Poverty and inequality remain persistent challenges across Latin America. Nearly 170 million people in the region live in poverty, of whom almost 40% (65 million people) are living in extreme poverty. Despite the progress made over the past 25 years, Latin America remains one of the most unequal regions in the world, surpassed only by Sub-Saharan Africa.
Against this backdrop, this report examines how the expansion of mobile connectivity has affected poverty, inequality, and socioeconomic well-being in Mexico and Brazil, the two largest mobile markets in the region.
The study applies a Difference-in-Differences (DiD) methodology to estimate the causal impact of 3G and 4G mobile network deployment on a range of socioeconomic indicators. The findings reveal positive effects on household expenditure, income, poverty, and unemployment, particularly in the most vulnerable, rural, and remote municipalities.
The results underscore the transformative role of mobile connectivity in accelerating socioeconomic development and reducing inequalities. In this context, governments have a critical role to play in closing the connectivity gap through modern regulatory frameworks and public policies that promote adoption and maximize the positive impact of mobile connectivity.


