PROMOTING DIGITAL FREEDOM INITIATIVE PRIORITIES

UNCLAS LIMA 001158 SIPDIS SENSITIVE SIPDIS DEPT FOR WHA/AND, WHA/EPSC, EB/CIP - TCARNEGIE/WAYALA COMMERCE FOR 4331/MAC/WH/MCAMERON COMMERCE FOR OFFICE OF TECHNOLOGY/KFERGUESON USTR FOR KSCHAGRIN/JMCHALE FCC INTERNATIONAL BUREAU FOR ETALAGA AID FOR BRENDA FISHER/NOREEN JANUS E.O. 12958: N/A TAGS: ECPS ETRD EINV ECON PE SUBJECT: PROMOTING DIGITAL FREEDOM INITIATIVE PRIORITIES REF: A) 05 LIMA 4849 B) 05 LIMA 3233 ¶1. (SBU) Summary. Post has coordinated closely with the GOP and the private sector to advance the Digital Freedom Initiative (DFI) in Peru during the past year. In December, we established a DFI Working Group of nine officials, including two from the Embassy, two from the GOP and the General Managers of Intel, Cisco, Motorola, Voxiva and Hewlett Packard. The Group has begun the process of clearly defining the DFI priorities for 2006-2007, including supporting a Ministry of Communications program to promote the spread of the internet to more than 1,000 rural locations. The group established five subgroups to coordinate programs on software, hardware, business models, telecommunications and e-government, and will review development and regulation issues with the GOP. End Summary. DFI Roll Out -------------- ¶2. (SBU) Since the signing a Memorandum of Understanding on Promoting the DFI with the Ministry of Production in November (ref A),the Embassy has worked effectively with both the Ministry of Production and the Ministry of Communications to develop a game plan for the DFI. In December, we established a working group of 9 individuals, including two from the Embassy, two from the GOP, and the General Managers of Voxiva Peru, Motorola, Hewlett Packard, Cisco and Intel. This working group meets monthly to discuss priorities for Peru, how to attract voluntary services from U.S. and Peruvian companies, and how to best implement DFI programs. We also established five smaller groups to work with the government on promoting development and regulatory change in the areas of software, hardware, e- government, business models and telecommunications. ¶3. (SBU) The Peru DFI Working Group has determined that, for 2006-2007, one of its top priorities is to assist the Ministry of Communications with its plan to promote Internet access in more than 1,000 rural areas. Guillermo Delgado, General Manager of Voxiva, suggested that the Ministry of Communications incorporate the Micro Telecommunications Company (Microtelco) model under the Last Mile Initiative (LMI) in its plans (Ref B). (Note: the Microtelco launched under the USAID Last Mile Initiative has successfully established a new local loop that provides telecommunications and internet service to a rural area in Junin, 100 miles outside of Lima. End Note.) The Ministry is considering, and has requested technical assistance from the DFI group with its endeavor. The Ministry of Production has offered to sell computers at a discounted rate to future Microtelcos under its PC Peru program. ¶4. (SBU) Delgado informed Econoff that his company is looking to submit another Last Mile Initiative proposal to USAID Washington. The first LMI microtelco in Junin began operations in September 2005 and has been lauded by local government officials for improving the area's telecommunications infrastructure and provided opportunities for those who were previously underserved. The Ambassador and Minister of Production will be visiting the Microtelco in April to inaugurate the site and speak with local residents who have benefited from its existence. ¶5. (SBU) The DFI Working Group is also working with several U.S. companies that have offered its services to Peru. One company has offered to donate used computers; we are currently researching Peru's customs regulations to determine how much we will have to pay in taxes to import the items. Comment -------------- ¶6. (SBU) The Peruvian Government, as well as many U.S. and Peruvian companies, agree that the expansion and use of telecommunications services will foster economic and social development in the rural areas of Peru. Our Working Group has many ideas on how to move forward, but it will take some time to for the group to establish itself and its priorities. We expect that the improved public-private partnership will lead to an increase in the number of DFI programs in future years. STRUBLE