Net neutrality in Latin America: learnings from global experiences in mobile markets

Net neutrality was originally intended to preserve an open internet, but the regulation has become outdated as the internet ecosystem has evolved.

Net neutrality rules require internet service providers (ISPs) to treat all network traffic equally, regardless of its source or content. These regulations emerged from concerns that ISPs could adopt practices such as favoring their own services or creating paid “fast lanes” that would reduce competition among online services.

However, the internet has since evolved, leading to the concentration of content and application providers (CAPs). As a result, only a handful of global players are now responsible for most internet traffic worldwide. This concentration has driven two major changes:

• More than 70% of internet traffic is exchanged between users and content delivery networks (CDNs), operated by large traffic generators (LTGs).
• Internet platforms now act as gatekeepers for the vast majority of the content and applications accessed by most consumers.

This report examines how the evolution of the digital ecosystem has reduced the practical effectiveness of net neutrality regulation and assesses the impact these rules have on mobile operators, innovation, and the user experience.