Digital Economy Blog – Internet access in Latin America: a challenge to be met

2023-04-19 10:35:56

L’origine d’IThe internet dates back to its inception in the 1960s as a United States Department of Defense research project called Project ARPANET. In the beginning, ARPANET was designed to enable communication between different universities and government institutions.

Over the years, this network continued to grow until the 1990s when the first mainstream users started connecting to it. The Internet has since experienced unprecedented growth, revolutionizing the way we communicate, work, learn and interact with the world.

According to statistics from the UN body, ITU (International Telecommunications Union), only 1% of the world’s population in 1995 had access to the internet. In 2021 the number rose to 54%. In reality, this figure shows that there is unequal access to this network.

As for Latin America, the Internet’s example was not much different from its beginning in the United States. Indeed, this technology arrived in the region in the 1980s and 1990s, so its use was mainly focused on the academic and government sectors.

In the late 1990s, governments began to invest in telecommunications infrastructure and to liberalize this market. This contributed to a significant increase in Internet use in Latin America in the 2000s, thanks to the expansion of bandwidth (bandwidth) and the popularization of social networks.

In fact, the increase in bandwidth, the installation of undersea cables and the commercial development of Wifi contributed to an even greater growth of the Internet in the 2010s.

As the Internet never stops expanding and developing, so it is with technologies such as fiber optics, 5G, connected objects and artificial intelligence, that the way we see the Internet in the region s is transformed. However, although this network continues to develop worldwide, according to the ITU, only 45% of the population in Latin America has access to it. This means that 250 million people cannot take advantage of its benefits.

Furthermore, according to the World Bank, this is a major problem because even though many people live near the 4G connection, the actual use remains low (37%).

Only four out of ten people in Latin America and rural areas have connectivity options, compared to 71% of the population in urban areas. This is mainly because mobile data plans and cell phones are often not accessible to the poorest people.

On average, the cost of a plan of just 1 GB represents 2.7% of monthly family income in some countries, well above the 2% affordability threshold recommended by the International Telecommunication Union. Moreover, the cost of the cheapest smartphone available represents between 4% and 12% of the average family income in much of the region, notably in Haiti, Nicaragua and Guatemala.

The other big problem is that connections via coaxial cable or fiber are among the very expensive plans for the general population, and often due to poor infrastructure, the bandwidth speed remains very slow.

According to Statista, in 2020 internet plans were the most expensive in countries such as Honduras, Panama and Nicaragua. While Argentina was the country where this package was the cheapest.

What solutions should be put in place to solve this problem?

Establish fundamental digital ID systems for all citizens, to enable secure and trusted access to public and private platforms. In addition, governments must create laws to promote the exchange of infrastructure between network operators, and in this way increase access in the poorest areas as well as reduce the price of the service.

Also, governments should help the less fortunate and subsidize access to technology. Similarly, they can use minimum concession subsidies or temporary investment tax incentives to incentivize network operators to extend service to regions.

Similar initiatives might also encourage businesses and private sector investors to fund other digital infrastructure. For example setting up data centers. Currently, only 4% of the world’s data centers are in Latin America.

As complementary measures to address digital issues in the region, there is a need to accelerate digital skills training. Only between 5% and 15% of adults in most countries in the region have computer skills. This is also an important element that prevents the development of new technologies in the region.

Finally, improving and investing in connectivity are essential activities that will promote the economic growth of countries. There is evidence showing the positive link between the use and development of technological infrastructure and the increase in gross domestic product (GDP). Thus, connectivity, the development of mobile networks and investment for their sustainability and eventual expansion are an important contribution to improving the economic and human development of this region.

For more information: (In Spanish)


1681938694
#Digital #Economy #Blog #Internet #access #Latin #America #challenge #met

Leave a Replay