up, simplify, and diversify

the use of universal access funds:

a. To provide greater autonomy,

responsibility, and

transparency of funds and

minimize the number of

approvals.

b. To simplify and make the

allocation of funds more

expeditious.

c. To establish mechanisms which promote small operators and risk-based companies.

d. To diversify resource allocation mechanisms in the fund.

Case of Ecuador: Pilot projects in Ecuador The National Telecommunication Council and the National Telecommunication Secretariat (Consejo Nacional de Telecomunicaciones y la Secretaría Nacional de Telecomunicaciones—CONATEL/SENATEL) have their own funds on the basis of which they implement the strategies that are needed to implement the National Universal Service Plan, whose mission is to extend access of a well-defined set of telecommunication services to all the inhabitants of the country’s territory, regardless of their economic, social, or geographic condition at affordable prices and due quality, through pay phones, public phones, community telecenters, community terminals with Internet access, and similar means. At present, Ecuador is implementing the following pilot projects: o To provide Internet service using the Fund for the

Development of Telecommunications in Rural and Marginal Urban Areas (Fondo para el Desarrollo de las Telecomunicaciones en Areas Rurales y Urbano Marginales—FODETEL): o Access to broadband Internet in rural and

marginal urban schools in the province of Pichincha, bringing benefits to 10 schools.

o Access to Internet in public schools of the rural and marginal urban areas of the Metropolitan District of Quito, bringing benefits to 60 schools.

o Installing and operating a network of telecenters in rural indigenous communities in the province of Chimborazo, bringing benefits to 50 localities.

o Access to Internet the schools of “Fe y Alegría” in the rural and marginal urban areas of 7 provinces of Ecuador, bringing benefits to 20 schools.

o To provide Internet service using the Rural Marginal Fund (Fondo Rural Marginal—FRM): o First phase of “Agreements for the

Implementation of Projects Attributable to the Marginal Rural Fund between SENATEL and the companies ANDINATEL S.A. and PACIFICTEL S.A., for the provision of Internet service, for the benefit of schools and not-for-profit social development organizations, benefiting 2,000 low-income schools.”

o Implementation of the Polyvalent Community Telecenters Subcomponent for the provision of public telephony services through Polyvalent Community Telecenters and Remote Stations. Private-sector investment plus funding from the Ecuadorian State, brining benefits to 1,120 rural and marginal urban localities.

50

e. To implement mechanisms which permit and facilitate projects designed by

operators.

f. To finance pilot programs and other types of initiatives.

g. A combination of models is recommended, that is, both government and industry

contribute funding.

h. To emphasize the part played by public content development capacity and to

promote higher demand for ICT use.

i. To adopt prepayment mechanisms and to penalize the lack of the use of the fund.

3. Implementation of legal, regulatory, and institutional reforms to bridge the market

efficiency divide:

a. To create strong leadership that coordinates ICT initiatives.

b. It is imperative to maximize the participation the all stakeholders: government (at

all levels), regulator, concession holders, and industry-related associations.

c. To update and revise regulations to take account of technical and market

innovations.

d. To create the following structures

i) Consultation and participation

ii) Community assimilation

iii) Training

As indicated in the Technical Notebook “Study of the Economic Aspects of Universal Service” by

CITEL, an effective access policy must focus on:

• Expanding new access services, instead of promoting existing ones.

• Expanding service to remote or high-cost areas and to low-income groups where service

delivery is not cost-effective.

• Expanding public access services instead of residential or private services.

It is important to mention each country’s percentages of rural vis-à-vis urban population, provided

by the World Bank, in order to take account of this highly important aspect in universal

service/access and possible technological solutions, which may opt for temporary or permanent

wireless systems.34 This is shown in Table 15.

34 It must be borne in mind that there are a limited number of wireless solutions or those that may later be replaced by more promising cable solutions, such as fiber optic.

51

Country Rural Population

2005 (%)

Trinidad and Tobago 88

Guyana 72

Saint Lucia 72

Grenada 69

Saint Kitts and Nevis 68

Antigua and Barbuda 61

Haiti 61

Saint Vincent and the Grenadines 54

Guatemala 53

Honduras 53

Belize 52

Barbados 47

Jamaica 47

Nicaragua 41

Paraguay 41

El Salvador 40

Costa Rica 38

Ecuador 37

Bolivia 36

Dominican Republic 33

Panama 29

Colombia 27

Dominica 27

Peru 27

Suriname 26

Mexico 24

Canada 20

United States 19

Brazil 16

Chile 12

Argentina 10

Bahamas 10

Uruguay 8

Venezuela 7

Sources: World Bank

Table 15: Rural population as a percentage of total population in the countries of the Americas (2005)

The rural cases of Haiti, Honduras, and Nicaragua are of concern, since they have large territories

and populations, and the status of their development of some ICT aspects, especially fixed and

mobile telephony, is difficult.

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Case of Mexico: National e-Mexico System Project entrusted in 2001 by the Office of the President of the Republic to be coordinated by the Communications and Transportation Secretariat (Secretaría de Comunicaciones y Transportes—SCT) The National e-Mexico System is an integrative project that coordinates the interests of different levels of government, various public institutions and agencies, telecommunication network operators, chambers and associations involved in information and communication technologies (ICTs), as well as various institutions in order to enlarge the coverage of basic services such as education, health, economy, government and science, technology and industry, as well as the other services being provided to the community. BACKGROUND: On December 1, President Vicente Fox appointed the architect Secretary Pedro Cerisola y Weber to be in charge of the System. On August 31, 2001, the Council of the National e-Mexico System was established, with the participation of various federal government agencies, to bring together the policies and projects of each agency under one single approach. VISION TOWARD 2025: We shall live in a structure of social organization, the Information and Knowledge Society, where all Mexicans evolve in an environment of equal opportunities for access to knowledge, learning and education, through the intelligent use and development of new technologies, which shall be at the service of society. MISSION: To be an agent of change in the country by bringing together the efforts being made by many public and private stakeholders in reducing the digital divide and the socioeconomic differences between Mexicans, through a system of technological and social components that provide basic services such as learning, health, trade, and government procedures, while spearheading Mexico’s technological development. GOAL: To generate alternatives of value through a technological system with social content that provides tools and opportunities that can be reach through information and communication technologies to improve the quality of life of all Mexicans. ORGANIZATION: The system is organized into three major lines: connectivity, contents, and the system. CONNECTIVITY: Basically the actions for connectivity focus on two aspects: 1. The investments that are being made by the telecommunication network operators to increase the

telephony service infrastructure and coverage in Mexican households. 2. Creating a network of Digital Community Centers (Centros Comunitarios Digitales—CCDs) used to

provide connectivity to those population groups and families that, because of economic and geographic constraints, do not have the telecommunication infrastructure need to gain access to dedicated connectivity inside the home.

CONTENTS: The system’s contents are comprised of the following: e-learning, e-health, e-economy, e-science, technology and industry, e-government. SYSTEMS: Focusing on three items: 1. Portal of portals:

The most important element of the portal is without a doubt the citizen-friendly orientation; services and information shall be shall be all the more useful by being organized on the basis of the principal hubs of life, that is, the home, cars, the family, taxes, education, health, and business. And each involves the delivery of different services. The basic guideline is to provide one single approach for the citizen, that is, by integrating and developing the portals for e-government, e-health, e-learning, e-science, technology and industry, state and municipal portals. To do this, hard work is required for their development, to then shift to the convergence phase.

2. Neutral Access Point (NAP):

This is the center where traffic of the data networks of all the operators of public networks and the private networks that are required shall be exchanged, so as to optimize access to the contents of e-Mexico, without the need for the traffic of this information to leave the country to be exchange between the operators of Mexico and without the need of requiring bilateral agreements between specific Mexican operators.

3. Data Center (Government Computer Center)

This is the equipment that is needed to concentrate the systems on the basis of which e-Mexico shall operate at his first levels of information structure and from which it shall be connected with the rest of the contents residing in each agency or entity in particular. It shall require computer technology and infrastructure resources, its interconnection to the NAP and the services needed to keep them operating, among other aspects. Source: http://www.e-mexico.gob.mx

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5.3.1. Telecenters (public access centers)

Educational centers, municipalities, public libraries, health centers, foundations, and companies are

places where telecenters for public Internet access centers are typically found.

High management and maintenance costs are aspects most negatively impacting these types of

initiatives. No single effective formula has been developed to achieve telecenter self-sufficiency.

It is important to note that these projects do not provide for Internet access alone. Typically they

provide other services, such as information technology courses, printing, photocopying,

videoconferencing, Internet access, chat, e-mail, and other IT services.

Paraguay has the largest number of potential users per access center, whereas, surprisingly,

Argentina ranks among the lowest (Table 16).

Country Users Paraguay 104,208 Nicaragua 52,964 Uruguay 18,743 Bolivia 8,353 El Salvador 8,284 Brazil 8,143 Colombia 5,742 Chile 3,454 Guatemala 2,423 Costa Rica 2,238 Mexico 1,300 Ecuador 1,085 Peru 1,017 Argentina 889 Average LA 2,345

Source: ECLAC, 2005

Table 16: Average number of potential users per public ICT access center

The telecenter concept used by ECLAC is the public Internet access center (PIAC), and its definition

is based on that agreed at the Global Indicators Workshop on Community Access to ICTs, held in

Mexico City, in November 2004:

“A public Internet access centre (PIAC) is a site, location, centre of instruction at which

Internet access is made available to the public, on a full-time or part-time basis”.

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Digital community centers, Internet cafés,

libraries, educational centers, and other similar

establishments are included in this group,

provided they provide access to the general

public. All such centers must make available to

the public at least one computer for Internet

access. In one ECLAC study,39 PIACs were

defined as all centers with had a computer but

not Internet access.

A special type of center is the Educational

Technology Access Center (ETAC), which are

ICT access programs found in educational

institutions (schools, universities, etc.). Such

centers do not provide access to the general

public, but only to students, teachers, and staff

associated with the institution. However, this

type of center offers a series of possibilities,

since they make it possible to use ICTs outside

of school hours, which would make it possible

to increase general public access to ICTs at a

lower cost per program and optimizing existing

infrastructure resources.

For the ECLAC study, information was compiled

regarding PIACs in 14 CITEL countries, most of

which are faced with the challenge of reducing

the digital divide vis-à-vis the more developed

countries, according to the ITU’s 2007 ICT-OI

index.

The table below shows the PIACs identified in

14 CITEL countries. It is of concern that it does not show a steep rise in the number of such

initiatives:

35 Information to December 2007. 36 Half-Yearly Internet Report of December 2006 from CRT, published in May 2007. 37 Half-Yearly Internet Report of June 2007 from CRT, published in October 2007. 38 According to the baseline of the Ministry of National Education and the Field Studies of the

Compartel Program. 39 “Centros de acceso público a las tecnologías de información and comunicación en Latin America:

características and desafíos” (Centers for the public access to information and communication technologies

in Latin America: characteristics and challenges” (March 2006).

Case of Colombia: In 2007, the Compartel Program opened up, for the community, 1,670 telecenters, of which 1,530 were for communities and 140 for schools, in the framework of a strategy of openness to the community, as Centers for Community Access to Internet. At present, the Compartel Program is promoting initiatives and strategy enabling public institutions such as schools, libraries, etc., to benefit from broadband connectivity, open their doors to the community and to set up Centers for Community Access to Internet. Furthermore, inter-agency agreements drawn up by the Compartel Program have made it possible to use telecenters for specific purposes such as the strategy to incorporate ICTs. For example, with the National Learning Service (Servicio Nacional de Aprendizaje—SENA), virtual training has been provided to 9,370 Colombians through Compartel telecenters. With the National Federation of Coffee Growers, 1,106 coffee farmers have been trained in computer technical and coffee institutional capacity building in Compartel telecenters.35 “About 20% of the total number of users (in Colombia) are the outcome of Compartel’s efforts to implement state policies for massively extending access to Internet.”36 The “Collective Centers grew by 62%, largely owing to the result of Compartel’s efforts in state policymaking for the mass access to Internet.”37 In the education sector alone, it is estimated that 5 million students38 are beneficiaries of Compartel’s program for broadband Internet connectivity. Likewise, it is estimated that 5 million Colombians gain access to the telecenters of Compartel’s Program in 100% of the country’s municipalities.

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Country 2005 2006 2007 Argentina 28,401 30,202 30,202 Bolivia 884 904 904 Brazil 11,154 11,154 11,154 Chile 2,733 2,863 3,063 Colombia 6,078 6,088 6,098 Costa Rica 1,199 1,199 1,199 El Salvador 618 618 618 Ecuador 9,577 10,088 10,088 Guatemala 55 74 74 Mexico 58,188 60,198 60,213 Nicaragua 84 1,471 1,471 Paraguay 48 50 50 Peru 19,936 19,936 22,776 Uruguay 109 109 144 Total 139,064 144,954 148,054

Source: ECLAC

Table 17: Total number of PIACs (governmental and private) identified

The number 148,054 PIACs would appear high, but the digital divide is so large that it is in fact a

small number given the size of the population still without access to ICTs. Table 18 shows the

population of these 14 countries without access to the Information Society:

Country Estimation of Total

Population 2005

Estimation Population

5 – 64 years 2005

Number of PIACs identified in 2005

Number of

PIACs identified for 2007

Population 5-64 years

Minus Internet

Users Argentina 38,592,000 31,388,000 28,401 30,202 25,234,397 Bolivia 9,427,000 7,734,000 884 904 7,384.000 Brazil 187,597,000 158,175,000 11,154 11,154 136,175,000 Chile 16,267,000 13,739,000 2,733 3,063 9,439,000 Colombia 42.888.592 38,950,000 6,078 6,098 34,899,757 Costa Rica 4,322,000 3,683,000 1,199 1,199 2,683,000 El Salvador 6,875,000 5,707,000 618 618 5,119,525 Ecuador 13,215,000 11,016,000 9,577 10,088 10,391,421 Guatemala 12,700,000 10,129,000 55 74 9,373,000 Mexico 106,147,000 89,693,000 58,188 60,213 75,656,525 Nicaragua 5,483,000 4,574,000 84 1,471 4,449,000 Paraguay 6,216,000 5,152,000 48 50 5.002,000 Peru 27,947,000 23,498,000 19,936 22,776 20,278.000 Uruguay 3,455,000 2,723,000 109 144 2,043,000

Total 484,282,000 406,161,000 139,064 148,054 348,127,625 Source: ECLAC

Table 18: Estimated number of inhabitants potentially served by PIACs and estimated population without ICT access

The data from this research shows that approximately 348,127,625 inhabitants do not have direct

access to ICTs, i.e., 72%. The digital divide remains very large.

With regard to the location of public centers examined in the sample of a total of 20,522 PIACs

identified in 2005, it may be seen that 71% are found in urban areas and only 29% in rural. In

view of these results, the challenge is to ensure that governmental initiatives reach the areas with

fewest services, which typically are rural areas.

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The market has limits and does not reach large segments of the population located in remote, rural,

and also low income urban areas. In addressing this, two types of policies are employed:

− Universal Service policies, which seek to ensure that the cost of such services is with the

reach of individual users or specific groups.

− Universal Access policies, mainly through subsidization of part of the costs of access from

sites such as telephone kiosks or booths and/or Internet access centers.

Since Universal Access policies must take account of the remoteness and/or poverty of certain

areas, during the 1980s and 1990s, universal access funds emerged for rural and low income urban

areas.

Four models of governmental support for PIAC development and operation may be distinguished:

1 Public franchise. Here, the state, a company, or subsidized para-state partnership sponsor

the establishment and management of a series of telecenter franchises, providing financing

and services to franchise-holders. One example of this model is Panama’s Infoplazas

project.

2. Public concession. In this model, a public telecommunication company develops the

infrastructure and awards the management of service points to local entities. This is the

model used in Costa Rica (www.costarricense.com), since telecommunications is not

privatized in that country.

3. Telecommunication development funds for PIAC creation and maintenance. This is an

increasingly utilized model. In this scheme, a large subsidy is awarded for each project,

based on a public bid, to a company or consortium willing to manage (frequency as a

commercial franchise) a large number of service points for a specific period of time (e.g. 10

to 20 years). The award is made on the basis of the bid offering to provide the service for

the least subsidy. For example, the regulator OSIPTEL is utilizing its FITEL fund to extend

the PIAC network in Peru.

4. Community investment funds. In this model, numerous small subsidies are awarded to civil

society consortiums led by an NGO as a contribution to the investment required to establish

telecenters managed by the consortium. Winning bids will be those that meet feasibility

requirements and make parallel investment. For example, the Government of Canada has

promoted the establishment of 10,000 community access points based on this scheme, in

cooperation with civil society.

Through the ECLAC study “Centros de acceso público a las tecnologías de información y

comunicación en América Latina: características y desafíos” [PIACs in Latin America:

Characteristics and Challenges], it may be seen how the PIAC phenomenon in the region showed

signs of sustained and increasing growth in the period covered (1995-2007). Prospects for the

sustainability of this type of center are generally good, although additional research will be required

to establish this, considering that the PIAC concept involves certain non-public initiatives.

The results of this preliminary inventory include some surprises, such as the importance to PIACs of

satellite links. In general, it may be said that an average governmental PIAC has a link in the 128-

256 kbps range, provides four different services, among which training services and Internet access

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predominate, an average of eight computers per center, and is located in an urban area. The study

also confirmed that there are many aspects of the PIAC phenomenon that may be of common

interest to public policymakers. Prospects for developing PIACs or the supply of training services

are fairly bright.

Some ECLAC recommendations to contribute to improving these types of initiatives in the region

are:

• To conduct more in-depth research of the linkages between PIACs and the contribution of

ICTs to human development.

• To monitor the evolution of PIACs by creating a regional roster of this type of center.

• To gain more in-depth knowledge of the PIAC phenomenon by means of qualitative

research to gain more detailed and disaggregated knowledge of the operation and

sustainability factors of this type of center.

• To study in greater depth the different types of government support for this type of

program, especially matters related to public and private sector skills in this area, and

determination of the market failure of private PIAC services and those initiatives receiving

partial public subsidies for their efforts.

• To study PIAC infrastructure in greater depth, and to examine possible proposals to

promote economies of scale that enable equipment procurement and average PIAC

connectivity costs to be reduced.

• To promote the exchange of experiences among connectivity agency management and to

seek more effective solutions in areas such as license administration and type of software.

• To study in greater depth statistics on personnel trained in PIAC management. To identify

their needs in order to provide better service to the public in terms of training.

• To compare training needs with existing supply in formal and informal educational systems.

• To establish regional organizations with competence in this area or to seek to create

networks and active regional partnerships among those with responsibility and other

professionals working in this sector.

• To review the possibility of establishing political agreements for public bidding at the

regional level for governmental PIACs, with transparency systems agreed at the regional

level. To examine in depth the costs of infrastructure, and of adaptation and/or

convergence with old ICTs, such as the telephone and radio, etc.

• To make greater efforts to coordinate and create networks through which resources and

knowledge are shared to ensure the sustainability of programs, such as the network

somos@telecentros for Latin America and the Caribbean.

• To train those with responsibility for PIAC programs in knowledge management and change

management to provide them with better tools for efficient management of the programs

for which they have responsibility.

• In view of the environment’s complexity and the wide array of services that the average

PIAC offers, to conduct both studies and research, and to address PIAC management,

taking a multidisciplinary approach.

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Lastly, it must be borne in mind that the disappearance of a PIAC is not necessarily a sign of failure,

but could instead be a sign of prosperity, since it may indicate further development of the

community where it is located and, therefore, access to the new technologies on a more individual,

rather than collective, basis.

5.4. Accessibility and access to information and communication via information and communication technologies (ICTs)40

In the framework of the World Summits on the Information Society (WSIS), both Declarations41

and the Tunis Commitment42 emphasize the tremendous impact of ICTs on many aspects of life and

consider them an instrument for productivity, economic growth, job creation, good governance,

dialogue among individuals and nations, and enhancement of quality of life. In addition,

participation in the Information Society has been established as a right, which can only be asserted

through effective access to ICTs. By means of such access, individuals obtain information for use in

exercising their civic rights; communities become integrated into society, and regions may benefit,

since ICTs are input for any activity.

Lack of access to ICTs on equal terms is not only an obstacle to development but also constitutes a

factor that amplifies the social, educational, and economic divide. Accessibility means “[f]or the

telecommunications area, the usability of a product, service, environment or facility by the widest

possible range of users and especially users with disabilities.”43

The need for public policies for the promotion and implementation of services and solutions that

provide persons with disabilities with access to ICT services led, during the World

Telecommunication Development Conference, held in Doha, Qatar, in 2006, to the creation of an

ITU Development Sector Study Question on this topic. These types of strategies and policies insist

that ICTs must not be discriminatory and that persons with disabilities have a right to access them

on the same terms as the rest of the population.

To be noted among existing experiences in the region for the implementation of ICT programs and

services for persons with disabilities are:

• Argentina. The Tiflolibros experience (www.tiflolibros.com.ar), created in 1999, and which

now has over 20,000 books in Spanish and over 3,000 blind or visually impaired users in

America, Europe, and Asia.

• Ecuador. In 2006, the Army Higher Polytechnic School created the Information Technology,

Bibliographical, and Cultural Center for the blind, with over 28,000 digital books.

40 International Telecommunication Union - Telecommunication Development Bureau, ITU-D STUDY

GROUPS. Draft report on ICT accessibility for persons with disabilities. Alvarez, Clara Luz - Rapporteur on

Question 20/1. Dec. 14, 2007.

41 World Summit on the Information Society, Declaration of Principles, Building the Information

Society: a global challenge in the new Millennium, http://www.itu.int/wsis/docs/geneva/official/dop.html, Dec. 12, 2003.

42 World Summit on the Information Society, Tunis Commitment,

http://www.itu.int/wsis/docs2/tunis/off/7.html, Nov. 18, 2005.

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• Brazil. Law 10098/2000 provides that websites must be accessible, making it possible for

the visually impaired to use voice activated software.

• Chile. Work is being done to establish provisions to ensure access to Internet content for

the blind, and access to television for the deaf.

Although such efforts are highly important to the extent that they recognize the right of persons

with disabilities to information and communication, greater commitment on the part of governments

and, especially, the ICT sector, is required to facilitate conditions for access to enable this

traditionally excluded group to exercise the above-mentioned rights and, in addition, to ensure that

legislative and regulatory provisions do not exist merely on paper, but rather truly represent the

development of specific strategies for access to ICTs by persons with disabilities.

The ITU Council has adopted for the 2008 World Telecommunication and Information Society Day

(May 17) the theme “Connecting Persons with Disabilities.”

Case of Colombia: For the Government of Colombia have attached priority to access to the benefits of information and communication technologies (ICTs) for the sensory impaired (visually impaired, hearing impaired, and visually/ hearing impaired). Therefore, for nearly a decade, the Ministry of Communications has developed projects for access and appropriate use of communications technologies to enable persons with disabilities to access them and to exercise the right to information and communication, thus promoting their active participation in different spaces for social interactions; and for the strengthening of democracy. To that end, efforts are being made to develop, adapt, and implement in the country’s different regions, technology access points to facilitate access by the sensory impaired population (visually or hearing impaired) to information and communication, social integration, and equal opportunity. Technologies implemented for persons with disabilities: The hearing impaired: Policies and provisions have been established so that the different channels (public, private, national, regional, or local) ensure the hearing impaired population, by means of different systems (closed captioning, subtitles, or sign language), access to public television. These provisions are being readjusted and it is expected that by 2008, a legal framework will be in place that ensures the deaf population of such access. Additionally, Public Telephony for the Hearing Impaired – Relay Center – has been established, under an agreement with TELEFÓNICA TELECOM, for communication between a deaf and a hearing person using text telephones, or access via chat with those who can write, and to communicate, via a communication bridge (a relay center operator), that converts written text into voice, and the reverse. Telephony for the deaf was implemented in December 2006, by means of a National Relay Center, with access from any Internet center (all municipalities have a Compartel Program telecenter). Additionally, the project has its own access network, composed of 217 computers and 21 text telephones (TTY), located at 100 points installed in 66 municipalities of 26 departments of Colombia and in Bogotá. The visually impaired: Technologies at public access sites (telecenters, schools for the blind, public libraries, institutions, user service points, universities, and “cajas de compensación” [agencies that issue different welfare benefit payments], with appropriate technologies so that the blind can use these sites to review texts (printed or spoken), use the computer or access the Internet for information consultation purposes, access their e-mail, or use them in any other way. The technologies implemented include: screen reader programs, Braille printers, computers,

43 ITU-T, Recommendation F.790 Telecommunications accessibility guidelines for older persons and

persons with disabilities, approved under the World Telecommunication Standardization Assembly Resolution 1 procedure on 17 November 2000, section 3.7.

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hardware and software, and digital book readers. The visually/hearing impaired: By implementing IT classrooms in schools and family “cajas de compensación,” the “Connecting the Senses” project puts the world of technology within the reach of the visually/hearing impaired and their families, initially in Bogotá, Medellín, and Cali. In 2008, coverage will be expanded to Barranquilla, Cartagena, Pasto, and Bogotá.

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6. ICT APPLICATIONS

The spectacular growth in computer use has raised our work efficiency by enabling different

applications to be introduced. Situations and experiences of countries on important aspects are

included.

6.1. Telehealth

This is a broad concept. Telemedicine may be defined as “distance medicine.” Among the more

specific definitions are:

The World Health Organization defines telemedicine as:

“… the delivery of e-health services, where distance is a critical factor, by all e-health

professionals using telecommunication technologies for the exchange of medical information for

diagnosis, treatment and prevention of diseases and injuries, research and evaluation, and for

continuing education of health care providers, all in the interests of advancing the health of

individuals and their communities.”

The American Telemedicine Association (ATA) defines telemedicine as:

“Telemedicine is the use of medical information exchanged from one site to another via

electronic communications to improve patients' health status.”

It can be seen from these definitions that telemedicine is a concept that involves the transmission of

medical information using telecommunication technologies, enabling medical professionals to

provide care at a distance, utilizing to that end medical equipment with special technologies that

receive patient information such as medical imaging, electrocardiograms, and vital signs, among

others, for transmission via different communications media to a diagnostic or monitoring center for

evaluation by a health professional.

Telemedicine involves the transmission of images (CAT, X-rays, magnetic resonance imaging),

videos (ultrasound scans, echograms), patient information, device signals such as

electrocardiograms and vital sign monitors.

The technology involved is telecommunications, image acquisition software, image transmission

protocols, video equipment, communications media, medical diagnostic or laboratory equipment,

with incorporated technologies for information transmission, equipment for gathering medical

information, typically of three types: text, diagnostic images, and signals. Any communication

medium may be used, although transmission speed is fundamental, since transmission of images

requires large bandwidth to maintain quality and continuity of transmissions in real time.

Much equipment, such as ultrasound, magnetic resonance, and computerized axial tomography,

already has technology that processes information in digital format to create images. This makes it

possible, using software, to capture or transfer data from the medical equipment to the computer,

for example, via software that utilizes the Digital and Imaging Communication in Medicine (DICOM)

protocol. This protocol is a standard recognized worldwide for the exchange of medical images that

makes it possible to store, print, and transmit them. In cases where there is no way to capture

digital information directly from the medical equipment, an image digitization system must be used.

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Telemedicine may take place in real time or with time delay. In the first case, the patient receives

consultation by videoconference. He may also receive care from a hospital center through

monitoring of his vital signs, glycemic levels, electrocardiograms, etc. The second case involves

transmission of images for evaluation by a specialist, who may issue his diagnosis after analyzing

the results and evaluation.

Telemedicine applications may be analyzed from the standpoint of the services that can be provided

and associating them with traditional medical applications that consist of “face-to-face” care, where

the doctor attends the patient in person and conducts the examinations and laboratory tests to

obtain a diagnosis.

Medical care services to support diagnosis and medical care or consultation services are associated

with the telemedicine concept when the prefix “tele” is added to the service provided:

teleradiology, which is the transmission of radiological images for analysis by a specialist;

telesurgery, used in surgical procedures carried out using robots, which are manipulated remotely

by the surgeon; teledermatology, which makes it possible to diagnose and treat dermatological

problems remotely; telecardiology, the transmission of electrocardiograms, echocardiograms, etc.,

for analysis by specialists; monitoring and surveillance, which make possible remote care through

which the patient’s status can be monitored, as well as different vital functions, principally for those

with chronic diseases, and for postoperative and palliative care.

Another very widespread service is consultation of specialists for second opinions to obtain

specialized diagnostic criteria.

Case of Mexico: National e-Mexico System e-learning Providing, through the National e-Mexico System, new options for gaining access to education and training, encouraging learning as a means for the integral development of Mexicans, promoting the accessibility of education for all persons, respecting their identity and cultural environment. e-health Raising the level of well-being and health of society, by integrating a technological system with social content. Ensuring that all Mexicans can gain access to integral health information that contributes to human development and health sector institutions, dismantling the barriers to access to information and health services. e-economy Speeding up the process of development of the digital economy in businesses, especially micro, small and medium enterprises to enhance the competitiveness of the Mexican economy, as well as develop culture of digitalization in society, especially among consumers. e-science, technology and industry Integrating an information and knowledge society that has reached a greater degree of development on the basis of its own models and methodologies that have made it possible to meet the needs of Mexicans to build up their industry, with close ties to the research sector, achieving highly competitive quality standards on the global market. e-Government It is a medium for all Mexicans to exercise their right to be informed and gain access to federal, regional, state, and municipal services provided by the State through the Mega Network of the e-Mexico System. Likewise, the State, through the many instances of government, is fulfilling its obligation to guarantee access of the entire population to information and the use and development of its many public services.

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Related to the patient care administrative process and achieving centralization of all services by

means of a repository of patient information is the electronic file, so that all results from the

different medical equipment are stored and available for consultation from any site.

Medical professionals also benefit, since it provides them with more streamlined access and

information exchange and improves response time, making diagnoses more accurate and more

quickly made.

Public health information is providing the public with general information regarding health topics,

such as nutrition, quality of life, care that should be taken depending on the illness, self-care, and

disease prevention.

Training and distance information for professionals is maintaining sources of knowledge for medical

professionals and paramedics which becomes continuing and refresher education at lower cost.

The technology involves in telemedicine may be generally summarized as:

• Telecommunications: communications networks for communication between different hospital

centers.

• Software for acquiring images from biomedical equipment: clinical laboratory, magnetic

resonance, radiology, ultrasound, and computerized axial tomography.

• Image transmission protocols. Medical equipment, such as CAT scans, X-ray, and resonance,

utilize protocols that enable images transferred by this equipment to be transferred to a digital

storage unit so that they can be accessed using any electronic file software.

• Video equipment. Digital cameras.

• Communications media: satellites, dedicated data lines, Integrated Services Digital Network

(ISDN) or conventional telephony.

• Biomedical diagnostic equipment in general: clinical laboratory, magnetic resonance, radiology,

ultrasound, computerized axial tomography, monitoring stations, electrocardiographs, vital sign

monitors, examining cameras, spirometers, glucometers, and others.

The American Telemedicine Association (ATA) provides a list of telemedicine providers on its

website: http://www.atmeda.org/news/buyersguide.htm.

BIREME

BIREME, a center of the Pan American Health Organizations (PAHO), represents a major effort in

the sector’s advancement toward telehealth. Its mission is to contribute to improving teaching,

research, and health care in the countries of Latin America and the Caribbean countries through the

establishment and coordination of the Latin American and Caribbean Health Sciences Information

System of the health professional community.

Its main objectives are to develop the administrative and operating capacity of national information

systems linking libraries and documentation centers; promote information products and services

based on the use of a common method and information technologies to enhance efficiency and

effectiveness in meeting information needs; establish ongoing control of scientific health production;

facilitate access to scientific information on health; and promote the exchange of experiences

among the system’s centers, at the national and international levels.

http://www.atmeda.org/news/buyersguide.htm�

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Country Website

Belize www.paho.org.bz

Costa Rica www.binasss.sa.cr

Guatemala www.medicina.usac.edu.gt/bvsgt

Honduras www.bvs.hn/html/es/collection.html

Nicaragua www.bvs.org.ni

Panama www.bvspanama.gob.pa

El Salvador www.bvs.edu.sv

Source: OSILAC with information from BIREME

www.bvsalud.org

Table 19: Virtual libraries on health in 2006

The WHO conducted a survey on the topic of telehealth from mid-2005 to 2006, in which 112

countries of 172 of its Member States participated. The table below summarizes the data, which

show that most participating countries have telehealth policies.

Member State Adoption of Telehealth

Policies 2005

Argentina yes

Bahamas yes

Belize yes

Brazil yes

Canada yes

Chile yes

Costa Rica no

Dominican Republic yes

El Salvador yes

Honduras no

Mexico yes

Panama yes

Paraguay no

Peru no

Surinam no

Venezuela yes

Source: WHO, 2005

Table 20: Adoption of telehealth policies in OAS countries in 2005

Of all applications examined, making available online health information to the general public was

that which achieved the highest percentage of success. International online publication services for

health professionals and university students have also expanded, and distance learning is planned.

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65

Compared to other sectors, the low level of digital activity in the health sector in the Latin American

region was notable. The information available is scattered and incomplete. The websites of health

authorities are targeted more at dissemination ministerial information (health campaigns, links with

government agencies, statistics, and rules, regulations, and legislation in the area), leaving little

room for important health topics. See Figure.

Figure 21: Content of Ministry of Health websites in 2006

The survey conducted shows that developing countries particularly appreciate telehealth

applications, which indicates a need for such tools, but such countries need more support in these

areas.

6.2. Cyber government 44

The incorporation of technology in human processes has also made it possible to seek efficiency of

the state, which is approaching citizens with better attention in services, and more and better

dissemination of information, which facilitates resource management and provides new decision-

making mechanisms.

The United Nations, through its Division for Public Administration and Development Management,

has published the UN Global E-Government Readiness Report 2005: From E-government to E-

Inclusion, which provides an assessment of countries according to their e-government readiness

strategies and degree of e-inclusion.45 It classifies the 191 UN Member States in accordance with a

quantitative composite e-readiness index based on an assessment of public sector websites,46

telecommunication infrastructure, and human resource endowment.

44 Also known as electronic government or government online. 45 Defined as the interaction and the site that the government provides for citizens and makes

qualitative measurements of the quality and usefulness of the information and services a country

provides. 46 Categorized by their level of presence: emerging, consolidated, interactive, transactional, and

networked.

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The rankings of the countries analyzed herein were taken from said study and are summarized

below:

# Country

1 United States

2 Canada

3 Chile

4 Mexico

5 Brazil

6 Argentina

7 Uruguay

8 Colombia

9 Venezuela

10 Peru

11 Jamaica

12 Barbados

13 Panama

14 Trinidad and Tobago

15 Bahamas

16 Costa Rica

17 Saint Kitts and Nevis

18 Santa Lucia

19 El Salvador

20 Dominican Republic

21 Bolivia

22 Antigua and Barbuda

23 Saint Vincent and the Grenadines

24 Guyana

25 Ecuador

26 Grenada

27 Belize

28 Guatemala

29 Paraguay

30 Surinam

31 Nicaragua

32 Honduras

33 Dominica

Source: UN Global E-Government Readiness Report 2005

Table 21: E-government readiness rankings of CITEL countries in 2005

Chile maintained its lead position in the Latin American region in 2005 (it was the only countries in

the top 25 worldwide, ranking 22), followed by Mexico, Brazil, and Argentina. The United States

maintained its ranking and Canada ranked one position higher compared to the preceding year.

Venezuela, Costa Rica, and Bolivia ranked higher compared to the preceding report and the regional

average.

The countries whose rankings fell most were Belize, whose ranking fell by 21, and Guyana, whose

ranking fell by 18. On the other hand, Guatemala’s ranking was 11 higher compared to the

preceding year.

67

Cyber government development has increased in Latin America, in part as a result of the

deregulation of the telecommunication industry as an indirect consequence of privatization

processes.

The Caribbean country average is lower (0.4282) that the average of the rest of the Latin American

countries (0.4643), and still lower than the world average. Jamaica, Barbados, and Trinidad and

Tobago rank highest, but few countries improved their rankings.

6.3. E-learning

Education is the key for economic and social development, but tele-education is the key for bringing

this development to all parts, not merely urban areas and other more favored areas. The use of

information and communication technologies (ICTs) reduces costs and renders education no longer

dependent on distance. Tele-education may be considered as an expander of conventional education

methods.

CITEL drafted the Book on Tele-education in the Americas for the purpose of providing information

on the development of distance learning on the continent and to promote the access of teachers,

students, learning establishments and administrators to the use of new technologies applied to

distance education that can collaborate in drawing up new teaching methods and that would enable

better policymaking to help reduce inequality in the access to knowledge and the technological

divide in our Americas.

Among strong points of some countries are ICT learning centers, which facilitate training and

integration of their population into the digital era. The countries with this type of organization are:

Name Country

Instituto Nacional de Educación Técnica Argentina

TVE Council Barbados

Fundación Nacional para la Formación and Capacitación Laboral Bolivia

Serviço Nacional de Aprendizagem Comercial Brazil

Servicio Nacional de Capacitación and Empleo Chile

Servicio Nacional de Aprendizaje Colombia

Instituto Nacional de Aprendizaje Costa Rica

Servicio Ecuatoriano de Capacitación Profesional Ecuador

Instituto Salvadoreño de Formación Profesional El Salvador

Instituto Nacional de Formación Profesional Honduras

HEART NTA Jamaica

Instituto Nacional Tecnológico Nicaragua

Servicio Nacional de Promoción Profesional Paraguay

Servicio Nacional de Adiestramiento en Trabajo Industrial Peru

Instituto nacional de Formación Técnico Profesional Dominican Republic

Dirección Nacional de Empleo Uruguay

Instituto Nacional de Cooperación Educativa Venezuela

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Source: OSILAC, 2005

Table 22: ICT learning centers in CITEL

RedCLARA

In taking up the research aspect of the subject, the case of the Latin American Cooperation of

Advanced Networks (CLARA) initiative must be mentioned. This initiative seeks to establish

infrastructure integrating Latin American advanced academic networks and to create a

nongovernmental organization representing the interests of this network of organizations.

The six main IP nodes of the RedCLARA IP trunk network are located in Sao Paulo (Brazil), Buenos

Aires (Argentina), Santiago (Chile), Panama City (Panama), Tijuana (Mexico) and Miami (United

States). From Brazil, RedCLARA links the Latin American national networks to GÉANT2 (Europe)

and to the East Coast of the United States. From Mexico, direct connection is established with the

U.S. Pacific Coast.

The countries now connected to RedCLARA are: Argentina, Brazil, Chile, Colombia, Ecuador, El

Salvador, Guatemala, Mexico, Panama, Peru, Uruguay, and Venezuela.

69

Figure 22: RedCLARA topology map (April 2007)

6.4. Cybersecurity CITEL has recognized the central role of telecommunications in cybersecurity, and has created its

own work program to focus and coordinate technical standardization and regulatory issues

associated with developing a culture of cybersecurity in the region.

CITEL believes that ensuring the security of information systems is a priority matter for the

hemisphere, as information networks play an important part in the critical infrastructure of

countries, their economies, and societies. Accordingly, CITEL, through its alliances with the private

sector and its Work Plan for advanced network issues, especially cybersecurity in next generation

networks, is contributing substantially both to raising awareness about the critical issues that may

potentially impact the region and to enhancing its work plans in these areas, facilitating focused

discussions and information sharing.

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70

In this regard, the Rapporteur Group on Cybersecurity & Critical Infrastructure of the Working

Group on Policy and Regulatory Considerations of the Permanent Consultative Committee I (PCC.I):

− Identified and coordinated standards and standardization tools to facilitate cybersecurity in

regional networks, through a strong partnership between government and members of

industry. In particular we point out the Standards Coordination Document Nr. 8: “SECURITY

ARCHITECTURE FOR THE INTERNET PROTOCOL”.

− Developing a Technical notebook for the use of the Member States of the Americas and its

relevant industry that identifies best practices regarding cybersecurity in regional

networks. This technical notebook will support the elaboration of appropriate tools for

raising awareness of the roles and responsibilities of stakeholders in regard to the operation

and use of ICT networks in the region; facilitate examination and assessment of the risks

involved; build consensus with respect to the responses required to secure these networks;

and assist in developing regional approaches and strategies that will increase the security of

and confidence in these ICT networks.

− Developing a Technical notebook on Critical Infrastructure Protection (CIP). There is a high

dependence of all society sectors on the telecommunication infrastructure that could be

damaged, destroyed, or disturbed by terrorist acts, natural disasters, thoughtlessness,

accidents, piracy, criminal activities and ill intentioned behaviors. The effective protection of

the critical infrastructures demands worldwide communication, coordination and

cooperation among all the interested parties and this technical notebook will provide best

lessons to assist in providing basic information and establishing a common platform for the

exchange of experiences, which would enhance all kind of collaborative work in this task

that is so difficult, not only due to the complexity of the systems, networks, and assets that

provide the essential services for our daily life, but also due to the high interdependence

amongst these infrastructures.

For this work, CITEL is liaising with other standards bodies, in particular the International

Telecommunication Union (ITU). Drawing upon the work of the ITU, CITEL is evaluating existing

technical recommendations to identify those most applicable to the needs of the Americas region.

To expedite this work, CITEL has conducted joint seminars with the ITU-T on the standardization

work and in particular on cybersecurity.

Recognizing the breadth and complexity of the cybersecurity challenge, CITEL supports an active

multi-disciplinary approach that pools its efforts with the efforts and expertise of the Inter-American

Committee against Terrorism (CICTE), and the Justice Ministers and Attorneys General of the

Americas (REMJA). The OAS has adopted a Comprehensive Inter-American Cybersecurity Strategy

to combat threats to citizens, economies, and essential services that cannot be addressed by a

single government or combated via a solitary discipline or practice. This Comprehensive Inter-

American Cybersecurity Strategy relies on the efforts and specialized knowledge of CICTE, CITEL,

and REMJA.

Taking into account the changing environment, it is important to provide training to persons of the

telecommunications sector and this is achieved through the program of fellowships on

telecommunications of CITEL. Based on the priorities established by the Member States, several

courses have been provided on security aspects and some courses are already scheduled for the

future.

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7. CONNECTIVITY PROJECTS IN THE REGION

At the XVIII Meeting of CITEL’s Permanent Executive Committee (COM/CITEL), the regional project

on “Reducing the Digital Divide and Advancing the Information Society in the Americas” was

approved. The project’s objective is to assist selected municipalities in their transformation to

digital municipalities, bringing their citizens into digital culture, and integrating themselves into the

Information Society (IS) so that they can benefit from the opportunities it affords, and in

accordance with the principles arising from the Summit of the Americas, the OAS mandates, and the

Millennium Development Goals.

7.1. Connectivity projects of OAS in the Americas 47

CITEL, as a forum for the development of info-communications in the Americas region, must play a

major part in such efforts, its role being not merely advisory, but also carrying out on-site activities

or executing projects that genuinely assist efforts to bridge the digital divide and to include

populations in the Information Society.

CITEL must motivate and attract the private sector and nongovernmental organizations to

participate in such activities, negotiating and creating win-win situations, so that they contribute, in

the form of capital, experts and equipment, educational programs, etc., to the execution of

established projects.

The possibility of having CITEL expand its traditional activities to carry out actions directly on site is

being examined. At present, CITEL has two macro-activities, one adopted and in execution, and the

other being studied.

The activity that was adopted and is being executed is the regional project to bridge the digital

divide and incorporate populations in the IS. The general purpose of the project is to contribute

with the interested OAS member countries to their integration into the Information Society so that

they can take advantage of the opportunities offered by this Society and on the basis of the

principles set forth at the WSIS, the Summits of the Americas, OAS mandates, and the Millennium

Development Goals.

The activity under study is the establishment of a research and development center for practical

applications to be utilized by the different populations so that they can take advantage of the

benefits afforded by ICTs.

7.1.1. Regional project to bridge the digital divide and incorporate populations in the IS

CITEL has negotiated a cooperation agreement with the ITU for the two organizations to join forces

and efforts in support of the execution of this project

The specific objectives of this project are to provide technical assistance to those interested in the:

47 Although this report only provides a description of the status of ICT and the projects in the

region.

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1. Design and preparation of training programs addressed to staff members and the general

public to enable a digital culture, in order to make intelligent use of ICTs and improve their

living conditions.

2. Design and preparation of central digital government development plans, for which each

country has made progress in different aspects. Each interested country shall define its

weak areas, which should be developed to complement efforts and applications already

carried out, with the possibility of evolving into “m-government” (mobile digital

government).

3. Design and preparation of local or rural community development plans, creating digital

municipalities or cities where the local e-government is complemented with distance

learning, telemedicine, e-commerce, development of micro-enterprises and SMEs, etc. with

the idea of evolving into a “local m – government”.

4. Design and preparation of development plans and installation of community telecenters

where basic telephone and data transmission facilities are available with Internet access

and where traditional electronic mail, chats and information search services are combined

with public education and training programs not only for using ICTs but in areas related to

the productive activities of the community. These community telecenters will have access to

the programs mentioned in point 3 corresponding to those fostered by the digital

municipalities (distance learning, tele-medicine, e-commerce, telecommuting possibilities

and poverty reduction, drug addiction and sexual exploitation programs , etc.).

In each case the development plans shall include not only feasibility studies but also master work

plans, the activities and responsible entities, the required budgets, potential financing sources and

actions for working jointly with the private sector, local or international financing entities, interested

NGOs, the telecommunications and ICT industry and any other stakeholder interested in

participating and implementing the plans.

It was decided to execute this regional project based on pilot projects replicable in interested

countries or groups of countries with similar problems, which join together to develop the project.

The first projects included in this regional project are in Costa Rica, Ecuador, and Uruguay. In

Annex 2 can be found detailed information about these projects.

7.1.2. Project to establish the ICT Application Research and Development Center

No matter how much infrastructure or access to Internet and broadband facilities there might be, it

is evident that positive development impacts cannot be achieved unless the necessary applications

are available and the population knows how to use them.

Major efforts for the development of applications are being made by public and private institutions

in the Region but they are scattered and are sometimes not well known and, of course, they are not

being used by many institutions that could, with a few simple adjustments, use them to gradually

increase the use of digital technology among the peoples of the Region.

73

What must first be done is to investigate and look for these useful applications to convert

municipalities into digital municipalities or digital towns as they are called in many places. Second,

other applications that cannot be found or used in the Region but that are necessary to carry out

actions in the field that improve the standards of living of our citizens must be drawn up and

developed. Everything that has been produced shall be used in the projects mentioned in the

preceding activity, as well as in other interested municipalities or institutions.

These activities are being proposed because they put CITEL directly in contact with the public to

tackle their real everyday problems.

Preparado por ing. Jaime Herrera – Oct 2007

OTHER POSSIBILITIES FOR ACTION IN THE FIELD

ICT APPLICATIONRESEARCH AND

DEVELOPMENT CENTER

Applications pertaining to municipalities (online services) that can be replicated with slight adjustments (local e-government.

Applications to educate the population in making intelligent use of Internet and the facilities that are being offered.

Useful applications for the rural population in line the activities of the zone (arts and crafts, agriculture, health, education and culture, etc.)

Applications to combat epidemics and drug use, reduce poverty, integrate marginalized persons into society, etc.

Figure 23: Framework of action of the project

The ICT Application Research and Development Center of CITEL, help interested institutions of OAS

member countries to install and adapt the ICT applications that are needed to convert the zones

involved into digitalized zones with the broad use of ICTs and Internet facilities. To do this, it must

investigate and obtain the applications that already exist and develop those that cannot be obtained

to meet the needs of municipalities, especially those in rural or marginal areas.

SPECIFIC GOALS:

1. Help install applications (obtained or developed by the center) pertaining to local or

municipal digital government so that all municipal services can be provided online, thus

converting the municipality into a digital municipality.

2. Help install applications (obtained or developed by the center) that are needed to educate

the target population in the intelligent use of Internet and applications that shall serve to

improve their quality of life.

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3. Help install applications (obtained or developed by the center) that complement those for

municipal services and that are useful for the activities of the target area, such as

applications for SMEs associated with arts and crafts, farming, education and culture, etc.

4. Help install applications (obtained or developed by the center) that are needed to improve

the area’s social conditions, such as combating epidemics, reducing poverty, integrating

marginalized groups into society, etc.

5. Help install or use applications that the country’s government has developed as part of its

central digital government program and that might be difficult to apply in the involved area.

7.2. Plan of Action eLAC 2007 and eLAC2010 At the preparatory meetings for WSIS (May-June 2005), a regional action plan, eLAC 2007, was

adopted. Its fulfillment is monitored by a permanent regional intergovernmental mechanism, for

which ECLAC provides technical assistance.

Accordingly, in November 2005, representatives of Latin America and Caribbean governments

created a temporary regional mechanism and formed working groups on the topics of

telecommuting, alternative technologies, software, electronic government, creative and content

industries, financing, and legislative framework. Later, advanced networks, Internet governance,

and regional infrastructure were added.

For eLAC2007, the following thematic areas and 27 goals were proposed (with their respective

measures: a total of 70), to be finalized by the end of 2007. These are presented below, together

with their current status:

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Table 23: Progress with eLAC 2007

Translation: Thematic area. Goal. Degree of progress. Progress. Strong progress. No progress.

Moderate progress. A. Access and digital inclusion: regional infrastructure, community centers,

online schools and libraries, online health centers, employment, local government, alternative

technologies. B. Capacity-building and knowledge: Training. Research and investigation

networks. Science and technology. Firms. Creative and content industries. Internet governance.

C. Public transparency and efficiency: Electronic government. Electronic education. Electronic

health. Disasters. Electronic justice. Environmental protection. Public information and cultural

heritage. D. Policy instruments: National Strategies. Financing. Universal access policies.

Legislative framework. Indicators and measurement. E. Enabling environment: World Summit

follow-up and implementation of eLAC 2007.

In the regional inventory of information and communication technology projects for Latin America

and the Caribbean,48 1,500 existing ICT-related projects in the region were identified. Figure 24

shows how they are distributed.

48 http://www.PROTIC.org

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Source: ECLAC

Figure 24: Distribution of 1,541 ICT projects registered with PROTIC.org, by eLAC 2007 thematic area

We point out, for example, with regard to ICT applications and connectivity projects in the region,

that there are programs under way in Brazil that have achieved results that are motivating and

deserve to be highlighted, such as the work done by GESAC with respect to telecenters and the

Federal Government’s “Computer for All” program, in addition to several breakthroughs made by

Brazil in electronic government.

Finally, ECLAC, through its Observatory for the Information Society in Latin America and the

Caribbean. (OSILAC), was tasked with monitoring progress in the framework of said regional action

plan, from August 2006 to August 2007. OSILAC summarizes that, of the 27 eLAC 2007 goals for

action monitored, 15 show progress or even strong progress, while 12 show moderate or insufficient

progress.

The Second Ministerial Conference on the Information Society, held in San Salvador on March 6-8,

200849, approved the Plan of Action for the Information Society in Latin America and the Caribbean

(eLAC2010) as the second step in the eLAC process up to the year 2015.

The San Salvador Commitment 50 recognizes the importance of the work of regional public, private

and civil society agencies which contribute to the development of the information society in the

region and which, in so doing, cooperate with and contribute to the eLAC platform.

The eLAC2010 Plan of Action includes eighty-three (83) measures structured under six (6) chapters,

and activities of Working Groups on regional infrastructure, tele-work, alternative technologies,

software, education and research networks, creative and content industries, internet governance, e-

government, and financing and legislative frameworks.

49 www.elac2007.org.sv/en/index.php 50 http://www.elac2007.org.sv/en/docs/sansalvadorcommitment-8feb2008.pdf

77

CITEL, through the PCC.I Working Group on Development (WGD), may contribute to the eLAC

process, to the activities of the eLAC Working Groups and to the eLAC Plan of Action bearing in mind

its mandate and core competencies and the need to avoid duplication of efforts.

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8. STRATEGIES TO INCREASE CONNECTIVITY AND TELECOMMUNICATION DEVELOPMENT

The present report has highlighted the major efforts and progress made in the region comprising

the member countries of CITEL, but at the same time clearly points out that an even greater effort

has to be made to improve the process of bridging the digital divide and to fully integrate

communities into the Information Society (IS).

It is evident that the region follows the world trend of fixed telephony, which because of basic

infrastructure and the cost of installation has come to a halt and is not expanding as rapidly and

with the volume that is needed. Therefore, these needs are being met by new wireless

technologies. Evidence of this can be found in the high growth of mobile telephony system, as well

as the recent penetration of the third generation that strives to universalize services to address

unmet basic connection needs. Other wireless technological solutions are also making rapid inroads

and are viewed as the solutions that shall help to bridge the digital divide. These strategies must

continue to be implemented not only in terms of policymaking for their development but also in

terms of the implementation of the services needed by the operators.

A primary factor that stands out even in the system to define the ICT opportunity index by the ITU

is education. Although it is certain that efforts are being made to introduce ICTs in education, the

culture of our communities has to be changed so that they can live and think in the framework of a

new digital culture. Educational programs have to be changed, greater efforts have to be made to

provide broadband connectivity with sufficient quality and terminal equipment to all primary and

secondary schools in the region, especially rural schools, and above all a giant effort is required to

train teachers and instructors, in addition to the development of computer applications for

education. The education factor is the principal factor that shall enhance the development of the

Information Society.

At the same time, another fundamental factor constraining reduction of the digital divide is access

of citizens to ICTs. There are two factors that must be considered, one in which the operator

companies must reach the areas with broadband connectivity, for which the countries must draw up

policies on how to do it. Nevertheless, this is not sufficient because in rural or economically

marginal areas, the public probably does not have the wherewithal to purchase computers or do not

feel the need to do so because they have never needed them or the price of service is too high.

One solution, whose world growth trend is evidence of its great success, is the installation of

telecenters (which go by different names depending on the country). Telecenters not only educate

the population on how to use ICTs but it also gives them the opportunity to obtain applications that

can enhance their own activities, whether agriculture, tourism, arts and crafts, or others. There are

solutions being proposed to provide citizens with this type of application, one of which CITEL itself is

examining, namely to create a research and development center for ICT applications that are useful

for the citizens of our region.

There are many factors that constitute constraints, and one of them is project funding, whether for

connectivity, education, or development of applications, among others. We believe this can be

resolved with the determinedness and transparent actions of governments and cooperation among

government institutions and private-sector enterprises to achieve “win-win” situations that are for

the benefit of all parties and that make it possible to implement projects that are needed to improve

the living conditions of the region’s citizens. This is in addition to the funds for universal access

required by law in many countries on the basis of the fees to be paid by the operators. These funds

79

have proven to be very effective in some cases, although a challenge in others because of the

regulations for their use, typical of a state bureaucracy that must also be upgraded to be able to

survive in our time, which is marked by rapid changes that must be responded to immediately.

Although it might seem utopian, an effort in education and cultural change must be made to raise

the awareness of private-sector activities, for the development of the country as a whole or at least

for the community where these companies are located and provide their services. There are

currently interesting manifestations of this type of activity where industrial or service companies

involve the citizens of their area and motivate and assist them to enhance their activities or else

organize small enterprises that give impetus to the area’s economy and finally also benefit from the

company that helps implement these actions. In these aspects, the government of each country, as

well as the laws and regulations under which private-sector activities operate, performs a

fundamental role. In particular, in the case of the telecommunication operators, the regulatory

agency, as well as the telecommunication laws and regulations of each country, plays an essential

role. The need to set regulations that promote interconnection and thus increase competition

between service providers is noteworthy.

Evidently technology is the factor facilitating solutions to give access and education to the entire

population of each one of the region’s countries and not only should traditional telecommunication

technologies be taken advantage of but also innovations should be made to provide solutions to be

able to give service in rural areas that are difficult to reach by nontraditional technologies. One of

the problems in many areas of our Region is the access to energy that would enable

telecommunication equipment to work. Nontraditional energy sources, such as solar energy, wind

energy, geothermal energy and other energy, would make it possible to install telecommunication

services in areas where there is not even any electricity service. This is becoming very popular in

some countries and includes obtaining small amounts of energy from garbage processing, sugar

cane waste, cattle manure, etc., and provides inputs for communication equipment. This involves

education and also cultural change, and it also requires a huge effort on the part of all, but

especially governments.

We understand that our region is vulnerable to many natural disasters. There are areas of intense

geological movement that can lead to disasters and emergencies. There are other areas exposed to

major flooding and torrential rainfall that can also damage infrastructure and the citizens of the

region that is affected. There are areas where devastating hurricanes appear regularly every year.

Telecommunications must play a primary and fundamental role in emergencies so that victims can

be rescued and helped immediately and even thousands of lives saved. In this regard, we believe

we are very weak in the region and that both government and the private sector must increase their

efforts to obtain a truly well organized and sound system for assistance in the case of disasters,

specifically with respect to contingency plans in telecommunication systems.

There must be monitoring of the progress of cybergovernment or digital government programs in

the countries, because they are the first initiatives that can produce a chain reaction toward the

development of an Information Society.

Finally, additional programs must be proposed so that the cost of computers will not become a

further constraint on access to Internet for the population, on the basis of initiatives that have been

successful in the CITEL region. Alongside this, solutions must also be proposed to ensure the

intelligent disposal of all kinds of electronic waste.

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9. CONCLUSIONS AND RECOMMENDATIONS

CITEL shall continue in the future to build up efforts being made to determine the status of ICTs in

the Americas, by measuring and weighting the causes that constrain or restrict access to the ICTs

that have already been identified, for the purpose of having the administrations and the region, as a

whole, spearhead and prioritize the efforts aimed at reducing the digital divide.

On the basis of this document, it is recommended that governments pledge and genuinely increase

their efforts in the following aspects:

• Guarantee that accessibility to telecommunication services is available throughout each

country’s territory, expanding the concept of universal access so that there will be access

not only to telephone service but also to Internet, television and other services.

• Promote among the member states an exchange of experiences about tariff matters and

the regulatory frameworks of telecommunication networks for the purpose of facilitating

integration and the interoperability of these networks.

• Study the development of next-generation services, especially supported by IP and their

impact on the Region of the Americas.

• Examine the security aspects of communication, government, and nongovernmental

networks, their role of supporting other critical infrastructure and local and regional

approaches that are required in the region of the Americas.

• Develop national and regional approaches to security of the networks, implementation

strategies, exchange of information and dissemination in the public and private sectors.

• Modify education systems so that citizens can be effectively integrated into the Information

Society (SI). This means modifying both the formal education programs (primary and

secondary schools, universities) and the informal education programs (training), which are

what enable the present productive citizen to adapt to change and to assimilate ICTs as

tools in their daily activities.

• Establish fast programs to provide primary and secondary schools with facilities to

guarantee access to broadband Internet and the availability of additional peripheral

equipment (computers, printers, scanners, and other peripheral devices).

• Establish and decisively support programs to install telecenters, supported by the provision

of useful applications for the activities of the area and for guiding and educating citizens to

use these applications. Education, disease and pest prevention, poverty abatement and the

fight against drug addiction, cultural entertainment, sports and other campaigns must take

place in these telecenters managed by specialized entities such as national health systems,

ministries of education, culture, sports, and tourism, and other government and private

stakeholders.

81

• Follow to the extent possible the standardized guidelines and requirements with respect to

the use and sharing established by CITEL frequency spectrum to achieve harmonization in

the use of the spectrum for fixed and mobile terrestrial radiocommunication services.

• Update national policies and lawmaking bearing in mind that the process of convergence

between networks and services is leading to a new scenario that requires consideration of

suitable regulatory conditions for dealing with different networks to the extent that

digitalization and computer technology make their use possible for various services.

• Enhance efforts to fund all activities that help reduce the digital divide, including the private

sector, both industrial and commercial, so that there are mutual benefits for the

participating partners, but that permit integral development of citizenry.

• Upgrade efforts to develop cultural change programs in the service industry and companies

to promote integral development actions in the communities of the areas of influence of

their activities, including training and convincing farmers, for example, to process their

waste to extract the energy they need to operate telecommunication facilities that would

help reduce the prevailing digital divide. Explore the use of alternative energy to solve

various problematic situations that, for lack of energy, prevent access to

telecommunications.

• Increase efforts to have preparedness plans to effectively tackle emergencies caused by

natural disasters that all countries of the region are vulnerable to.

• Create a consensus-based mechanism for annual monitoring of the progress of CITEL

countries in the adoption of information and communication technologies. The most

important indicators adopted worldwide, especially WTI and ICT-OI, as presented in this

document, must be used.

• Motivate the countries to introduce new technologies into the region in line with access and

universal service initiatives, including the consideration of initiatives for bringing down the

prices of computers.

We know that all governments, to some extent, have included in the framework of their

development policies all the above-mentioned policies and that efforts are being made in all of the

aspects listed above. We are convinced, however, that current efforts are not enough to

immediately meet existing needs so as to guarantee the region’s development and its integration

into the globalized world of IS, without the lags, if any, that might prevent it from benefiting from

the opportunities that are now emerging.

Some Administrations believe that CITEL should have a mandate to include local activities and

should be able to implement projects directly but to date there is no general agreement about the

matter. It is felt that this point requires further discussion inside CITEL, including a review of the

CITEL Statute and Regulations.

82

BIBLIOGRAPHY

1. AHCIET. Indicadores para medir el grado de avance de la Sociedad de la Información. La situación actual en España. España. 2005.

2. ARIN. 2006 Annual Report. 3. Banco Mundial - ICT at a Glance 2005. 4. CEPAL. Centros de acceso público a las tecnologías de información y comunicación en

América Latina: características y desafíos. 2006. 5. CEPAL. Estrategias, programas y experiencias de superación de la brecha digital y

universalización del acceso a las nuevas tecnologías de información y comunicación (TIC). Un panorama regional. 2005.

6. CEPAL. NEWS LETTER N°3 Sociedad de la Información. Reflexiones finales sobre eLAC2007. 2007.

7. CEPAL. Políticas públicas para el desarrollo de sociedades de información en América Latina y el Caribe. 2005.

8. CEPAL-OSILAC. Monitoreo del eLAC2007: avances y estado actual del desarrollo de las Sociedades de la Información en América Latina y el Caribe. 2007.

9. CITEL Libro Azul: Políticas de Telecomunicaciones para las Américas. 2005. 10. CITEL. Carpeta Técnica ESTUDIO SOBRE ASPECTOS ECONÓMICOS DEL SERVICIO

UNIVERSAL. 2005 11. CITEL. Carpeta Técnica ESTUDIO SOBRE CARACTERISTICAS DE LA VOZ BASADAS EN

REDES QUE USAN IP 12. CITEL. El Servicio Universal en las Américas. 2000. 13. CITEL. Guía de implementación de radiodifusión de televisión terrenal digital. 2007. 14. CITEL. UIT. Teleducación en las Américas. 2001. 15. CITEL.UIT. OPS. Telesalud en las Américas. 2003. 16. DIRSI. Oportunidades Móviles: Asequibilidad de los servicios de telefonía móvil en

América Latina. 2007. 17. ITU (2007). Measuring ICT: The Global Status of ICT Indicators [online]:

<www.itu.int/ITU-D/ict/partnership/material/05-42742%20GLOBAL%20ICT.pdf>. 18. ITU (2007). World Information Society Report 2007 [online]. Geneva: ITU:

http://www.itu.int/osg/spu/publications/worldinformationsociety/2007/ 19. ITU. Acceso Universal en Latinoamérica: Situación y desafíos 2006. www.itu.int/ITU-

D/ict/statistics/material/Acceso_universal_2006.pdf 20. ITU. ITU World Telecommunication/ICT Indicators 2007 database online:

http://www.itu.int/ITU-D/ict/publications/world/world.html 21. LACNIC. Reporte Anual 2006. 22. LACNIC. Sistema SIARI on line: http://www.lacnic.net/sp/siari.html 23. NRO. Internet Number Resource Status Report as of 30 Sep 2007. 24. REGULATEL. El reto de la telefonía móvil y el servicio Universal en América Latina.

Revista [email protected], Número 1. 25. REGULATEL. Programas de acceso universal de telecomunicaciones en América Latina:

Lecciones del pasado y recomendaciones para una nueva generación de programas de acceso universal para el Siglo XXI.

26. UIT - EL OJO EN LAS TIC 2007: www.itu.int/ITU-D/icteye/Default.aspx 27. United Nations. The digital divide report: ICT diffusion index 2005. 28. UNPAN. UN Global E-government Readiness Report 2005: From E-government to E-

inclusion. 2005. 29. World Bank .World Development Indicators. Washington, USA. 2007. 30. World Economic Forum. The Global Information Technology Report 2006–2007. 31. World Health Organization. Report of the WHO Global Observatory for eHealth - 2007.

Progress of Member States.

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83

ACRONYMS

AHCIET: Asociación Iberoamericana de Centros de Investigación y Empresas de

Telecomunicaciones

ARIN: American Registry for Internet Numbers

CITEL: Inter-American Telecommunication Commission

DIRSI: Dialogo Regional sobre Sociedad de la Información

ITU: International Telecommunication Union

LACNIC: Latin American and Caribbean Internet Address Registry

NRO: Number Resource Organization

OCDE: Organization for Economic Co-operation and Development

OAS: Organization of American States

REGULATEL: Foro Latinoamericano de Entes Reguladores de Telecomunicaciones

UN: United Nations

UNCTAD: United Nations Conference on Trade and Development

UNDESA: United Nations Department of Economic and Social Affairs

UNDP: United Nations Development Program

UNPAN: United Nations in Public Administration and Finance

84

ANNEXES

ANNEX 1: Table of World Indicators

Figure 25: Comparison of the main international indicators in CITEL countries

With regard to the indicators, it is advisable to provide the following explanations. The degree of IS

development is based on indicators developed by certain international organizations:

1. Archibugi and Coco (ArCo)

2. ITU - Digital Access Index (DAI)51

3. ITU - Digital Opportunity Index (DOI)

4. ITU – ICT Opportunity Index (ICT-OI)

5. Economist Intelligence Unit (EIU) - E-readiness Index

6. UNDESA - Index of Knowledge Societies (IKS)

7. World Bank - ICT Index (WBICT)

8. World Bank Institute - Knowledge Economy Index (KEI)

9. World Economic Forum (WEF) - Network Readiness Index (NRI)

10. Orbicom - Infostates

11. UNDP - Technology Achievement Index (TAI)

12. UNCTAD - Index of ICT Diffusion

13. UNPAN – E-Readiness Index

14. IDC/World Times – Information Society Index (ISI)

Those most utilized are explained below:

51 Published for the first and only time in November 2003, based on 2003 data, it yielded many

surprises. It was not considered owing to the delay and problems that arose.

CITEL countries in synthetic indices

1

6

11

16

21

26

31

36

ATG ARG BHS BRB BLZ BOL BRA CAN CHL COL CRI DMA ECU SLV USA GRD GTM GUY HTI HND JAM MEX NIC PAN PRY PER DOM KNA LCA VCT SUR TTO URY VEN Countries

Relative position

WEF NRI América - 2006 ITU DOI - 2005/2006 ITU ICT-OI - 2005 WB KEI - 2007 EIU eReadiness -2007 IDC/WT ISI - 2006 UNCTAD ICTDI - 2004

85

KEI

Calculated for 128 countries and based on four aspects: economic incentive system, education,

innovation, and information and communications technologies.

NRI

Defined as the readiness of a country to participate in and benefit from ICT developments. It is

calculated based on three subindices that measure the environment, availability of agents, and use.

It included 104 countries.

E-Readiness Index

Measures the propensity of markets to implement Internet-based initiatives. Evaluates

technological infrastructure and general business creation environment, extent of adjustment to e-

business by customers and companies, social and cultural conditions, and the availability of

transport services. Included 65 countries.

ISI

Measures the degree of IS development in each country. Takes account of four aspects:

availability of computers and software, availability of communication networks, Internet use and e-

commerce, and societal aspects (education and availability of information). Covers 53 countries.

86

ANNEX 2: OAS Connectivity projects for the Americas

Pilot project for Costa Rica:

In compliance with COM/CITEL resolution (XVIII-06) that approved the proposal presented by Costa

Rica “Reducing the Digital Divide and Advancing the Information Society,” the Costa Rican Electricity

Institute (Instituto Costarricense de Electricidad—ICE) started up, in the first half of this year, a

series of activities aimed at implementing the above-mentioned Project, as a pilot plan in some of

the country’s municipalities, so that the experience would turn out to be as beneficial as possible for

the entire country and eventually useful for other member countries of CITEL.

Because the Government of the Republic has been implementing the “Digital Cities” Program,

entrusted to the Technical Secretariat of Digital Government (Secretaría Técnica de Gobierno

Digital—STGD), the Office for CITEL Affairs that was set up in the ICE to help the Chair of

COM/CITEL, who is the Executive President of this Institute, continues to coordinate actions with

this Secretariat as pertaining to public sector institutions, in order to make better use of available

resources.

The municipalities (cantons) were selected by the STGD, which as indicated is in charge of the

“Digital Cities” Program for the entire country, and in each one of them the CITEL project is starting

up in the respective capital of the canton, as well as the main city, that is, the largest urban center.

These cities are Santa María de Dota, San Marcos de Tarrazú, and San Pablo de León Cortés, from

the so-called Area of the Saints because of their names, and Grecia.

Area of the Saints

These municipalities belong to the province of San José and are located to the southwest of the city

of San José, the country’s capital; they are neighboring cities and their respective head towns are

close to each other. It is a region fully engaged in farming and livestock raising, where coffee

growing predominates, although over the past years other activities have emerged such as tourism,

thanks to the beauty of the scenery, microclimates, and the development of a sound road

infrastructure and health, education, banking, electric power and telecommunication services, and

opportunities for leisure activities.

One important aspect that merits highlighting is that the Area of the Saints already benefits from

experience in using information and communication technologies (ICTs), as it has taken major

strides in incorporating itself into the “Information Society.” Indeed, during the early years of the

present decade, it benefited from the Little Intelligent Communities (LINCOS) project, sponsored by

institutions such as MIT of Massachusetts, USA, and INCAE of Costa Rica. The total population of the

area amounts to 32,375 inhabitants, according to August 2001 data from the National Statistics and

Census Institute (Instituto Nacional de Estadística y Censos—INEC), broken down by canton as

follows:

Tarrazú 14,160

León Cortés 11,696

Dota 6,519

87

ICE has a total of 10,401 fixed phone lines installed to provide service to its customers in the area,

with broadband connectivity (ADSL) for 384 customers at present. It also provides a wide range of

mobile phone coverage.

Grecia

This canton, whose head town and main city bear the same name, is part of the province of Alajuela

and has a population of more than 65,119 inhabitants, according to data from INEC at August 2001.

It is extensively engaged in farming and industrial activities (coffee, sugarcane, including refined

sugar and alcohol, as well as other farm products). It has been recently characterized by growing

urban development.

The canton, including the central district, is comprised of a total of 8 administrative districts, of

which one of them, Rio Cuarto, is geographically removed from the other districts.

The area has a vast road infrastructure and health, education, banking, electricity, and

telecommunicatio0n services, as well as options for leisure.

ICE has a total of 19,976 lines installed that also serve surrounding administrative districts and

1,920 lines in line concentrators. Another switching center serves the district of Tacares with

capacity for 3,960 lines. To attend the needs of the Río Cuarto district, a switchboard has been set

up in Santa Rita with capacity for 1,440 lines, and in the Río Cuarto facility itself, a concentrator

with capacity for 768 lines. The infrastructure of the Advanced Internet Network (Red Avanzada de

Internet - RAI) consists of 1,292 ports installed in the switchboard in Grecia. There are another 320

ports installed in Tacares that have not yet been put on the market, and in Santa Rita de Río

Cuarto, 48 broadband ports have been installed.

The strategy consists of close coordination from the start with the STGD and unconditional two-way

communication for effects of analysis, planning, execution and evaluation of activities, some of

which have been and will be carried out jointly.

Another feature of the strategy consists of involving the principal leaders of the respective cities to

“take over their own project” so that it will not be viewed as yet another element of the policy of a

given national government, therefore subject to the ups and down of periodical changes of

administration. It is also relevant that these representations are the ones setting the requirements

and priorities regarding the application of ICTs on the basis of local needs within the framework of

the three major goals of the CITEL Project, namely: a) training, b) digital municipalities, and c)

community tele-centers.

Activities and results:

1. Coordination with the civil representative of this area for the project to be carried out, for

the purpose of obtaining basic information to start it up. A meeting was held with Mr.

Rodrigo Jiménez Robles, community leader, who supplied information of interest about the

region and offered logistic support for the following activity to be carried out in San Marcos

de Tarrazú.

2. Planning and organization of a workshop in this city in partnership with STGD. A kind of

joint invitation—ICE/CITEL-STGD-Area of the Saints—and the activities to be carried out

were agreed upon.

88

3. Holding the workshop to formalize and promote the work of defining the purposes and

scope of the Project Reducing the Digital Divide and Advancing the Information Society in

the Area of the Saints, under the responsibility of the leaders of the respective

communities. On Wednesday, July 18, the workshop was held, after presentations were

made by the ICE, the STGD, and the area’s representative. The respective commissions

were established to work on the topics of training, digital municipalities, access, health, and

security, and the activity concluded with remarks and questions, which highlighted the

evident interest of the local inhabitants in this project. The work of these teams is

continuing with the support from both the STGD and the ICE.

4. Coordination with the STGD for the subsequent activities, among which the workshop in

Grecia and the joint follow-up and evaluation plan. The workshop was held in Grecia on

August 6, 2007.

5. Agreement and preparation in partnership with STGD of the work schedule for the

development of the project in both areas.

6. Definition and formal establishment of the procedure for monitoring and evaluation actions.

Upcoming actions: Creation of the final project document utilizing the OAS format, including budget

definition and assistance required, which will be submitted to the COM/CITEL meeting to be held in

Costa Rica, in December 2007.

Pilot Project of Ecuador:

This project also is aligned with the approved goals for the Regional Project Citel-ITU, for this the

Administration of Ecuador does not require technical or economical support.

The project covers two of the objectives of the framework project, which are training and access of

rural areas to tele-centers.

The Fund for the Development of Telecommunications in Rural and Marginal Urban Areas (Fondo

para el Desarrollo de las Telecomunicaciones en Áreas Rurales y Urbano Marginales—FODETEL) is

aimed exclusively at funding projects that would make it possible to provide basic

telecommunication services in the rural and marginal urban areas of Ecuador; it is part of the

National Telecommunication Secretariat, which is in charge of implementing the National Universal

Service Plan.

The project being proposed has been included among the projects sponsored by this Fund. The

name of the project is Access to ICTs in localities on the northern border of the Republic of Ecuador.

Furthermore, with the installation of ICTs, new services shall be provided to the inhabitants of

border areas, thus contributing to the sustained and sustainable development of their inhabitants.

It is important to indicate that the FODETEL projects reckon with sustainable technical, legal, social,

and economic studies that make it possible to ensure the sustainable implementation of community

tele-centers, so that they will become permanent over time and exert an impact on social

development over the short, medium, and long term.

This project shall serve as practical model for the implementation of telecommunication services in

the approximately 30,000 other rural and marginal urban localities in the country that do not have

these services.

89

The general objective of subproject K3 from preliminary project K program of access to telephony

and internet for all in the republic of ecuador is to provide telecommunication services to 652 rural

localities along the northern border by implementing community tele-centers, in order to implement

telecommunication services in these areas, meet the demand for this basic service, and incorporate

ICTs for the benefit of the socioeconomic development of Ecuadorian society and contribute to the

area’s national security and public safety.

Promote the access to information and communication technologies (ICTs) for the most vulnerable

sectors, considering the advantages being offered today by telecommunication networks, thus

supporting their inhabitants to build up their development and cultural transformation in line with

comprehensive knowledge in a globalized world.

The specific objectives that the present preliminary project intends to achieve for the establishment

of tele-centers include the following, among others:

− Incorporate rural areas into the process of technical know-how and universality of

telecommunication services.

− Promote national integration.

− Contribute to the process of education and cultural dissemination.

− Build up, promote, and increase production, trade, and tourism in the various areas.

− Contribute to creating sources of employment.

− Raise the level of information and promote the development of information and

communication technologies.

− Gain access to computer and telecommunication equipment and services.

− Increase the capacity of communication with the outside world through Internet and the

use of e-mail.

− Generate a place for people to come together and social meetings so that the community

can exchange ideas and plan future community development projects.

− Strengthen control and security in border localities and contribute to reducing the rates of

violence.

− Build up teaching plans using distance learning programs.

− Using technology, enhance the development of teacher, parent, and society training and

teaching processes.

− Improve administrative processes of planning, implementation, follow-up, and evaluation of

national education plans.

− Create incentives and motivate Ecuadorian children to use communication and information

technologies.

The provinces along the country’s northern border with the neighboring Republic of Colombia: from

the coastal region, the province of Esmeraldas; from the sierra, the province of El Carchi; and from

the Amazon region, the province of Sucumbios. In these provinces, the cantons that were selected

90

are those that are directly on the border, and in these cantons, the parishes that were selected are

directly on the border: all the localities belonging to these border parishes were selected for

consideration in the present subproject.

The following table indicates the distribution of the 652 rural localities of the parishes on the

northern border, which currently does not have any telecommunication services and intends to

benefit from one community tele-center per locality, so as to provide telecommunication services to

45,109 inhabitants.

Province Localities % Population

CARCHI 252 38.65 20,018

ESMERALDAS 46 7.06 2,052

SUCUMBIOS 354 54.29 23,039

TOTAL 652 100.00 45,109

Pilot Project of Uruguay:

The project covers three of the objectives of the framework project, namely, training, digital

municipalities, and access of rural areas to tele-centers

the name of the project is URUGUAY DIGITAL COMMUNITIES PROGRAM. This Program develops a

series of pilot experiences in municipal administrations in the country’s interior as demonstrations

whose results could be extended to other cities or administrations also from the interior, on the

basis of the replication of successful solutions and experiences. The Program is comprised of the

modules of Structuring Solutions and Disseminating the Program, and the development of a specific

project for each Administration. Since early 2006, ANTEL is supporting this program.

In this framework, between January and August 2006, the first phase of the Digital Florida Project

was carried out, comprised of a connectivity solution for the Municipal Administration of Florida and

its Departmental Boards, the implementation of the Institutional Portal with online information and

transactions for the public, and the start-up of an Online File System in keeping with the objectives

of ensuring transparency and improving the management of this Administration.

Afterwards, the Municipal Administration of Canelones expressed its interest in participating in this

Program, requesting the inclusion of the same products and services implemented for the Municipal

Administration of Florida in its own informatics project, with the addition of new services to meet

the needs of its larger size, population, and complexity. This project (called “Digital Community of

Canaria”) is being implemented since December 2006, and it is expected that it shall conclude in

December 2007.

In the context of this Program, ANTEL intends to enter into cooperation agreements with three small

administrations from the country’s interior to develop digital community projects, giving priority in

its first phase to access and inclusion, decentralization and transparency, and institutional capacity

building of the community. Because various smaller cities or administrations are interested in the

Program although they do not have sufficient revenues to fund it, the projects must benefit from

financial assistance, as at present no funding has been secured.

91

The program is aimed at promoting and implementing the Information Society in local

environments.

SPECIFIC OBJECTIVE:

The structuring, implementation, and dissemination of value-added solutions based on the

incorporation of computer and connectivity services for the purpose of improving the level of

decentralization, achieving greater transparency in management, and increasing efficiency of every

community.

DIRECT AND INDIRECT BENEFICIARIES:

Municipalities, the public, municipal taxpayers, local boards, municipal employees, other State

agencies, tourists, nongovernmental organizations, Information Society Access Centers (Centros de

Acceso a la Sociedad de la Información—CASI), emigrants natives of the locality.

EXPECTED RESULTS:

In its first phase, the Program includes a project for the Implementation of the Digital Community

for each of the three administrations: connectivity, Intranet and portal with applications.

Technological infrastructure that enables the generation of transactions and electronic information.

A Portal that acts as an integrator of services and contents, from which various interactions are

carried out with the application of the systems of the Administration itself, as well as of other

entities, depending on the various types of cooperation. A documents management platform that

makes it possible to adopt digitally signed online resolutions and files.

The implementation of the model cannot be designed as a single process for the Administrations,

because each one starts out with its specific features and the construction depends on the context

in each case.

NEXT ACTIONS:

This project is progressing and, as part of the CITEL-ITU Regional Project, it has to be presented

using the OAS format, including the budget breakdown and the request for support addressed to

OAS through CITEL. As for the previous cases, it is hoped that the document shall be duly

completed and ready to be presented at COM/CITEL the next month of December 2007.

92

ANNEX 3: OAS Member States

COUNTRY ABBREVIATION

ANTIGUA AND BARBUDA ATG

ARGENTINA ARG

BAHAMAS BHS

BARBADOS BRB

BELIZE BLZ

BOLIVIA BOL

BRAZIL BRA

CANADÁ CAN

CHILE CHL

COLOMBIA COL

COSTA RICA CRI

DOMINICA (COMMONWEALTH OF) DMA

DOMINICAN REPUBLIC DOM

ECUADOR ECU

EL SALVADOR SLV

UNITED STATES OF AMERICA USA

GRENADA GRD

GUATEMALA GTM

GUYANA GUY

HAITI HTI

HONDURAS HND

JAMAICA JAM

MEXICO MEX

NICARAGUA NIC

PANAMA PAN

PARAGUAY PRY

PERÚ PER

SAINT KITTS AND NEVIS KNA

SAINT LUCIA LCA

SAINT VINCENT AND THE GRENADINES VCT

SURINAME SUR

TRINIDAD AND TOBAGO TTO

URUGUAY URY

VENEZUELA VEN

93

ANNEX 4: Links of Interest

Economic Commission for Latin America and the Caribbean (CEPAL/ECLAC)

http://www.cepal.org/socinfo/publicaciones

Monitoring eLAC 2007: Progress and current state of development of Latin American and Caribbean

Information Societies

http://www.eclac.org/socinfo/publicaciones/default.asp?idioma=IN

Measuring ICT; The Global Status of ICT Indicators

http://www.eclac.org/socinfo/osilac/indicadores/default.asp?idioma=IN

"Centros de acceso público a las tecnologías de información y comunicación en América Latina:

características y desafíos”

http://www.eclac.org/publicaciones/DesarrolloProductivo/8/LCW88/PrimeraParte.pdf

REGULATEL (Foro Latinoamericano de Entes Reguladores de Telecomunicaciones)

New Models for Universal Access in Latin America

http://www.regulatel.org/publica/publica.htm

International Telecommunication Union (UIT/ITU)

http://www.itu.int/ITU-D/ict/partnership/material/CoreICTIndicators.pdf

http://www.itu.int/ITU-D/ict/index.html http://www.itu.int/ITU-D/icteye/Default.aspx

Measuring the Information Society/ICT Opportunity Index and World Telecommunication / ICT

Indicators 2007

http://www.itu.int/ITU-D/ict/publications/ict-oi/2007/index.html

ICT Eye www.itu.int/ITU-D/icteye/Default.aspx

World Telecommunication/ICT Indicators Database 2007 (11th Edition)

http://www.itu.int/ITU-D/ict/publications/world/world.html

World Information Society Report

http://www.itu.int/osg/spu/publications/worldinformationsociety/2007/

United Nations Conference on Trade and Development (UNCTAD)

http://new.unctad.org/default____575.aspx

http://new.unctad.org/upload/docs/The%20Global%20Status%20of%20ICT%20Indicators.pdf

http://www.cepal.org/socinfo/publicaciones�

http://www.eclac.org/socinfo/publicaciones/default.asp?idioma=IN�

http://www.eclac.org/socinfo/osilac/indicadores/default.asp?idioma=IN�

http://www.regulatel.org/publica/publica.htm�

http://www.itu.int/ITU-D/ict/partnership/material/CoreICTIndicators.pdf�

http://www.itu.int/ITU-D/ict/index.html�


http://www.itu.int/ITU-D/ict/publications/ict-oi/2007/index.html�


http://www.itu.int/ITU-D/ict/publications/world/world.html�

http://www.itu.int/osg/spu/publications/worldinformationsociety/2007/�

http://new.unctad.org/default____575.aspx�

http://new.unctad.org/upload/docs/The Global Status of ICT Indicators.pdf�

94

World Bank

Global Information and Communication Technology Department (GICT) World Bank

Little Data Book on Information and Communication Technologies 2007

http://publications.worldbank.org/ecommerce/catalog/product?item_id=6366033

http://publications.worldbank.org/ecommerce/catalog/product?item_id=6366033�

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