Wireless technologies and policies for connecting rural areas in emerging countries: a case study in rural Peru

Abstract

Purpose

This paper aims to compare the costs of deploying different wireless terrestrial broadband technologies in the Andes and Amazon Regions of Peru. These areas are representatives of different and challenging geographic regions throughout the globe that currently are severely underserved or unserved for vital broadband services necessary to bridge the “Digital Divide”.

Design/methodology/approach

The broadband technologies studied include Wi-Fi, Worldwide Interoperability for Microwave Access (WiMAX), long term evolution (LTE), TVWS and new stratospheric platforms (super-pressure balloons). This study conducts a technical analysis (design and simulation) of wireless broadband networks, and a bottom-up engineering cost analysis to estimate and compare the deployment and operating costs of the networks over a 10-year period. The analysis also identifies potential regulatory barriers to deployment associated with spectrum allocation licenses and overbooking requirements intended to improve quality of service.

Findings

Comparison of the capital and operating expenses of these options over a 10-year period finds that LTE and Wi-Fi can be the lowest cost alternatives, though significantly, stratospheric balloons have the lowest initial costs for the first few years and can factor as a low-cost broadband catalyst early in deployment. Finally, the lowest cost technology broadband roadmap for the 10-year period is presented, which includes using stratospheric balloons (carrying micro-LTE base stations) for the first years and deploying complementary terrestrial LTE networks for the rest of the 10-year period.

Originality/value

This study presents detailed technical and engineering cost analysis results of wireless access network deployments, including advanced wireless technologies and new unmanned aerial systems, to expand broadband services to rural areas in mountainous (Andes Region) and rainforest (Amazon Region) geographies to reduce the digital divide in emerging countries. Results aim to aid governments, regulators, internet service providers (incumbents and competitive) and content providers to assess current alternatives to expand broadband service in these rural areas.

Citation

Espinoza, D. and Reed, D. (2018), "Wireless technologies and policies for connecting rural areas in emerging countries: a case study in rural Peru", Digital Policy, Regulation and Governance, Vol. 20 No. 5, pp. 479-511. https://doi.org/10.1108/DPRG-03-2018-0009