Fiber optic cabling for Plan Puebla Panama to be ready in 2010

(www.bnamericas.com) Central American heads of state plan to have a framework in place in 2009 for regulating the use of a fiber optic cable network being built as part of the Plan Puebla Panama (PPP) infrastructure project, due to be completed in 2010, according to a joint declaration following a presidential summit in Villahermosa, in Mexico's Tabasco state.   The presidents of Mexico, the Dominican Republic and the Central American countries met on June 27-28 to discuss mechanisms of strengthening political dialogue and economic cooperation. The PPP project was the main issue on the agenda as the project looks to boost economic growth in the respective countries through physical infrastructure and social projects. One part of the project is the Mesoamerican information (AMI) highway that plans to link the countries through a fiber optic network. The decision involves a reformulation of cooperation mechanisms and structural changes. On June 4, it was announced that PPP would cancel 95% of its projects to make its integration objective more viable. PPP's portfolio was composed of nearly 100 projects, surpassing the initiative's institutional and financial capacity. Five large-scale projects in the health, highway, power, telecommunications and IT sectors survived the cut.  

 

A regulatory framework would be put in place to ensure fair access to use the network and promote a regional telecommunications market, according to the declaration. The framework would prioritize use of the network for government programs designed to narrow the digital divide. In addition, the regulations would promote a drop in the cost of roaming and long distance calling rates.


The PPP contemplates three areas of telecommunications: the infrastructure side or the AMI highway; regulation; and projects to utilize the infrastructure according to a document published regarding the findings of the meeting in Villahermosa.


To reduce the overall cost of the project, the fiber optic cables will be hung off a grid of electric power transmission lines that are being built to link up the region and known as Siepac. The network will be managed by a public-private company called REDCA-EPR.


AMI is expected to require a US$20mn investment. Funding for pre-investment, which includes studies and drawing up the regulatory framework, is coming from the Inter-American Development Bank, the Central American Bank for Economic Integration, and the Central American telecoms commission (Comtelca). The fiber optic network will stretch 1,800km and have six nodes in the capital cities of the Central American countries.


Delegates at the summit also agreed to rename the PPP integration initiative the Proyecto de Integración y Desarrollo de Mesoamérica.

 

 

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