Is Decentralisation the Future of Telecoms in LATAM?

Elisabeth Simaõ

Authors

Ahead of her panel at Capacity LATAM on Tuesday 14 March, Elisabeth Simaõ introduces some of the challenges that prevent greater internet penetration and infrastructure development in the Latin American & Caribbean (LAC) region. Elisabeth asks what advances might be made as carriers adopt a more decentralised approach to networks—how will this help tackle the digital divide?

Facts & Figures on the Latin America & Caribbean Region

The LAC region stands as one of the most industrialised in the world and yet it continues to sit low in the rankings for internet penetration—less than 50% of the population has fixed broadband—and in many rural areas only 4 in 10 households have connectivity options.

The below infographic summaries some of the key facts to understand this huge gap in digitalisation.

There is huge potential to be unlocked in the region, and digitalisation would have dramatic positive effects on the economic recovery from Covid-19 as well as promoting better health, productivity and education.

Two Possible Models for Infrastructure Development in Latin America

As we talk about decentralisation of the internet and Web 3.0 as the next paradigm of telecommunications, what benefits could this offer to the Latin America and Caribbean (LAC) region?

Is there an urgent need for decentralising the internet in a region where the population is concentrated in large cities and there is a stark digital divide?

Rapid industrialisation in Latin America since the 1960's and the resultant urbanisation of populations has led to high concentrations of economic power in a small number of urban centres.

This leads to two potential models of digital infrastructure development in LAC. In the first, nations generally develop their own infrastructures and attend to their own needs and agenda. The second model sees a more fragmented approach with IXPs providing hyperscale connectivity to link up economic centres and leveraging those Tier 1 benefits to rural areas as the exchange network and peering ecosystems extend their reach.

As edge and IoT needs grow, requiring lower latency and local processing, this decentralised infrastructure will hopefully support an exponential growth in traffic on the back of lower data costs and rising household income.

This would take aim at the digital divide, tackling societal and economic poverty by seizing digital opportunities that unlock a more sustainable, more resilient, more productive and more inclusive future.

Capacity LATAM Panel Discussion: How are IXPs Decentralising Latin America's Internet?

This year I am moderating a panel on the progress made by IXPs to decentralise the network infrastructure in LAC countries. The details of this panel are below for attendees. To prepare for the panel, I have provided a series of short questions that will form part of the debate.

We will also answer these questions and go into further detail in a follow-up article after the conference. Please get in touch if you have any questions.

Title of panel:
How are IXPs decentralising Latin America's internet?

Date and Time:
Tuesday, 14 March, 11:50am to 12:30pm

Summary:
Across Latin America, we are seeing key exchanges growing, such as IX.br, and new exchanges emerging across the region. The growth of peering ecosystems lowers connectivity costs and decreases latency.

This session will discuss:

Efforts to decentralise the internet through new exchanges
The growth of ecosystems in established and growing markets
The future of peering from direct enterprise interconnection to hyper-local exchanges

Moderator:

Elisabeth Rodrigues Simão, Cambridge Management Consulting

Speakers:

Ivan Zilic, Technology Director, PIT CHILE

Salvador Bertenbreiter, CSO, PIT Colombia

Hernan Seoane, General Manager & Treasurer, CABASE

Milton Kashiwakura, Director, Special Projects and Development, NIC BR

Hernán Yepes, Regional Manager, Padtec

Questions for discussion before the panel

What does 'decentralising the internet' mean for IXPs?
Is there a need for decentralising internet in South America?
Are IXPs decentralising to centralise?
What are the challenges for IXPs in this decentralisation process?
How do you see the future in this context in 5 to 10 yrs?

I look forward to seeing you there and have a great time at Capacity LATAM 2023 - Elisabeth Simaõ

About Us

Cambridge Management Consulting (Cambridge MC) is an international consulting firm that helps companies of all sizes have a better impact on the world. Founded in Cambridge, UK, initially to help the start-up community, Cambridge MC has grown to over 200 consultants working on projects in 25 countries. Our capabilities focus on supporting the private and public sector with their people, process and digital technology challenges.

What makes Cambridge Management Consulting unique is that it doesn’t employ consultants – only senior executives with real industry or government experience and the skills to advise their clients from a place of true credibility. Our team strives to have a highly positive impact on all the organisations they serve. We are confident there is no business or enterprise that we cannot help transform for the better.

Cambridge Management Consulting has offices or legal entities in Cambridge, London, New York, Paris, Dubai, Singapore and Helsinki, with further expansion planned in future.

Find out more about our people services and full list of capabilities.

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