Vive Digital: Colombia's Own Approach to Transforming Its Broadband Ecosystem

Abstract

Many countries have embarked on expansion of their broadband infrastructure following international trends and claims that positively correlate growth in gross national product with growth in the number of broadband accesses. Colombia has adopted an idiosyncratic approach to reduce disparity in broadband access to avoid repeating the existing inequalities in the fixed-line market between large urban centers and small, remote areas. This paper analyses the rationale for Colombia’s “Vive Digital”, the government plan for broadband expansion and other ICT-related initiatives. In particular, it examines the development of the public–private partnership that currently expands the country’s broadband capacity through the build-up of a fiber-based backbone, the proposed modifications to spectrum designation, the future 4G auction process, and the goals of the plan to improve the provision of electronically mediated services. Finally, we question the potential of the mechanisms employed to solidify the so-called “broadband ecosystem”. Conclusions put in perspective the dual role of the government in incentivizing the supply side of the broadband market and in subsidizing its demand side.

Keywords: Colombia, Vive Digital plan, Broadband, Fiber-optics network, 4G, spectrum

JEL Classification: L96