Community Telecoms Cooperatives in Argentina: The Case of TELPIN

FINQUELIEVICH SUSANA; KISILEVSKY GRACIELA

Community-Based Networks and Innovative Technologies. New Models to Serve and Empower the Poor

United Nations Development Program

Lugar: Nueva York; Año: 2005; p. 79 - 98

A telephone and Internet cooperative is an autonomous association of individuals, which join efforts to resolve shared economic, social, and cultural needs and objectives through a jointly owned enterprise, in which the associates have democratic control over the management, as well as an equitable economic participation. In Argentina, autonomous, self-sustainable Telephone and Internet community cooperatives (CCs) were generated since 1959 by community members to replace the State role as provider of basic telephone services in remote areas, generally marginalized from services provision. These cooperatives grew and introduced technological innovations, such as the Internet, to supply their associates with new services at affordable costs. In 1989, ENTel, the State telephone enterprise, was privatized. From 1992 onwards, these cooperatives replaced the large private telephone enterprises, since these were not interested in providing non profitable services in remote or low-income areas. In the years 1960s and until the privatization of public enterprises in 1989, telephone services in Argentina were a monopoly managed by ENTel, the State Telephone enterprise, which serviced urban areas, and avoided the complexities of servicing low-populated rural areas. A special regulation allowed the creation of Telephone Cooperatives (Cooperativas Telefónicas), non-profit organizations qualified to ask for authorizations for the provision of telephone services in their areas, if these areas were declared by ENTel as non-profitable. This alternative became a paradigm in rural and non rural areas: local communities could create their own Cooperatives. The first cooperative was born in San Genaro, Santa Fe, in 1959. In 1960, a State Decree authorized ENTel to build telephone centrals for cooperatives. The Cooperatives retained their privileges when ENTel was finally privatized. The cooperatives legal status is defined in the Commerce Code, and regulated by the Law N° 20.337[1]. This Law defines the Cooperatives solidarity actions, as well as their role as social economy enterprises, which differentiates them from the traditional, market-oriented enterprises. The Cooperatives, as members of a Cooperatives Federation, FECOTEL, have also signed a Collective Work Agreement (Convenio Colectivo de Trabajo), which establishes a balance between the workers rights and dignity and the CCs economic reality. CCs provide telephone and Internet services, by dial-up and/or broadband (ADSL) connections, as well as IP telephony, to their target populations at significantly lower costs than the large traditional firms (Telefónica and Telecom). A number of CCs also provide Wi-Fi services. Most of them offer also free community services, such as courses on information and communication technologies (ICTs), free Internet access to public schools, libraries, and public facilities (police stations, hospitals, etc.). Moreover, some 300 electricity and telephone cooperatives have decided to join forces to provide portable phone services from 2006 onwards[2]. CCs degree of technological actualization is variable according to their economic possibilities. Their relatively small size makes them flexible enough to implement new technologies at a fast pace. Many of them are now using IP data networks, and they are beginning to transmit voice on IP, although traditional digital commutation centrals will be in service for many years[3]. They are also using wireless IP for low-populated areas or for rural areas yet not reached by copper fiber networks. Moreover, the Federation of Telephone Cooperatives, which gathers telecommunication cooperatives in Argentina, has announced an agreement with the National Government so that associated CCs will become shareholders of the Nahuel 2 satellite, which will be launched in 2005[4]. CCs are accomplishing a social role unparalleled in Latin American countries, not only as services providers, but also as employment generators: 1. CCs are the only communications providers in Argentina with entirely Argentine capital (communities’ capital). 2. They are social centers, since they provide social contents as well as employment for qualified and unqualified labor. 3. The economic crises suffered by Argentina were not used as an excuse to fire employees. 4. They are solidarity-economy enterprises, and their economic surplus is invested in other community projects, originating a multiplying effect in the local and regional economy. 5. Local capital does not migrate to foreign countries; on the contrary, they encourage local economic development, and they improve their communities’ quality of life. This work focuses on a particular case study: TELPIN, the Pinamar Telecommunications Cooperative. As Pinamar, located in the Buenos Aires coastal area, developed into a fashionable seaside city, there was an urgent need for communication, since the population was still too scarce to be of interest to ENTEL. Besides, the population increased dramatically during weekends and in the summer months, and tourists needed to be able to phone their families and workplaces. Telpin was created by a group of Pinamar neighbors, most of them founders of the local community, in November 14, 1962. Since then, it has become the largest and most successful Telecommunications Cooperative in Argentina. [1] See Convenio Colectivo de Trabajo 296/97, http://www.foetrabsas.org/cct29697%20cooperativas%20telef.doc [2] http://www.lacapital.com.ar/2004/07/17/economia/noticia_117081.shtml [3] http://www.cicomra.org.ar/eventosycursos/Eca2003/Presentacion%20A%20Maccio.pdf [4] http://www.boonic.com/noticias/index.php?tipo=2&num=848