After several years of growing at rates close to 50%, the fixed broadband market in Latin America is beginning to show signs of slowdown, as a result of saturation levels in higher-income urban areas and low adoption among medium and low-income households. Expanding the boundaries of the fixed broadband market towards these households represents one of the main challenges for telecommunications policy in the region over the coming years. The results of this paper suggest that, in general, fixed broadband prices in Latin America remain above the thresholds that promote the widespread adoption of the service. In particular, a comparison with developed countries suggests that there is ample room for price reductions and improved service quality. The “typical” broadband plan in Latin America is 66% more expensive than in OECD member countries, while, on average, the price per Mbps of download speed in developed countries is seven times cheaper than in Latin America. In regards to the service quality offered in the region, the results show a significant improvement over the past two years. The average download speed of the “typical” plan in Latin America doubled from 2010 to 2012, from less than 2 Mbps to almost 4 Mbps. However, the quality of the “typical” plan in OECD member countries also doubled (from 10 Mbps to 20 Mbps) during the same period. As a result, the gap in terms of service quality that separates the two regions remained constant. On average, the quality of service promised in the “typical” broadband plan in the region is five times lower than that in developed countries. In analyzing the relationship between broadband prices and income, the results indicate that, on average, a household in Latin America must make an effort seven times higher than an OECD household to pay for the “typical” broadband plan available in the respective markets. Bridging this affordability gap represents a major challenge for achieving high penetration of services in the region. Several countries in the region have recognized this challenge, undertaking infrastructure initiatives and regulatory changes to increase competition, and fostering the supply of basic connectivity plans.

This study discusses the current situation and evolution of broadband service offerings in Latin America and the Caribbean. The primary source of data is the annual survey of broadband plans conducted by the Center for Technology and Society at Universidad de San Andrés since 2010. The survey encompasses all broadband plans (fixed and mobile) offered by service providers with over 10% of market share in the region's most relevant markets (20 countries in total). The findings reveal a mature fixed broadband market in Latin America. While the cost per Mbps of advertised speed has dropped significantly between 2010 and 2013 (-58%), market entry prices have only dropped 11% over the same period. This indicates that fixed broadband operator prefer to compete on service quality rather than price in the middle and high-income segments of the residential market. Further, despite improvements in some price indicators, the gaps with OECD countries continue to be large. As an example, a 2.5Mbps connection in Latin America is, on average, three times more expensive than in the OECD. The findings also corroborate the opportunity to expand the market frontier with mobile broadband services. A price comparison with similar fixed access services reveals that mobile broadband is, on average, 23% cheaper. Yet the data is not conclusive as to whether mobile broadband prices exert pressure on fixed broadband prices. Also, an affordability analysis shows that, on average, Latin American users must spend six times as much as their OECD counterparts to purchase the same mobile broadband service package. The key potential offered by mobile broadband stems from the greater segmentation of broadband plans, which enables a better fit between user preferences and willingness to pay, particularly in the low-income market segment. Nonetheless, some of the observed segmentation strategies by mobile broadband operators warrant regulatory attention, as they may challenge basic principles about Internet network openness and lead to anti-competitive effects in the so-called OTT (over-the-top) market.

Foreword -- The shifting digital paradigm in Latin America -- The demand gap: drivers and public policies -- Regional and international connectivity -- Broadband, digitization and development -- Mobile broadband: the urgent need for speedier roll-out -- Cloud computing, structural change and job creation in SMEs -- National broadband plans -- Broadband and industrial policy: the Korean experience -- Net neutrality: debate and policies -- The advance of cloud computing -- The challenge of over-the-top content and services

This joint initiative by the Inter-American Development Bank (IDB) and the OECD seeks to encourage the expansion of broadband networks and services in the region, supporting a coherent and cross-sectorial approach, to maximise their benefits for economic and social development.

We analyze tariffs for fixed broadband services in Latin America and benchmark against tariffs in the OECD. We also develop a new broadband development indicator (the Broadband Performance Index) that compares actual penetration rates with those predicted by our regression model. The results shows that broadband services in Latin America are generally expensive and of poor quality when benchmarked against OCED countries, and that Latin American countries are underperforming in broadband development after wealth, education and demographics factors are accounted for. We also provide price elasticity estimators for broadband demand in Latin America. The results reveal that an average price reduction of 10% would result in an increase of almost 19% in the penetration rate, equivalent to 4.7 million additional broadband connections. Finally we estimate the affordability of broadband services for households in a sample of countries in the region. The results reveal that sharp price reductions would be needed to achieve household penetration rates comparable to the OECD, and that public access initiatives will still be needed to provide services for the lowest-income households.

The Internet has been a reality in Brazil for more than 20 years. Its growth has been encouraged by the government, by large telecom companies, and by small and medium Internet service providers, as well as by rapidly increasing demand. The achievements to date are clear, but almost half the population is still not participating in the digital world. Furthermore, the cost of broadband is still high and its quality should be improved so that it will be possible to take advantage of all the benefits it can bring, whether related to health, education, or even the exercise of political rights. It is necessary, therefore that the Brazilian Internet be fast, reliable, and accessible. This book brings together 23 specialists in various areas related to broadband, specialists who wanted to discuss Brazil’s public policies and regulations as well as the progress and challenges related to expanding access to broadband Internet service. The 16 chapters also address the evolution of the country’s broadband infrastructure, including experiences of entrepreneurship and public-private partnerships. This debate is fundamental for Brazil’s technological, economic and social progress.

This book presents pioneering research that is designed to show, from a qualitative and ethnographic perspective, how new information and communication technologies, as applied to the school system and to local governance initiatives, merely reproduce traditional pedagogical approaches and the dominant forms by which power is exercised at the local level. The studies thus constitute points of departure for further thinking about the need to promote an Internet culture based on the social application of a OC right to communication and cultureOCO and an OC Internet right, OCO that will permit the establishment of true citizen participation and free access to knowledge, with due regard to personal and individual rights such as those of privacy and intimacy."

This joint initiative by the Inter-American Development Bank (IDB) and the OECD seeks to encourage the expansion of broadband networks and services in the region, supporting a coherent and cross-sectorial approach, to maximise their benefits for economic and social development. Drawing on a wealth of experience from LAC and OECD countries, the Toolkit outlines the main policy objectives in this area and provides guidance for their measurement, an overview of developments in the region, and a compilation of good practices in several areas related to broadband policy making. This comprehensive volume encompasses a wealth of areas including digital strategies, regulatory frameworks, spectrum management, competition and infrastructure bottlenecks, broadband access, affordability, sector taxation, inclusion, convergence, regional integration, education, skills, business uptake, entrepreneurship, local content, e-health, digital government, consumer policy, and digital security and privacy.

Broadband is key to inclusive growth. It contributes substantially to social and economic development in the areas of job creation, business investment, and online services, among others. Several countries in Latin America and the Caribbean have already initiated reforms of their telecommunications framework to advance broadband towards universal usage. On one hand, the universal access service (UAS) policies that are relatively solid in middle-income or emerging countries will attract significant financial resources to manage the high costs that relate to new infrastructure in rural areas. Depending on the country's topography, however, the possibilities for development may be limited and costly. On the other, UAS policies that are considered advanced or have been long established (and rely considerably on the private sector) will need to address the disbanding of old frameworks. The objective of this publication is to assist national authorities in the region as they bridge the gaps between their countries and those that have developed effective UAS policies.