Bandwidth for all, Peruvian case
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Bandwidth for all, Peruvian case

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    Bandwidth for all, Peruvian case Bandwidth for all, Peruvian case Presentation Transcript

    • Bandwidth for all – The Peruvian case Roxana Barrantes Instituto de Estudios Peruanos ACORN/REDECOM (Ciudad de México) (5 de setiembre de 2009)
    • Content
      • 1. What is the need and viability of building an alternate IP backbone network?
      • 2. What safeguards should be in place to promote fair competition under this scenario?
      • 3. What institutional conditions are necessary to avoid falling into the same oversights that have caused uneven network development and market inefficiencies in the region?
    • Current market
    • Do we need an alternate IP backbone network?
      • In fact, what Peru needs is an IP backbone network!
      • Only one backbone along the coast and few kilometers into the highlands.
      • Mapa FibraOptica 2006.pdf
    • TdP’s fiber optic network Brazil Colombia Bolivia Chile Ecuador
    • Safeguards
      • The efficiency – competition dilemma keeps popping up!
        • TdP should not be prevented from participating –that will increase competition for the market but keep retail prices high.
        • Regulatory failure is non negligible.
      • Given TdP’s position in the Peruvian market, safeguards must be in place.
        • Fixed – June 2009: 75% (LIS)
        • Mobile – June 2009: 63% (LIS)
        • Cable TV – March 2009: 69.5% (subscribers)
        • Internet – March 2009: 93.8% (subscribers)
      • Which safeguards?
    • Institutions matter
      • If promoted by the public sector, market design is key.
        • What kind of auction?
      • Should FITEL money be used?
        • If so, what is the correct subsidy amount?
      • Regulator to monitor compliance
        • What extra powers are needed to be effective?
        • Remember, the Peruvian regulator is the competition authority in telecom.
    • Regulatory model matters
      • Shall we change the regulatory model?
        • Regulate networks / Deregulate retail services
        • Retailers are not to own networks (physical infrastructure).
        • New divestiture!
      • Calculate welfare losses from market concentration.
    • Roxana Barrantes [email_address] Instituto de Estudios Peruanos Horacio Urteaga 694 Teléfonos: (51 1) 332 6194 Fax: (51 1) 332 617399999999 [email_address] www.iep.org.pe