COUNTRY FOCUS : ECUADOR
Ecuador – diagonising a digital economy
A World Bank Group report released in January 2024 salutes Ecuador for significant progress in the adoption of digital technologies over the past decade – with 60 % of households now having access to the internet , a 28-percentage point increase from 2014 .
But the report recognises that , although the government of Ecuador is committed to driving digital transformation , as reflected in the Digital Transformation Agenda 2022 – 2025 , challenges remain .
The country diagnostic report supported by the World Bank Group ’ s Digital Economy for Latin America and the Caribbean ( DE4LAC ) initiative provides insights into the current state of digitalization , key challenges and policy priorities to accelerate the country ’ s digital transformation .
Challenges :
• Low and unequal internet penetration and affordability obstacle . Around a third of Ecuadorians do not use internet and only 38 % of rural households have access to fixed internet compared to 60 % percent across the country . In addition , 71 % of the unconnected in Ecuador mentioned internet prices as the main obstacle to being online .
• Low adoption of digital public services . Less than one per cent of the country ’ s internet users have used the internet to carry out procedures with public entities or government agencies . In addition , Ecuador ranks 13 out of 33 LAC countries as measured by the UN ’ s E-Government Development Index .
• Low adoption of digital financial services . Stats for 2021 show 47 % of adults made or received digital payments in 2021 – below LAC ’ s average of 66 %.
• Limited digital businesses . Ecuador has a small number of digital businesses relative to GDP and population – below regional peers like Belize , Brazil , Chile , Honduras , Jamaica and Uruguay .
• Lack of measurable policy frameworks for digital skills development . Ecuador ’ s digital skills development frameworks lack specific measures and policy instruments to assess and guide students ’ progress . Ecuador ranks 98th out of 141 countries on the World Economic Forum ’ s digital skills index .
• Unpreparedness for potential cyberattacks . The country lacks systematic cybersecurity enablers and safeguards , such as a national cyber crisis management framework and a national incident response team . ITU ’ s 2020 Global Cybersecurity Index ranked Ecuador 119th out of 182 countries and 19th in the Americas region .
Policy priorities :
1 . Digital Infrastructure : Invest in fixed and mobile infrastructure and international bandwidth in remote areas and leverage regulatory tools to lower internet prices .
2 . Digital Public Platforms : Streamline services with whole-ofgovernment standards to ensure interoperability and provide a comprehensive digital transformation framework for end-toend citizen use .
3 . Digital Financial Services : Expand DFS adoption by promoting the market entry of fintech companies , investing in fast and interoperable payment infrastructures and digitizing government payments .
4 . Digital Businesses : Update digital market regulations for new digital business models and identify ways to increase the availability of venture capital financing for digital start-ups .
5 . Digital Skills : Create a comprehensive framework to guide and measure student progress in digital skills from primary to higher education .
6 . Trust Environment : Strengthen the country ’ s incident response management and production of critical information infrastructures through the implementation of the national strategy .
José Francisco Guzmán , Country Manager , Cirion Technologies , Ecuador , said SD-WAN offers integrated security and expanded visibility , allowing all network components to be monitored and guaranteeing secure and reliable networks .
“ SD-WAN is revolutionizing the way companies manage their networks , bringing significant changes in processes – Ecuador is joining the trend of savings achieving up to 50 %.”
Companies in different sectors that have implemented SD-WAN have seen substantial improvements in their operations :
• Improved connectivity : Cirion ’ s hybrid connections , which integrate internet links and MPLS private networks , ensure robust and efficient connectivity , crucial to modern business operations .
• Resource optimization : Service integration and elimination of redundant hardware allow for better resource utilization and simplified management .
Cirion Technologies offers solutions tailored to the specific needs of each business . The adoption of SD- WAN is a key strategy for companies looking to improve their processes and reduce costs , representing a smart investment for the future growth and competitiveness of companies in a challenging environment . p
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