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Ecuador seeks to close the digital gap with inclusion and private investment

The Ecuadorian Government seeks to close the digital gap with an inclusive policy that promotes a new economic and financial model through the network, in a strategy in which it tries to involve the private sector with all kinds of incentives.

This was stated by the Minister of Telecommunications, Vianna Maino, after almost eight months of management and after the recent impetus of digitization in the country encouraged, among others, by the pandemic.

As a first step towards this “transformation” is the expansion of connectivity to the entire national territory, highlighted the minister, who in her Agenda for 2025 seeks to reposition Ecuador in the international concert because “a disconnected country, and technologically not standardized, It is a non-competitive country”.

His vision: “The digital economy requires inserting people and companies”, and it is a commitment of the Government “not to develop leaving people behind”, but generating “the inclusion of gender, marginal, rural and isolated sectors”.

Connecting rurality

A 50-year-old law graduate with a doctorate in jurisprudence, Maino took office in May with President Guillermo Lasso, to lead a nationwide transformation and reduce the digital divide.

The connectivity in Ecuador It is around 70%, two points more than in 2020, but a more noticeable change has been registered in 4G coverage, which has jumped from “60% a year ago, to 76%”, to include another “2.8 million of people”.

Private companies have been decisive in this expansion, extending their fiber optics to distant areas such as the Amazon, where 47 parishes with 335,000 inhabitants have been connected since May and 1.3 million people have accessed 4G.

“Our approach is social, deeply social, because we understand that inclusion starts from online services: health, education and even financial services, which we will work on in the coming weeks,” he stressed.

Free Wi-Fi in rural communities and social tariff programs are other measures that are being introduced to encourage digital equity and promote economic and commercial projects on the Internet.

And of course, also, government services: “The issue is that the Government reaches people, and that these more distant people do not need to travel.”

Regulatory reforms

The plan includes a strong regulatory reform projected through the “Organic Law for Economic Development and Fiscal Sustainability”, which contains an entire chapter on telecommunications.

“Save taxes and facilitate investments,” summarizes Maino, recalling that it will annul, among others, the Market Share Tax that discouraged investment by winning customers above a certain percentage.

Likewise, it annulled the Special Consumption Tax (ICE), which charged 10% and 15%, respectively, to the cellular plans of individuals and companies.

And it will make it easier for companies to derive up to 50% of the Spectrum Tax to rural investment plans.

The Government sees the development of the sector as crucial to boost the national economy at a time when electronic commerce is gaining weight in the country: “Electronic commerce grew five times more during the pandemic, which shot us up five years technologically and digitally.”

The process will require getting hands on with a pending issue in Ecuador, financial inclusion, since five out of ten Ecuadorians are still outside the financial system.

“It requires financial inclusion. And yes, we are improving regulation. The reinforcement in regulation and standardization of electronic commerce issues in the region is part of our agenda this 2022″, highlighted the minister.

Ecuador will also try to promote regional standardization strategies and joint projects, following the example of the elimination of the roaming rate in the Andean Community (CAN) from January 1.

cybersecurity

Digital expansion has required much greater attention to cybersecurity, another pending issue in the country.

In 2020, it had a score of 26.3 in the Global Cybersecurity Index (GCI) of the International Telecommunications Union (ITU), recalls the minister, who assures that at the end of 2021 there was an increase, not yet official, of 3.7 points. The goal: 51.3 in 2024.

Despite acknowledging that last year there were attacks on several banks in the country, Maino asks for caution because not all episodes really are, and the necessary preventive measures are being taken.

“We are working hard with international cooperation on training, diagnostics, recommendations, raising alert status, and we still have to do much more because this evolution is very dynamic,” he concluded.

The new Government has set up a National Cybersecurity Committee for data protection with representatives from various ministries and experts, which defines the guidelines and policies in this field.

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