Fiber optic | The march of medium networks: does it represent a business model in the last mile for ‘telcos’? | Internet 5g | Communication | Intel | Movistar | Connection | ECONOMY

However, only 32% of homes have this type of Internet and 12% of them use it optical fibersays José Luis Bonifaz, expert in management and infrastructure, and professor of Economics and researcher at the Universidad del Pacífico (UP).

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Those optical fiber It is the most used (currently) and it is the way to follow, because it has the best and other countries have decided it“, indicates one.

The deployment of this fiber has been more successful through the private sector.

By 2022, of the 90,356 miles of fiber that runs through the country’s territory – without considering the last mile, which is the transmission to the city -, two thirds will be for the private sector, according as the Ministry of Transportation and Communications (TCM).

This place red and their connections with buildings and areas are being used by each employee separately, in order to reach more users. These ideas can vary, well, with the income of those red It is neutral.

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Freedom

What does a medium red? It is about entering the last mile segment, explained Carlos Huamán, director of DN Consultores. Unlike the business model of optical fiber of businessmen, a medium red It does not have an end customer, explained the expert. Therefore, they make the infrastructure available for service providers. Internet. This leads to savings for these service providers when it comes to investing in exports optical fiberAdd.

New companies start browsing this red neutral and they don’t need to build or maintain it, they don’t need to invest in construction or maintenance” said Bonifaz.

If Indecopi is approved, there will be 100% middlemen who will provide equal conditions in the last mile market, says Nino Boggio, central director of Policy, Management Review and Relations of Entel Perú, for Day 1.

This model is used in other countries. For example, in Colombia and Chile, On Net Fibra works and in Spain, Asteo Red Neutra, focused on rural areas, and Lyntia works.

A similar picture in Peru is PangeaCo which, like On Net Fibra, was originally developed by Telefónica. Later, KKR acquired a 54% stake and Entel Perú 10%. Since January, the two acquisitions have been in the second stage of the preliminary evaluation of the Indecopi Commission for the Prevention of Free Competition.

If approved, there will be a 100% middleman who will provide equal conditions in the last mile market, says Nino Boggio, head of the Central Law , Management and Relations of Entel Perú, on Day 1.

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This will allow the operator to contact you optical fiber about 5.2 million homes by 2026, said Juan Hurtado, president of Entel, at the Meeting of Members held last Tuesday in Chile.

This model, in addition, does not have special requirements or excessive payment by Osiptel, explains Lennin Quiso, director of Policy Management and Competition of the regulatory agency.

Bonifaz, for his part, decided that the medium networks They can be used as a good control to avoid the abuse of the important work.

What works in other countries can work in Peru, without fear and with good management by state leaders.“, he said.

The need for 5G

What is the relationship to export optical fiber With technology 5g does? As Huamán explains, the antennas, towers and base stations used for 4G Internet have fiber connections, through network cores.

With technology 5g does, between six and ten times more antennas will be needed than 4G, experts predict. This will also involve connecting these buildings with fiber.

The digital transformation process of 5G will require more investment from telecommunications companies, comments Carlos Huamán, director of DN Consultores. One option to optimize these costs is of course for integration.

To this we must add that fiber transports faster and its capacity can be increased or decreased more easily than once redsaid Dante Torres, marketing director of Internexa Peru.

Already in March, the MTC sent Proinversión evaluation data on the projects for the 3.5 GHz and 26 GHz frequency bands, used for 5g does. In the decision, the Vice President of Communications, Carla Sosa, explains the Add to that Both projects are currently in the design phase of Proinversión..

After that, the process will move to the configuration stage, where the tender rules, the first and final version of the contract and the updated content of the survey will be prepared. After that, discussions and evaluations will be conducted, and public tenders will be presented.

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For the digital transformation process go on 5g does more investment will be required on the part of communication companiessaid Huamán. One option to optimize these costs is of course for integration. The possibility is that it is done as a red neutral or by agreement, as in Colombia, where Movistar and Tigo agreed to create a network to share their radio.

On the other hand, Boggio shows the intensity, competition and violence of the Internet Mobile. And, in the ‘telco’ market, competitive prices, since the focus is on offering different products and higher Internet speed, Quiso added.

This also affects the sector. For example, the income from Intel In 2023 they fell by 9% compared to last year, according to their 2023 integration report, and Telefónica from Peru – that has a name Movistar– announced, in a report published last week, that it has lost 7% in its income for the first quarter of 2024 compared to the same period of the previous year.

In addition, according to Javier Coronado, financial expert of the Garrigues company and former vice president of Communications, the policy of Osiptel in the sector they have increased from 87 to 805 between 2002 and 2023.

Transportation infrastructure

The fiber-to-hire model is used in the transportation industry. That is, the delivery of connections between cities and regions in the country.

Internexa, for example, has 6,500 kilometers of fiber deployed in the country supported by high energy buildings and businesses in the mining and energy industries, while in communication They work for Internet service providers.

Building fiber is expensive. Even in areas far from major cities, it is expensive to establish the deployment of these fiber services. There is an opportunity to provide services to (internet) operators, who pay special fees for the operation, maintenance and rental of fiber.” said Torres.

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Another case is Gilat Perú, which has 8,600 kilometers of fiber transmission, including the Amazonas project in the region, a region where 516 public organizations are served, said César López, COO of the company.

In addition to this, the future of the National Backbone Network is still pending from the State. Optical fiber. In March, the MTC signed an agreement with Proinversión to prepare a study on its current situation of infrastructure and transportation in the region, as well as to see the appropriate models for both jobs. According to the vice president, the terms of reference to hire a consultant have been set and then requests for expressions of interest will be set.

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