Spotlight: Chile's 2035 digital transformation strategy

A 2035 digital transformation strategy for Chile was developed with input from the senate’s transport and telecoms committee, the UN Economic Commission for Latin America & the Caribbean, association Chile Telcos and the digital infrastructure chamber.

Representatives of the public sector, business, academia and civil society created a plan to define goals regarding infrastructure, skills, rights, e-government and cybersecurity, among others.

DIGITAL INFRASTRUCTURE

Internet should be accessible to everyone, everywhere in Chile, according to the plan, which mentions data from operators, showing that 20 districts (6%) lack fixed broadband access, although some have partial connectivity.

Mobile broadband subscriptions exceed 100% coverage, while fixed broadband penetration in households is 75%.

The plan proposes 90% 5G coverage in 2025, 98% in 2030 and 100% in 2035.

Operators Entel, Movistar and WOM are advancing in the deployment of 5G. The chamber estimates that US$6bn will be invested in 5G infrastructure in 2022-31.

Fiber-to-the-home should reach 65% coverage in 2025 and 85% by 2035, while average download speeds should be 160Mbps by 2025, 400Mbps by 2030 and 900Mbps by 2035.

Average mobile speeds should reach 60Mbps by 2025 and up to 500Mbps by 2035.

Ultra high-speed networks delivering at least 400Mbps should be available in all state institutions in 2030 and speeds of 1Gbps by 2035.

Mobile penetration should reach 80% by 2025 and 98% by 2035, while fixed penetration should be 85% by 2025, 90% by 2030 and 95% by 2035.

To achieve these objectives, the plan proposes that internet be recognized as a public service, ensuring financing for universal access policies, developing a connectivity plan, implementing demand subsidies, lowering prices, promoting Wi-Fi and encouraging investment, among other actions.

It is also proposed that the mandate and powers of regulator Sutel be expanded and to create a watchdog with broader powers.

DIGITIZATION OF THE ECONOMY

To encourage digitization transformation in productive sectors, Chile should promote digitization plans for SMEs, facilitate digital financial inclusion and incorporate advanced digital technologies in strategic sectors, among other things.

The plan proposes promoting entrepreneurship and innovation, as well as supporting regional digital integration agreements.

Specifically, electronic commerce tools should be adopted, so in two years, 35% of all companies would be using such tools and 70% in 2035. Also, 10,000 companies per year should have access to training programs.

Artificial intelligence, data analysis, robotics and cybersecurity startups will represent 5% of companies in 2025, 10% in 2030 and 15% by 2035, according to the plan.

R&D spending as a percentage of GDP should reach 1% in 2025, 2% in 2030 and 2.5% in 2035, while it is advisable to increase financing for technology-based ventures to allow annual per capita spending to increase from US$186 in 2020 to US$450 by 2035.

Another goal is to increase financing via angel investments from 0.17% to 0.28% of GDP by 2035.

E-GOV

According to the plan, 95% of procedures at the national level should be available online by 2025 and 100% from 2030.

In addition, all institutions should implement digital mechanisms for citizen participation, and a national data policy should be developed within two years.

SKILLS AND RIGHTS

Chile should match the OECD average in the development of digital skills, as well as increase the number of professionals in areas related to science, technology, engineering and mathematics.

According to the document, only one third of the 80% of Chile’s population that accesses the internet uses it in an advanced way.

In addition, it is proposed to establish by 2025 a workforce conversion plan to accommodate workers whose jobs have disappeared due to digital transformation.

A digital rights charter and education plan should be developed, along with approval of a personal data protection law, an open data strategy should be developed and the law on electronic signatures and digital identity should be updated. 

CYBERSECURITY AND GOVERNANCE

According to ITU's cybersecurity index, Chile ranks 74th worldwide, below its OECD peers and behind countries in the region like Brazil, Mexico, Uruguay and the Dominican Republic.

To improve this situation, investment in cybersecurity R&D&I as a percentage of GDP should be increased from 0.1% in 2025 to 0.2% in 2030, and 10,000 cybersecurity professionals should be trained.

It is proposed to create a national cybersecurity institute and agencies for protecting personal data and critical information infrastructure.

The strategy includes the creation of an Ibero-American Cybersecurity Skills Center, as a non-governmental organization based at national universities, associated with the network of research centers supported by the Global Center for Cybersecurity Capacities of Oxford University.