Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
• Large CAPEX
• Built by large companies
• Licensed
• Run by operators
• Innovation from the center
• Small CAPEX
• Unlicensed
• Built by users
• Run by users
• Innovation from the edges
Top-down
Bottom-up
Two ways to build infrastructure
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Local accesspoint
aggregationpoint
Core network
“First Mile”
Feederline
CPE
“First Yard”
The evolution of network architecture
Back-haul
Localwiring
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Lakeview, December 2004: 1407 nodes
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
South Los Angeles
Photo credit: Hope Hall
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
South Los Angeles, February 2005: 282 nodes
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
What is driving bottom-up ICT development?
• New low-cost technologies reduce sunk costs, economies of scale
• Technologies are flexible, scalable, and standardized
• Regulatory reforms (right to connect CPE, license-exempt bands)
• Limitations of market-oriented reforms to extend services where private returns are negative
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
After over a decade of reforms…
• Modest access gains for the poorest
• Regulation gap closing, affordability gap remains problematic
• Implementing large-scale subsidy schemes (USFs) requires institutional capacity (e.g., Argentina and Brazil)
• Financing needs outstrip USFs
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Fixed teledensity in Argentina, 1991-1998 (selected territories)
Territory Lines p/100 inhabitants Difference w/BA
1991 1998 1991 1998
Buenos Aires 16 26 0 0
Catamarca 4 9 12 17
Corrientes 4 9 11 17
Salta 3 8 12 18
Chaco 3 7 13 19
Misiones 4 8 12 19
Jujuy 2 6 13 20
Sgo. del Estero 2 6 13 20
Formosa 2 4 14 22
Total Argentina 10 19 6 7
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Fixed telephony penetration in Argentina by income, 1991-2001
Income Deciles Household Penetration (%) Variation 1991-2001
1991 2001
1 15.9 23.4 7.5
2 18.3 40.0 21.7
3 34.3 53.8 19.5
4 32.9 57.5 24.6
5 40.6 68.7 28.1
6 46.0 80.4 34.4
7 56.9 81.4 24.5
8 62.5 86.6 24.1
9 73.7 89.4 15.7
10 82.8 94.1 11.3
Total 38.9 67.5 28.6
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
The bottom-up alternative
• Existing paradigm: How to create incentives for operators to extend networks and serve unprofitable customers?
• Potential alternative: How to create conditions for local actors to build and operate local networks, linked to trunk lines that connect to network core?
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Potential advantages of bottom-up models
• Price/quality and types of services defined locally sustainability
• More efficient use of public subsidies (microfinancing programs such as REA)
• Leverage local assets and expertise (self-help principles)
• Local innovations• Builds local capacity and social capital
(externalities)
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
A long history
• Telephone cooperatives (Argentina)
• Community radio (Andean region)
• Local cable entrepreneurs (Paraguay)
• Municipal sanitation and irrigation systems (Brazil and Peru)
Diverse models for infrastructure development and management
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Research agenda
Questions Methods Examples
When is it appropriate?
Which models?
Lessons from past?
Case studies
Best practice studies
Theoretical issues
Telephony cooperatives in Argentina
Wi-Fi cooperatives (Chancay-Huaral)
Theory of co-production (Ostrom)
What is the development impact?
Community surveys Mobile Wi-Fi project evaluation
Are there regulatory obstacles?
Survey to regulatory authorities
Spectrum availability
Licensing procedures
Interconnection rules
Financing
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Regulatory obstacles for community Wi-Fi in LA&C
• Limited opportunities for use of license-exempt bands
• Obstacles for use of VoIP• Lack of flexible technical/service standards• Licensing procedures are too cumbersome• Unfavorable interconnection policies (no
asymmetric charges)• Lack of access to public resources
(funding, expertise)
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
Rules for Operation in the 2.4GHz Band
Brazil Chile Mexico Peru
Licensing basis
Secondary nationwide
Secondary, only certain regions
Secondary nationwide
Secondary nationwide
Power restrictions
400 mW in large cities
100 mW 650 mW 100 mW
Range restrictions
None Indoor use only
Outdoor use limited to 2,450-2,483.5 MHz
Indoor use only
Hernan GalperinUSC/UdeSA
El Uso de Internet en las Américas, México DF, June 2005
For more information and project updates:
www.arnic.info