Legal framework for community networks in Latin America

Economic Impact

In Latin America, most community networks cover coverage needs where there are no communications services or those that exist are deficient.

The Community Networks break traditional schemes of attention to remote areas that subsidize large operators to provide services in areas that are not profitable for them. Instead, these networks use local resources to provide these services, making better use of public resources and generating a greater impact on them.

The following are two papers that address key issues regarding the economic impact of community networks: 

Most studies on the economic impact of ICTs in rural communities speak of a direct impact on Gross Domestic Product (GDP). This gives a false idea that it is enough to provide connectivity to automatically produce an economic benefit at the local level. In reality, this depends on the technological scheme and business model with which connectivity is implemented. This article is an invitation to reflect on the subject.
For many years, the lack of connectivity in rural areas has been considered a market failure, when in fact it is a series of barriers to competition that prevent market access for economic agents operating in the communities, such as community networks and small operators.

This project was carried out with the help of various programs and thanks to the support of the Internet Society, Ford Foundation, Association for Progressive Communications (APC) and Rhizomatica.

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