Telecommunication Projects for Regions of Peru Fund for Investments in Telecommunications - FITEL

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1 Telecommunication Projects for Regions of Peru Fund for Investments in Telecommunications - FITEL

2 What is FITEL? FITEL is a fund for the provision of universal access, meaning such access in the country to a set of essential telecommunication services, capable of transmitting voice and data. Mission of FITEL Promote access and use of telecommunication services in rural areas and places of social interest.

3 Existing gap and growth opportunity % 74% 80% 59% of locations do not have internet coverage of households do not have Internet access of Public Entities do not have Internet access of the population > 6 years old does not use internet Fuente: INEI, MTC, REDNACE

4 Percentage of households with internet access Fuente: ITU Peru Ecuador Colombia Argentina Chile Spain Germany South Korea 26% 36% 47% 59% 66% 78% 88% 99%

5 Percentage of households with internet access 50,0% Differences between the regions of Peru (2016) Lima Metropolitana 40,0% 30,0% 20,0% Lambayeque Piura Lima provincias Ica Tumbes Tacna Arequipa Moquegua Madre de Dios Peru 26% 10,0% Huancavelica Apurímac Ayacucho Puno Cajamarca Amazonas Cusco Junín Regions with Project awarded 2015 (8) Projects in promotion - PROINVERSIÓN (7) 0,0% S/. 500 S/. 700 S/. 900 S/ S/ S/ S/ S/ S/ Fuente: INEI Household income level (S/.)

6 We have to generate a change

7 Value proposal

8 FITEL Projects Connectivity projects with social component

9 21 Regional Projects Objective: Reduction of the Digital Divide of coverage, access, use and appropriation and integration and modernization of the State

10 ~US$ 1.8 billion in financing 30 thousand kilometers of fiber optic deployed

11 6 thousand connected localities 3.8 million beneficiaries + 11 thousand public entities benefited

12 Infrastructure Services Sensitization Training Connectivity component Social component Provides digital connectivity (transport and access networks) Enable the development of digital connectivity Generate demand and use Allow to develop or strengthen competencies Coverage Access Use Appropriation Locations with service Population with access to the service Population using the service Exploitation of services by the population

13 Connectivity Component Content Internet access (Broadband) Applications

14 Social component Social and economic devolopment Development of competences Equal opportunities

15 Connectivity path Provincial capital District capital Rural location NFON Transport Network Access Network Beneficiaries

16 More and better connectivity Ayacucho Educational institucions Health Post Police Station People Homes Business Public entities

17 transverse and enabler Education / Govermment / Industries / Farming Health / Security / Energy / Tourism and more

18 Impact

19 Key: Development of competences

20 Impacts on people Local and regional economic development (+ digital economy) Increasing Competitiveness, Productivity and Innovation Country security

21 Social inclusion Modernization and integration of the State (Digital Government) Generation of enabling digital solutions: TeleHealth Tele-education

22 Impacts on the market Broadband subscribers double Mobile broadband boom Mastery of IP Communications in mobile terminals Emergence of new business models Telecommunication networks for security and emergency cases

23 Future development Smart City development Internet of Things (IoT)

24 Road done

25 Projects under implementation Apurimac Ayacucho Huancavelica Lambayeque In operation: first quarter of 2018

26 Projects under implementation Cajamarca Piura y Tumbes Cusco In operation: first quarter of 2018

27 Projects in the promotion phase Ica Amazonas Lima Provinces Adjudication: dec 2017 mar 2018

28 Projects in the promotion phase Junin Puno Moquegua Tacna Adjudication: dec 2017 mar 2018

29 Projects with viability o Arequipa o La Libertad o Pasco o Huánuco o Ancash o San Martín In search of financing

30 Challenges

31 Ensure adequate use of infrastructure and services to be deployed Ensure financing of projects not yet awarded Development policy and skills development: Digital Literacy Optimization of the multisectorial joint Generation of content according to the needs of the population

32 Competence and innovation Start Up (Business) APPs (Applications) Fab Lab Learning Lab

33 Summary

34 The Regional Projects will be a pillar of the development that Peru can reach in the next years, in the matter of economic and social inclusion, having as policy the promotion of the Society of Information and Knowledge. The Regional Projects will allow the expansion and improvement of the services provided by State institutions at national level and in areas that require greater social action, as is the case of rural areas and remote areas. Encourage and promote the use of ICT in people to achieve equal opportunities.

35 Thank you Jorge Mesia Rios Technical Secretary of FITEL

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