Electronic Bulletin Number 58 - April, 2009

 
 
Policies applied in the Dominican Republic to expand telecommunications and achieve inclusion
 
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1.- INTRODUCTION:

Telecommunications has become an essential basic service –equal in importance to water, electricity and health. It plays a key role in the economic and social development of nations, and is the ideal tool to achieve inclusion and democratize people’s access to the digital society of the 21st century.

Within this context, the Instituto Dominicano de las Telecomunicaciones, following the explicit directive by President Leonel Fernández Reyna, has set out to aim its actions and activities to grant the opportunity to all Dominicans, with no exceptions, to access telecommunication services, regardless of their economic condition or geographical location.

To achieve these goals we have worked on three major areas, namely: promoting the broadening of the infrastructure coverage, allowing the whole population, with no exceptions, to be able to use it, and training young entrepreneurs who can use ICTs as tools for developing and generating jobs.

2.- STRATEGY FOR SOCIAL INCLUSION

a) EXPANSION OF TELECOMMUNICATIONS COVERAGE

In that respect, the expansion of telecommunications coverage is being achieved by applying a policy by the telecommunications sector that promotes investment, encourages the private sector to invest and expand their operations.

This will also help new competitors to enter the market, since global experience shows that competition –if fair and honest- is indeed the best regulator.

Telecommunications contributes to significantly increase the wellbeing of society. This can be seen with greater intensity when telecommunications is first made available in isolated communities: It is like going from a pitch black night into the brightness of day.

International studies show –just to name an example- a highly positive relationship between cell phone ownership and an increase in GDP, a 10 point increase in cell phone penetration is associated with a 0.5 growth of the Gross Domestic Product (GDP). “That is to say, it improves productivity in areas that did not have the service before.”

Those who were born in cities with services do not feel the difference, but people who were born in rural areas, with no utilities, do see and feel the huge difference that it makes in their lives to be able to contact their friends and family, many of whom have migrated to big cities or abroad.

Also, being able to access timely information on product supply and demand for convenience stores, merchants and businesspeople, having the opportunity to make health queries, and with the arrival of high speed Internet, having access to the world’s information, and not only access, but also the possibility to interact by sending and receiving information of all kinds.

According to data by the Central Bank of the Dominican Republic, investments on telecommunications in the country reached 2.4 million dollars over the last 15 years and the sector accounts for 15% of the Gross Domestic Product (GDP), one of the main sectors in the country and one of the highest if compared to other countries in the region.

The abovementioned macroeconomic figures ratify that these policies are booming, but it is also true that, as with the rest of the world, companies are not interested in expanding their services to rural areas as they consider that there is no market and the ROI would not be guaranteed. That is what happens in the Dominican Republic and while the five main cities in the country show lively competition and a wide variety of services; rural areas remain short of services.

To overcome this challenge, INDOTEL has applied two policies.

The first one was to show, via pilot programs, that the unserved rural sector is hungry for services, that they want to have those services and that they are willing to pay for them.

The best example in that sense is what happened in Los Botados de Monte Plata, a small town located just 35 km from the capital city, where up to November 2007 no public phones were available for the population to use in case of an emergency.

In Los Botados, it was evident that people were eager for technology, that young people even knew how to assemble and disassemble computers, which caught the attention of carriers. Today, the people of Los Botados have broadband Internet connection even outside their home, have home services from Claro-Codetel and they can choose between cell phones offered by Claro-Codetel or Orange and shortly by Viva.

That is to say, through a practical experience we have encouraged companies to have a second look at rural areas and the vast expansion of cell phone coverage can now be seen as it now encompasses most of the Country.

That meant the accomplishment of the first goal, which was for the market to do its job, but that was not enough and a project was designed for inhabitants of all the towns and municipal districts in the country and 179 spots of the poorest 16 provinces to have the possibility of having home phones and broadband Internet.

An international call for bids was issued for that project and Claro-Codetel was the awarded bidder and the project is now in the execution phase. Completion is scheduled for September 2009. 108 localities are already enjoying those services.

For the services –whether telephony or Internet- to reach the largest portion of the population and especially the underprivileged who cannot afford a landline or cell phone nor buy a computer, INDOTEL is promoting the setting up of Internet and call centers, from where those people will be able to place their calls and go online at a reasonable price.

With those two policies and activities we are growing the infrastructure and the population is gaining access to telecommunication services either from their home or from public access centers.

b) TRAINING CENTERS ON INFORMATION AND COMMUNICATION TECHNOLOGIES (ICTs)

For most of the population to have the opportunity to be trained on new ICTs, INDOTEL launched a project for setting up IT Training Centers (CCI) which jointly with the Community Technological Centers of the first lady (CTC) and other initiatives by NGOs, communities and churches, they make it possible for the population at large to have access to training, learn how to use a computer and acquire basic IT skills.

In the case of INDOTEL’s CCIs, where sustainability depends on community organizations, young children and adults have access to free courses and as broadband Internet is made available they connect to the world and join the society of the 21st century, at no cost whatsoever.

That is to say that in the almost 900 knowledge rooms that INDOTEL has set up throughout the country, the population has the opportunity to learn, be trained and increasingly get connected to the world.

IT Training Centers have been set up for all sectors, among which we can highlight centers for the blind, the deaf-mute, the motor disabled, doctors, the military and even in prisons, where trainees can receive their training. Community centers, grassroots organizations, churches, universities and many other educational centers also have this infrastructure. We can assert that there is no social group that has not benefited from this.

c) FUND FOR ACADEMIC EXCELLENCE FOR THE TRAINING OF TECHNOLOGISTS

INDOTEL has created the fund for academic excellence to feed the brains that will enable the country to make a technological takeoff. The goal is to allow underprivileged, outstanding youngsters from the Dominican Republic to pursue their two-year technological studies at the Instituto Tecnológico de las Américas (ITLA). So far, over 1,300 youngsters have been granted these scholarships that cover their tuition fees as well as lodging expenses.

d) ENTREPRENEURIAL TECHNOLOGICAL YOUTH (JUVENTEC)

INDOTEL, together with the Instituto Tecnológico de Las Américas (ITLA) and the Instituto de Formación Técnico Profesional (INFOTEP) will grant over 5,000 scholarships for underprivileged, young people from any place of the country to take certification courses and online workshops, and in that manner boost the technological development of communities.

The main Objective of this program is to strengthen the entrepreneurial spirit of underprivileged, young people from the various communities of the country, and turn them into protagonists of their own professional development, by generating business initiatives and high quality and competitive level services.

 

Eng. Edwin San Román
International Consultant of INDOTEL
Dominican Republic

 

Additional Information: Artícle based in document CCP.I-TEL/doc. 1620/09. 

 

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Organization of American States.
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