Expansion of the national fiber optic network

Fiber optic

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Expansion of the national fiber optic network
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Technology and Communications
Telecommunications
Business Model Description

Invest in telecommunications infrastructure through direct public investment, co-investment, subsidies or private investment to increase national fiber optic coverage.

Expected Impact

Investment in telecommunications infrastructure will reduce the digital divide of the Dominican population.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
730 km of fiber optic cable installed.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Partnerships For the Goals (SDG 17)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Quality Education (SDG 4)
Sector Sources
  • 1) ONE, 2023. National Multi-Purpose Household Survey 2022. https://www.one.gob.do/publicaciones/2022/encuesta-nacional-de-hogares-de-propositos-multiples-enhogar-2022-informe-basico/?altTemplate=publicacionOnline 2) Srinivasan, S. et al., 2022. Internet access and use in Latin America and the Caribbean. Results of the LAC High Frequency Telephone Surveys 2021. https://www.undp.org/sites/g/files/zskgke326/files/2022-09/undp-brlac-Digital-ES.pdf 3) IBD, 2021. DR-L1147: Program to Improve Connectivity for Digital Transformation in the Dominican Republic. https://www.iadb.org/en/project/DR-L1147 4) Law 1-12 National Development Strategy 2030. https://mepyd.gob.do/estrategia-nacional-de-desarrollo-2030/ 5) Agenda Digital 2030 – República Dominicana. https://agendadigital.gob.do/documentos/ 6) ONE, 2020. Survey of Human Resources Demand in Information and Communication Technology and University Business Cooperation in the Dominican Republic 2019.https://www.one.gob.do/publicaciones/2020/encuesta-demanda-de-recursos-humanos-en-la-tecnologia-de-la-informacion-y-la-comunicacion-y-cooperacion-empresarial-universitaria-en-la-republica-dominicana-2019/ 7) MESCYT, 2022. Higher Education Data 2021. https://mescyt.gob.do/transparencia/wp-content/uploads/2022/10/DATOS-DE-EDUCACION-SUPERIOR-2021-MATRICULASEGRESADOSDOCENTES-E-INVESTIGADORES.pdf 8) Banco Central, 2023. Dominican Economic Report 2022. https://cdn.bancentral.gov.do/documents/publicaciones-economicas/informe-de-la-economia-dominicana/documents/infeco2022-12.pdf 9) ProDominicana, 2023. Report on foreign direct investment performance in the Dominican Republic year 2022. https://datamarket.prodominicana.gob.do/Documentos/2022%20%20Comportamiento%20de%20la%20Inversi%C3%B3n%20Extranjera%20Directa%20en%20Rep.%20Dom..pdf 10) World Bank, 2021. Dominican Republic Leveraging Competition in the Telecom Sector to Accelerate Economic Growth. https://documents1.worldbank.org/curated/en/203161623989071011/pdf/Dominican-Republic-Leveraging-Competition-in-the-Telecom-Sector-to-Accelerate-Economic-Growth.pdf 11) BID, 2021. Broadband Development Index Annual Report: IDBA 2020: Digital Divide in Latin America and the Caribbean. http://dx.doi.org/10.18235/0003337 12) Agenda Digital 2030 – Connectivity and Access Pillar. https://agendadigital.gob.do/ejes/conectividad-y-acceso/ 13) Decree No. 539-20 which orders the preparation of a National Broadband Plan (PNBA).https://presidencia.gob.do/decretos/539-20 14) MEPYD, 2020. National Infrastructure Plan 2020-2030 https://mepyd.gob.do/wp-content/uploads/drive/DIGEDES/Publicaciones/Plan%20Nacional%20de%20Infraestructura.pdf 15) Rotondi, V., et al, 2020. Gender digital inequality in Latin America and the Caribbean. https://repositorio.iica.int/handle/11324/12489 16) INDOTEL, 2022. Annual Telecommunications Performance Report 2021. https://transparencia.indotel.gob.do/wp-content/uploads/2022/12/informe-desempeno-de-las-telecomunicaciones-2021.pdf
IOA Sources
  • 17) Maneejuk, P., & Yamaka, W. (2020). An analysis of the impacts of telecommunications technology and innovation on economic growth. https://doi.org/10.1016/j.telpol.2020.102038 18) M. Mokeresete & B. M. Esiefarienrhe, 2020. Botswana broadband policy and regulatory framework analysis: Issues and solution for improved service and user access. https://ieeexplore.ieee.org/document/9334143 19) World Bank, 2018. Innovative Business Models for Expanding Fiber-Optic networks and closing the access gaps. https://documents1.worldbank.org/curated/en/674601544534500678/pdf/Main-Report.pdf 20) Ministerio de Transporte y Comunicaciones de Perú. National Backbone Fiber Optic Network. https://cdn.www.gob.pe/uploads/document/file/4015477/INFORMACION%20PARA%20P%C3%9ABLICO%20EN%20GENERAL.pdf.pdf 21) Remeikiene, R., Gaspareniene L., Fedajev, A., & Vebraite, V. (2021). The role of ICT development in boosting economic growth in transition economies. https://www.jois.eu/files/1_1171_Remeikiene%20et%20al.pdf 22) Shibanov, E. & Torres, S., 2023. Need for Speed: Opportunities and Risks of Fiber Optic Investment. https://www.detecon.com/en/journal/need-speed-opportunities-and-risks-fiber-optic-investments 23) ONE, 2022. General Report ENHOGAR 2021. https://www.one.gob.do/publicaciones/2022/informe-general-enhogar-2021/?altTemplate=publicacionOnline 24) Comisión ODS. 9.c.1 Proportion of population covered by a mobile network, by technology http://ods.gob.do/Indicador/Index/121?fromMenu=True 25) National Multiannual Public Sector Plan 2021–2024. https://mepyd.gob.do/publicaciones/plan-nacional-plurianual-del-sector-publico-2021-2024 26) World Bank, 2022. Rural population (% of total population) – Dominican Republic. https://datos.bancomundial.org/indicator/SP.RUR.TOTL.ZS?locations=DO 27) Law 47-20 on Public-Private Partnerships. https://dgapp.gob.do/wp-content/uploads/2020/09/LEY-47-20.pdf 28) Law No. 344-43 on Expropriations. https://drlawyer.com/espanol/leyes/ley-344-de-1943-que-establece-un-procedimiento-especial-para-las-expropiaciones-intentadas-por-el-estado-el-distrito-de-santo-domingo-o-las-comunes/ 29) Law No. 153-98 – General telecommunications. https://transparencia.indotel.gob.do/wp-content/uploads/2022/10/ley-no-153-98-ingles-1.pdf 30) Decree 629-07 creating the dominican electric transmission company. https://eted.gov.do/index.php/marco-legal/file/87-decreto-629-07-que-crea-la-empresa-de-trasmision-electrica-dominicana-de-fecha-19-de-noviembre-2007.html 31) Law No. 16-95 on Foreign Investment. https://prodominicana.gob.do/wp/wp-content/themes/ceird/ceirdpdf/Ley-16-95-sobre-Inversion-Extranjera.pdf