The implementation of a national agenda for ICTs: The Colombian case
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1 The implementation of a national agenda for ICTs: The Colombian case PANEL: Long-term policies for Digital Brazil H.S. María del Rosario GUERRA September 10,
2 C O N T E N T S Global and regional context Implementation of a national agenda for ICTs : lessons from the Colombian experience 2
3 Network Readiness Index 2014: Colombia, Chile and Uruguay are over the average Source: Global Information Technology Report (2014), World Economic Forum 3
4 Fixed broadband penetration rates of Colombia and Brazil grow at the same pace but the regional context calls for attention subscriptions per 100 inhabitants mar-00 oct-00 may-01 dic-01 jul-02 feb-03 sep-03 abr-04 nov-04 jun-05 ene-06 ago-06 mar-07 oct-07 may-08 dic-08 jul-09 feb-10 sep-10 abr-11 nov-11 jun-12 ene-13 ago-13 mar-14 Broadband Penetration rate - BRAZIL Broadband Penetration rate - AMERICAS Broadband penetration rate - COLOMBIA Broadband penetration rate - WESTERN EUROPE Source: Informa Telecoms and Media (2014) 4
5 Brazil performs as a global leader in mobile penetration rate: opportunities for ICT social impact subscriptions per inhabitant mar-07 jul-07 nov-07 mar-08 jul-08 nov-08 mar-09 jul-09 nov-09 mar-10 jul-10 nov-10 mar-11 jul-11 nov-11 mar-12 jul-12 nov-12 mar-13 jul-13 nov-13 mar-14 Mobile Penetration rate - BRAZIL Mobile Penetration rate - AMERICAS Mobile penetration rate - COLOMBIA Mobile penetration rate - OECD Source: Informa Telecoms and Media (2014) 5
6 C O N T E N T S Global and regional context Implementation of a national agenda for ICTs : lessons from the Colombian experience 6
7 ICT and economic growth A host of national and regional digital development plans testifies to the tremendous priority that public authorities give to ICTs today. Their impact nevertheless differs among regions and sectors: Recent analyses by Booz & Company reveal that a 10% increase in ICT adoption translates on average into 0.75% growth in GDP. The deployment of (high-speed) access alone accounts for 20% of this increase, with the remainder being due to the multiplier effect of the growing use of ICTs. The higher the level of digital development in a country, the greater the impact on the economy (network effect- positive externalities) The Booz & Company report also indicates that a 10-point rise in the digital adoption index translates into a 1% decrease in the unemployment rate. 7
8 Differential impacts on growth: Broadband development performs the LARGEST impact Growth effects of ICT (in percentage points) Source: QUIANG (2009), Worldbank 8
9 The institutional context and enabling environment for a Digital Agenda LEGISLATION ICT Law REGULATION Convergence and relevant markets ( ) END USERS POLICY Creation of Ministry of ICT and National Spectrum Agency PROVIDERS Network and service providers Source: Adapted from ITU/UNESCO Broadband Commission for Digital Development WEF (2013) 9
10 LEGISLATION: Since 2009 Colombia has a modern ICT Law The ICT Law provides a converged framework to foster the development of ICTs in Colombia through four main axes: Principle-based: certain degree of stability to allow meanand long-term planning by both the policy-maker and the industry Institutional Convergence, in order to facilitate the developments associated with technological and market convergence Flexibility: to face the requirements arising from technological development Global perspective: to constantly gather input from the industry. 10
11 LEGISLATION: Main principles of the Colombian ICT Law Priority to access to and use of ICTs Fostering Competition Efficient use of infrastructure and scarce resources Protection of ICT users rights Promotion of investment (both domestic and foreign) Technological and Network Neutrality Expansion of e- government 11
12 REGULATION Numbering Regulation to facilitate liberalization of Long Distance Services. Fixing of a Broadband Internet Access Standard at 512 kbps since 2007 and upgraded in 2010 to 1,024 kbps. Termination Charges Regulation (successive reductions) to foster competition among telecommunications services providers. Relevant Market Regulation and definition of providers with significant market power (dominance) since Assessment of regulatory remedies to prevent the abuse of dominant position in both wholesale and retail mobile markets in 2009, 2011 and Implementation of mobile number portability and roaming regulation 12
13 POLICY: prioritization and effectiveness in ICT policymaking From 2006 the Colombian government has placed ICTs at a TOP LEVEL in public policy with specific targets: Provide a stable legal framework that stimulate investments in an open and competitive high speed internet infrastructure. Develop an efficient spectrum policy. Increase public funds allocated to ICT development. Promote internet access and take-up by all Colombian citizens, mainly supporting digital literacy and accessibility. Create the conditions for high growth SMEs to lead emerging markets and to stimulate ICT innovation across all business sectors. Foster a market for contents and applications with high levels of trust and confidence and a balanced regulatory framework. Promote the allocation of research and innovation funds for ICT development. 13
14 POLICY: Increasing public investment in ICTs funded by private operators revenues , ,20 USD millions (2015) ,00 0,80 0,60 0,40 percentage points , ICT Public budget Share in the aggregate Public budget Source: Public statistics from the Colombian government and own calculations 14
15 PROVIDERS: in average the ICT sector outperforms the aggregate economic activity 25,00 20,00 Private investment expansion, mainly by mobile and broadband providers 15,00 10,00 5,00 - (5,00) mar-01 out-01 mai-02 dez-02 jul-03 fev-04 set-04 abr-05 nov-05 jun-06 jan-07 ago-07 mar-08 out-08 mai-09 dez-09 jul-10 fev-11 set-11 abr-12 nov-12 jun-13 jan-14 (10,00) Telecom GDP Aggregate GDP Source: Public statistics from the Colombian government and own calculations 15
16 Colombian digital agenda
17 Colombian digital agenda: 2010-today 2010-today 17
18 MAIN RESULTS of the Colombian digital agenda, ,122 municipalities (almost 100%) are already served by Broadband Internet: Fibre National Project High-speed National Network 50% of the population will be covered by 4G mobile services 50% of Colombian household are connected to Internet 60.6% MSMEs are using Internet in their productive processes 2,000 apps already developed in Colombia 62,000 ICT entrepreneurs are developing ICT-based business lines 526,918 public officers are Digital Citizens USD 3,057 millions: gross revenues of the Colombian IT industry 18
19 SUMMARY and CHALLENGES Main features for the consolidation of the Colombian digital agenda: Governmental willingness to consider ICTs as strategic instruments to foster socioeconomic development Highly trained and experienced policy makers with a clear long term perspective of the Colombian ICT sector Coordination of national strategies with sectoral and regional initiatives Important public investments Well defined and measurable goals Legal and institutional framework compatible with fast technological development The challenges to succeed in allowing ICT for development: Continuity of strategies and improving regional focalization Improve average citizen concern about the usefulness of ICT in their daily life Faster responses from the regulatory perspective to technological changes No politicization of ICT-related strategies 19
20 Perspectives to 2018 The last week the Colombian government launched the second version of VIVE DIGITAL with clear goals to 2018: Skyrocket Colombia to a global leading position in the development of social ICT apps to primarily benefit the poor. Consolidate Colombia as en efficient and honest government by the use and effective appropriation of ICTs. To arrive there the country is expecting to: Double the critical mass of IT business from 1850 (2014) to 3700 with yearly gross revenues of $9,300 millons Provide incentives to enroll 75,000 new students of IT undergraduate and technical programs Develop 5 sub-national digital ecosystems where IT entrepreneurship plays a starring role Take a share of at least $225 millions of the global biotechnology and bioinformatics market Be the first country in the world as regards as e-government. 20
21 Perspectives to 2018 Related to ICT infrastructure and info-culture, the Colombian government is looking for: Becoming the Latin-American leader en terms of high speed national networks: All Colombian municipalities served by a fibre backbone 7,621 community access points to ICT Kioscos Vive Digital along the country, specially in remote and poor areas Widespread 4-G coverage in all Colombian municipalities 1,000 free WI-FI access point along the country Reach the following penetration rates: 20% in fixed broadband 30% in mobile broadband 100% TDT coverage 21
22 H.S. María del Rosario GUERRA Colombia 22
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