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UNDER SECRETARY NICOLAI URGES COMPANIES TO REDUCE
BROADBAND TARIFFS
The Under Secretary indicated that it would also be
feasible to increase connection speeds at the same tariff. "This is a
commercial, rather than technical, decision as, in technical terms,
today’s networks could provide faster connection speeds without
increasing the cost to users."
The Government therefore considers that Internet
access could be increased among sectors where today’s broadband
connection cost is unaffordable.
Calling upon telecommunication companies to take
the commercial decision to reduce the cost of broadband access or at
least increase user connection speeds for the same tariff, Christian
Nicolai, Under Secretary of Telecommunications, opened a newly-styled
Alcatel Day 2005 at the Santiago Sheraton Hotel.
Addressing different industry players, Nicolai
reiterated that faster speed "is a commercial, rather than technical,
decision as, in technical terms, today’s networks could provide higher
connection speeds without increasing the cost to users." He also urged
companies to reduce plan prices which, he considers, would remain very
high for large segments of Chilean society that cannot devote 15% of
their earnings to Internet connection.
"Our Government believes that one way to increase
broadband access is to add value to connection through new
applications and content and to promote market competition and create
avenues for shared public/private investment, but it is also the case
that if we do not reduce current tariffs, access will be beyond the
reach of many people because today’s connection cost is very high in
terms of Chilean per capita income. We cannot expect a family to
devote over 15% of its income to this service,” Nicolai emphasized.
In that connection, the Under Secretary for
Telecommunications indicated that Chile’s broadband tariffs were very
high by international standards, even higher than those of Argentina
(see tables following this note), which would constitute an obstacle
to Internet penetration among lower and middle socioeconomic sectors.
“Therefore, we are taking steps as a government to
provide broadband access in remote, low income areas, providing
private sector subsidies to be able to ensure coverage. This
public/private experiment will generate concrete outcomes in terms of
equal opportunity and provision of universal access to new
technologies. We will make it possible for a family living in Visviri
in Chile’s far north or in Puerto Edén in its south to have the same
broadband quality as may be obtained in the large urban areas,”
Nicolai stated.
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