Uruguay is a technology-literate country with strong connectivity. Overall, Uruguay has one of South America’s highest literacy rates (over 98 percent), the telecommunications network is 100 percent digital, and the internet penetration rate is one of the highest in Latin America (90 percent). Uruguay is among the first in Latin America in internet access, mobile internet speed, and of homes and companies connected country-wide with fiber-optic. It also hosts one of the best Data Centers in Latin America and has several subsea-internet-cable connections with the U.S. In Latin America, Uruguay also ranks first in the E-Government Development Index.
Uruguay plans to invest heavily in infrastructure, technology, modernization systems, expansion of connectivity, implementation of 5G, and in new digital services. In May 2021, Uruguay approved the 2025 Digital Agenda, the country’s roadmap for future digital development. The program is managed by Uruguay’s e-Government and Knowledge Management Agency, AGESIC, and will create opportunities for software and hardware providers, as well as telecom and network services companies, among others. The plan includes expansion of fiber-to-the-home (FTTH) networks to locations with less than 3,000 inhabitants, the assignment of new spectrum bands for mobile technology, increasing 5G coverage and the adoption of digital health services. In telehealth, opportunities are expected for the development of digital prescription services, the integration of electronic medical records, and the modernization of the medical communication processes.
Since June 2022, several cable operators were granted permission to offer internet services, ending the telecommunications state-owned company’s monopoly. In May 2023, Uruguay conducted a spectrum auction for the 3.5 GHz band for a license period of 25 years for 5G uses. The three existing telecommunication operators: state-owned ANTEL, Spain’s Telefonica, and México’s América Movil Claro were awarded spectrum and are now preparing to deploy their 5G services. ANTEL invested $43 million in 5G deployment during 2023.
Uruguay is one of the largest per-capita exporters of software in Latin America, with the U.S. being its main market, purchasing between 60 and 70 percent of its software exports. Uruguay plans to increase access to fiber optic and broadband beyond its current 88 percent broadband internet access, 81 percent of it through fiber-to-the-home (FTTH) systems. ANTEL plans to bring wireless broadband and additional fiber optic cable to replace old copper connections and connect rural areas of the country to the internet.
While mobile penetration is already high at 94 percent of the country covered by LTE-4G, experts believe growth is still possible through the sale of new services, especially to smartphone users. Content for teenagers and children continues to show strong growth and all three mobile carriers offer LTE–4G services and soon 5G. Uruguay is planning to increase its focus on Internet of Things (IOT) development and public and private stakeholders have launched the “Open Digital Lab” test space for IOT technologies and applications. In June 2023, Microsoft launched its AI & IoT Insider Lab, the first of its kind in Latin America and the third outside the United States. This lab will help address various technological challenges for organizations in the region, as well as obtain expert guidance and recommendations to realize the full potential of artificial intelligence and the internet of things.
Multinational firms also consider Uruguay an excellent information technology hub for back office, data, and call centers. Companies such as RCI, Amazon, Microsoft, Sabre, and PWC are among the many that have set up operations in Uruguay. Uruguay is an important location for U.S. technology firms in developing innovation centers and regional hubs, while others are expanding their investments and infrastructure.
In 2023 Google launched a second proprietary Pan-American submarine cable, called Firmina, connecting the east coast of the United States to Argentina, with landing points in Brazil and Uruguay. Uruguay already has a subsea cable, called Monet-Tannat, which was developed by Google in conjunction with Uruguayan state-owned telco, ANTEL.
Uruguay received major recognition for joining the Digital Nations group in 2018 as the sole representative from the Latin American and Caribbean region. Digital Nations is a collaborative network of the world’s leading digital governments with a common goal of harnessing digital technology to improve citizens’ lives. The guiding principles of the Digital Nations encourage the development of connectivity, digital citizenship, teaching children to code, open government, open standards, open source, and citizen-centered government.
Uruguay has more than 500 technology companies that provide global solutions. Among its most recent successes is the case of dLocal, the fintech company that became the first Uruguayan unicorn and started trading in 2021 on the Wall Street stock exchange. The Uruguayan technological and entrepreneurial ecosystem, coordinated and accessible, provides investment opportunities for existing companies as well as for the development of new ventures.
Given its characteristics as an orderly, open and transparent country, with access to advanced technology, Uruguay is an ideal destination to innovate and test new technologies. The pool of talent in Uruguay is highly skilled and specialised, especially in the IT field. On offer are not just technical skills but also languages – as well as their native Spanish, more than 80% of IT professionals are fluent in English and 30% in Portuguese. Uruguay’s education system is free and delivers excellent academic results, while its one-laptop-per-child initiative (Plan Ceibal) introduces every child to technology from primary school age. Software development benefits from a 100% exemption from corporate income tax provided the business incurs at least 50% of its associated costs in Uruguay. Dividends arising from these activities are also exempt from taxes.
In 2022, 03 ITEC slots were utilized by Uruguay. A proposal to set up an India-Uruguay Centre for Excellence in Information Technology in Montevideo is being considered. Tata Consultancy Services has established a software development centre and a regional training centre in Montevideo and it is the first IT Centre opened by TCS in Latin America in 2002. Another Indo-American company, Infogain, opened its delivery center in Montevideo, in April 2022, the first in the LAC region. There are about 300 Indians in Montevideo; most of these are young IT professionals from TCS. The Siruseri TCS complex is one of the largest corporate office in Asia with a capacity for 25,000 staff. The inspiring building and the innovative global work being done there by TCS is a matter of pride for India and Uruguay both. This unique edifice has been designed by two Uruguayan architects Carlos Ott and Carlos Ponce de Leon. Indian IT company Geodesic Ltd acquired a Uruguayan software company in Montevideo in May 2009. The Uruguayan company has a staff of 40 persons and specializes in Instant Messaging solutions and applications for mobile phones and companies.