MTC approves US$17mn internet project

Peru's transport and communications ministry MTC has approved a US$17mn project to expand internet coverage to approximately 3,010 low-income areas in the country, local newspaper Gestión reported. Peruvian telecoms regulator Osiptel and the government telecoms fund Fitel are in charge of the project, according to MTC head Juan Pacheco. Other internet projects this year include Osiptel's US$20mn investment to install 1,000 public access internet cabins in district capitals. There is also another scheme aimed at providing broadband connectivity to 3,000 rural locations. Peru recorded the largest growth in broadband penetration in the region, increasing the number of connections by 118% in 2004 compared to the previous year. Peru ranks third in the region in terms of overall internet penetration, Pacheco said. Commenting on telephony coverage expansion, Antonio Valente, president at Grupo Telefónica in Peru, said resources provided to Fitel, estimated at US$12mn annually, are not enough to expand this service to rural areas.