Members of the Union of South American Nations (Unasur) met Nov. 29 in Brazil’s capital of BrasÃlia to discuss the creation of a regional connectivity network to create more points of interconnection both domestically and regionally. The initiative would cost U.S. $100 million and could be finished within two years, Brazilian Communications Minister Paulo Bernardo said.
The regional connectivity network could decrease the distances traveled by data traffic, resulting in lower costs. According to two studies released by the Inter-American Development Bank (IDB), Unasur’s members must improve cooperation and stimulate private investment to increase access to broadband services, which would lead to a reduction in costs and greater usage.
During the meeting, members discussed using public companies to implement this regional connectivity network. As an example, Telebrás was mentioned as a candidate in Brazil.
The Economic Commission for Latin America and the Caribbean (CEPAL) points that between 75% and 85% of regional traffic passes through Miami, in the United States, including the content produced in Latin American countries. In contrast, in Europe, almost all traffic is concentrated within its borders.
IDB noted that, although Internet broadband infrastructure is growing throughout the region, penetration is only 7 lines per 100 inhabitants, fewer than China’s 9.4 and many fewer than in OECD countries, where the figure is close to 25.
The bank said that to democratize broadband access, countries must maximize public-private partnerships, adopt tax incentives to promote demand, support the creation of regional and local services and content, and modify their regulations to increase private investment in regional and international connections and other broadband infrastructure.
IDB said that South America will accelerate economic development if it increases access to broadband services to low-income populations and businesses, especially small and midsize companies. The institution pointed that Unasur’s member countries have a great opportunity to invest in coordinated efforts to improve regional and international connectivity and increase the production of local content.
The IDB studies also recommends that the region increases connections with other parts of the world, using underwater fiberoptic cables, particularly North America, Africa, and Asia. By 2013, the installed capacity of Latin America’s underwater fiber optic cable will be one tenth of Africa’s capacity, even though the countries of Latin America and the Caribbean generate much more Internet traffic because of their higher levels of business activity.
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