Connectivity Gaps in Latin America

A Roadmap for Argentina, Brazil, Colombia, Costa Rica and Ecuador

Recent years have seen an internet connectivity revolution in Latin America. Between 2014 and 2021, the number of people in the region with mobile internet access nearly doubled, from 220 million to almost 400 million. Despite this spectacular growth, 230 million people remain without access to mobile internet. And in contrast to the fast pace of change seen over the last few years, further progress will be increasingly complex.

Lack of demand (the ‘usage gap’) is the main driver of the mobile internet connectivity gap across Latin America. Some 190 million people across the region (of the 230 million unconnected), in both urban and rural areas, live in locations with mobile internet network coverage but do not access the internet. Despite a continued decline in service prices, this usage gap remains due to a lack of affordability.

This report examines the limitations of the current design of universal service funds (USFs) and proposes reforms and alternative options to expand 4G connectivity levels by 2030.