Southern Optical Fiber Project CHILE
Telecommunications Development Fund Division
SUBTEL
July 2016 Update Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Chilean Economy at a Glance
Human Development Index (UNDP 2014): Chile, first in Latin America Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
About SUBTEL •
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The Undersecretariat of Telecommunications (SUBTEL) is an institution that belongs to the Ministry of Transport and Telecommunications. Its work is focused on coordinating, promoting, fostering, and developing telecommunications in Chile, turning this sector into a driver of economic and social development. SUBTEL is in charge of the Southern Optical Fiber Project through the Telecommunications Development Fund Division.
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
INTERNET IN CHILE Chile has reached a 74.2% Internet user penetration, the highest rate in Latin America, and a 79.2% corresponds to mobile connections. However, reaching rural, isolated, and remote areas remains a key challenge.
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Southern Optical Fiber Project At a Glance • Government Subsidy: USD$ 100 MM • Public tender, participation of foreign companies • Length: 3,000 km • The world’s southernmost node, at the end of Chile. Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Key Goals Develop an open-access, wholesale, and nondiscriminatory high-capacity telecommunications infrastructure for the south of Chile, to be operated as an infrastructure-based license. Allow Chilean Government to support public policies for Digital Development.
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Optical Infrastructure Requirements
4 1
Independent projects over the national territory in a single tendering process*.
1
Submarine Project:
• 3,000 km / 1,864 miles • Repeatered/ Non repeatered • Optical Channel: DWDM
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1 1
Terrestrial Project: Los Lagos • Aerial, buried and/or undersea fiber • Optical Channel: pair of fibers
Terrestrial Project: Aysen • Aerial, buried and/or undersea fiber • Optical Channel: pair of fibers
Terrestrial Project: Magallanes • Aerial, buried and/or undersea fiber • Optical Channel: pair of fibers
* It is possible to tender for one or more projects, and the evaluation is independent among projects.
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Projects will cover one third of the Chilean territory Terrestrial Project Los Lagos: • 15 OIPTI required • 3 additional OIPTI • 48 optical channel (fiber pairs)
Submarine Project: • •
Terrestrial Project Aysen:
6 OIPTI required 60 optical channels (DWDM)
• 12 OPITI required • 4 additional OIPTI • 48 optical channel (fiber pairs)
Terrestrial Project Magallanes: • 3 OIPTI required • 3 additional OIPTI • 48 optical channel (fiber pairs)
Notes: • OIPTI: Operation and Interconnection Points of Telecommunications Infrastructure • The final route will be proposed by the awarded Proposal. This is just a model. Disclaimer: this document is for information purposes only, and is not intended to be a
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Key Facts of the Tender Type of License Wholesale service that only provides physical infrastructure for telecommunications. (Infrastructure concessionaire)
Type of Service Provision of optical channels at the Operation and Interconnection Points of Telecommunications Infrastructure (OIPTI), with maximum tariff or fee.
License Period Infrastructure Service should be operated by 30 years. Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Key facts of the Tender • Tenderers must be established in Chile and must have a legal address in the country.
Participation in the Public Tender
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
• Financial reports of the last two accountable exercises, must be submitted. • It is not necessary for Tenderers to have a telecommunications license associated with the wholesale service that only provides physical infrastructure for telecommunications, previously authorized.
Key facts of the Tender
Participation in the Public Tender
• There are no pre-selected companies for participating in this Tender. • There is no negotiation, nor prequalification. • This is just one process, the Tender considers only one stage for Proposal presentation.
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Key facts of the Tender
Participation in the Public Tender
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
• Foreign companies can participate directly in this Tender, only if they are established in Chile and if their corporate purpose allows the provision of the Infrastructure Service.
Key facts of the Tender
Participation in the Public Tender
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
• Providers of equipment, systems and elements that will be used in this project, could be associated with Tenderers, through private agreements.
Key facts of the Tender
Evaluation and awarding criteria
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
• SUBTEL will evaluate all the Proposals. • Proposals must comply with all technical, legal, and financial requirements established on the tendering terms. • Based on tariffs and additional OIPTI compromised, every Proposal will be scored from 0 to 100. • The higher scores will be part of a “list of merit” (one for each of four projects).
Key facts of the Tender
Evaluation and awarding criteria
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
• The Telecommunications Development Council (TDC) of SUBTEL is the entity responsible of the Tender award. • For these purposes, the TDC only considers the Proposals that are part of the “list of merit”. • The TDC will award the Proposals (one for each of four projects) that request the lowest subsidy.
Key facts of the Tender
Some relevant requirements
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
• Providers of equipment and components used in the deployment of the projects, must show proof of their previous experience, in terms of total length of optical fiber deployment, equipment installation, etc. • The technical design presented in the Proposals has to comply mainly with the ITU-T recommendations, among others. • Questions and Proposals must be written in Spanish.
Call for Tender • The call for tender was published on Friday, July 8th, 2016. It is available for free on SUBTEL’s website http://www.subtel.gob.cl/ (Spanish only) • Questions from applicants that wants to clarify the sense and meaning of the tendering terms and conditions will be received until Friday, July 29th, 2016, and must be written in Spanish.
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Estimated Project Stages
Phases
Dates
Call for Tender
2Q/2016
End of proposals reception
3Q/2016
Announcement decision
4Q/2016
License formalized (Official Decree)
2Q/2017
Start of deployment
4Q/2017
End of deployment
4Q/2018
Start of operation
4Q/2018
Government Payments
Advance 2017 1st payment 2018 2nd payment 2019
Disclaimer: this document is for information purposes only, and is not intended to be a legal document.
Southern Optical Fiber Project CHILE
Telecommunications Development Fund Division
SUBTEL
July 2016 Update. Disclaimer: this document is for information purposes only, and is not intended to be a legal document.