The digital divide in Colombia remains a significant challenge, particularly in rural and underserved areas, where access to reliable and high-speed internet is limited or current solutions fall short of meeting the needs of the most vulnerable populations.  

An estimated $5.8 billion is needed in fixed and mobile broadband infrastructure investments to close the digital gap with OECD levels, 41% of which should go towards rural connectivity. This gap hinders economic growth, productivity, educational opportunities, and financial access.  

The IDB Group has supported a combination of private sector broadband infrastructure expansion, regulatory reforms, and innovative digital service providers to expand connectivity across the country. These efforts are part of a broader strategy to enhance digital infrastructure and ensure that all citizens can benefit from the digital economy.

New or Improved Connectivity for Nearly One Million Vulnerable People

In 2021, IDB Invest partnered with Colombia Móvil S.A. (Tigo), a major player in the Colombian telecommunications industry, to support the expansion or upgrade of digital infrastructure in 1,255 high-poverty small rural towns and municipalities, home to over 1.3 million people. As of 2024, over 1,400 small rural towns were connected to the internet for the first time with the installation of 4G mobile broadband. Mobile service was also upgraded from 2G/3G to 4G in around 630 municipalities. Taken together, around 984,000 poor and vulnerable people now have access to high-speed data connectivity, putting digital health, education, and financial services within reach.

To promote usage of new mobile broadband connections in remote areas, the project also included technical assistance for two farmer associations in San Vicente de Caguán, a territory in the Amazon region. Producers enhanced their digital literacy and learned how to leverage digital tools for agricultural and conservation activities.  

The expansion benefited from the regulatory framework established in 2019, which linked spectrum allocation to rural coverage obligations and helped incentivize network expansion into underserved areas. This encouraged private operators such as Colombia Móvil (Tigo) to expand networks beyond commercially attractive markets.

Sound Policies for Digital Transformation

 Also helping to lay the foundation for greater private investment in digital infrastructure, from 2018-2020, an IDB-supported policy-based loan focused on improving connectivity and modernizing Colombia’s digital policy and regulatory framework. In a context of rapid technological change, it promoted information and communication technology (ICT) services, infrastructure development, and greater adoption of digital technologies by citizens, companies, and government.  

These improvements were reflected in the country’s ranking on the governance dimension of the Network Readiness Index – from 97th globally in 2017 to 70th in 2024 – and a notable improvement in its ICT regulation maturity, which reached the highest Generation 4 status by 2020, according to the global ICT Regulatory Tracker.

Innovative Digital Services for Last-Mile Communities  

Complementing private investment in rural connectivity, IDB Lab is advancing digital access for vulnerable communities in Bogotá, Cartagena, Barranquilla, and other large cities through innovative business models. Through a $2 million loan from the Social Entrepreneurship Program, IDB Lab is financing the expansion of Fibrazo, a social enterprise that delivers high-speed, fiber-optic internet to low-income urban households.  

What makes Fibrazo unique is its community-centered model: it offers prepaid internet with no contracts, no installation fees, and no need for a bank account or formal address – removing the most common barriers to connectivity for families with informal incomes. Customers can pay in small increments, even weekly, and access a free trial before committing. As of 2024, over 33,000 households were connected, 63% of which had never had broadband before, and 92 schools were receiving free internet. 

Challenges and Lessons  

On the policy front, the IDB program demonstrates the importance of progressively combining regulatory framework reforms with technical capacity building across different sectors.

For the network expansion, bringing new and improved mobile broadband coverage to sparsely populated rural areas was inherently challenging because private telecom operators typically do not serve them. That is why the clear regulatory framework was critical. It provided certainty regarding coverage obligations and timelines, which helped the operator plan investments accordingly.  

Fibrazo’s experience shows that well-designed free trials can be highly effective for scaling broadband adoption. By temporarily removing financial and commitment barriers, a two‑week free trial enabled low‑income households to experience broadband services directly, driving a 97% conversion rate, strong retention, and penetration well above traditional providers. Most new users (60%) cited education as the primary use, underscoring the social value of expanded connectivity.

Together, these complementary public and private efforts illustrate how sound regulation, private investment, and innovative business models can work in tandem to bridge the digital divide across Colombia.