ICT

ECLAC: Internet Use and Access Increases Sharply in Latin America and the Caribbean

Cepal - September 12, 2016

43.4% of all households were connected to the Internet in 2015, nearly doubling the figure from 2010, according to The State of Broadband 2016 report, which will be presented at the second meeting of the Conference on Science, Innovation and ICTs that begins today in Costa Rica.

Latin America’s digital divide

How the lack of Internet access creates a new form of discrimination

Miguel Angel Pérez Álvarez - May 2014

n Mexico there are 45 million Internet users, which in a country of 120 million represents an Internet penetration of 38%. Chile leads the region with 61% while 27% of the population of Paraguay enjoys access to the Internet. In Honduras and El Salvador, Internet penetration does not exceed 20%. If the issue of Internet access one that reflects inequality then Latin America is suffering from a “digital apartheid.” For comparison: 81% of the U.S. is connected while in the Netherlands, 93% are.

Latin America: The Internet and Indigenous Texts

Marc Becker, Delgado Guillermo - December 1997

In an age of global communication and computer technology, indigenous peoples have slowly gained access to electronic communication. With all of the hype surrounding cyberspace and hyperspaces as we enter a new millennium, we need to examine how indigenous peoples use and are impacted by this technology. Is there still a possibility that marginalized indigenous territories within Latin America are successfully and effectively utilizing this technology to make their voices heard?

The Mobile Economy Latin America and the Caribbean 2017

GSMA Intelligence - 2017

Smartphone and 4G adoption accelerating

Across Latin America and the Caribbean, smartphone adoption has accelerated to reach 59% of total connections by the first half of 2017. In the largest markets, adoption has grown particularly quickly: since the beginning of 2016, almost 85 million new smartphones are in use in the region, with Brazil adding more than 20 million and Mexico 18 million. By 2020 the region will have an adoption rate of 71%, ahead of the global average of 66%. This translates into an additional 171 million new smartphone users across the region by the end of the decade. Operators across the region have launched 108 LTE networks in 45 markets, as of June 2017. As a result, coverage has risen sharply in recent years, now reaching a critical mass of 70% of the population. 4G adoption rates are now accelerating, with the rate across the region more than doubling in 2016. By 2020, the region will largely close the gap on the rest of the world, reaching 42% of connections compared to the global average of 44%. Brazil in particular is seeing a strong 4G growth spurt. 

5G to arrive in earnest in mid-2020s

Although the focus for both operators and consumers is currently 4G, 5G coverage will begin to expand rapidly by the middle of the next decade to reach just under 50% by 2025. Total 5G connections will exceed 50 million by 2025, nearly 5% of the global total. Adoption will expand once coverage reaches critical mass in key markets, led by Argentina and Mexico

Data usage growing, with data revenues powering a recovery in revenue growth

Driven by the increased mobile broadband and smartphone adoption, mobile data usage is growing strongly across the region. Overall mobile data usage grew 64% in Latin America in 2016. Going forward, Cisco projects 42% annual growth in data usage to about 5.5 GB per user (nearly six times the 2016 level) in 2021. Operators are increasingly successful in monetising this data usage. Data revenue growth, combined with a positive elasticity response to intense price competition, less regulatory pressure and an improved economic environment, are driving the first positive ARPU growth this year since 2012, and the first year of positive revenue growth since 2014. Recurring revenues will grow at an annual rate of just over 4% through to 2020.

Operators continue to invest in 4G coverage and capacity expansion

Operators will continue to invest to expand coverage to close to 90% of population and to add the capacity required for higher data usage. Overall investment by operators in the region will total nearly $70 billion through to 2020. However, thanks to the revenue recovery, capex as a percentage of revenues will drop to 20% by 2020, down from over 23% in 2016.

Mobile ecosystem is a major contributor to the regional economy

In 2016, mobile technologies and services generated 5% of GDP in Latin America, a contribution that amounted to $260 billion of economic value added. In the period to 2020, this will increase to $320 billion (5.6% of GDP), as the region experiences strong growth in productivity brought about by continued adoption of mobile internet. The mobile ecosystem supported 1.7 million jobs in 2016. This includes workers directly employed by mobile operators and the ecosystem, and jobs that are indirectly supported in the rest of the economy by the activity generated by the sector. The sector also makes an important contribution to the funding of the public sector, with almost $35 billion raised in 2016 – mainly in the form of general taxation, including VAT, corporate taxes and employment taxes.