Telecommunications Policy

During the last decades, the widespread growth of information and communication technologies (ICT) has posed incentives to broaden the participation of individuals in social, political and economic dimensions of life. However, utilization of ICT also involves access to technology and infrastructure, and acquisition of skills to deal with innovations and, thus, digital literacy is, primarily, a complementary good. The digital divide expresses inequalities in access and utilization of ICT among individuals and populations in different countries. The study adopts inequalities indexes of Internet access and mobile phone ownership to measure use of ICT goods, accounting for the digital divide in Brazil. The inequality indexes are also split according to main determinants using four nationally representative survey data from 2005 to 2013. Results indicate that the digital divide among individuals is decreasing quite fast among Brazilians over time. However, there is room for policies of mass access to ICT goods based on mobile Internet broadband access. In addition, digital illiteracy, evaluated by lack of education, is one of the main determinants of the digital divide in the country, especially among elderly individuals.

Highlights:
Zero rating/Sponsored data plans exempt specific content from metering or provide free access to limited content.
Opponents have concerns about effects on incentives for innovation while advocates consider subsidies a proven way to promote universal access.
Calibrated zero rating can promote positive spillover and free rider opportunities without extending incumbent market dominance.
If disputes arise, ex ante safeguards can provide flexible remedies.