Development of local content in the Internet increases the adoption of broad band

In Latin America, the digitalization process has experienced a significant advance. However, there are still challenges for the region. One of them is the development of local content for the Internet as an incentive to increase the adoption of broad band. For example, according to academic studies, the percentage of the 100 most popular sites with local content in the region reaches only 26 percent, while in the United States it is 58 percent. 

According to a study carried out by CAF, Development Bank of Latin America, ECLAC, cet.la and the Fundación Telefónica, between 2005 and 2013 digitalization has contributed USD 195 billion to Latin America's Gross Domestic Product (GDP), approximately 4.30 percent of accumulated growth.  

During the forum "New Technologies, challenges, and opportunities. Canaemte 2015", Mauricio Agudelo, Telecommunications Specialist at CAF, expressed, "the main challenges that persist in Latin America are related to issues of connectivity, human capital, investment, and digital innovation, in order to continue expanding the digital ecosystem". 

Although broad band is expanding in the region, the maximization of the wealth generated in the new value chain of Internet requires the mobilization of resources toward the development of a regional industry of OTT and applications, together with spreading broad band connectivity, as access continues to be low compared with international standards. 

Agudelo also pointed out that the new digital platforms have a multiplying effect on the adoption of Internet, and that there are indirect effects on productivity and new technological transfer. 

Thus, CAF's agenda regarding the generation of knowledge and financing operations is a catalyzer for the development of these new models.