The digital divide in mexico: a mirror of poverty

Abstract

The Mexican digital divide is a problem of inequality that also reflects the poverty of certain cities/areas/groups in Mexico. This note analyzes the digital divide in Mexico, as well as the legal and constitutional efforts the Mexican government has made to breach it. In 2013 and 2014, the government approved an important constitutional amendment and other legal reforms in an attempt to solve this problem with a new fiber optic network and new institutional actors. By setting up a new infrastructure, private actors will be able to offer better broadband Internet services. Nevertheless, these efforts will not benefit those who are not Internet users: the have-nots.

Full text

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THE DIGITAL DIVIDE IN MEXICO: A MIRROR OF POVERTY
Jua n M an ue l MECINAS MONTIEL*
ABSTRACT. The Mexican digital divide is a problem of inequality that also re-
flects the poverty of certain cities/areas/groups in Mexico. This note analyzes
the digital divide in Mexico, as well as the legal and constitutional efforts the
Mexican government has made to breach it. In 2013 and 2014, the govern-
ment approved an important constitutional amendment and other legal reforms
in an attempt to solve this problem with a new fiber optic network and new
institutional actors. By setting up a new infrastructure, private actors will be
able to offer better broadband Internet services. Nevertheless, these efforts will
not benefit those who are not Internet users: the have-nots.
KEY WORDS: Internet, digital divide, poverty, inequality, constitutional re-
forms, fiber optics, broadband connection.
RESUMEN. La brecha digital es un problema de desigualdad y que también
refleja la pobreza de diversos(as) grupos/áreas/ciudades en el país. Este texto
intenta analizar la brecha digital en México y los esfuerzos constitucionales y
legales del gobierno mexicano para cerrarla. Durante 2013 y 2014, el gobierno
aprobó distintas reformas constitucionales y legales que intentan resolver este
problema con una nueva red fibra óptica y con nuevas instituciones. Se trata de
una nueva infraestructura que permitirá a actores privados ofrecer mejores ser-
vicios de internet de banda ancha. Sin embargo, estos esfuerzos no beneficiarán
a quienes no son usuarios de la red, los have-nots.
PALABRAS CLAVE: Internet, brecha digital, pobreza, desigualdad, reformas
constitucionales, fibra óptica, conexión de banda ancha.
93
* Professor and Researcher at CIDE (Center for Economic Research and Teaching). Pro-
fessor at Conacyt. He holds a PhD in Constitutional Law from the Complutense University
and has done research at various universities and institutes such as the Max-Planck Institute
(Heidelberg), Harvard University and Kassel University. Email: juan.mecinas@cide.edu.
© 2016 Universidad Nacional Autónoma de México, Instituto de Investigaciones Jurídicas. This is an open access
article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

94 MEXICAN LAW REVIEW Vol. IX, No. 1
TABLE OF CONTENTS
I. POVERTY AND INEQUALITY ..................................................................... 94
II. FROM MARCOS’S MYTH TO PEÑA NIETO’S REFORMS ............................. 95
III. DOMINANT PLAYERS AND INFRASTRUCTURE ............................................ 97
IV. REFORMS AND POVERTY ........................................................................ 99
V. THE MISSING DIVIDE .......................................................................... 101
I. POVERTY AND INEQUALITY
Maria and Francisca do not use a computer or a cell phone. Internet is a
vague concept for them. With a kindhearted smile they claim that the Inter-
net and computers are things for educated and wealthy people. They belong
to a large number of Mexicans who do not use the Internet. Maria is a single
mother of a two-year-old boy. She barely speaks Spanish and finds difficulties
in selling handcrafted dresses in a small town in Chiapas —a state in southern
Mexico in which one third of its inhabitants live in extreme poverty.—1 Fran-
cisca, her assistant, is younger (14) and only speaks Tzotzil.2
Different reasons explain the digital divide in Mexico, but it is essentially
a consequence of poverty and inequality. Internet penetration in Mexico is
similar to that of other countries in Latin America, with a low average of
users in comparison with some European countries.3 51.2 million Mexicans
have Internet access,4 which represents less than half of its population.
Internet access has a deeper penetration among wealthier Mexicans than
the poorer sector of the population. 7 out of 10 members of the highest
income bracket are Internet users, while this is the case of only 2 out of 10
members of the lowest income bracket, despite the fact that this last group
represents about the same percentage of the Mexican population.5
1 CONEVAL, Indicadores de Pobreza, (2012), available at http://www.coneval.gob.mx/coordina-
cion/entidades/Paginas/Chiapas/pobreza.aspx.
2 A language spoken by 291,550 citizens in Chiapas, most of them in the region called Altos
de Chiapas. Comisión Nacional para el Desarrollo de los Pueblos Indígenas, Atlas de los Pueblos
Indígenas de México, available at http://www.cdi.gob.mx/index.php?option=com_wrapper&view=wrap
per&Itemid=200027
3 For instance, in Belgium, Denmark and Norway, Internet access stands at around 85%,
96% and 96.3%, in that order, compared to Colombia, Mexico and Paraguay where these av-
erages are 52.6%, 44.4% and 43%, respectively. World Bank, World Development Indicators 2014,
available at http://data.worldbank.org/indicator/IT.NET.USER.P2.
4 AMIPCI, Estudio sobre los hábitos de los usuarios de internet en México 2014, (2014), available
at https://www.amipci.org.mx/estudios/habitos_de_internet/Estudio_Habitos_del_Internauta_Mexicano
_2014_V_MD.pdf.
5 This figure stands at 23% and 26%, respectively. Vid. AMIPCI, Estudio sobre hábitos de los
usuarios de internet en México 2009. Available at https://www.amipci.org.mx/estudios/habitos_de_inter-
net/2010_Habitos_Usuarios_Internet_Mx.pdf.

THE DIGITAL DIVIDE IN MEXICO:... 95
A lack of academic education brings low income and fewer opportunities
for Internet access. People who only received elementary education represent
21% of Internet users and they have four times fewer probabilities of using
the Internet in Mexico.6
There is also a generational gap. People over 45 represent 12.3% of all In-
ternet users7 even though they are 32.82% of the economically active popu-
lation.8
Evidently, a lack of infrastructure is a key issue to understanding the situ-
ation. In 2012, just 26% of Mexican households had Internet access and it
varied among the States. For instance, in Sonora, Baja California, Nuevo
León (border states with the U.S.) and in Mexico City (the capital), Internet
accessibility was 4 out of every 10 households, while in poorer states like
Oaxaca, Chiapas and Guerrero, the average was 1 out of every 10.9
This condition puts Mexico in the worst OECD rankings of Internet pen-
etration and specifically in wireless broadband penetration. It also explains
why Maria and Francisca, living in a poor state, having no formal schooling
and with low incomes are far from living in a digital world.
II. FROM MARCOS’S MYTH TO PEÑA NIETO´S REFORMS
In 2012 a movement called “#YoSoy132” (“#Iam132”) appeared in Mexi-
can politics using the Internet. It was not the first case. In 1994 the EZLN
had risen10 by using the Internet and changing the way of doing politics and
igniting a revolution. The country and the world knew of the political claims
of the EZLN through the web.11 The transmission of EZLN`s ideological
platform was different due to the Internet12 and an indigenous agenda was
put on the table.
6 INEGI, Módulo sobre Disponibilidad y Uso de las Tecnologías de la Información en los Hogares 2014,
(2015), available at http://www3.inegi.org.mx/sistemas/microdatos/encuestas.aspx?c=34519&s=est.
7 Idem.
8 INEGI, Encuesta Nacional de Ocupación y Empleo, Tercer Trimestre de 2014,(2015), available
at http://www.inegi.org.mx/lib/olap/consulta/general_ver4/MDXQueryDatos_Colores.asp?proy=enoe_
pe_pmay
9 INEGI, ESTADÍSTICAS SOBRE DISPONIBILIDAD Y USO DE TECNOLOGÍA DE INFORMACIÓN Y
COMUNICACIONES EN HOGARES 2013, 15 (2014).
10 The EZLN is an army with indigenous members denouncing political actions which
emerged in Chiapas on January 1, 1994. See CARLOS TELLO. LA REBELIÓN DE LAS CAÑADAS
(Cal y Arena, 1995).
11 Nevertheless, Marcos stated that it was a student in Texas who designed and controlled
the web page and that he has never met this student. Vid, CNN México, El Subcomandante Mar-
cos explica el uso de la tecnología del EZLN, available at http://mexico.cnn.com/nacional/2013/02/11/
el-subcomandante-marcos-explica-el-uso-de-la-tecnologia-del-ezln.
12 For instance, “Primera Declaración de la Selva Lacandona”, available at http://palabra.
ezln.org.mx/comunicados/1994/1993.htm

96 MEXICAN LAW REVIEW Vol. IX, No. 1
But in 2012 the context had changed. “#Yosoy132” members were univer-
sity students and the movement emerged during the presidential electoral cam-
paigns. They asserted that Peña Nieto —the PRI candidate— was a liar13 and
that he had built his position as the leader of the presidential race on a blurred
relationship with the most important broadcaster in the country Televisa.14 If
the EZLN showed the lack of an indigenous agenda, “#YoSoy132” showed the
gap between old politics and new digital generations.
Nevertheless, Peña Nieto won the election. “#YoSoy132” was a key factor
in a very competitive election, but it faced structural limitations for such a
movement: half of the Mexican population did not have Internet, which was
its core means of communication.15
Although #“YoSoy132” was about to make him lose the election, Presi-
dent Peña Nieto proposed an inclusive digital agenda. His decision is based
on political and economic grounds. The ICT market means potential revenue
of 60 billion USD a year in Mexico; however, it required a new framework.
Mexican politics was full of continuous and useless political efforts trying to
breach the digital divide and offering incentives for a competitive market.
In 2013, Mexico began to amend its constitutional and legal frameworks on
ICT. It was a turning point in political and legal terms. The leitmotiv of
the amendments was not essentially breaching the digital divide, but open-
ing the telecommunications market (controlled by America Movil —a Carlos
Slim company— in the phone and mobile phone sector and Televisa in tele-
vision and broadcasting).
The dispute between Televisa and America Movil also explains the reforms
and the fight for control over the telecommunications market. The Mexican
ICT sector was living under a laissez-faire policy with a lack of governmental
infrastructure and two dominant actors leading the business. Obviously, the
reform is in part the State’s late reaction to this challenge that stresses the need
for a national agenda for digital inclusion.
Competitiveness was the goal because two dominant players were not
enough for such a broad market. Having more public TV channels and a
better ICT infrastructure are fundamental tools for governments in modern
democracies. The Mexican government aims to have real control with a re-
form that underlines three legal features:
13 During his visit to the Ibero-American University campus, Peña Nieto dismissed a pro-
test claiming that there were only 131 demonstrators. The movement started on social net-
works on the premise that they were students and the name #Yosoy132 meant everybody who
joined the dismissed group.
14 Other media had already denounced this connection. See Jenaro Villamil, Televisa y la im-
posición de Peña Nieto, PROCESO, July 2, 2012, available at http://www.proceso.com.mx/?p=312908.
15 University students were 5% of the electorate. A majority of people with less formal
education voted for Peña Nieto. See Consulta Mitofksky, México 1o. de Julio de 2012. Perfil del
Votante, available at http://consulta.mx/web/images/elecciones/2013/20120701_Perfil_Votante.pdf.

THE DIGITAL DIVIDE IN MEXICO:... 97
a. ICT access as a fundamental right. The constitution recognizes Inter-
net access as a fundamental right.
b. The creation of an independent institute that will focus on ICT li-
censes and concessions.
c. Discussion of two scenarios: ICT infrastructure —the creation of a
“shared network”— and television broadcast.
The transitional articles of the amendment expressed the government´s
target to attain universal digital access. By the end of 2018, the Mexican gov-
ernment aims to extend Internet access to reach 70% of Mexican households
and for 85% of micro, small and medium-sized companies to have Internet
access with “real speed to download information”.
III. DOMINANT PLAYERS AND INFRASTRUCTURE
Besides poverty and inequality, a two-head monster challenges the efforts to
breach the Mexican digital divide. One head is the Dominant Players —actu-
ally a sort of group of monopolies— and the other is a lack of infrastructure
to provide more and better services in the telecommunications sector.
Regarding the players, in recent months the IFT16 declared America Movil
and Televisa as the Dominant Players in the telecommunications sector in
Mexico. America Movil —through Telcel and Tel-
mex— accounts for 70% of the mobile market and around 70% of the fixed
market. On the other hand, with a market share of 67%, Televisa dominates
television and broadcasting service.17 This declaration is a result of the new
constitutional and legal framework in order to compel them to share their
infrastructure with other competitors.18
Concerning the infrastructure, Mexico has the worst OECD ranking in
wireless broadband penetration. While in most OECD countries there are al-
most 3 wireless broadband subscriptions for every 4 inhabitants, in Mexico the
percentage is about 14% —almost 1 subscription for every 7 inhabitants.—19
There is a lack of fiber optic infrastructure to transmit data and offer cheaper
services with better quality.
Under this scenario, the constitutional amendments and a law reform on
telecommunications —approved between June 2013 and July 2014— stressed
the Mexican government’s interest in having a better fiber optic infrastructure
16 This is the top official Mexican regulator on ICT since 2013.
17 PriceWaterhouse Coopers, Nordic Investment in Mexico. Telecommunication services, available at
http://www.pwc.com/es_MX/mx/international-business-center/archivo/2014-11-telecommunications.pdf.
18 Nevertheless, in a much criticized ruling last October, the IFT found that Televisa is
not dominant in cable and satellite television markets, which will let the company continue
increasing its market share.
19 OECD, Broadband statistics, available at oecd.org/sti/ict/broadband

98 MEXICAN LAW REVIEW Vol. IX, No. 1
and more competitors, and articulated its concerns as to who can use the Domi-
nant Players’ infrastructure. The aim of these reforms was to kill the monster:
building up the digital infrastructure20 and creating incentives for real compe-
tition in the telecommunications sector.
Currently the Mexican government holds a “core network” of fiber optic
of about 25,500 kilometers. By the end of 2018, it aims to own 82,500 kilo-
meters.21 Unfortunately this is not the largest fiber optic network in the coun-
try. America Movil owns more than 167,000 kilometers of fiber optics (twice
the amount the government aims to have by the end of 2018).22
The infrastructure exists even though it belongs to a private company. The
government decided to build a new one to control the market and guarantee
net neutrality. In this sense the decision seems quite rational because new ac-
tors will not depend on America Movil so as to enter into the market. They
will need to invest in the “last mile” and not in the “middle mile”. However,
new actors cannot be obliged to invest in non-profitable markets. In this sense,
the relationship between poverty, exclusion and services becomes significant:
new actors will not be attracted to markets with high rates of poverty.
Having a larger fiber optic network does not immediately result in a deeper
penetration of Internet. Even though America Movil owns a large fiber optic
network, it cannot offer a broadband connection to everyone. In other words,
an automatic consequence of the efforts to build a larger fiber optic network
is not necessarily a decrease in the digital divide. The government knew it and
decided to create a network that can reach 70% of the Mexicans households
and can connect 80% of the small and medium companies.
Having more service providers with better and cheaper products offered
through a government network will be very attractive for customers who can
pay for those services, but not for those who cannot. The good news is that it
will benefit most of the Mexicans who are already connected. Government
efforts will bring new competitors,23 but that bad news is that it will not neces-
sarily bring more cybercitizens.
For instance, new companies/alliances created to offer services —with the
benefits of the shared network built by the government— concentrate their
business in cities with large concentrations of Internet users.24
20 According to the government, this new “shared network” will cover 98% of the Mexican
population.
21 In this sense there is a double risk: time and technology. As long the government does
not reach its goal, it will be inadequate to provide coverage for forthcoming technological
developments.
22 An obvious question arises: Why did the government decide not to use America Movil’s
larger fiber optic network while building its own “shared network”?
23 For instance, in recent months AT&T bought Iusacell —an important company in the
mobile sector— and Nextel de México and will challenge the dominance of America Movil
and Televisa.
24 This is the case of “Izzi” —a new Internet service provider—. Vid. Luis González
and Nicolás Lucas, Izzi propone más que una Guerra de tarifas: Televisa, EL ECONOMISTA, Nov. 4,

THE DIGITAL DIVIDE IN MEXICO:... 99
Therefore, in order to breach the digital divide, it is not sure whether the
creation of the network was a reasonable solution in the short and long run.
In the meantime it is not clear whether the government will invest in the “last
mile” and under what conditions. Furthermore, it is not only a matter of fiber
optics, but of towns/cities where the new “shared network” will run.
Experiences show that markets do not close gaps. Fiber optics and broad-
band connections depend on the attractiveness of the market based on the
size of the population, the terrain, the economic situation and the amount of
the investment.25
The State should undoubtedly have some sort of control over the tele-
communications sector.26 However, it is just part of the solution. Closing the
digital divide depends on whether the government wants to invest in places
where the market does not.
This is a huge risk because a deeper gap can arise between those who are
already connected and those who are not. Digital divide is not only a matter
of access but of the quality of access and skills. So, by the end of 2018, 70%
of Mexican households will have Internet. The problem will remain for the
remaining 30%. If they are the same households that do not have Internet
today, we face a problem, the solution to which is not found in the reforms or
current policies. The Mexican reforms were a good idea for the existing cus-
tomers, but it is a risky gamble for citizens with no Internet access. In 2018,
the gap may become even deeper.
IV. REFORMS AND POVERTY
Some facts cast doubt on the success of the government’s ambitions for dif-
ferent reasons:
1. In households with a computer, the lack of Internet access is due to
economic reasons.27 Therefore, the problem is not only one of infra-
structure. In the end, it lies in the possibility of paying for the services
offered on the market.
2. In Mexico, people with lower income spend less money on transporta-
tion and communications. A service provider will not invest in neigh-
2014, available at http://eleconomista.com.mx/industrias/2014/11/04/izzi-telecom-propone-mas-
que-guerra-tarifas-televisa
25 This also happens in other countries. Vid. Susan P. Crawford and Robyn Mohr, Bring-
ing Municipal High-Speed Internet Access to Leverett, Massachusetts, December 17, BERKMAN CENTER
RESEARCH PUBLICATION 26, 12, (2013), available at SSRN: http://ssrn.com/abstract=2366044.
26 JULIA NEUMANN, BRIDGING THE DIGITAL DIVIDE, 49-50, 102 (Carl Heymanns Verlag 2012)
27 This was the main reason in 62% of the cases. See INEGI, ESTADÍSTICAS SOBRE DIS-
PONIBILIDAD Y USO DE TECNOLOGÍA DE INFORMACIÓN Y COMUNICACIONES EN HOGARES, 2013 16
(INEGI 2014).

100 MEXICAN LAW REVIEW Vol. IX, No. 1
borhoods/towns where people cannot afford Internet services due to
their economic situation.28
3. The latest official data showed that one third of Mexican households
do not have a cell phone29 and 38% of the population does not use a
cell phone at all.30 This is a big contradiction because there are more
than 100 million cell phone subscriptions.31 In states like Oaxaca, 60%
of the households have no cell phone in contrast with Baja California
Sur where the figure stands at 87%. Data shows that even when there
is infrastructure to use a cell phone, (with or without a data plan to ac-
cess the Internet) one third of the households do not have it, especially
in the poorest states.32
4. The lack of Internet access in households is severe and the govern-
ment’s aim to reach 70% of them seems far away (today it is around
26%). Most states in Mexico did have statistics showing 80% of their
households without Internet access, with cases like Chiapas where the
average is 92%.33
5. Reality does not show a real possibility of bridging the digital gap
in the next decade under the policies implemented by the Mexican
government. 11.3% of Mexican households have no potable water.
Almost half of the households in towns with fewer than 2,500 inhabit-
ants use firewood and coal to cook. These indicators make difficult to
believe that the Mexican situation in terms of the digital divide can
change in view of such disparities and contradictions in basic services.
6. Data show a country that needs to fill in other gaps in order to fill the
digital one. Internet access is very important for Mexican economy,
but water, electricity and other basic services are more important.
There is a lack of such infrastructure in a large number of Mexican
households.
28 In the poorest decile, households spend more than 50% to buy food and just 9.8% on
Transportation and Communication. On the other side, one-fifth decile of the population
spends 16.7% of their income on Transportation and Communication and the richest one,
19.7%.
29 INEGI. Módulo sobre disponibilidad y uso de las tecnologías de la información, 2014, available at
http://www3.inegi.org.mx/sistemas/microdatos/encuestas.aspx?c=34519&s=est.
30 INEGI, ESTADÍSTICAS SOBRE DISPONIBILIDAD Y USO DE TECNOLOGÍA DE INFORMACIÓN Y
COMUNICACIONES EN HOGARES, 2013, supra note 9, at 20.
31 IFETEL, Sistema de información estadística de mercados de telecomunicaciones, available at http://
siemt.cft.gob.mx/SIEM/
32 These include the states of Chiapas, Guerrero (56%) and Puebla (50%). INEGI, Censo
de Población y Vivienda 2010, available at http://www.inegi.org.mx/sistemas/olap/Proyectos/bd/censos/
cpv2010/Viviendas.asp?s=est&c=27875&proy=cpv10_viviendas.
33 Ibídem.

THE DIGITAL DIVIDE IN MEXICO:... 101
In other words, the infrastructure that the government will control in the
short run is necessary, but it is not really a solution at all. The highest con-
centration of this lack of Internet access in households occurs in the poorest
states, which is indicative of a much more serious problem: poverty.
V. THE MISSING DIVIDE
Maria and Francisca were partially right. In their town (and in other places in
Mexico), Internet access and digital skills are not for everyone, regardless of
whether the constitution declares it as fundamental right. The law is far from
being a certainty in this country.
Even if the government is able to connect today´s have-nots, it will not close
the digital divide because its programs are not accompanied with an ambi-
tious digital skills policy. The first definitions of digital divide considered it an
infrastructure and physical problem.34 Nevertheless, experience shows that
infrastructure and gadgets are not enough to breach the digital gap.35 In oth-
er words, the gap is not only about hardware and software.36 Approaching the
digital divide as a hardware and software problem widens the gap between
Internet users and those who do not access to the web. It would be like hav-
ing cars and highways and still be unable to drive because the potential driver
does not know how to.
The divide may be economic and physical, but it is also a gap in terms of
skills.37 The simplification of the issue from an infrastructure or an economi-
cal perspective faces only deals with one part of the problem. Reality shows it
to be a problem with several ramifications. Having infrastructure and gadgets
is essential to close the gap, but digital skills are a pending task for the Mexi-
can government, which normally does not pay attention to this aspect. The
digital divide is a moving target due to the continuous changes in technologies
and gadgets. Infrastructure is useless if it is not accompanied by programs
focused on skills. If we want the Internet to become a real and powerful tool
in economic and political terms, hardware, software and skills are a necessary
trilogy. The government is not running a national digital skills program.38
34 APPU KUTTAN AND LAURENCE PETERS, FROM DIGITAL DIVIDE TO DIGITAL OPPORTUNITY 4
(Scarecrow Press, 2003).
35 PIPPA NORRIS, DIGITAL DIVIDE: CIVIC ENGAGEMENT, INFORMATION POVERTY, AND THE IN-
TERNET WORLDWIDE 16 (Cambridge University Press, 2001).
36 MARK WARSCHAUER, TECHNOLOGY AND SOCIAL INCLUSION. RETHINKING THE DIGITAL DI-
VIDE 1-5(MIT Press, 2004); Jan Van Dijk, The digital divide as a complex and dynamic phenomenon,
Spring, The Information Society (2002), at 1-2.
37 LISA SERVON, BRIDGING THE DIGITAL DIVIDE. TECHNOLOGY, COMMUNITY, AND PUBLIC
POLICY 6 (Blackwell Publishers 2002).
38 There is a “Pilot Program for Digital Inclusion” in place. It does not focus exclusively on
digital skills, but mainly on providing gadgets to Mexican students. See http://www.presidencia.
gob.mx/edn/desarrollo-de-habilidades-digitales-en-el-programa-piloto-de-inclusion-digital.

102 MEXICAN LAW REVIEW Vol. IX, No. 1
There are efforts to provide gadgets; however they are like giving an aspirin
to cure a serious disease.
In some sense, people like Maria and Francisca will continue to struggle
to pay their bills because they live away from the digital world. Mexico is far
from breaching the digital divide. The government has done part of its job,
but it will not be enough to narrow the gap.