The Centro de Estudios de Telecomunicaciones de América Latina(cet.la) continues to contribute to the search for solutions for the development of the digital economy in the Latin American region. On this occasion, it renews its commitment with the launch of its study "INITIATIVES FOR CLOSING THE DIGITAL GAP IN LATIN AMERICA", carried out by Telecom Advisory Services, LLC.
Download the full study here.
Montevideo, 22 August 2016. The adoption of fixed and, especially, mobile broadband has advanced significantly in Latin America in the last decade. However, despite the progress in penetration, there are still sectors of the Latin American population that cannot access them due to mainly economic reasons. Even considering the significant reduction in telecommunications tariffs in recent years, the average income of the population at the bottom of the pyramid is so low that these advances do not allow them to overcome the economic barrier in a sustainable manner.
Juan Jung, Coordinador Responsable del Centro de Estudios de Telecomunicaciones de América Latina, explicó las bases en que se fundamentó el estudio: «Pese a los grandes avances de los últimos años, todavía el 50% de los latinoamericanos no es usuario de internet. Quienes no se encuentran conectados, en la mayoría de los casos, forman parte de la base de la pirámide socioeconómica en la región . El estudio del Dr. Katz para el cet.la brinda ideas innovadoras que sin duda constituyen insumos clave para ayudar aromper la restricción de ingresos de los no conectados».
Regarding the conclusions drawn from the study, Raúl Katz, PhD, Director of TelecomAdvisory Services, explained: "Our analysis demonstrates the importance that the elimination of tax burdens for the population at the bottom of the pyramid could have for the universalisation of broadband. In addition, a programme based on the reimbursement of 50% of the cost of acquiring terminals would generate a substantial increase in the affordability of ICT baskets.
The study concludes with a series of very creative recommendations, such as possible measures to be taken by the private sector consisting of the development of scalable multiple offers, from daily (or hourly) mobile broadband consumption to download capacity limits in post-paid plans, to restrictive plans on services (email, social networks, etc.). This will allow users at the bottom of the pyramid to choose the offer most adapted to their purchasing power. Finally, the elimination of restrictions (whether tariff or quantity-based) on imports of low-end and mid-range smartphones (up to US$ 300 FOB) would increase the supply of devices, reducing their price.
Regarding these recommended measures, Katz warns that "beyond the initiatives of operators and the public sector, all actors in the digital ecosystem should consider introducing models that are economically sustainable and do not generate distorting effects on competition". He warns that such conclusions could "significantly increase the affordability of ICTs at the bottom of the pyramid".
About cet.la
The Latin American Telecommunications Study Centre is an initiative of AHCIET, the Ibero-American Association of Telecommunications Companies, which aims to promote and support reflection and debate on public policies aimed at the development of the Information Society in the region, contributing technical and economic analysis elements to their design, implementation and evaluation. The Study Centre does not express opinions or recommendations on behalf of AHCIET.
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