It is no secret that access to digital technologies is an essential mechanism for the social and economic development of Latin American countries. Including more and more people in the development of the digital society in the region is a critical priority. Is it possible to imagine a technological world without the people who inhabit it? Does technology have a purpose if a large group of people cannot or do not have access to it?
I would like to suggest, as we discussed at the Second Meeting for Digital Inclusion in Bogotá, that the challenge of digital inclusion is closely linked to human gaps and not just to the creation of new technologies or the deployment of more infrastructure.
This means that the issue of inclusion now more than ever requires work on human capital, in particular on improving skills and closing other usage gaps of technology. Only by improving the quality of education, developing relevant content and services, facilitating the accessibility and affordability of devices, and providing employment opportunities can we close the gaps and ensure a digital, social and inclusive transformation.
In addition to emphasising the human side of the equation, the Second Meeting on Digital Inclusion highlighted the need to evolve the traditional model of telecoms regulation, encouraging cooperation and alliances between different public and private actors to attract sustainable investment to the region, with the aim of making progress in closing the coverage gap.
Closing the coverage and usage gaps for social development
The inclusion of all people in the digital world is an imperative for development. The numbers are clear: according to the report on the Digital Society in Latin America 2023, prepared by the Telefónica Movistar Foundation, a 1% increase in a country’s digitalisation index can translate into economic growth of 0.3% in its GDP.
On the other hand, the GSMA indicates that closing the digital divide between Latin America and the average OECD country could generate 3% annual growth and more than 400,000 new jobs in the region .
The reality in the region is worrying: Latin America and the Caribbean is the most unequal region in the world, with the richest 10% of the population earning on average 12 times more than the poorest 10%. In addition, one in five people in the region are classified as poor (IDB, 2024), although there are countries where this proportion is much higher. This is detailed in another GSMA report (2024), which shows that 225 million people in this part of the world still lack access to mobile internet. The situation is made worse when we see that of these, 181 million people have the infrastructure but are unable to use the technology in their daily lives.
So, the problem is not so much a lack of infrastructure as a lack of use of the technology that is available.
A sustainable environment is crucial for the development of digitalisation
The fact is that the complex financial sustainability of the telecoms industry is putting at risk the deployment of the infrastructure needed to connect more people and close the gaps. In this context, there are two key steps we need to take. The first is to work to improve countries’ regulatory frameworks and public policies. In this way, we can enable sustainable investment models based on innovation and cooperation between stakeholders.
Second, the traditional telecommunications model needs to evolve to attract sustainable investment to the region. Swap-for-bond models, as opposed to the traditional focus on using Universal Service Fund (USF) resources, would allow us to make progress in closing the digital divide in a much more efficient way. According to the GSMA, USFs have not effectively closed the connectivity gap in the region due to low disbursement rates, under-implemented projects and a lack of robust evaluations of beneficiaries and return on investment.
The large investments needed to cover unserved areas and upgrade existing networks cannot be met by the telecommunications industry alone and require the contribution of other actors to make them sustainable. According to the IDB, US$68 billion would be needed to close the gaps that currently exist in the region. Investing in digital infrastructure is not about benefiting economic groups or companies, but about promoting inclusive economic development for society.
This is why at Telefónica we have launched several initiatives aimed at promoting a financially profitable industry with a long-term vision that allows people to make the most of the opportunities offered by technology.
Models based on collaboration and innovation
Digital inclusion is a priority for Telefónica. Bringing connectivity and opportunities to millions of people in Latin America is one of our main objectives. With initiatives such as Internet para Todos (IpT), we are closing the coverage gap in rural areas of Peru, successfully connecting more than 3.7 million people, providing service to more than 18,700 locations by September 2024 and increasing internet access in rural areas from 22% to 45%. This has been achieved through innovative infrastructure sharing models and strategic partnerships between the public and private sectors. IpT demonstrates how we can transform lives by working together and collaborating with different stakeholders in the telecommunications sector.
In addition to improving infrastructure, at Telefónica we support programmes to close education gaps and increase employability. Mujeres en Red (MER) promotes the employability of women in the telecommunications sector through education and the development of technical and technological skills.
MER has promoted the decent employment and empowerment of more than 1,000 women technicians who have been brought into the sector by Telefónica’s contractors, and has trained more than 7,000 people (technicians, engineers and administrative staff) in gender equality issues in Colombia and Peru. MER has strengthened the skills of these women so that they can integrate into a traditionally male-dominated sector and contribute to closing the wide gap of labour inequality that has worsened during the pandemic, affecting women in particular.
The inspiring stories of these women who have accessed training to improve their employability motivate us and confirm that education and skills development is the way to digital inclusion.
In education, to take another example, ProFuturo and Conecta Empleo from Fundación Telefónica have trained millions of students, teachers and individuals in digital skills, helping to reduce the gender gap and prepare the population for the digital labour market.
In 2024, Conecta Empleo helped more than 265,000 people improve their digital skills, 57% of whom were women. In turn, ProFuturo has benefited around 563,000 children and trained around 188,000 teachers in Latin America. These figures add to the total impact of ProFuturo in the region since 2016, which will accumulate to approximately 2.7 million children directly benefited and approximately 1 million teachers trained by the end of 2023.
For Telefónica, digital inclusion is not just a connectivity challenge, but a commitment to ensure that no one is left behind in this digital age.
Initiatives like these reflect our strong commitment to digital inclusion and our focus on bridging the connectivity gap. We work every day with a clear mantra: the challenge of inclusion is first and foremost a human one. Only by putting those who are still excluded at the centre, empathising with their needs and understanding their realities, can we move towards digital, social, economic and sustainable inclusion that benefits everyone.
