International Internet connectivity in Latin America and the Caribbean

The contents of this study focus on the key interconnection issues, both at national and international levels, the stakeholders and their characteristics. It also describes the role of Internet exchange points (IXPs) and network access point (NAPs) and their importance in the development of broadband, as well as the significant role of the backbones. Interconnection is the cornerstone of the ‘network of networks’: the Internet. It can be considered to be the most important factor conditioning the growth of the Internet, since it affects all the services that are accessible therein. The bandwidth is directly proportional to the capacity of the T1 first network operator level, and the cost of the Mb is an element that affects its use. In the existing model, the pure SME operators (Pure Internet Service Providers – pISPs – hereinafter), have very little bargaining power with respect to the T2 and T1 operators, and this drastically limits their growth and the development of services. The study of broadband in the two regions has shown that there exists a concentration of Internet services. The incumbent telecommunication companies are those which usually concentrate the traffic in these regions. These companies handle close to 80 per cent of the interconnection market, and their tariffs make it difficult, if not impossible, for pISPs to compete. The advantages of technology, the economic model of pISPs, and the development of broadband, spotlight IXPs and NAPs as the solution, not only for these two regions, but also for countries with similar problems. There are also barriers arising from the regulatory context, such as lack of competition or unfair competition, in instances where there is poor regulation, or where regulation is not enforced. It can also be noted that the deployment of broadband in the region is limited to large and medium urban centres. However, in some cases where regulatory policy and subsidies are implemented, then it can also become available in other areas. The impact of cellphones is also discussed. The 5.6 billion existing units means that approximately 80 per cent of the population on our planet has a cellphone, and the study describes the success and limitations of the mobile Internet. Undoubtedly, mobile technology is ideal for voice communication and text messaging, but it is seemingly unsatisfactory when 3G cellular networks are employed for broadband access in LAC countries. It should be noted that in European countries this system works well. There are certain instances where state bureaucracy and the lack of clear policies are important barriers to the deployment of new networks and the development of the Internet. It is evident that corporate associations and non-governmental organizations (NGOs) are an important resource for supporting the development of the Internet in developing countries, contributing to the reduction of the digital divide. Some of the other barriers to the development and access of Internet are highlighted, such as the lack of power supply, illiteracy, generation and cultural divides. The issue of interconnection and transit, which runs across both of the regions covered in this study, and how it is affected by the installation of traffic exchange points (NAPs/IXPs) is examined. Special emphasis is used to describe the best practices that can ease the problems that have been exposed, taking into account regional differences.