Southern Op,cal Fiber Project May 2015 | Telecommunica3ons Development Fund (Fondo del Desarrollo de las Telecomunicaciones)
Agenda
1. Background 2. Objec3ve and route 3. PFOA invita3on to tender 4. Schedule 5. Why being part of this project?
1. Background Necessity of connec3vity and quality of service update on Telecommunica3ons services at Chile’s southernmost zone
Government program: Chileans who live in remote places have the right to enjoy the same quality of living as the rest of the popula8on
Extreme-‐Zones Development Special Plan: It is a duty of any public agency to encourage the strengthening of regionaliza8on and the territorial development in an harmonic and fair manner
Southern Op3cal Fiber Project (PFOA, according to its ini3als in Spanish)
2014 State of the na,on address: The Telecommunica8ons Development Fund will subsidize open-‐access and nondiscriminatory op8cal fiber deployment
It has a funding of MM$60.000 (Chilean pesos)
2.Objec,ve and route
“Having an open-‐access, fair and n o n d i s c r i m i n a t o r y t e l e c o m m u n i c a 3 o n s infrastructure, able to support h i g h -‐ t r a ffi c c a p a c i t y o f telecommunica3ons services and allowing the Government to use it for public policies focused on Digital Development ”. This will be accomplished by gran3ng a telecommunica3ons wholesale service concession, which only provide physical i n f r a s t r u c t u r e f o r telecommunica3ons.
3. PFOA invita,on to tender
4
1
Op,cal-‐based infrastructure backbones over the na,onal territory in a single tendering process
Submarine
• Puerto Mon\, Tortel, Punta Arenas, Porvenir, Puerto Williams • Repeated/ Non Repeated • Op3cal channel: DWDM • Southern backbone
3
Terrestrial
+
• Magallanes, Aysén and Los Lagos • Aerial, buried and/or marinized fiber • Op3cal Channel: pair of fibers • Regional backbone
PFOA invita,on to tender Route over submarine soil with aerial and/or buried terrestrial sec,ons
4 backbones: 1 submarine and 3 terrestrial (regional). It is possible to tender for one or more backbones
Telecommunica,ons’ wholesale service concession that only provide physical infrastructure for telecommunica,ons
The Offer of Infrastructure Facili,es is based on providing Op,cal Channels in the Opera,on and Interconnec,on Points of Telecommunica,ons Infrastructure (POIIT, according to its ini,als in Spanish)
The Mandatory Period of Infrastructure Service is set according to the useful life of op,cal fiber
The considera,on is defined as the infrastructure availability for implemen,ng public policies by the Government
Considera,on: infrastructure availability for
implemen3ng public policies by the Government
Percentage of infrastructure availability for implemen3ng public policies by the Government during the Mandatory Period of Infrastructure Services
The Telecommunica3on Development Council (Consejo de Desarrollo de las Telecomunicaciones) is responsible for the governance of the considera3on, which is defined by the Government on public policies issues
Considera,on Public policies implementa,on
Public Agencies
Punta Arenas
Puerto Mon\
POIIT
Op3cal Channels
POIIT
Public Agencies
Telemedicine private network
Telemedicine private network Government
Government
Infrastructure Considera,on applica,on example Public policies– Telemedicine-‐, Government defines public policies and its requirements.
Considera,on Public policies implementa,on
Public Agencies
Retail service
POIIT
Wholesale Service
Punta Arenas
Puerto Mon\
Op3cal Channels
POIIT
Government
Government
Public Agencies
Wholesale Service
Retail service
Infrastructure Considera,on on a Telecommunica,on retail service example: Providing broadband to a township. It is achieved with a private network and a private contract
Infrastructure service Punta Arenas
Puerto Mon\ Client’s network usage
POIIT
Retail service
Wholesale Service
Op3cal Channels
POIIT
Government
Government
Infrastructure
Public agency
Wholesale Service
Retail service
User
Infrastructure service tariffs
Project evalua3on general criteria -‐ The lower proposed tariff the higher score. -‐ The Financial project should jus3fy the proposed tariff -‐ Fixed discount rate for every financial project
Maximum tariff update Maximum tariff should be defined on the financial project, according to the criteria set by SUBTEL. Then, the maximum tariffs will be updated according to the mechanisms established on the tendering terms of reference
4. Schedule
Call for tendering process
Year
Civil works completion Start of operations
Results
Second semester December 2015 2015
(*) Subject to the approval of the terms of references by the Na,onal Audit Office (Contraloría General de la República) and the tender process call on the Official bulle,n
March 2017
April 2017
5. Why being part of this project? World’s southernmost node Interna3onal redundancy network achievement
Encouraging telecommunica3on infrastructure market Being part of the na3onal telecommunica3on industry: presence at the southernmost region of the country, advanced technology, corpora3ve image Telecommunica3ons retail service market with high expecta3ons Possibility to develop new business models related to the sale of equipment and accessories required in these projects Considera3on is defined as the infrastructure availability for implemen3ng public policies by the Government
May 2015 Fondo de Desarrollo de las Telecomunicaciones Subsecretaría de Telecomunicaciones