Cabinas Publicas: Peru’s Internet Success Story

Peru has seen a sharp rise in internet use in the last decade, even among people in low incomes, making it a big ICT success story in the developing world. Much of the credit for this goes to cheap internet cafés known as cabinas publicas. Read more to see how these cabinas have transformed the media and communication environment in Peru…..

Peru has seen a sharp rise in internet use over the last few years. The Interntional Telecommunications Union states that the number of internet users in Peru increased from about 800,000 in 2000 to about 7,128,000 in 2008. [1] World Bank’s “ICT at a glance” data show that international bandwidth (bits per second per person),which measures the capacity that backbone operators provide to carry internet traffic, increased from 4 in 2000 to 2,704 in 2007. [2] This places Peru well above the regional average of 1,126 for Latin America and the Carribean. Peru represents a success story of ICT access in the developing world. Compared to its other economic indicators of growth too, growth in the number of internet users stands out as remarkably high.

According to the InterMedia Peru 2009 urban survey, 41 percent of respondents said they have household access to a computer and only 21 percent of them have household access to the internet in 2009. However, a much higher 59 percent said they log on to the web monthly and about three in 10 said they access the Internet daily. Over the years, internet in Peru is also fast becoming an important source of news and information. Forty-one percent of the urban respondents claimed to access news on the internet every week.

This remarkable rise in Internet use has been fueled by rapid growth in the number of cheap public internet facilities known as cabinas publicas in all urban centers. In fact, Peru is a world leader in terms of users who access the internet in public places. Chart 1 shows that 72 percent of the respondents said they use cabinas publicas on a monthly basis for internet access.

Chart 1

Through these cabinas publicas, the web has become more accessible to all segments of society, including those who can’t typically afford internet connections at home. Indeed, a majority of the customers at the cabinas come from low-income neighborhoods (87 percent with low income, as opposed to 75 percent with middle income and 53 percent with high income)say that they use cabinas publicas. [3] These web outlets make it possible for many Peruvians who are extremely poor to go online.

The first cabinas were opened in 1998 by a group of entrepreneurs who wanted to democratize web use in the country and also make profits. These communal internet shops feature low hourly rates, fast and efficient connections and the availability of technical help from store staff. The cabinas thus became a bridge over the digital divide. As can be seen in the chart 2 below, between 41-64 percent Peruvians in the low and middle income groups access the internet monthly, which is higher in comparison to many other developing nations.

Chart 2

The majority of these internet access shops are located in Lima, where it is possible to see one every two or three blocks-sometimes there is more than one on a single block. To a large extent, their success builds on a fortuitous combination of the communal, sharing traditions of Andean immigrants to the cities and the availability of new ICTs in the cities. An important word in the indigenous Quechua language is "minka," meaning sharing of any resources among the people. The cabinas concept reinforces this world view. In effect, this also transforms the individual library experience into a collective knowledge-gathering process.

The Peruvian regulatory authority, Organismo Supervisor de Inversión Privada en Telecomunicaciones (OSIPTEL), estimates that between 1998 and 2005 (latest year for which data is available), the number of cabinas in Lima increased from 98 to 6000 (chart 2). There were 33,635 cabinas throughout Peru at the end of 2005. The cabinas públicas also set up their own association and website in 2003, www.cabinasperu.org.

Chart 3: Rapid boom (1998-2005) of Cabinas Publicas in Lima

Source: Ospitel 2005

In fact, many government institutions realize they can reach citizens through the cabinas. Since 2004, public agencies have used them to promote e-government activities, such as payment of taxes, traffic tickets, etc.

[1] "ICT Statistics Database". International Telecommunication Union. Accessed January 2010. http://www.itu.int/ITU-D/icteye/Indicators/Indicators.aspxI

[2] "ICT at a glance". World Bank. Accessed January 2010.  http://devdata.worldbank.org/ict/per_ict.pdf

[3] Income Definition: For the purpose of the BBG Intermedia 2009 urban survey in Peru, “income” here is based on of a self-reported measure of family financial situation. “Low-income” refers to those respondents who report not having enough money to cover basic needs such as food and/or clothing. As such, this represents the poorest 38 percent of the population. “Middle-income” here refers to those respondents who said they could meet their basic needs, but could not save enough for large purchases such as refrigerators or televisions. This group represents 43 percent of the total population. “High-income” here refers to those respondents who report having disposable income sufficient to purchase some relatively expensive goods, such as refrigerators and televisions and those who can afford whatever they want. This comprises the top 19 percent of Indonesians surveyed.