1. © Cullen International SA 2016 Building a Digital Single Market for Latin America Javier Huerta Bravo Cancun, June 20, 2016

2. © Cullen International SA 2016 2 EU 2015 Digital Single Market Strategy Structure

3. © Cullen International SA 2016 3 eLAC 2018 Access & Infrastructure Digital Economy Innovation & Competitiveness Sustainable Development & Inclusion e-Government & Citizenship Governance for Information Society Universal access to content Develop IXPs & CDNs Spectrum coordination Support adoption DTT Rural BB investment Regional e-Commerce rules Digital consumer protection Data protection Taxatione-Payments Logistics ICT in emergency situations Security & trust Cybercrime CERT coordination

4. © Cullen International SA 2016 4 An integrated digital market in LATAM? Online access – main issues/way forward? Topic e-CommerceTaxationCopyright Main issues No contractual rules fit for online Lack of trust on online transactions Double taxation digital services (roaming) Rules not fit for digital No cross-border access to content – geo-blocking Regional stakeholders CEPAL, MERCOSUR, OAS Next steps? Harmonization Strengthen users’ privacy rights online & cybersecurity Multilateral agreements Develop a LATAM creative industry Facilitate licensing

5. © Cullen International SA 2016 5 An integrated digital market in LATAM? Connectivity – main issues/way forward? Topic InfrastructureSpectrumInteroperabilityRoaming Main issues Fragmentation, different levels of development Lack of long term harmonization policy Multiple standards, no clear path High costs, lack of transparency Regional stakeholders CAF, CITEL, ITU, REGULATEL Next steps? NBBP, incentives for investors More focus on legal, regulatory aspects for 5G Revise existing rules Address structural bottlenecks Cooperation agreements/ industry initiatives

6. © Cullen International SA 2016 6 Connectivity – International roaming EU regulation for data

7. © Cullen International SA 2016 7 Connectivity – International roaming ITU-T D.98 Recommendation on transparency and market-based solutions EU To abolish retail surcharges by June 15, 2017 Americas Bilateral agreements (transparency) Voluntary practices by operators

8. © Cullen International SA 2016 8 An integrated digital market in LATAM? Conclusions  Fragmentation across LATAM in all areas relevant for an integrated digital market  Lack of a regulatory environment fit for the digital age (e.g. data protection, copyright)  Multiple regional initiatives (no enforcement power), overlapping efforts, need to redefine competences

9. © Cullen International SA 2016 9 With many regional entities involved

10. © Cullen International SA 2016 10 & also subregional

11. © Cullen International SA 2016 11 An integrated digital market in LATAM? Regulatory best practices CL Reform of IP law fit for the digital environment PE Framework for m- payments AR, BR, CO, MX 0% VAT for e-books OAS principles for a regional data protection framework

12. © Cullen International SA 2016 12 An integrated digital market in LATAM? Key questions Obstacles? Way forward? Opportunities? Lack of common institutional framework with binding powers Political commitment Economic growth Huge potential (600m people, common language, internet access, increases)

13. © Cullen International SA 2016 13 javier@cullen-international.com