# Luxury to essential: Latam boosts internet access in pandemic
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-24
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: COVID-19 Widens Latin America's Digital Divide
Meta Description: Discover how the pandemic has exacerbated the digital gap in Latin America, leaving millions without internet access and the efforts being made by governments
URL: https://financedigest.com/luxury-to-essential-latam-boosts-internet-access-in-pandemichtml

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By Anastasia Moloney and Fabio Teixeira

BOGOTA/RIO DE JANEIRO (Thomson Reuters Foundation) -Huddled over a red tablet on loan from their school, Mercedes Ortiz’ two children study from their home in a hillside slum outside Bogota – a novelty for the family after several COVID-19 lockdowns without internet access or tech devices.

“With schools closed for the year, my son and daughter have missed out on their education as I only have internet access on my mobile phone when I have data,” said Ortiz, a Venezuelan migrant who came to the Colombian capital three years ago.

The pandemic has exposed a deep digital divide – defined as the gap between those who have a reliable and affordable broadband [internet access](https://www.financedigest.com/51-of-brits-support-teresa-may-and-would-grant-access-to-their-personal-communication-and-internet-browsing-history-as-part-of-the-snoopers-charter.html "51%* of Brits support Teresa May and would grant access to their personal communication and internet browsing history as part of the Snooper’s Charter ") and devices like tablets, smartphones, and computers, and those with none or limited access.

Across Latin America and the Caribbean, three in 10 people – 244 million – have no internet, [according to a 2020 study](https://www.financedigest.com/us-homeowners-premium-set-to-surpass-90bn-for-the-first-time-according-to-annual-aon-study.html "US homeowners premium set to surpass bn for the first time, according to annual Aon study") by the Inter-American Development Bank (IDB) that examined 24 of the region’s 33 countries.

The pandemic has meant people without tech or internet, particularly migrants and people in rural areas and slums, have struggled to work remotely, access [online classes](https://www.financedigest.com/developing-your-career-with-online-classes.html "Developing Your Career With Online Classes") and medical appointments or register for government subsidies.

But COVID-19 has also spurred government action in the region to bridge the [digital divide and ensure more people, like the Ortiz family, have access to digital services](https://www.financedigest.com/maximising-ai-during-digital-transformation-in-the-financial-services-sector.html "Maximising AI during digital transformation in the financial services sector").

“It’s not just the awareness but also the understanding that governments need to wake up and do something,” said Shamika Sirimanne, head of technology and logistics at the U.N.’s trade and development body (UNCTAD).

This is like a [tipping point,”](https://www.financedigest.com/are-we-at-a-digitise-or-die-tipping-point-in-the-telco-space.html "Are we at a ‘digitise or die’ tipping point in the telco space?") she said.

NEW LAWS

In Colombia, a law passed in July declared the internet an “essential [public service”](https://www.financedigest.com/the-new-fangled-normal-of-working-from-home-to-push-the-public-cloud-service-market.html "The “New-Fangled” Normal of “Working from Home” to Push the Public Cloud Service Market"), meaning that “its importance and necessity for Colombians is comparable to that of water, electricity and gas,” Colombian President Ivan Duque has said.

The law obligates telecoms [operators to guarantee customers](https://www.financedigest.com/australias-qantas-apologises-to-customers-for-operational-problems.html "Australia’s Qantas apologises to customers for operational problems") internet service and provide minimum browsing and free text packages during health and other emergencies.

This follows a similar law passed in Chile and a decree announced in Argentina last [year making the internet](https://www.financedigest.com/2017-the-year-of-the-internet-of-some-things.html "2017 – The year of the Internet of ‘SOME’ Things") “a public service” during COVID-19 lockdowns.

Peru, Brazil and Argentina are all mulling laws that would make the internet an essential public service, according to World [Bank tech](https://www.financedigest.com/how-can-banks-overcome-the-tech-trust-gap.html "How can banks overcome the tech trust gap?") expert Doyle Gallegos.

This all really started last year in Latin America,” said Gallegos, lead digital development [specialist at the World Bank](https://www.financedigest.com/the-rise-of-the-specialist-bank.html "The rise of the specialist bank").

It’s really a proclamation that [providing internet access to all citizens is critical](https://www.financedigest.com/keysource-to-provide-critical-facilitiesmanagement-support-for-leeds-city-council.html "KEYSOURCE TO PROVIDE CRITICAL FACILITIESMANAGEMENT SUPPORT FOR LEEDS CITY COUNCIL") and a high priority for the government,” he said.

In the United States, a bipartisan group of senators and the White House are debating [extending a program to help lower-income Americans get broadband access](https://www.financedigest.com/fico-and-efl-partner-to-extend-access-to-credit-for-unscoreable-consumers-and-entrepreneurs-in-multiple-markets.html "FICO and EFL Partner to Extend Access to Credit for “Unscoreable” Consumers and Entrepreneurs in Multiple Markets") by folding it into the $1.2 trillion infrastructure package passed this month.

The [pandemic has also prompted countries](https://www.financedigest.com/as-who-pandemic-pact-talks-begin-poor-countries-on-back-foot.html "As WHO pandemic pact talks begin, poor countries on back foot"), including Peru, Argentina, Chile and Colombia to introduce other measures to boost free internet access.

This has included lending free tablets to teachers and students, expanding free WiFi hotspots in public spaces, and ‘zero-rated’ [services where certain government](https://www.financedigest.com/brexit-and-financial-services-a-government-oversight.html "Brexit and Financial Services – A Government Oversight?"), health and education sites and applications are not counted against a user’s data limits.

During the pandemic, regulators and governments [changed regulations “basically at the stroke of a pen” to ensure](https://www.financedigest.com/the-lego-blocks-of-saas-how-microservices-can-help-ensure-compliance-with-changing-financial-regulations.html "The Lego blocks of SaaS: how microservices can help ensure compliance with changing financial regulations") people were not shut off from internet services, Doyle said.

“For too long, access to the internet and devices, such as smartphones and laptops, have been seen as not essential, and even in cases, as luxury services,” he added.

New laws declaring the internet as a [basic service are “good beginnings,” but must be backed](https://www.financedigest.com/investors-go-back-to-basics-with-simpler-self-driving-vehicles.html "Investors go back to basics with simpler self-driving vehicles") by measures to lower the high cost of internet services in low-income countries, said the U.N.’s Sirimanne.

“If you don’t have internet access, you don’t have a digital economy,” she said. You are [cut off from the productive](https://www.financedigest.com/apple-likely-to-cut-iphone-13-production-due-to-chip-crunch-bloomberg-news.html "Apple likely to cut iPhone 13 production due to chip crunch -Bloomberg News") sector.

According to the U.N, 1 gibabyte of [data should cost](https://www.financedigest.com/check-please-adding-up-the-costs-of-a-financial-data-breach.html "Check, Please! Adding up the Costs of a Financial Data Breach") no more than 2% of an average monthly income for internet to be affordbable, but in countries like Colombia, internet access can cost more than 10% of the monthly income of the country’s poorest citizens.

In Brazil, Congress passed a law in February that would transfer about R$3.5 billion ($650 million) for states to provide internet [access to poor public school students by buying them data plans](https://www.financedigest.com/are-the-over-55s-accessing-their-pensions-early-failing-to-plan-for-later-life.html "Are the over-55s accessing their pensions early failing to plan for later life?") and tablets.

We have 18 million [students in social vulnerability](https://www.financedigest.com/its-back-to-school-for-investors-as-uk-student-accommodation-less-vulnerable-to-brexit-shock-reports-jll.html "It’s back to school for investors as UK student accommodation “less vulnerable to Brexit shock” reports JLL"), and six million that cannot attend (online) classes because they lack internet access,” Israel Batista, one of several opposition congressmen who helped draft the bill, told the Thomson Reuters Foundation.

But Brazil’s far-right president Jair Bolsonaro vetoed the law in May – a move later overturned by Congress – and then challenged it before the Supreme Court.

In August, Bolsonaro issued a decree that indefinitely delays federal [funds for internet access](https://www.financedigest.com/55-of-uk-smes-unable-to-access-all-funding-needed-to-grow.html "55% of UK SMEs unable to access all funding needed to grow") being transferred to states.

“What (Bolsonaro) wants is to postpone (the transfer) as much as possible, because if by the end of December the states haven’t spent it, they need to return it,” said Luis Claudio Araujo, a constitutional law professor at Brazil’s Ibmec university.

Brazil’s economy and education ministers have [warned Congress about the financial risks](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns") of the law, a spokesperson for the education ministry said in a statement.

The government “spared no efforts in attempts to universalize internet [access to students who need](https://www.financedigest.com/what-needs-to-happen-to-improve-the-landscape-for-smes-trying-to-access-finance-options-in-the-uk.html "What needs to happen to improve the landscape for SMEs trying to access finance options in the UK") these public policies”, they said.

FEW INCENTIVES

The [pandemic has highlighted the stark digital](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition") divide between rural and urban areas, but also between city dwellers in affluent neighborhoods and those living in slums, Doyle said.

In many [big South American cities](https://www.financedigest.com/downsizers-in-the-big-city-why-wembley-park-is-the-place-to-be-for-those-who-want-more-for-less.html "Downsizers in the big city – why Wembley Park is the place to be for those who want more for less  "), there is good 4G internet coverage but poor residents can rarely afford to get online, he added.

The [digital inclusion problem](https://www.financedigest.com/digital-ma-dealing-with-the-problem-of-protectionism.html "Digital M&A: Dealing with the problem of protectionism") is not just urban versus rural but it’s high-income versus low-income, it’s gender- related, it’s disability-related,” he said.

Governments forming partnerhips with private telecoms companies and [providing financial](https://www.financedigest.com/mazars-to-acquire-financial-modelling-consultancy-and-training-provider-corality-financial-group.html "Mazars to acquire financial modelling consultancy and training provider, Corality Financial Group") incentives, like tax breaks, to build infrastructure in rural areas can help bridge the digital divide, Doyle said.

“A stronger relationship between both the private and public is what really is going to make a difference and create internet access for all,” he explained.

Tech entrepreneur Charvel Chedraui, who founded Wayru – an internet service provider start-up – said Latin America’s telecoms companies view expanding internet access in rural areas as too risky and costly.

Investing in internet infrastructure, such as [fiber optic cables](https://www.financedigest.com/fiber-optic-cables-market-2017-outlook-current-and-future-industry-landscape-analysis-2027.html "Fiber Optic Cables Market 2017 Outlook, Current and Future Industry Landscape Analysis 2027"), antennae and cell towers with 5G, is rarely profitable, he said, so governments need to step in.

“If governments don’t put the infrastructure and funding in place, then it’s just talk,” said Chedraui.

($1 = 5.3770 reais)

(Reporting by Anastasia Moloney in Bogota and Fabio Teixeira in Rio de Janeiro; Editing by Zoe Tabary. Please credit the [Thomson Reuters](https://www.financedigest.com/thomson-reuters-keeps-outlook-but-wary-of-slowing-economy.html "Thomson Reuters keeps outlook, but wary of slowing economy") Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit http://news.trust.org)


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