Uruguay boasts a technology literacy rate of more than 98%, the highest in South America, with telecommunications networks that are 100% digital. Between 2021 and 2022, Uruguay’s imports of IT and telecommunications equipment surged from $549 million to $706 million. Here are some key factors in Uruguay’s technological infrastructure that have earned it the name “Silicon Valley of South America.”

Expanding Fiber Optic Infrastructure in Rural Areas

In 2021 and 2022, ANTEL, Uruguay’s largest telecommunications company, invested $161 million into the country’s telecommunication sector, with 80% of that allocated to expanding fiber optic infrastructure in rural areas. ANTEL currently holds 57% of the market share, followed by Spain’s Telefónica/Movistar with 26% and Mexico’s Claro with 17%. The company is focused on replacing outdated copper connections with fiber optic technology. This aims to improve and strengthen internet access, particularly in the country’s rural regions.

The 2025 Digital Agenda

In May of 2021, Uruguay approved a guideline for further digital developments called the “2025 Digital Agenda,” which is managed by the Knowledge Management Agency. This will open doors to more opportunities for hardware and software providers, as well as telecommunication and network service companies. The basis of the plan is to expand the “fiber-to-the-home” networks to remote locations.  Additionally, the plan looks to increase the range of 5G networks and new digital health services.

Programa Ibirapitá

This program in Uruguay focuses on the digital inclusion of older adults, aiming to improve social inclusion, participation and equity. Through workshops designed to increase digital literacy and consultations, the initiative empowers elderly individuals. The program specifically targets individuals aged 65 and above whose annual income is at most $30,885. These participants are granted access to mobile devices through the Ibirapitá Mobile Plan, a service provided by ANTEL, which helps bridge the digital divide and fosters greater connectivity and independence for older adults.

Plan Ceibal

In 2007, Uruguay launched a program aimed at promoting nationwide digital literacy and skill development by providing each student with access to a laptop in school. This initiative became a key part of the country’s education strategy. Furthermore, it has been supported by tax incentives for tech companies and significant investments in communications infrastructure. Furthermore, the program has helped bridge the digital divide and enhance technological skills among students across the country.

Looking Ahead

Uruguay’s next step in its technological evolution is focusing on the “Internet of Things” (IoT). Development will be driven by both public and private stakeholders. Indeed, these efforts are taking place in the “Open Digital Lab,” a dedicated test space for IoT technologies and their applications. As the country continues to grow and expand its technological capabilities, discussions around artificial intelligence (AI) and robotics have become more prevalent, reflecting Uruguay’s ongoing push to enhance its telecommunications infrastructure and embrace emerging technologies.

– Isabella Chavez

Isabella is based in Swampscott, MA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Wikimedia Commons