Why Businesses Need Broadband

According to the Inter-American Development Bank, broadband access increases company productivity and allows access to more and better information helping decisions to be made efficiently and at less cost.

Friday, October 3, 2014

From a statement issued by the Inter-American Development Bank (IDB):

Companies that have adopted broadband operations have increased their productivity by 10 percent on average, according to the McKinsey Global Institute. The report provides an in-depth analysis of eight business models that serve the BDP in Africa, Asia and Latin America, and concludes that companies can leverage broadband connectivity to include this population in their value chains as customers, producers, or employees; and provide them with the following benefits:

FIRST: Better information at low costs. Broadband provides users at the base of the pyramid with better information and connection to the world, while transport costs are minimized. Additionally, broadband enables real-time interaction between users of the BDP and the rest of the world, bringing experiences or remote services closer.

SECOND: Broadband helps increase competitiveness. Broadband empowers small franchises and shopkeepers in improving the diversity, quality and competitiveness of their products and thus improve their income.

THIRD: Banking services are more accessible to the BDP. An average of 35 transactions per day are conducted in small shops linked to the Barared network, enabling BDP customers to do their banking closer to home and in a cheaper way than at a commercial local bank.



More on this topic

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Improving infrastructure and increasing competition from internet providers not only helps increase coverage and improve the service but also reduces its cost.

The fact that Nicaragua is the most expensive Central American country in terms of connecting to the internet means there is a need not only to improve basic infrastructure, but also to increase competition, thereby improving prices and services provided. 

Proposal to Expand Broadband Network in Panama

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Despite being one of the countries in the region that has shown significant growth in internet penetration, Panama is limited by low speed and high service costs, prompting the Bank to conduct a study on the options of the Panamanian government to expand its broadband network.

How to Lower the Cost of Broadband in Latin America

May 2012

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A statement from the Inter-American Development Bank (IDB) reads:

Report: how to expand access and lower bandwidth costs in Latin America and the Caribbean.

Panama: Telefónica Unveils Fixed Broadband Service

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The VPN IP MPLS broad service will be geared towards corporate customers.

This service enables the interconnection of any kind and number of facilities, using fixed and mobile connections.

Juan Aguilar, regional product manager at Telefónica Internacional S.A., explained that “this new service helps companies optimize their resources, allowing them to focus on their core business”.