72051422R00013 - Attachment J.10 - DECA 2020.pdf

DIGITAL ECOSYSTEM COUNTRY

ASSESSMENT (DECA)

JULY 2020

Colombia

ACKNOWLEDGEMENTS

This report reflects insights from the first Digital Ecosystem Country Assessment (DECA) pilot, which was managed by USAID’s U.S. Global Development Lab’s Center for Digital Development (CDD) with support from DAI’s Digital Frontiers project and carried out in partnership with USAID/ Colombia. The report was written by Lauren Bieniek, Kate Dimsdale, Craig Jolley, and Fernando Maldonado in collaboration with Susannah Horton and Ariel Magid via the Digital Frontiers project at DAI. Tarrajna Walsh of the U.S. Global Development Lab’s GeoCenter created maps for the report.

Report design and graphics were provided by Stefan Peterson via Digital Frontiers.

The authors extend their appreciation to all USAID staff who participated in internal discussions and review of this report. We particularly thank the following individuals for their detailed review:

Taylor Braun-Dorrell, Tom Koutsky, Erica Gendell, Rory Nealon, and Tarrajna Walsh. We also thank these individuals from USAID/Colombia who reviewed this report: Dave Jackson, Germán Sanz, and Emily Wann.

The authors also extend their deep gratitude to David Jackson, who served as the USAID/Colombia point of contact, for providing critical insight and facilitating key informant interviews and three site visits. We also greatly appreciate dedicated support provided by Germán Sanz and Paulo Gómez from USAID/Colombia during the DECA. Additionally, we want to extend thanks to Elizabeth Ramirez, Emily Wann, Emily Waytoti, Jessica Rosen, Elisa Zogbi, Michael Torreano, Jennifer Laakso, Christopher Saenger, Nathaniel Bills, Jennifer Tikka, Jessica Faber, and Nathan Strand and their respective technical offices for taking the time to meet with the DECA team as well as Andrew Chapman from the U.S.

Department of State.

Finally, we are grateful to Diana Galvis for providing critical support during the in-country research phase as well as to Leonardo Sandoval for his translation services. The authors also extend their sincere thanks to all of the interviewees who made this assessment possible. A complete list of interviewee organizations can be found in Appendix B of this report.

The report authors accept responsibility for any errors or inaccuracies in this report.

This publication was produced by the Digital Frontiers Project under Cooperative Agreement AID-OAA-A-17-00033 at the request of the United States Agency for International Development.

DIGITAL ECOSYSTEM COUNTRY ASSESSMENT (DECA)

Colombia

JULY 2020

1DIGITAL ECOSYSTEM COUNTRY ASSESSMENT COLOMBIA

TABLE OF CONTENTS

Acronyms and List of Tables and Figures

Executive Summary

Section 1: About this Assessment USAID/Colombia Priorities Digital Ecosystems and the COVID-19 Response

Section 2: DECA Findings Digital Infrastructure, Access, and Use Digital Society and Governance Digital Economy

Section 3: Recommendations Detailed Recommendations

Appendix A. Methodology B. Key Informants C. Relevant Resources D. References

2DIGITAL ECOSYSTEM COUNTRY ASSESSMENT COLOMBIA

ACRONYMS

LIST OF TABLES AND FIGURES

TABLE 1 Mobile Broadband Pricing TABLE 2 MNO Market Share (2017) TABLE 3 Guidelines for implementing DECA recommendations for USAID/Colombia FIGURE 1 Colombia Priority Development Regions and Coca Cultivation FIGURE 2 Colombia Internet Connectivity 2018 FIGURE 3 Digital literacy gaps in Colombia, Brazil, and Mexico FIGURE 4 Digital Connectivity’s Impact on a Coffee Farmer’s Livelihood FIGURE 5 Bank Coverage, by department FIGURE 6 Population Density and Household Income in Colombia FIGURE 7 Priority Development Regions and Internet Connectivity 2018 FIGURE 8 Summary of Key Informant Interviews, by Sector

ACH Automated Clearing House CDCS USAID Country Development Cooperation Strategy CDD Center for Digital Development CPE Computadores para Educar (Computers to Educate) CRC Comisión de Regulación de Comunicaciones Colombia (Colombian Communications

Regulation Commission) DCCP Digital Connectivity and Cybersecurity Partnership DECA Digital Ecosystem Country Assessment DFS Digital Financial Services DO Development Objective FMCG Fast-moving consumer goods GH/CII USAID Bureau for Global Health, Center for Innovation and Impact GIF Greater Internet Freedom HRA Human Rights Activity IDB Inter-American Development Bank IFC International Finance Corporation ISP Internet Service Provider MFI Microfinance Institution MinTIC Comisión de Regulación de Comunicaciones de Colombia (Ministry of Information and

Communications Technology) MNO Mobile Network Operator NGO Non-Governmental Organization POC Point of Contact PDET Planes de Desarrollo con Enfoque Territorial (Territorially Focused Development Plans) RFI Rural Finance Initiative RNEC Registraduría Nacional del Estado Civil (National Civic Registry) SEDPE Sociedades Especializadas en Depósitos y Pago Electrónicos (Specialized Electronic Payment

Processing Companies) SFC Superintendencia Financiera de Colombia (Financial Superintendence of Colombia) STEM Science, Technology, Engineering, and Mathematics TVWS TV White Space TDY Temporary Duty USF Universal Service Fund

3DIGITAL ECOSYSTEM COUNTRY ASSESSMENT

SECTION TWO DECA Findings

COLOMBIA

Colombia is, in some ways, a microcosm of the digital world in 2020—highly connected urban centers with a growing technology industry, and vast, underserved rural areas with an immense need for investment and potential for innovation. In the coming years, a key challenge will be to extend the reach and quality of Colombia’s digital ecosystem without compromising inclusiveness, security, or democratic values. Against this backdrop, USAID’s Digital Strategy was launched in April 2020.1 It aims to achieve and sustain open, secure, and inclusive digital ecosystems that contribute to measurable development and humanitarian-assistance outcomes and increase self-reliance in USAID’s partner countries.

A critical product of the Digital Strategy is the Digital Ecosystem Country Assessment (DECA). The DECA is a decision-making tool to help USAID Missions, their partners, and other relevant stakeholders identify the opportunities, maximize the benefits, and manage the risks associated with digital technology. The goal is to help USAID’s partner countries along their journey to self-reliance through a better understanding of each country’s digital ecosystem. The DECA pilot phase began September 2019 through August 2020 and USAID/ Colombia was the flagship pilot. Though some USAID/Colombia projects were consulted, the goal of the DECA is to examine how Colombia’s digital ecosystem can be leveraged or strengthened, and not to evaluate the efficacy of existing program portfolios.

This report presents the findings and recommendations of the Colombia DECA pilot, which was conducted between November 2019 and February 2020. The pilot DECA included desk research, consultations with USAID/Colombia, and two weeks of in-country research. A total of 60 key informant interviews and three site visits were conducted with stakeholders from civil society, academia, the private and public sectors, and USAID/ Colombia technical offices.

The DECA pilot was guided by four key USAID/Colombia priorities: implementing the peace agreement, promoting licit economies, integrating Venezuelan migrants and Colombian returnees, and strengthening citizen security. These priorities informed stakeholder and site visit selection, interview question design, and recommendation framing. The DECA is intended to highlight elements of Colombia’s digital ecosystem that link directly back to these priorities.

1 “USAID’s Digital Strategy,” USAID, April 16, 2020, https://www .usaid .gov/usaid-digital-strategy .

Executive Summary

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DECA Findings

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EXECUTIVE SUMMARY

KEY FINDINGS

Recent policy, innovative partnership models, and novel solutions show promise for closing Colombia’s urban-rural digital divide. Insufficient Internet connectivity is one of the greatest barriers to expanding digital access for remote and marginalized populations. Colombia’s history of conflict combined with its diverse geography make digital infrastructure investments risky and costly for mobile network operators (MNOs).

Extending connectivity to all Colombians will require new infrastructure solutions. The current administration has an ambitious connectivity agenda that prioritizes rural inclusion and social impact. These plans will require a sound national policy framework, a demonstrated commitment to reform, and careful implementation, especially at the municipal level. There is an urgent need for coordination, innovation, and partnerships to bring together and harness the respective strengths of the government, private sector, and civil society.

Improved cyber hygiene can strengthen citizen security and deter digital surveillance. Colombia’s digital environment is considered mostly free, open, and democratic, but threats to civil society persist. There are anecdotal links between digital security breaches and physical violence, and cyber hygiene capacity building can be an important component of broader security efforts. There is also an urgent need for concrete evidence on the scope and severity of cyber-related threats to civil society.

Financial regulation and policy promote innovation and inclusion, but many barriers to widespread adoption of digital financial services remain. Colombia’s financial regulator aims to lead in innovative, technology-driven financial inclusion and launched a number of initiatives that enable market entry for Fintechs. These changes are recent and their impact is still unclear. There is potential for digital financial solutions to bolster financial inclusion and accelerate economic reintegration of conflict-affected populations. Meaningful financial inclusion faces complex challenges around transaction costs, banking and connectivity infrastructure, consumer trust, and interoperability.

The international development community should seize emerging opportunities in Colombia’s digital ecosystem to improve their shared development outcomes. There is a need to convene diverse actors to explore novel digital connectivity solutions. Colombia’s enabling policy environment can also be leveraged to work with government partners on universal service fund projects, innovative Fintech regulation, and interoperable information systems. Resources and expertise can be used for capacity building to ensure the strategic rollout and integration of digital literacy programming as well as improved digital security for the protection of social leaders and vulnerable communities. The social entrepreneurship ecosystem can be supported through efforts that improve access to finance and digital skills.

ROADMAP FOR THE REPORT

Section 1 provides background on the DECA framework and goals. It includes a summary of USAID/Colombia’s priorities, connecting them with digital solutions.

Section 2 presents the key findings about Colombia’s digital ecosystem. This section is organized into three sub-sections: digital infrastructure, access, and use; digital society and governance; and digital economy.

Section 3 provides recommendations on how to leverage and support the digital ecosystem to achieve improved development outcomes.

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HOW CAN I USE THIS REPORT TO SUPPORT MY WORK?

USAID’s Digital Strategy has two objectives: 1) improve measurable development and humanitarian assistance outcomes through the responsible use of digital technology in USAID’s programming and 2) strengthen the openness, inclusiveness, and security of country-level digital ecosystems. The Digital Ecosystem Country Assessment (DECA) is intended to be a semi-standardized tool that will support the implementation of the USAID Digital Strategy.

The DECA aims to help USAID, its partners, and other relevant stakeholders identify opportunities, maximize benefits, and manage risks associated with digital technologies. The DECA is intended to assist these stakeholders in better understanding a country’s digital ecosystem and how it can be leveraged and/ or strengthened to enable accelerated development impact.

The DECA examines three broad areas to understand the opportunities and challenges in a country’s digital ecosystem:

1. Digital Infrastructure, Access, and Use

2. Digital Society and Governance

3. Digital Economy

The DECA is in a pilot phase from September 2019 through August 2020. USAID/Colombia was the first pilot and took place between November 2019 and February 2020. The pilot was carried out by USAID’s Center for Digital Development (CDD) with support from DAI’s Digital Frontiers project, in partnership with USAID/Colombia. It comprised targeted desk research, consultations with USAID/Colombia, and two weeks of in-country research. It will also include follow-on data polling to fill gaps in the research.2 The in-country research included three site visits to Medellín, Cúcuta, and Ulloa and 60 interviews with stakeholders from civil society, academia, the private and public sectors, and USAID/Colombia technical offices.

Rather than act as an authoritative source on the country’s digital ecosystem, the DECA is intended to be a rapid assessment of opportunities and challenges tailored to USAID’s programmatic priorities.

2 See Appendix A for a detailed description of the DECA methodology and its possible limitations .

What is a digital ecosystem?

A digital ecosystem is comprised of stakeholders, systems, and an enabling environment that together empower people and communities to use digital technology to access services, engage with each other, and pursue economic opportunities.

SECTION ONE

About this Assessment

6DIGITAL ECOSYSTEM COUNTRY ASSESSMENT COLOMBIA

SECTION ONE About this Assessment

USAID/COLOMBIA PRIORITIES AND HOW

DIGITAL CAN HELP ACHIEVE THEM

USAID/Colombia priorities are critical DECA inputs. They informed stakeholder and site visit selection, interview question design, and recommendation framing. Colleagues at USAID/Colombia identified four priority areas for their current and future programming. All of these are discussed in more detail in USAID/Colombia’s forthcoming 2020-2025 CDCS.3 While this is not a comprehensive list of the development challenges facing Colombia today, these issues are the highest priorities for USAID/Colombia. In the forthcoming strategy, USAID/Colombia’s geographic focus will be on selected Territorially Focused Development Plan (PDET) municipalities, conflict-affected rural areas still experiencing violence and poverty.4 See FIGURE 1 on the following page, which maps the PDET municipalities with coca cultivation. These four priorities each have a digital element, which is explored in more detail below.

USAID/Colombia Priority Digital Linkage

Implementing the peace agreement: The 2016 agreement between the Colombian Government and the FARC brought an end to more than 50 years of internal armed conflict .

Today, peace remains fragile in some areas and many challenging issues must still be settled . Preventing a return to civil war is a top priority for the United States .

Improving livelihoods and expanding government presence in conflict-affected areas through connectivity and the products and services it can enable .

Strengthening citizen security: In rural Colombia, the large-scale violence of the past is being replaced by a new and troubling trend – targeted assassinations of social, indigenous, and environmental leaders by criminal and paramilitary groups .

Widespread anger at these killings undermines public confidence in the national government and could threaten the peace process .

Improving digital security and digital hygiene and using technology to improve physical security .

Promoting licit economies: During the civil war, a variety of rebel groups, paramilitaries, and drug cartels financed their activities through coca production and illegal mining . Since 2016, much of this illicit activity has been taken over by organized crime groups .

Helping residents in conflict-affected areas to earn a living without becoming dependent on crime networks will be key to lasting peace and economic reintegration .

Using connectivity to promote digital literacy, create new employment opportunities, and expand licit value chains .

Integrating Venezuelan migrants and Colombian returnees: Since 2014, the deepening political and economic crisis in Venezuela has led to accelerating emigration, with Colombia accepting the largest number of migrants . The huge number of new arrivals puts a strain on Colombia’s social support systems, and the latest wave of migrants is (on average) poorer and more vulnerable than their predecessors .

Addressing migrant connectivity needs, strengthening resilience of receptor communities, and enabling organizations to effectively respond and coordinate .

3 Country Development Cooperation Strategy: Colombia,” USAID, May 1, 2019, http://www .usaid .gov/colombia/cdcs .

4 Especial Programas de Desarrollo con Enfoque Territorial – PDET”, Especial PDET (Agencia de Renovación del Territorio), accessed March 2020, http://www .renovacionterritorio .gov .co/especiales/especial_PDET/

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SECTION ONE

FIGURE 1. Colombia Priority Development Regions and Coca Cultivation

As a follow-on to the 2016 peace agreement, the Colombian Government prioritized 170 municipalities most affected by conflict as target areas for development, or Territorially Focused Development Plan (PDET) municipalities. Many PDET municipalities are in regions with the highest densities of coca cultivation in Colombia.

Nariño and Norte de Santander, the two highest-density coca cultivation departments in Colombia, each have an area roughly the size of Bogotá’s urban footprint (388 km²) being used to cultivate coca

Names and boundary representation are not necessarily authoritative .

Data Sources: Colombian Government, 2020;

UNODC/SIMCI 2017

Map credit:

USAID/GeoCenter

Produced: March 2020

PDET municipality

>10

8.1-10

4.1- 8

0.1- 4

About this Assessment

8DIGITAL ECOSYSTEM COUNTRY ASSESSMENT

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DIGITAL ECOSYSTEMS AND THE COVID-19 RESPONSE

Though the Colombia DECA was conducted prior to the COVID-19 outbreak, the global pandemic has highlighted the critical role of digital technology in Colombia and around the world.

The COVID-19 crisis will affect the development landscape in many ways including actor type and volume, funding allocation and quantity, and project design and implementation. No matter the implications, digital technologies will be critical. Responders and decision makers all over the world need detailed and timely data about the disease’s spread and health workers and communities need accurate information to protect themselves. Additionally, work, education, and government service delivery must adapt to meet individual and organizational needs, especially those of marginalized and vulnerable populations. Many relevant solutions depend on mobile or Internet connectivity.

There are many ways in which technology can increase readiness to prevent, detect, and respond to COVID-19 and its effects. At the same time, well-intended but poorly-executed digital systems can hamper pandemic response by creating duplicative systems and siloing vital information.

Since the 2014 Ebola outbreak in West Africa, the development community has learned a lot about how best to deploy technology in a public health crisis. Key lessons include: ensuring country governments are leading from the outset, advancing a locally-led and whole-of-government approach, and coordinating all related initiatives. Establishing data protocols, reusing existing digital tools, and working with the private sector are essential. Though the COVID-19 pandemic differs in many ways, it is valuable to evaluate the present situation with these lessons in mind.

Kickstarting some of the DECA recommendations may be a way to lay the foundation for better leveraging and strengthening Colombia’s digital ecosystem in the context of the COVID-19 crisis.

Some recommendations that may rise to the top are:

• Support policy and regulation for digital connectivity: as schools, offices, health organizations, and individuals become more reliant on the Internet during the outbreak, those who are unconnected are at a significant disadvantage. Regulatory actions that can be taken quickly to support the COVID-19 response include granting access to additional spectrum (e.g. through temporary licenses) and facilitating faster installation of network equipment on government-controlled locations.5 Partnering with the Communications Regulation Commission of Colombia (CRC) may advance such efforts.

• Promote digital security for civil society: as people spend increasing amounts of time online and using new communication and video technologies, NGOs have already seen an increase in cyberattacks. 6 Now is the time to assess cybersecurity vulnerabilities and make plans to boost the cyber hygiene of relevant actors accordingly.

5 See the ITU’s REG4COVID resource page for more information . “REG4COVID Platform” ITU, accessed April 20, 2020, https:// www .itu .int/en/ITU-D/Regulatory-Market/Pages/REG4COVID-NRAs .aspx .

6 Root, Rebecca, “COVID-19 brings wave of cyberattacks against NGOs,” Devex, April 13, 2020, https://www .devex .com/news/ covid-19-brings-wave-of-cyberattacks-against-ngos-96934 .

9DIGITAL ECOSYSTEM COUNTRY ASSESSMENT

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• Facilitate market entry for last-mile solutions: digital financial services may need to play an important role during the COVID-19 response and recovery efforts. During the Ebola crisis in Liberia, mobile money payments to frontline health workers helped avert strikes by unpaid response workers. There may be a similar opportunity to support response workers in rural Colombia with digital financial tools.

• Support interoperable government systems: during the crisis the Colombian Government will play a critical role in providing trustworthy information and necessary social support. Supporting MinTIC’s efforts to roll out interoperable information systems will not only help to ensure streamlined government-to-citizen communication but also simplify the end-user experience.

• Support innovative financial regulation: the economic and social pressures of COVD-19 paired with inhibited in-person transactions and interactions may actually inspire more Fintech innovations. Now is the time to support Colombia’s financial regulator to enable those innovations, particularly those that support increased financial inclusion.

It is important now more than ever to understand Colombia’s digital ecosystem and how it can be strengthened and leveraged to support and build responsive systems, adjusting to the needs of more vulnerable and marginalized populations such as Venezuelan migrants and Colombian returnees and rural communities.

For more information on technology in global health crises, see:

• USAID COVID-19 summary information page

• Considerations for USAID Mission Staff for Programmatic COVID-19 Preparedness and

Response: Digital Technologies and Data Systems

• Fighting Ebola with Information: Learning from the Use of Data, Information, and Digital

Technologies in the West Africa Ebola Outbreak Response

• WHO Digital Health Atlas

10DIGITAL ECOSYSTEM COUNTRY ASSESSMENT

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Colombia poses a unique opportunity in terms of digital development. A favorable policy environment is paired with relatively high levels of Internet affordability and use (where Internet is available), compared to other Latin American countries.7 The challenge, however, is accessing and adopting an Internet connection in rural areas where both connectivity and digital literacy lag.

The current administration is committed to expanding inclusion of marginalized populations by improving digital connectivity and fostering innovation. Medellín was recently established as the first Spanish-speaking affiliate for the World Economic Forum Center for the Fourth Industrial Revolution, which elevates the impact of emerging technologies through public-private partnerships.8 However, 50 years of internal conflict in Colombia presents challenges to establishing digital infrastructure, security, and trust. Such challenges impede country-wide adoption of digital tools and programs, but opportunities exist to leverage the country’s innovation ecosystem for inclusion-oriented programming. 910

7 “Global Microscope 2019: The Enabling Environment for Financial Inclusion,” EIU (Economist Intelligence Unit), 2019, https:// content .centerforfinancialinclusion .org/wp-content/uploads/sites/2/2019/10/EIU_Microscope_2019 .pdf .

8 “Center for the Fourth Industrial Revolution C4IR .Co, Colombia’s Entry to the G20 Smart Cities Alliance,” MinTIC, n .d ., http:// www .mincit .gov .co/prensa/noticias/industria/centro-cuarta-revolucion-industrial-c4ir-co .

9 “A4AI Mobile Broadband Pricing - GNICM Q2 2019,” Alliance for Affordable Internet (A4I), accessed March 6, 2020, https:// a4ai .org/extra/mobile_broadband_pricing_gnicm-2019Q2 .

10 “Affordable Internet Is ‘1 for 2’,” Alliance for Affordable Internet, accessed March 6, 2020, https://a4ai .org/affordable-Internet-is- 1-for-2 .

SECTION TWO

DECA Findings

TABLE 1. Mobile Broadband Pricing - Cost of 1GB Data, as percent of Average Income (2018)10

Country Price (USD) as a percent of Average Income (GNI per capita)

Argentina 0 .66

Costa Rica 0 .70

Mexico 1 .10

Brazil 1 .29

Paraguay 1 .52

Peru 1 .66

Colombia 1.80

Ecuador 1 .96

Bolivia 2 .06

El Salvador 3 .14

Guatemala 3 .51

Nicaragua 5 .39

Honduras 9 .66

Alliance for Affordable Internet Target - “1 for 2” - 1GB priced at 2 percent Monthly Income11

11DIGITAL ECOSYSTEM COUNTRY ASSESSMENT

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Digital Infrastructure, Access, and Use Digital Infrastructure, Access, and Use refers to the resources that make digital systems possible and how these resources are accessed and used by individuals and organizations. Infrastructure is assessed by understanding geographic network coverage, network performance, Internet bandwidth, and spectrum allocation. Infrastructure directly affects how the Internet is used, who does and does not have access to the digital ecosystem, and why. This includes ownership and use of mobile phones and broadband, Internet affordability, and digital literacy.

SEVERE URBAN-RURAL DIGITAL DIVIDE

In Colombia, the urban-rural digital divide is significant and a major obstacle to expanding the use of digital technologies. While Colombia boasts 116 percent mobile penetration and 77 percent mobile broadband penetration, adoption and use are highly concentrated in urban centers.11 For example, fixed Internet penetration in urban areas is 63 percent, compared to just 16.2 percent in rural areas.12 FIGURE 2 below shows the concentration of strong digital connectivity in urban areas. Individuals who do access the Internet in rural communities tend to do so outside of their homes, through Internet cafes (24.5 percent), educational centers (43 percent), or free public hotspots (8 percent); mobile broadband options can be prohibitively expensive and slow.13 The country’s rugged mountain terrain and dense Amazonian jungle, together with a history of conflict and violence, make it difficult, risky, and costly for mobile network operators (MNOs) to extend basic connectivity to rural areas.

Delivering the high-quality connectivity needed for full participation in Colombia’s digital society is an even more formidable challenge.

Though the urban-rural divide poses important challenges to the more widespread use of digital technologies, it can be seen as a product of underlying obstacles such as the difficulty of creating market conditions in rural areas.

Colombia’s mobile market is also highly concentrated, with only three major providers. As noted in TABLE 2 below, the largest, Claro, holds about 55 percent market share.14 This tends to increase costs, making mobile less affordable for customers in sparsely populated areas and undermining connectivity expansion. 1516

TABLE 2. MNO Market Share (2017)15

Claro (América Móvil) 54 .7%

Movistar (Telefónica) 23 .3%

Tigo (Millicom) 14 .3%

Avantel and ETB have less than 5%16

11 Mobile Connections (percent penetration) is defined as “total number of SIM cards divided by population” and Mobile Broadband (percent penetration) is defined as “total number of 3G and 4G SIM cards divided by population,” making each higher than measures of individual users, as a single user can have multiple SIM cards . For comparison, GSMA reports unique subscriber penetration as 70 percent . “GSMA Mobile Connectivity Index - Colombia,” GSMA, 2018, http://www .mobileconnectivityindex .com/ - year=2018&zoneIsocode=COL&analysisView=COL .

12 “Encuesta Nacional De Calidad De Vida (ECV) (National Survey of Quality of Life),” DANE, May 3, 2019, https://www .dane .gov .co/files/ investigaciones/condiciones_vida/calidad_vida/Boletin_Tecnico_ECV_2018 .pdf .

13 “Freedom on the Net 2019 - Colombia,” Freedom House, n .d ., https://freedomhouse .org/country/colombia/freedom-net/2019 .

14 “Latin America - Mobile Network Operators and MVNOs; 13th Edition” Paul Budde Communications Ltd, 2018, https://www .budde .com .au/ Research/Latin-America-Mobile-Network-Operators-and-MVNOs .

15 ICT Ministry, quarterly ICT bulletin, 3rd quarter 2019 .

16 “Country Overview: Colombia Mobile Industry Collaborating with Government to Promote Entrepreneurship and Innovation,” GSMA, 2017, https://www .gsmaintelligence .com/research/?file=59bfccd5a508f91be5dabb92a6b81621&download .

The Digital Divide Explained

The digital divide is the distinction between those who have access and can use digital products and services and those who are excluded. There are often overlapping digital divides that stem from inequities in literacy, cost, social norms, or availability of relevant content. Digital divides may be associated with gender, economic status, geography, and age among other factors.

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FIGURE 2. Colombia Internet Connectivity 2018

ACCESS AND USE IMPLICATIONS FOR WOMEN

At a national level, Colombia is reported to have near gender parity in mobile phone ownership and mobile Internet use. In 2018, GSMA reported no difference between men and women in mobile phone ownership, while women were 4 percent less likely to use mobile Internet as compared to men.17 Globally, the gender digital divide tends to be more pronounced in rural areas, where women are less likely to own mobile phones. While Colombia seems to be an exception to this trend, insufficient sex-disaggregated sub-national data and a low base of connectivity in rural areas makes it difficult to ascertain how social norms are affecting women’s adoption and use of digital technology. Even if women have similar levels of access to mobile phones and the Internet, the way in which women interact, utilize, and experience the benefits and risks of digital technology may be different. Underlying reasons for this can include cultural norms, unequal access to educational and training opportunities, and an absence of targeted gender programming.

This may be of particular relevance for women from the most disadvantaged backgrounds including victims of armed conflict, ethnic minorities, and older women. One issue highlighted by interviews in Colombia pointed to the heightened risk women and young girls face of harassment and abduction facilitated through digital platforms (e.g., on social media) given the history of violence and ongoing crime in the country. In an effort to bring the power of technology to Colombia’s most vulnerable populations, and specifically to women and girls, the Ministry of Information and Communications Technology (MinTIC) launched Por TIC Mujer (ICT and Gender) in 2019, to help Colombian women take advantage of the potential of ICT to generate economic independence and promote the defense of and ability to exercise their rights. The initiative encourages women and girls to use ICT productively and strategically.18

17 “Connected Women: The Mobile Gender Gap Report 2018,” GSMA, 2018, https://www .gsma .com/mobilefordevelopment/wp-content/uploads/2018/04/GSMA_The_Mobile_Gender_Gap_Report_2018_32pp_WEBv7 .pdf

18 “Más colombianas podrán beneficiarse con el programa Por TIC Mujer en 2020,” MinTIC, 2020, https://mintic .gov .co/portal/ inicio/Sala-de-Prensa/Noticias/126078:Mas-colombianas-podran-beneficiarse-con-el-programa-Por-TIC-Mujer-en-2020 .

Digital connectivity is strongest in the wealthiest, most urbanized areas of Colombia, but progress can be made nearly everywhere.

Percentage of households that have an internet connection (fixed and/or mobile)

Percentage of individuals ages 5 and up who use a cellphone to access the internet*

Percentage of individuals ages 5 and up who have a smartphone*

*Out of the total number of individuals 5 and up who possess a cellphone, by department . Map credit: USAID/GeoCenter

Names and boundary representation are not necessarily authoritative . Data Source: Colombian Government, DANE 2018 Report | Produced: March 2020

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Digital literacy, which includes computer and other ICT knowledge and skills, also appears to be similar among men and women in Colombia. UNESCO’s review of progress on Sustainable Development Goal Indicator 4.4.1 (Proportion of youth/adults with ICT skills), found little difference in Colombia’s basic computer skills between sexes, especially when compared to regional peers such as Mexico and Brazil (see FIGURE 3 below).19 The largest gaps are associated with setting up and installing new devices and software. The same pattern exists in many advanced economies, possibly reflecting a widespread perception of men as “builders” of technology. This is further reflected in the underrepresentation of Colombian women with advanced degrees and careers related to ICT, as further discussed in the section on digital talent pool. These patterns, if not addressed, can create “gender blind” policies, programs, and products without the input of women, potentially exacerbating the gender digital divide.

19 “4 .4 .1 - Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill,” Technical Cooperation Group on the Indicators for SDG 4, UNESCO Institute of Statistics, 2018, http://tcg .uis .unesco .org/4-4- 1-proportion-of-youth-and-adults-with-information-and-communications-technology-ict-skills-by-type-of-skill/

Copied or moved a file or folder Sent e-mails with attached files Found, downloaded, installed, and configured software Created electronic presentations Used basic arithmetic formula in a spreadsheet Connected and installed new devices

Digital literacy gaps: Colombia

Digital literacy gaps: Mexico

Copied or moved a file or folder Sent e-mails with attached files Used copy and paste tools within a document Transferred files between a computer and other devices Found, downloaded, installed, and configured software Created electronic presentations Used basic arithmetic formula in a spreadsheet Connected and installed new devices Wrote a computer program

Source: UNESCO Technical Cooperation Group on the Indicators for SDG 4, SDG Indicator 4 .4 .1

FIGURE 3. Digital literacy gaps in Colombia, Brazil, and Mexico

0% 10% 20% 30% 40%Percent of Youth and Adults:Female Male

Digital literacy gaps: Brazil

Copied or moved a file or folder Sent e-mails with attached files Used copy and paste tools within a document Transferred files between a computer and other devices Found, downloaded, installed, and configured software Created electronic presentations Used basic arithmetic formula in a spreadsheet Connected and installed new devices Wrote a computer program

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PREVIOUS ATTEMPTS AT CLOSING THE DIGITAL DIVIDE

Successive Colombian governments have sought to spread technology and connectivity across the country. Attempts to provide tablets and computers to schools under the Computadores para Educar (CPE) program were accompanied by the placement of free public WiFi hotspots in community centers (with easily identifiable purple branding).20 The current government is revamping the CPE program to include digital skills training for students, parents, teachers, and administrators. Under the previous government’s Vive Digital program, 7,000 digital kiosks were established where people could access computers, photocopiers, scanners, and telephones, participate in digital training, and use the Internet for a nominal fee21 While it is important to bring digital connectivity further afield, such initiatives seemed to lack long-term planning and communities appeared to be ill-equipped to assume the costs after central funding ended.

In 2011, the Colombian Government sought to address a more fundamental element of the digital divide—poor access to national-level infrastructure, or “backhaul” — by funding the extension of the national fiber backbone and making it available for telecommunications companies to use in servicing rural areas. This contract, won by Azteca, was completed in 2015, covering 80 percent of Colombia’s territory with 20,500 km of fiber optic cable.22 Despite this dramatic expansion, some interviewees noted low bandwidth and unreliable service on the fiber network, and MNOs reportedly do not use it to support their own infrastructure.23

NEW PLANS TO EXPAND RURAL CONNECTIVITY

In 2018, the newly elected administration of President Iván Duque unveiled a new ICT Plan (“Digital Future for All”),24 shortly followed by a National Plan for Rural Connectivity.25 Together, these plans set an ambitious agenda for a digitally enabled Colombia and look to expand Internet connectivity by:

• Incentivizing MNOs: In the December 2019 spectrum auction, the government incorporated two key changes in an attempt to push the MNOs to build networks in more rural areas. First, the license terms were doubled in length from 10 to 20 years, allowing operators more time to build and develop in rural areas.

Second, competing bids were valued in part by the number of unconnected communities that operators committed to reach. Additionally, MNOs now have the option of diverting up to 60 percent of their fees for use in their own social investments.

In an effort to benefit market competition, a new telecom operator was awarded bandwidth in the recent spectrum auction. The results of the auction will also bring connectivity to 3,658 localities in rural areas throughout Colombia.26

20 Computadores Para Educar, http://www .computadoresparaeducar .gov .co/index .php/en

21 “Kioscos Vive Digital,” 1 World Connected, accessed March 6, 2020, http://1worldconnected .org/case-study/kioscos-vive-digital/ .

22 “Comms Update,” Comms Update (blog), March 10, 2015, https://www .commsupdate .com/articles/2015/03/10/azteca-completes-20500km-fibre-backbone-in-colombia/ .

23 “OECD Reviews of Digital Transformation: Going Digital in Colombia,” OECD, October 25, 2019, https://www .oecd-ilibrary .org/ sites/781185b1-en/index .html?itemId=/content/publication/781185b1-en .

24 “Plan TIC 2018-2022: El Futuro Digital es de Todos (ICT Plan 2018-2022: The Digital Future Is for Everyone) .” Colombia Ministry of Information Technologies and Communications (MinTIC), n .d ., https://www .MinTIC .gov .co/portal/604/articles-101922_Plan_TIC .pdf .

25 “Plan Nacional de Conectividad Rural (National Rural Connectivity Plan),” 2019, https://www .MinTIC .gov .co/portal/604/articles-100886_py_ res_adopta_plan_nacional_conectividad_rural_v20190530_comentarios .pdf .

26 “Colombia awards three operators bandwidth in $1 .5 billion auction,” Reuters, December 21, 2019, https://www .reuters .com/article/us-colombia-telecoms/colombia-awards-three-operators-bandwidth-in-1-5-billion-auction-idUSKBN1YP0CL .

Free public WiFi hotspot outside Pereira, Colombia

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• Funding social projects: The government is planning to issue a new set of tenders to reach up to 10,000 rural communities with new, free WiFi hotspots— primarily in schools—as well as 450,000 urban and semi-urban households with fixed Internet services.

Given the structure of the tender process fewer communities may be reached. The tenders for 342,000 households have already been adjudicated and are in the process of installation. To avoid the pitfalls of the previous administration’s community WiFi hotspots, the current government plans to set the terms of the contract to ten years, hoping this will allow more time for local governments or other partners to take over the costs of operation.

To avoid the pitfalls of the previous administration’s community WiFi hotspots, the current government plans to set the terms of the contract to ten years, hoping this will allow more time for local governments or other partners to take over the costs of operation.

These new plans hold great promise, but will require careful implementation. Previous attempts to expand connectivity fell short of achieving sustainable results.

Many interviewees felt this was due in part to a lack of digital literacy in communities where Internet access was being established.2728

ALTERNATIVE AND COMPLEMENTARY LAST-MILE SOLUTIONS

Access to Internet connectivity is a major challenge in rural Colombia, but there are innovative technology solutions and partnership models that could complement the government’s efforts to reach last mile users.

Whereas MNOs provide mobile and Internet connectivity through the use of licensed spectrum allocated by the government and paid for through costly fees, other private-sector companies, civil society organizations, and even local communities are experimenting with alternative ways to leverage the following technologies:

• WiFi / Unlicensed Spectrum: WiFi enables data to be transmitted between devices and the closest network node. It operates on a spectrum that is designated as unlicensed and therefore does not incur cost or require a permit. The equipment to set up a WiFi network is inexpensive and relatively easy to use. It has a fairly short-range (approx. 50m), but by setting up a series of antennas within line-of-sight, a WiFi network can be established beyond the original backhaul connection (e.g. to a fiber optic cable or satellite). WiFi can typically provide Internet access at faster speeds and lower costs than mobile data (3G, 4G). For these reasons, it is a popular technology for rural communities and has been used widely in free public WiFi zones, including in cafes, town centers, schools, etc.

27 Digital literacy includes both the skills to functionally be able to use the Internet and digital technologies, as well as the knowledge of how to do so safely, securely, with trusted information and protected data .

28 The first wave of migrants in the early 2000s was mostly those with high education levels and economic status, the second wave in 2015 included middle class and professionals, while the third wave 2017 to present includes the vulnerable populations . Muñoz-Pogossian, Betilde .

“Heading Out: A Tale of Three Migration Waves .” Caracas Chronicles, December 7, 2018 . https://www .caracaschronicles .com/2018/12/06/ heading-out-a-tale-of-three-migration-waves/ .

The Venezuelan Migration Poses New Challenges for Connectivity

As Venezuelan migrants and Colombian returnees cross into Colombia, the need to communicate with family and friends and to access information on health, education, and employment services is high. NetHope has deployed free WiFi access points for migrants and the organizations supporting them.

Now, however, the third wave of Venezuelan migrants is poorer and more vulnerable than their predecessors; many are either selling their mobile phones for cash or losing them to theft and coercion.28 Many free WiFi networks provide migrants with direct access to free resources, but most migrants are unaware of the access points, highlighting the need for better communication by humanitarian organizations.

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In the town of Ulloa, for example, the civil society organization Nuestra Red is leveraging WiFi technology to set up a community network—one that is built, owned, and operated by community members. They started with an intranet model, providing an offline site where community members could access regularly updated, curated content. Such a model does not require access to backhaul and allows users to become accustomed to using technology and accessing information through an “Internet-like” site. Now Nuestra Red is transitioning to a connected network, with full access to the Internet through a pre-paid model where community members can purchase access codes to go online. By accessing a fiber node in a nearby community, Nuestra Red has set up a series of antennas and routers to extend coverage to the Ulloa area, working with local businesses, the municipal government, and community members to secure their support and participation.

• TV White Space: TV White Space (TVWS) is unused spectrum in the frequencies typically reserved for television broadcast. Colombia was the first country in Latin America to regulate the use of TVWS, enabling network operators to access it for rural connectivity. The equipment required for TVWS networks is often more expensive than that for WiFi, but it can cover greater distances (10-15 kilometers) and can travel through dense foliage, buildings, and other obstacles. It still requires a connection to a network node (via fiber or satellite) from which TVWS radios and antennas can extend coverage into more rural areas.

Microsoft has been active in developing and helping Internet service providers (ISPs) to deploy fixed wireless solutions that include TVWS technology, specifically through the Microsoft Airband Initiative.29 In Colombia, Microsoft is developing a connectivity ecosystem which includes partnering with ISPs such as ANDITEL to build fixed wireless networks as well as establish programming for local communities on Internet adoption. One approach they are piloting is to work with large, private corporations such as Occidental (an oil and gas company) and Lavazza (an international coffee exporter) who see value in bringing Internet to the communities where they work and are willing to pay for such connectivity in the short term. By rolling out new digital services and training alongside network expansion, Microsoft, ANDITEL, and their civil society partners aim to build the capacity of local communities to leverage the Internet for economic benefit. In doing so, they hope to increase demand and willingness to pay for the Internet so individual users can ultimately take over the costs after corporate partners’ commitments end.

FIGURE 4. Digital Connectivity’s Impact on a Coffee Farmer’s Livelihood

29 “Rural Broadband Access & Connectivity,” Microsoft, accessed March 6, 2020, https://www .microsoft .com/en-us/corporate-responsibility/ airband .

Market Intelligence

Extension services

Farmer-to-farmer data sharing

Certifications

Connect to large producers

How connectivity can improve a coffee farmer’s livelihood

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• Licensed Spectrum: An innovative pilot is taking place using licensed spectrum reserved for mobile communications to establish a community network. There are several advantages to using licensed spectrum:

1) mobile handsets can work in both the community network as well as in cities, on an MNO’s network;

2) connectivity between rural and urban networks can be seamless to the end user, with appropriate arrangements made between providers and with government regulation and enforcement; and 3) licensed spectrum can be more reliable than WiFi or TVWS, as the signal can go through walls, trees, and rain (it also does not create conflict with incumbent spectrum holders, which TVWS has to contend with).

BUILDING A NETWORK

COST: High fixed costs, low variable costs

DETAILS: Laying fiber to remote, sparsely populated areas can be logistically and financially challenging

COST: Low fixed costs, high variable costs

DETAILS: WiFi is easy and inexpensive to set up but requires line-of-sight between each antenna back to the original backhaul connection

COST: Moderate fixed costs, moderate variable costs

DETAILS: TVWS equipment is more specialized and expensive than WiFi but can transmit signal around obstacles and across greater distances

COST: High fixed costs, high variable costs

DETAILS: Using satellite receivers in a remote community can be easy and straightforward but service can be quite expensive

COST: Moderate fixed costs, moderate variable costs

DETAILS: Deploying mobile network equipment in rural areas can be prohibitively expensive, however, accessing unused licensed spectrum for community networks may be possible to lower costs

FIRST MILE

(Backbone) Active Players:

Multinational Companies, National Governments

MIDDLE MILE

(Backhaul or National Backbone)

Active Players: Telecom Companies, ISPs, Application Providers, Multilateral

Institutions, National Governments

LAST MILE

(Connection to Devices)

Active Players: Telecom Companies, ISPs, National &

Local Governments, Communities

REQUIRED FOR… REQUIRED FOR…

Licensed Spectrum

Transnational Fiber Optic

Cables

(Over land and Undersea)

Licensed Spectrum

Satellite

Fiber to Home/Office

WiFi Networks

Satellite

TV White Space

(TVWS)

National Fiber Optic Cables

Considerations for Rural Connectivity:

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Although access to licensed spectrum is expensive and typically only feasible for major telecommunication companies, Colnodo—a non-governmental organization (NGO) focused on ICT—is working with the Colombian Government to pilot licensed spectrum use for community networks in Buenos Aires, Cauca. In 2017, Colnodo started advocating for coordination with the government to carry out the pilot and access the licensed spectrum.

However, an agreement was not signed until two years later, in April 2019.