Increasing Broadband Internet Penetration
In the OIC Member Countries
60
connectivity. At the time, homes and businesses with basic Internet connections paid
approximately US$ 150 monthly. Similarly, the Uruguayan government also planned to reach
schools and educational institutions with Fiber-to-the-Home (FTTH) technology.
In June 2011, Antel announced plans to connect more than 80,000 Uruguayan households with
FTTH by the end of the year. This project initially targeted higher-income, urban areas but
incorporated plans to reach the lower socioeconomic groups. The rollout incorporated US$100
million investment and a partnership with the Chinese technology firm ZTE. Described as “the
most ambitious broadband effort in Latin America,” the FTTH project as well as the opening of
the Bicentenario submarine cable in early 2012 increased broadband access, speed, and
service quality.
The December 2011 launch of its commercial LTE services allowed the telco to offer
broadband connections to those regions not yet impacted by the FTTH rollout as well as those
customers who could not afford the connectivity costs of fixed Internet. Antel offered
customers two package plans from which to choose. By signing a 2-year contract, customers
could pay US$ 90 per month for 30 GB. For US$ 76 per month plus an additional $6 in modem
rental fees, customers could access 15GB through a 15-day auto-renew contract29.
In time, the Universal Hogares plan expanded, bringing customers faster speeds for lower
prices. As of February 2014, the telco offers the following extensions beyond the fixed wireless
plan that comes with 1GB per month at no charge (see table 20).
Table 20: Uruguay: “Social” broadband plans
Price (US$) Performance (Mbyte) Details 2.20 256 30 calendar days from date of purchase
4.50 512 30 calendar days from date of purchase
9.00 1024 60 calendar days from date of purchase
Sources: Budde, Paul. "Uruguay - Telecoms, Mobile, Broadband and Forecasts."Beyond service pricing, broadband economic adoption obstacles are linked to device prices.
Three types of programs have been implemented to overcome the personal computer
ownership barrier. The first one focuses on the provision of subsidies to reduce the acquisition
price of devices. The target in this case could be households at the lower end of the socio-
demographic pyramid, primary school to university students, and SMEs (especially micro-
enterprises). The second program typically targets students in primary education, with
governments distributing “One Computer per Child.” In this case, public school students
2 eb.
F
" eb.
opportunities-when-la
"Universal Hogares
hogares/internet/planes/internet-rural/universal-hogares->.