Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Tuesday, June 21, 2022

Petro main challenge to be choice of roadmap to reduce digital divide

Gustavo Petro will take office on August 7. It will promote the deployment of fiber in urban areas and the use of low orbit satellite Internet for rural areas. It also warns that it will modify the regulation. The outgoing government leaves behind a new spectrum scheme for 5G and the completion of the public consultation on its deployment.

Gustavo Petro and Francia Márquez will begin their mandate on August 7 in a context of enormous expectations, both in the business sectors and among the Colombian population. This is because the first center-left government in the history of Colombia will begin and in this regard there are many unanswered questions about his government plan.

The telecommunications sector will not be the exception. Petro will enter with a strong demand for the reduction of the digital gap, which he considers one of the axes of his government. This after the outgoing government, led by Iván Duque, made a series of important decisions for the deployment of 5G in the country. Through the Ministry of Information and Communication Technologies (Mintic) and the Comisión de Regulación de las Comunicaciones (CRC) (Telecom regulator), it advanced in the reservation of spectrum for fifth generation mobility, for which it designated the 3.5 GHz band, and modified the limits of spectrum that each company can own.

In addition, it opened a public consultation on the deployment of 5G that closes this Wednesday, June 22, and the results of which will be known in the following days. There, stakeholders have raised their concerns in terms of spectrum allocation, increased coverage, network modernization, 4G consolidation, and 5G development expectations.

The issue of 4G consolidation while the 5G boom begins was debated by the industry a short time ago, at Conecta Colombia event. There, the operators questioned the simultaneous investment in both networks and warned about the operational challenges of the next generation.

The concern to increase connectivity and close the digital gap is on everyone's lips and is one of the axes of Petro's position for the sector. The problem is that there are different ways to approach that goal. While Petro has a plan in which the State plays a role, operators prefer the less interventionist schemes that have prevailed in Colombia until now.

As per Petro's view, by 2026 "all Colombians will be able to access the Internet, regardless of where they are in the national territory, through at least one solution".

According to Petro, "the current government set itself the goal of reaching a total of 70% of households with an Internet connection, and the progress figure with a cutoff date of December 2021 was 56.5%", according to figures from the Mintic itself, "a result quite far from the goal set", he says.

“It is evident that the country has been going backwards in terms of connectivity and that the policies, programs and projects carried out by the national government between 2018-2022 have not managed to effectively reduce the digital divide, nor guarantee that Colombians have access to ICT”, he adds.

To reverse this picture, he aims to create a "vital Internet minimum aimed at households in conditions of socioeconomic vulnerability." He will also promote a neutral network deployment "with the aim of boosting competition in the Internet market." To reduce the digital gap, Petro also points to the "strengthening of Internet operators" that cover rural areas, an issue in which there will be a commitment to low-orbit satellite Internet.

But the operators have another view. From Tigo, Hernán Mariño, director of Network Engineering, believes that investments must be prioritized since it will not be possible to face 4G and 5G deployments simultaneously. With 4G penetration at 50%, this technology still has a long way to go, especially in areas without connectivity. “4G networks are going to have their traffic peaks in 2029 or 2030 and then 5G is going to help us with increased capacity and traffic,” says Mariño. And, at the same time, he warns that the 2G and 3G networks should be switched off.

Regulation will be essential for these deployments. Petro has already announced that it will work on the Sand Box to "update regulatory frameworks and promote the use of disruptive technologies in new business models and close social gaps".

In the performance of his telecommunications ambitions, Petro will have to be very careful not to repeat the experience of the Centros Poblados, the failed public-private initiative that sought to bring the Internet to rural areas with State funds and that failed in the attempt due to the technical incapacity of the companies being awardees of the tender. The current ICT Minister, Carmen Ligia Valderrama, recently recalled that 6,500 centers must be installed by December 2023, this time in a contract awarded to ETB NET. Petro spoke on said regard last year, on stating that in the Mintic "there was a high level of corruption".

Last news and analysis

Estados Unidos · Software and Applications

27/03/2024

25% of advertisers' budget invested in social networks and the Internet

Uruguay · Pay TV · Internet & OTT · Operators

27/03/2024

Through agreements with Claro and Movistar, cable operators expand their Internet offer

These are agreements of different types, which include leaving the last mile for the cable operator or contracts for available bandwidth. Antel could join with infrastructure leasing. Some cable operators are already building their own networks.

Uruguay · Pay TV · Internet & OTT · Operators

27/03/2024

Through agreements with Claro and Movistar, cable operators expand their Internet offer

These are agreements of different types, which include leaving the last mile for the cable operator or contracts for available bandwidth. Antel could join with infrastructure leasing. Some cable operators are already building their own networks.

Paraguay · Operators

26/03/2024

Government analyzes partial privatization of Copaco

The state operator is going through a delicate moment. Its income does not cover operating expenses and it must fulfil a debt obligation of US$110 million. Furthermore, the lack of investments led to the obsolescence of its infrastructure. Oscar Stark, president of the firm, states that alternatives are being evaluated to obtain the necessary funds, including the possibility of adding private partners. And he believes that in 18 months "the situation will be resolved."

América Latina · Equipment Providers and Network Solutions

25/03/2024

Andina Link 2024: Padtec targets small and medium-sized ISPs in Colombia

The Brazilian supplier Padtec participated in Andina Link 2024. From the fair, Hernán Yepes, CALA Norte Regional Manager, told Convergencialatina about the plans with the Colombian market, shaken by 5G deployment.

Search news