networked access | networked learning | networked society | networked economy | networked policy | offshore opportunity


Networked Society




People and Organizations Online (Stage 3)

In the early 1990s The National Science Foundation (NSF) authorized the Chilean Internet connection.  Based on an NSF grant, the Catholic University at Santiago was the first organization to get connected to the Internet in 1992.  According to CyberAtlas, an Internet based company that maintains an updated list of the latest statistics on Internet users around the world, in 2001, Chile had registered 7 Internet Server Providers (ISPs) and 1.8 million Internet users, which represented 11.7 percent of its population.


Diffusion of ICT




Number of fixed lines in service

3.25 million



1.8 million


Internet servers per 1,000,000 inhabitants



Overall infrastructure quality (scale of 1-7)



Broadband penetration

Subscribers represent .42% of total population


Mobile telephony

7.5 million subscribers


Locally Relevant Content (Stage 3)

Chile has shown advancement in its telecommunications infrastructure in Latin America unparalleled to anyone in its region.  Chile also has the highest personal computer and Internet usage rates, along with strong economic and political stability.  However, given this strong presence, their investment in technology and its use as a management tool is lacking in vitality.  As a result of this, Chile began establishing a public-private national agenda seeking to bring investment levels closer in line to those of the more developed countries.


The Chilean government, private sector and academic institutions worked together to produce a pact known as the Digital Agenda.  Their initiative was to convert Chile into a digital country by 2010, the development of a vision for Chile .  In February of 2004, the Digital Agenda was introduced.  The plan comprises 34 initiatives across 6 action areas, which include:  access, e-government, education and training, ICT industries, businesses and legal and regulatory framework.


The Chilean Association of Information Technology Companies (ACTI) groups information and communication technologies companies in Chile .  The association was founded in 1984 and currently has more than 130 members of all sizes (representing Chile nationally and internationally) that collectively have total annual sales nearing $1 billion.

Some achievements and advances of ACTI include:

·         ACTI proposals in ICT programs / Digital Agenda / Innovation for competitiveness

·         ACTI in Chilean ICT activities (ICARE – SOFOFA)

·         Proposals to promote a software tax policy

·         Participation in Innova Chile (CORFO)

·         Alliances with public and private agents in ICT issues

·         Opinion at high level

·         Other initiatives of:

o        HL health standards

o        Electronic invoices

o        Digital alphabetization scholarships

o        Certification

o        Qualification

o        SMEs support


Information and Communication Technologies in the Workplace (Stage 3)


Now every Chilean company uses the Internet to pay national insurance contributions to employees, review current accounts, and apply for bank loans.  These companies can also pay taxes and process permits, participate in public auctions, and exchange business information, payments and technical specifications with customers and suppliers.  Companies are also able to subcontract projects, interact with databases, and participate in the electronic marketplace in both Chile as well as abroad.

According to a report by the Center for Study of the Digital Economy of the Santiago Chamber of Commerce (CCS), although 69% of Chilean companies are connected to the Net, digital technology only covers the fundamentals:

§  25% of Chilean companies have their own website

§  11% use the web as a platform for sales

§  16% use to buy online and to connect with suppliers

These numbers show a considerable distance behind such countries as Sweden and Germany where:

·         almost all companies connect to the Internet;

·         more than 80% of the companies have websites; and

·         approximately 40% transact sales online.


Although Chile is very dedicated to achieving a high technological capacity, there are quite a few hurdles they must exceed.  One huge attempt is for the government to set Chile apart from the group as a leading destination for outsourcing.  There is continued interest in Spanish speaking outsourcing centers, and Chile has many favorable traits that would make it a reasonable choice.  However, there are also many competitors in the area – specifically Argentina and Brazil – who on multiple levels are on par with Chile .  Chile ’s competitive advantages such as low operating costs and a skilled workforce are also offered by its neighbors.  Chile will need to find a way to further distinguish itself in Latin America if it wants to become the nucleus for ICT investment.


Information and Communication Technologies in Everyday Life (Stage 3)


Some Chileans (consultants and members of the CCS) feel that there is a lack of vision among non-technical managers in local companies.  Many local companies view information technology as complex and expensive and do not understand the value of using it as a strategic tool for business development.  Although Chile has the best infrastructure for Internet development, they have not taken advantage of this as their neighbors in Argentina and Brazil.  In Buenos Aires, the majority of their business use Internet technology in their sales process.  Compared to statistics of small and mid-sized Chilean companies which show only 18% use some administrative software with the remainder using computers for word processing and Excel.  The director of research at CCS suggests there is a cultural barrier.  In studies done on several companies, it has been stated that “technology is not interesting and does not appear necessary.”  This has been evident in the lack of programs for training personnel in IT and distrust for information technologies.







networked access

networked learning

networked society

networked economy

networked policy

offshore opportunity







IS540 Global Information Technology

DePaul University 1 East Jackson Chicago, Illinois 60604