Usage Gap: A New Connectivity Challenge in Peru and Latin America

Connectivity is the cornerstone of the future we want to build. However, there are parallel challenges to this trend for Peru and the Latin American region, and they go hand in hand with the lack of new connections and the stability of services. In addition to the access gap, one emerges in the connected community: the usage gap.

According to a recent report GSMA “Mobile Economy in Latin America in 2022” – the mobile penetration rate in our region has reached 60%, which is more than 380 million people. In contrast, one in three connected people do not use internet services, such as those that promote educational, corporate, and medical “television events.”

On the positive side of the GSMA’s analysis, the usage gap has narrowed since 2014, rising from 44% to 36% in 2021, and complementing the decline in the connectivity gap from 16% to 4% over the same period. The organization’s strategy to bridge this gap involves addressing issues such as the availability of phones and data plans, the security and protection of information, the development of digital skills at different ages, and the relevance of communication in people’s lives, according to the organization.

Peru connects slower

Although the region has seen a steady increase in telecommunications deployment, 4G technology continues to be the most important and most widely deployed. For the GSMA, this is necessary to close the gaps, since most of the services can be conditioned at this level.

The report shows that 4G will experience a slight decline in 2024 compared to 5G adoption in Latin America. By 2025, 4G will have 70% adoption while 5G will remain at 11%, 4 points behind 3G.

By 2025, the GSMA predicts that 83% of these connections will be from smartphones in the region. In the case of Peru, we will increase participation from 65% to 70%; while Guatemala will make a bigger jump over the same period, rising from 78% to 89%.

According to the analysis, in four years Peru will have 72% of 4G technology adoption, while the share of 3G will fall from 33 to 18% along with the increase in the number of 5G networks to 7% of the total number of subscribers. For at least this decade, most Latin American countries will continue to use 4G as a priority.

“To fully exploit the potential of mobile communications, policies are needed that support investment in networks and increase the availability of digital services for consumers,” notes the GSMA. “Public policy priorities should be based on the local context and the degree of digital development, which requires accurate and reliable data. It is also necessary to promote digital skills and education in all sectors of society.”