Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Tuesday, August 02, 2022

Government points to neutral networks to connect towns with less than 500 inhabitants

The design phase would include a proof of concept in a selection of localities among 400 that are close to some node of the Red Federal de Fibra Óptica (Refefo) (Federal Fiber Optic Network). For ISPs, it could represent an improvement in the economic equation, although to participate they must ensure the connectivity of public bodies, primary care cof Ministers and the economic area, with Sergio Massa as Minister of Economy, affect it.

The government aims to promote a neutral infrastructure model that allows, in a first stage, to improve the connectivity of towns with 500 inhabitants or fewer. The initiative aims for this infrastructure to be used by providers for services, in addition to Internet subscription, such as mobile connectivity, IoT, cameras, services to municipalities and the agricultural industry.

This is what the head of the Undersecretary of Telecommunications and Connectivity, Mateo Gómez Ortega, told Convergencialatina. The official added that the plan is in the "design phase." It will be necessary to observe if the current movements in the Cabinet of Ministers and the economic area, with Sergio Massa as Minister of Economy, affect it.

The design phase will include a proof of concept in a selection of localities among 400 that are close to some node of the Red Federal de Fibra Óptica (Refefo) (Federal Fiber Optic Network) (Refefo). Although there are still no definitions on the collaboration model that will be applied in this test, the undersecretary indicated that "the investment would be from the public sector: we have to think about how and with whom." It is analyzed as a requirement for those who want to participate in the project to ensure the connectivity of public agencies, primary care centers and schools. After the test, a larger plan would be drawn up under different financing lines, including one from the World Bank (WB) for US$40 million.

Conversations. In meetings with chambers and cooperatives, the undersecretary exchanged opinions on this project under the umbrella of sectoral working groups, to work in coordination with the providers, submit the project for consideration and move forward if they give the go-ahead. The intention, assured the official, is "not to do what we think but that which can help and they (providers) state as a need."

Universities were also called through the National University Council "because it is about giving added value and human capital is a problem."

Once the proof of concept is completed, the next step would be to project the experience at regional or interprovincial scales; there Sapems would be called. The undersecretary stated: "We believe that the opportunity to improve the business equation can go through the IoT, because it has a territorial deployment that has ISPs as necessary participants." And he added: “It is a great challenge to achieve an economic equation for towns of less than 500 inhabitants. It is not only putting the infrastructure but maintaining it and achieving an operating cost according to what can be billed in such an area”.

The chambers representative of that segment of the market received the news with different levels of interest. There are those who confirmed the existence of the official proposal but did not comment; and others claimed to be completely unaware of the project.

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