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BRINGING BROADBAND ACCESS TO RURAL AREAS - · PDF fileBRINGING BROADBAND ACCESS TO RURAL...

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    BRINGINGBROADBANDACCESSTORURALAREAS:ASTEPBYSTEPAPPROACHFORREGULATORS,POLICYMAKERSANDUNIVERSALACCESS

    PROGRAMADMINISTRATORS

    THEEXPERIENCEOFTHEDOMINICANREPUBLIC

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    ThispaperwaspreparedbyEdwinSanRoman,SeniorRegulatoryExpert,Indotel,DominicanRepublic,forthe9thGlobalSymposiumforRegulators(GSR),tobeheldinBeirut,Lebanon,1012November2009(www.itu.int/gsr09).PeterStern,Independentconsultant,reviewedandeditedthispaper.

    http://www.itu.int/gsr09

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    TABLEOFCONTENTS

    PARTI:INTRODUCTION

    1. Bringingbroadbandtoruralareas.........................................................................................5

    2. Purposeofthecourseandthisbackgroundpaper................................................................6

    PARTII:THEDOMINICANREPUBLIC'SRURALBROADBANDPROJECT

    3. TheDominicanRepublic: Thenational context forpromotingbroadband access in rural

    areas......................................................................................................................................9

    3.1 Geographical,political,demographicandeconomicoverview.............................................9

    3.2 Thetelecommunicationssector..........................................................................................11

    3.3 Universalaccessandservice(UAS)intheDominicanRepublic...........................................15

    3.4 TheDominicanRepublicsuniversalaccess(UAF)andhowitisused...........................18

    3.5 TheGovernmentspolicyonInformationandCommunicationsTechnologies(ICTs)andthe

    roleoftheregulator............................................................................................................18

    3.6 TheRuralBroadbandConnectivityProject..........................................................................20

    PARTIII:METHODSANDTOOLSFORDEVELOPINGARURALBROADBANDPROJECT

    4. Theimportanceoflocalknowledgeandconsultingwith

    stakeholders........................................................................................................................23

    4.1 Knowingthecountryandespeciallytheruralareas...........................................................23

    4.2 Consultingwithpublicinstitutionsandlocalentities..........................................................24

    4.3 Consultingwithtelecommunicationsoperatorsandserviceproviders..............................25

    4.4 CooperationwithNGOsandotheragencies.......................................................................26

    5. Theimportanceofapilotprojectasawayoftestinganddemonstratingthetechnicaland

    economicfeasibilityofauniversalaccessandserviceproject............................................26

    5.1 Characteristicsofthelocationofthepilotproject..............................................................26

    5.2 Involvementoflocalauthorities..........................................................................................27

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    5.3 Involvementoftheyoung...................................................................................................28

    5.4 HowtheymadeithappenintheDominicanRepublic........................................................29

    6. Overviewofbroadbandtechnologies................................................................................35

    6.1 Wired...................................................................................................................................36

    6.1.1 DSLovercopperlocalloop............................................................................................36

    6.1.2 Coaxial(ex.DOCSISandHFC)andfibreopticcablesystems........................................38

    6.2 Wireless...............................................................................................................................38

    6.2.1 Mobilecommunication.................................................................................................38

    6.2.2 Broadbandwirelessaccess(WiMAX,WiFi)...................................................................43

    6.2.3 Satellite.........................................................................................................................47

    6.2.4 Enduserequipment......................................................................................................48

    7. Use of geographical information systems (GIS) and Google Earth in planning rural

    telecommunicationsprojects..............................................................................................49

    7.1WhatisGIS?......................................................................................................................... 49

    7.2BenefitsofusingGISinplanningruraltelecommunicationsprojects.................................49

    7.3GoogleEarth........................................................................................................................ 51

    PARTIV:PRACTICALMATTERSTOCONSIDERANDSTEPSTHATNEEDTOBEUNDERTAKENIN

    DEVELOPINGANDIMPLEMENTINGARURALBROADBANDPROJECT

    8. Developingaruralbroadbandproject................................................................................53

    8.1 Administrativemattersandlegalbasis...............................................................................54

    8.2 Natureoflicensesandissuesrelatedtospectrum.............................................................54

    8.3 Demandanalysis.................................................................................................................55

    8.3.1 Normalmethodfordeterminingdemandinruralareas..............................................56

    8.3.2 ApproximationmethodusedinPeruandintheDominicanRepublic..........................57

    8.4 Theeconomicmodel...........................................................................................................59

    8.4.1 MethodusedinPeruandintheDominicanRepublic..................................................59

    8.4.2 Determiningtheamountofthesubsidy.......................................................................60

    8.4.3 Otherconsiderations...................................................................................................60

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    8.5Minimumsubsidyauctions..................................................................................................62

    8.6Thetenderprocedure(transparencyandnondiscriminationintheevaluationofoffers)..63

    8.7 Thecontract........................................................................................................................65

    8.7.1Paymentmethodforsubsidies.........................................................................................65

    8.8Supervisingtheimplementationoftheproject...................................................................66

    8.9Creationofdedicatedwebsitesforthecommunitiestobeserved....................................66

    8.10Raisingawarenessamongthelocalpopulation.................................................................68

    8.11Capacitybuildingtoensuresustainabilityoftheproject..................................................69

    9.Otherinnovativefundingmechanisms..................................................................................70

    9.1Publicprivatepartnerships..................................................................................................70

    9.2Privateinitiatives.................................................................................................................. 71

    9.3Privateprivatepartnerships................................................................................................72

    10.Sustainability........................................................................................................................73

    PARTV:CONCLUSIONSANDRECOMMENDATIONS

    11.Challengesandlessonslearned...........................................................................................75

    12.Conclusionsandbestpracticeguidelines............................................................................76

    Annex1:

    OTHERSUCCESSFULEXPERIENCES:THEPERUVIANRURALBROADBANDCONNECTIVITY

    PROJECT

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    PARTI:INTRODUCTIONTORURALBROADBANDACCESS

    1. Bringingbroadbandtoruralareas

    Broadband1, todays the principal means of delivering ICT applications, is considered by an

    increasing number of policy makers and regulators around the world to be a basic

    telecommunications service. Current universal access and service (UAS) policy for

    telecommunicationsandICTsemphasizestheneedforaccesstobroadbandapplications inorder

    toachievethegoalsofeconomicdevelopmentandsocialinclusionforallcommunities.Experience

    has shown that the arrival of basic telephony (in any form, such as public payphones, fixed

    residential or mobile lines) and broadband Internet constitutes a critical take off point in a

    communitys path to economic and social development2. The impact is even greater in rural

    communitieswhere local institutions,NGOsandyoungpeoplequicklybecomethemainusersof

    ICTsopeningthewaytowhatcouldbeconsideredtobeavirtuouscircleofdevelopment(Picture

    No1).Yet,inmostdevelopingcountries,accesstobroadbandservicesisgenerallyrestrictedtothe

    capital city and sometimes to other important economic and political centres and surrounding

    areas.

    Inthecommunitieswithlimitedornoaccesstobasicvoiceservices,theInternetbecomesaless

    expensivealternative,oftenservingasasubstitutefortheformer.Generally,itcostsverylittleto

    access the Internet inpublic Internetcafs,whereausercanchat foranhourwith friendsand

    family,conductbusinesswithpeopleal

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