Demand-Side Policies and Direct Subsidies for Expanding Connectivity in the Amazon
An IDB study presented at Amazon On advocates direct financial support for vulnerable households and small businesses as a strategy to turn infrastructure deployment into meaningful digital inclusion.
The expansion of telecommunications networks in the Amazon frequently encounters a socioeconomic barrier: the limited ability of local populations to afford connectivity services and the devices required to access them. At the "Developing Effective Subsidies for Demand-Side Connectivity Expansion: Insights and Actions" panel, held as part of the Amazon On forum, regulatory authorities and representatives of international organizations discussed the need to rethink public support mechanisms, moving beyond a model focused exclusively on infrastructure supply toward policies that directly stimulate demand.
The discussion was moderated by Sonia Jorge, founder and Executive Director of the Global Digital Inclusion Partnership (GDIP), who provided an overview of the digital adoption gap.
"Ensuring that an internet signal is available is the first step, but it does not solve the exclusion problem if local populations cannot afford the service or the necessary equipment. The regulatory focus needs to move toward productive inclusion and affordability," Sonia Jorge said.
The affordability challenge was examined by Tiago S. Prado, Lead Telecommunications and Connectivity Specialist at the Inter-American Development Bank (IDB). Presenting a study developed by the institution, Prado pointed out that the cost of broadband subscriptions and digital devices can represent a disproportionate share of household income in remote areas of Latin America.
He argued that demand-side subsidies — such as vouchers for low-income households and small businesses — can act as an economic catalyst by enabling sustained use of connectivity services while also encouraging regional providers to enter underserved markets.
The institutional experience of regulators in Latin America and Europe reinforced the relevance of targeted support mechanisms. Amparo Arango Echeverri, Director of the Telecommunications Development Fund (FDT) at Indotel in the Dominican Republic, outlined initiatives through which the Dominican government has allocated public resources to subsidize data plans for schools and communities.
Claudia Bustamante, Communications Commissioner at Colombia's Communications Regulation Commission (CRC), emphasized the importance of accurate regional assessments to prevent subsidies from distorting local competition, while prioritizing areas where commercial service provision is not economically viable.
From a European perspective, Manuel Cabugueira, a member of the Board of Directors of Portugal's National Communications Authority (ANACOM), shared the experience of the "social internet tariff", a regulated model that provides reduced prices for citizens facing socioeconomic vulnerability and is financed through universal service obligations.
From the perspective of the Brazilian government, Juliano Stanzani, Director of the Sector Policy Department at the Secretariat of Telecommunications within the Ministry of Communications, highlighted that consolidating projects such as the Norte Conectado Program requires coordination with social policies.
Stanzani emphasized that resources from Fust (the Fund for Universalization of Telecommunications Services) are being directed not only toward physical infrastructure, but also toward ensuring sustainable access for public schools and traditional communities across the Amazon Basin.
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