Broadband networks are the foundation of digital economies and a key driver of the economic and social development of Latin America. Although progress has been made, Latin America is lagging behind: more than half of Latin Americans do not have broadband access, and current broadband networks need urgent upgrade investments to prepare for the exponential increase in traffic demands that can be only addressed by fiber and 5G. Latin American policy-makers must take urgent action to accelerate digital infrastructure deployment, or Latin America will lose its way. This white paper is a contribution for policy-makers, describing Ovum's view of the key public policies that should be adopted to expand communications networks in order to boost economic and social development in Latin America. 1. The UN General Assembly stated in 2015 that the role of broadband is of critical importance for economic development, social inclusion, and environmental protection. Connectivity is a necessary condition to foster the development of the digital economy of Latin America. Several studies show the direct impact of broadband penetration is growth in wealth, productivity, and job generation. Broadband internet access is a key driver of economic growth and competitiveness, playing an increasingly transformative role across all economic sectors and societies. 2. Latin American countries are lagging in terms of economic growth rates and productivity. Not only is Latin American GDP not growing fast enough to keep up with the rest of the world but Latin America's contribution to global GDP has reduced from 6% of total global GDP in 1960 to 3%. Latin American indicators show a deterioration in governance and well-being in the region in recent years. Governments need to take action to reduce these gaps: broadband and ICT are critical to address this challenge.
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