This report was published on May 30,2012. At IDBdocs.IADB.org and this is a summary, the title is above. This report is part of a larger report called: " Bridging gaps, building opportunity. Broadband as a catalyst of economic growth and social progress in Latin America and Caribbean."
Broadband is expanding rapidly in Latin America and Caribbean, but the region still lags behind the world`s most advanced nations in terms of coverage, access and adoption of information and communication technology (ICT) services delivered through fast networks, according to a new report released by the (IDB) Inter-American Development Bank is the product of discussions between the IDB and a wide array of stakeholders, including tech companies, multinational and national telecommunications operators, academic institutions and international agencies. Bridging gaps, Building Opportunities report includes a common position statement with recommendations on how to accelerate the deployment and use of fixed and mobile broadband services in L.A. It cites an IDB study that found that a 10% increase in broadband penetration in the region could boost gross domestic product (GDP) by an average 3.2% and raise productivity by 2.6%. By improving broadband connectivity and making services more widely available and affordable, countries could help businesses, particularly small and medium-sized ones, becomes more competitive as well as provide their citizens access to more efficient government services, educational opportunities and healthcare. At present, however, broadband is less accessible, more expensive and less used in most L.A. countries than the average for countries in the OECD. In terms of fixed broadband penetration, European nations have an average of 30 installed lines per 100 people, nearly triple the average in this region. Regarding mobile broadband, countries such as Korea, Sweden and Japan have about one line per person. The average of L.A. is about 15 lines per 100 people.
Although prices have been falling in recent years, cost is another major hurdle: broadband users in L.A. pay far more for slower services than consumers in OECD countries, where households have more disposable income. The report also addresses issues such as digital literacy. Among the solutions countries could pursue to enable more citizens and businesses to take full advantage of broadband services are expanding current efforts to wire schools, train teachers in information tech ( IT ) and provide computers to students. Some countries have successfully used e-government portals as gateways to digital literacy services. Other encourage small business to adopt broadband and train their employees in ICT.
Governments could adopt policies to foster investment in broadband "backbone" infrastructure in the region. They could also adopt regulations to help reduce the cost of civil works needed to expand broadband networks, such as policies that require public companies building roads, railroads or pipelines to include ducts capable of carrying optic fiber. The concentration of demand for broadband services in major cities has led to strong competition among telecommunications companies. In order to improve coverage in sparsely populated areas, governments can establish universal service funds.
In its conclusions, the report states:"the challenges of developing broadband are so formidable that the private sector will not able to face them alone. Indeed, there is a need for governments to join with the private sector and to provide leadership to reduce not only the digital divide but also to use digital means to narrow the social divide." For its part, the IDB is committed to helping its member countries in L.A. and C. in the challenge of developing this technological infrastructure, from supporting the design of national broadband plans to nurturing public-private partnership necessary to expand broadband coverage.
