Closing the Gap in Access to Rural Communication: Chile by Björn Wellenius, World Bank

By Björn Wellenius, World Bank

Throughout the 1990's Chile skilled a speedy development in telecommunications prone that led to new providers, technological innovation, and costs one of the world's lowest. even though, regardless of this quick progress in telecommunication companies, so much rural population of Chile and a few city dwellers persevered to lack entry to even a payphone. In 1994, the govt. of Chile verified a Telecommunications Fund for the aim of extending providers to these with no entry. This learn studies and records the price potent procedure built in Chile that has develop into the foreign most sensible perform for making improvements to uncomplicated entry to telecommunication. integrated within the record is precise details at the layout and management of the Fund and proposals for advancements to the layout. it's going to function a template for constructing international locations that desire to speed up their efforts to enhance uncomplicated entry to conversation.

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31 A related system i s in place for water supply. This Page Intentionally Left Blank Beyond Voice De la prehistoria a la ciencia jiccibn - sin escala. 32 While the Fund was extending basic access to voice communications throughout the rural areas, Chile also made significant progress adopting more advanced information and communication technologies. Although less than one-third of Chileans have access to the number of Internet users per computer i s computers at home or workplace (Table 1I), as high as in some developed countries.

After adjustments for inflation and foreign exchange, they had lost six percent o f their equity in 1999 and the outlook for 2000 was uncertain. GVT, on the other hand, has been losing money and i s unlikely to ever break even. 2m in 1999. With limited prospects o f generating additional business at marginal cost, GVT’s parent company has committed to cover GVT’s losses for the duration o f the 10-year service obligation. These losses may be offset, however, because the parent company, a manufacturer, has used i t s Chilean experience to demonstrate competence as an operator o f rural systems and has successfully developed a much larger presence in other Latin American countries.

Private Costs and Revenues In calculating project costs, the question arose as to whether existing networks in the project area should be considered. In the first round, SUBTEL’s cost estimates took into account ENTEL’s extensive transmission network. Access to this network was expected to reduce the cost o f several new projects. In practice, however, ENTEL did not bid and, since terms to interconnect competitors were not sufficiently clear, the maximum subsidies offered were too low to attract other operators.

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