Tuesday, October 23, 2018

Fiber Optic Dorsal Network: from hope of national connectivity to failure and burden for the State

In what can be considered one of the most resonant initiatives of Public Private Associations oriented to telecommunications in the region, the National Fiber Optic Network revealed that the losses remain in the State and the private sector makes safe investments. The fall in the price of the mega wholesaler and delays in infrastructure policies made the Network uncompetitive and is now underutilized.

The National Fiber Optic Dorsal Network, whose project consisted of the design, deployment and operation of a fiber optic network (FO) of more than 13,000 kilometers that would connect Lima with 22 regional capitals and 180 provincial capitals, was awarded in December 2013 to the firm Azteca Comunicaciones, who in addition to building the network, would operate it for 20 years. The amount of investment amounted to US$ 323 million, without the General Sales Tax (IGV), and has been operating since 2016. According to the contract signed with Azteca in the modality of Public-Private Partnership (APP) co-financed, the State guarantees the revenues of the concessionaire, covering the difference between sales income and operating-maintenance expenses and investments made. If there were profits, they were divided. The case is that there is losses, and is charged to the State.

Read full article

MORE ANALYSIS

Globales · Economy18/04/2024

Cosmas Zavazava: More resilient approaches needed in an increasingly volatile digital world

The Director of Telecommunication Development of the ITU spoke with Convergencia about the objectives in Latin America of the Acceleration Centers Network and the Innovation and Entrepreneurship and Digital Development Alliance.

América Latina · Operators17/04/2024

América Móvil's earnings fell 55% due to peso strength

It reached US$ 790 million in the first quarter of the year. Total revenues and Ebitda were also affected by the extraordinary income from the sale of towers, which boosted the result of a year earlier. Total mobile subscriptions grew 3.6% year-on-year to 311.6 million lines. Fixed UGIs totaled 74.1 million, 1% more than a year earlier.

América Latina · Pay TV · Free to Air TV - TDT · Internet & OTT · Software and Applications16/04/2024

NAB Show 2024: strong presence of Latin America highlighted

The broadcasting fair grew compared to its previous editions. Discussions revolve around monetization, the technological upgrade provided by the Cloud and 5G and the use of AI and ML, where sports cases stand out.

Argentina · Regulation · Operators15/04/2024

What will be the sector's agenda after the repeal of DNU 690?

Representatives from various associations representing ICT companies agreed that the repeal of the decree is positive and that this will mark the beginning of a new stage. However, politicians warn that without regulation, the law of the jungle will prevail in a highly concentrated market.

Globales · Software and Applications · Economy11/04/2024

IMF alert: cyber attacks on financial system increase and lack of policies to face challenge

The agency warned that there is a lack of binding regulations and data on cyberattacks. Weak governance in the matter does not help either. Emerging countries and financial institutions that began teleworking after the Covid-19 pandemic are more at risk.

List all analysis

A DIARIO LATINO 20-04-2024

Brasil · Operators 19/04/2024

Oi's creditors approve new Judicial Recovery Plan

América Latina · Operators 19/04/2024

América Móvil to invest in 5G across all its markets

América Latina · Pay TV · Free to Air TV - TDT · Internet & OTT 19/04/2024

NAB Show 2024 - Concluded highlighting the weight of AI and the monetization challenge

List all news