Based on the assumption that increased access to internet services boosts economic growth and improves the well‐being of the poor, governments in both developed and emerging regions are heavily investing in internet connectivity projects. This article reviews the existing evidence as to the impact of internet technologies on various development dimensions, and articulates the empirical evidence into an analytical framework that seeks to identify the micro‐linkages between internet adoption and poverty alleviation. The review suggests that the development pay‐offs of internet technologies are ambiguous due to two interrelated effects. First, because effective appropriation requires a range of skills as well as complementary investment in human capital and organizational changes. This tends to favour well‐educated workers and firms with more innovative capacity and access to finance. Second, because the positive effects of internet dissemination on market co‐ordination and political institutions grow exponentially with adoption levels. As a result, while the evidence indicates that advanced economies are reaping significant benefits from internet investments, the returns for less advanced economies, and in particular for the fight against poverty in these regions, remain uncertain.
Purpose
– This paper aims to focus on the interplay between the market of contents and telecom operators. Traditional telecom operators are vulnerable to the new markets and services that appear as a consequence of accessibility to the Internet and, in particular, in the face of over-the-top content as Netflix.
Design/methodology/approach
– The authors build a conceptual framework to analyze the response strategies by telecom operators in the context of an evolving TV technology.
Findings
– They argue that the technology that enabled bundling of services was the entry door of telecom operators to the content market and that, nowadays, online TV may be their exit door if they do not display innovative strategies to remain in this market.
Originality/value
– This is the first paper exploring the interplay between the market of contents and telecom operators with a focus in countries from Latin America.
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