Keys to the Modernisation of Digital Ecosystem Regulation in Chile
The technological progress resulting from digitisation has generated tremendous benefits for consumers around the world. Primarily leveraged by mobile, access to digital content is becoming universal, with more than three billion people connecting through mobile devices every day. Chile has 27.5 million mobile connections (153% penetration) and about 13.6 million (76% penetration) unique mobile internet users (June 2017) out of a population of 17.9 million, indicating that access is starting to penetrate lower income levels. Three key characteristics of the new digital ecosystem are driving this progress:
1. Modularity: Digital products and services are made up of a combination of complementary inputs (applications, content, devices and communications) that multiply, almost endlessly, the array of choices to satisfy consumer needs.
2. Economies of scale and scope: The ubiquity of the internet allows a large number of increasingly better services to be made available to companies and users at constantly falling prices, or even free of charge.
3. Dynamism: The constant evolution of the digital ecosystem means that both new and existing companies have powerful incentives to invest and innovate, and therefore to create new products that satisfy user needs more efficiently (cheaper and/or better products). At the same time it generates more competition as a result of entry into neighbouring markets.