Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Thursday, February 29, 2024

MWC Barcelona 2024

Latin American governments and companies discussed demand-side subsidies to reduce the digital divide

The debate was led by the Latin American Forum of Telecommunications Regulatory Entities (Regulatel) and the Inter-American Association of Telecommunications Companies (Asiet), with the strategic support of Vrio Corp. Authorities from the governments of Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, the Dominican Republic, and Uruguay were present.

The discussion focused on demand subsidies in the face of rising costs as a tool to mitigate the economic and social consequences of exclusion, with the aim of reducing the digital divide. In this context, Vrio Corp. presented a study proposing financial stimulus mechanisms to reduce the digital divide, with examples of successful and scalable programs, and specific instruments for crafting public policies.

A study by the IDB and the Telecommunications Center in Latin America (Cet.La) reported that to achieve 99% coverage of 4G, 81% of 5G, and 65% of fiber optics by 2030, investments totaling US$ 125.462 billion are needed.

Furthermore, the funding required to achieve the digital divide reduction goals by 2030 is US$ 8.455 billion in Argentina, US$ 40.851 billion in Brazil, US$ 13.742 billion in Chile, US$ 12.091 billion in Colombia, US$ 2.747 billion in Ecuador, US$ 30.958 billion in Mexico, US$ 6.432 billion in Peru, and US$ 1.525 billion in Uruguay.

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