LATAM online video gloom as half of continent still not connected
Juan Fernandez Gonzalez
| 31 July 2015
While many business reports have been indicating a Latin American boom in recent years, some figures still point to unequal access to resources, especially technology, among Latin Americans, with one in two having no access to the Internet.
According to a report published by the Latin American development bank (CAF), over 50% of Latin Americans have no access at all, and only one in ten has access to broadband connections, which enable users to access over-the-top (OTT) services like video-on-demand (VOD) and streaming platforms. In addition, 20% access high-speed Internet through mobile devices.
The report does, however, show that 70% of Latin American businesses are connected to the Internet and use computers on a regular basis.
"Reducing the digital gap is possible only with both public and private efforts," said Mauricio Agudela, telecom specialist at CAF. "Over $140 billion is required to close the gap through to 2020, and this won't be coming without an institutional effort promoting investments and competition, and reducing companies' uncertainty".
Now the Latin American boom is cooling down, digitalisation might be a new way to create financial activity in the region. According to CAF figures, during the last five years, digitalisation has generated 4.3% of the whole NBP in the region, creating over 900,000 jobs.