Future Technology Trends: Chilean case
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1 Future Technology Trends: Chilean case Marcos Sepúlveda Centro de Estudios de Tecnologías de Información Pontificia Universidad Católica de Chile New York, April Future Technology Trends Telecommunication market WiMax 3G Digital Strategy
2 Chile current statistics % Households Total Rural Source Fixed-lines 57.7% 5.3% SUBTEL, Dec Mobile 88.1% 94.3% SUBTEL, Dec Paid TV 35.7% 5.1% SUBTEL, Dec Internet 30.0% 2.1% SUBTEL, Dec Broadband 25% CISCO, Dec millions households (Census 2002) 1,054,489 broadband connections (SUBTEL, Dec. 2007) 1,323,446 (CISCO - IDC, Dec. 2007) 2007 annual growth 28% 2008, Centro de Estudios de Tecnologías de Información 3 Chile Telecommunication market Positive aspects Massive access to telephony Growing competition Quick technology adoption High investment Negative aspects Quality of service perception Some regulation problems Low connectivity in rural areas High cost and low quality Internet access 2008, Centro de Estudios de Tecnologías de Información 4
3 Chile Telecommunication market 2010 High competitive market Universal access to telephony Quality of service as a competitive factor Regulation minimal Equity Equal access to advanced telecommunication services Competiveness Enable a highly competitive market: higher quality and lower prices Consumer protection 2008, Centro de Estudios de Tecnologías de Información 5 Chile WiMax market Nomadic WiMax available Spectrum concessions 4 operators: 2 nationwide and 2 covering only some regions Network availability Entel WiMax: broadband for SMEs and rural coverage Technology provider: Alvarion Telmex Coverage: 91% of the country (where 98% of the population lives) Technology provider: Alcatel Lucent VTR 2008 Technology provider: Motorola TelSur 2008, Centro de Estudios de Tecnologías de Información 6
4 Chile WiMax outlook Main driver Broadband access Media coverage High relevance Political support - digital divide Companies Main economical sectors where large companies are willing to adopt WiMax in the next two years: Mining 60.0% Manufacturing 46.2% Building 44.4% Source: ENTI 2007, Chilean IT National Survey 2008, Centro de Estudios de Tecnologías de Información 7 Chile 3G outlook Main drivers Massiveness Mobility Mobile operators Claro Broadband Internet access Launched video call at the end of 2007 Entel Broadband Internet access Launched telephone services at the end of 2007 Collaboration with PUC and other 2 universities for testing new services Movistar Broadband Internet access Source: Companies web sites 2008, Centro de Estudios de Tecnologías de Información 8
5 Chile 3G market Services available Devices Coverage Claro Entel PCS Movistar Video call, video streaming, internet access Telephones, modem cards Two central regions Video call, Mobile TV, video streaming, internet access Telephones, modem cards Two central regions Internet access Modem cards Two central regions Technology HSDPA HSDPA Source: Companies web sites 2008, Centro de Estudios de Tecnologías de Información 9 Chile WiMax or 3G 3G and WiMax are good alternatives to increase broadband access WiMax enables a more competitive fixed broadband market 3G has some advantages in the short term Mobile telephones have the highest adoption rates in the Chilean telecommunication market Flexible market No regulatory obstacles 2008, Centro de Estudios de Tecnologías de Información 10
6 Chile Digital strategy Digital Strategy Main goal regarding connectivity, looking towards 2012: Double the number of broadband connections, covering the entire national territory. National Connectivity Agreement Initiative driven by SUBTEL and supported by the entire Telecommunications industry. Signed on December 5, goals 1. More than two millions Internet connections. 2. Speeds average at least 1 mbps. 3. More than 10% of the two poorest quintiles households connected. 4. Connectivity available to 95% of the rural population at prices similar to those of the main cities % of rural schools connected. 2008, Centro de Estudios de Tecnologías de Información 11 Integral Connectivity Plan for Chiloé WiMax 90% coverage of rural areas Free for schools and small health centers 2008, Centro de Estudios de Tecnologías de Información 12
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