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.

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