Analysis of smart city opportunities in latin america

Analysis of Smart City Opportunities in
Latin America
Case Studies Indicate the Concept is Slowly Gaining Traction in the
Region
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November 2015

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Contents
Section Slide Number
Executive Summary 3
Objectives 6
Definition of a Smart City 8
Smart City Business Models 13
Smart City Roles 16
Smart City Funding Mechanisms 19
Smart City Market 21
Latin America Featured Cities 24
Conclusions 41
The Frost & Sullivan Story 44

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Executive Summary
• As cities grow and become metropolises or megalopolises, they must confront challenges
related to energy and water availability, general infrastructure, sanitation, health, and other
basic services.
• While many cities want to become smart cities, most of their initiatives center on green
concepts only. Smart cities apply technology to become more efficient in the use of
resources, saving energy, improving services, and promoting sustainable development.
• The goal of a smart city is to solve major problems that citizens face daily through
modernized management that encourages greater interaction between citizens and
institutions to achieve better quality of life.
• The smart city concept is still developing in Latin America as many cities confront problems
such as drug trafficking, pollution, and congestion. Management is not known for efficiency,
and there is much less transparency than in cities located in more developed regions.
Source: Frost & Sullivan

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Executive Summary (continued)
• Frost & Sullivan analysts reviewed numerous smart city projects and initiatives being
undertaken globally and found 8 parameters that were indicative of what constitutes a smart
city. Frost & Sullivan has defined smart cities as those that are built on “smart” and
“intelligent” solutions and technology that will lead to adoption of at least 5 out of 8
parameters: smart governance and smart education, smart energy, smart building, smart
mobility, smart infrastructure, smart technology, smart healthcare, and smart citizen.
• This study identifies key smart cities in Latin America, what has been done in their
development, and the long path to follow. It details the most relevant initiatives in the region.

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Research Objectives, Scope, and Methodology
Objectives
• To analyze strategic opportunities regarding smart cities in Latin America
• To identify the roles of citizens, government, and information and communication technology (ICT)
providers in a smart city
Scope
• Geographic Coverage: Latin America
• Base Year: 2014
• Monetary Unit: US dollars
Research Methodology
• Analysis is based on information in the Frost & Sullivan database,
market participants’ Web sites, and third-party research.

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Definition of a Smart City

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4G
Smart Diamond that Defines a Smart City
Smart Energy
Smart Building
Smart Citizen
Smart Technology
Smart Healthcare
Smart Mobility
Smart Infrastructure
Smart Governance
and Smart Education
Note: Smart security, which is examined separately later in the study, is included in smart infrastructure
Smart City Diamond, Global, 2014–2025

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Smart Governance and Smart Education
Smart governance and smart education include policies and digital services from the
government that help and support the adoption of green and intelligent solutions through
incentives, subsidies, or other promotions. Government involvement is crucial for the
development of smart cities because an unwilling government can spoil the fate of any project.
Smart Energy
Smart energy uses digital technology in advanced metering infrastructure, distribution grid
management, and high-voltage transmission systems, as well as for demand response for the
intelligent and integrated transmission and distribution of power.
Smart Building
Buildings that are green, energy efficient, and intelligent use advanced automated
infrastructure that controls and manages aspects such as lighting, temperature, security, and
energy consumption independently or with minimal human intervention.
Smart Mobility
Smart mobility enables intelligent mobility through the use of innovative and integrated
technologies and solutions, such as low-emission cars and multimodal transport systems.
Smart mobility essentially includes vehicles that have a low carbon footprint.
Smart Diamond Explained

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Smart Infrastructure
It is required to effectively support other parameters. It includes intelligent and automated
systems that manage, communicate with, and integrate into different types of intelligent
infrastructure, such as energy grids, transportation networks, water and waste management
systems, and telecommunications.
Smart Technology
This type of technology connects home, office, mobile phone, and car on a single wireless IT
platform. Smart technology includes a smart grid system, smart home solutions, a high-speed
broadband connection, and 4G technology. Leveraging this is of utmost importance to the core
concept of a smart city.
Smart Healthcare
Smart healthcare is the use of eHealth and mHealth systems and intelligent and connected
medical devices. It also involves implementation of policies that encourage health, wellness,
and well-being, and health monitoring and diagnostics as opposed to treatment.
Smart Citizen
A smart citizen must embrace smart and green solutions in daily activities. More citizen
proactivity is expected in adopting smart concepts and smart products, including in their
lifestyle choices. An indifferent citizen can dampen a smart city initiative.
Smart Diamond Explained (continued)

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Key Parameters that will Define a Smart City in 2020
• Smart Grids
• Smart Meters
• Intelligent Energy
Storage
• Renewable Energy
Integration
• Building-integrated
Photovoltaic
• Low-emission Mobility
• Integrated Mobility
Solutions
• Multimodal Transport
• Sensor Networks
• Digital Water and
Waste Management
• eHealth and mHealth
Systems
• Intelligent and
Connected Medical
Devices
• eGovernment
• eEducation
• Disaster Management
Solutions
• Use of Green Mobility
Options
• Smart Lifestyle Choices
• Energy Consciousness
• Broadband Penetration
Rate of over 80%
• 50% of Households to
have Smart Homes
• Smart Personal Devices
Smart Energy:
Digital Management of Energy
Smart Buildings:
Automated Intelligent Buildings
Smart Mobility: Intelligent Mobility
Smart Infrastructure: Digital
Management of Infrastructure
Smart Governance and Smart
Education: Government on the Go
Smart Healthcare: Intelligent
Healthcare Technology Smart Citizen: Civic Digital Natives
Smart Technology:
Seamless Connectivity

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Smart City Business Models

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Smart City Business Models
BOO (Build Own Operate)
The city planner is the prime contractor
for building the infrastructure and
delivering smart city services. Operation
and maintenance services are completely
under the planner’s control.
BOM (Build Operate Manage)
The city appoints a trusted partner to
develop the city infrastructure and
services. The partner operates and
manages the smart city services. The
city maintains a supervisory or monitoring
role (e.g., service-level agreements
[SLAs]). Most public-private partnerships
are built on this model.
OBM (Open Business Models)
The city allows any qualified company or
business organization to build city
infrastructure and provide city services.
The city planner, however, will impose
some regulatory obligations.
BOT (Build Operate Transfer)
The city appoints a trusted partner to
build the city infrastructure and provide
smart city services for a particular area
within a specified time period. After
completion, the operation is handed over
to the city.
Smart City Business Models, Global, 2014

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Smart City Business Model Examples
Platform-based
Incubator Model
Selected pilot projects
establish partnerships
and agree on
management,
financing, and
resources. The
government gives
flexible regulatory
status and shares data
to inform development.
Contractor Model
Citywide system was
built by IBM
integrating data from
30 agencies. IBM
manages the project
through data
collation and
analysis. Local
companies handle
construction and
telecommunications.
Central Model
Development and
operation of the city
is the responsibility
of the Jubail
Directorate and a
consortium of
governmental
agencies. Local
companies are state
employed.
Service Model
GE built and
operates a smart
grid for a monthly
fee and runs it via
cloud computing
from Atlanta. The
city avoids costs and
will let GE run it until
a profit allows
takeover.
Amsterdam: OBM Rio de Janeiro: BOM Jubail: BOO Norcross: BOT

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Typical Roles for Smart City Providers
System Integrators
Managed Service Providers
Network Service Providers
Pure-play Product Vendors
System integrators bring together various
components of the smart city through pre-
packaged platforms, providing unified, holistic,
and end-to-end integration.
Example: IBM, Oracle, Accenture
Network providers offer collaborative networks,
data analytics, and enterprise working solutions
that connect people, assets, systems, and
products by leveraging their networking and
machine-to-machine (M2M) capabilities.
Example: Cisco, Verizon, Ericsson, AT&T
Product vendors provide hard assets such
as smart meters and distribution devices (e.g.,
automated switches, controllers for capacitor
banks, and voltage regulators) that operate as
the main nodes of connectivity.
Example: Eaton, Honeywell, ABB, Schneider
Electric, Siemens
Managed service providers offer around-the-
clock monitoring, complete management,
compliance monitoring, and on-site consulting.
Services are either provided in-house, co-
managed, or completely outsourced to third-party
providers.
Example: IBM, Serco, SAIC, Infosys

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Smart City Participants and Solution Suites
System
Integrators
Network Service
Providers
Pure-play
Product
Vendors
Managed
Service
Providers
• Enterprise resource
planning for
municipalities and
governments
• Central operations
centers
• Smart city consulting:
reference architecture
and framework
planning
• Big Data smart city
analytics
• Cloud-based smart
city services
Software Focused
• Networking
equipment such as
routers, switches, and
subscriber
identification module
(SIM) chips
• Geographical
information systems
• Remote access and
monitoring
• Wireless area
network
• M2M Big Data
analytics and
consulting
• Unified
communication
Communication
Focused
• Smart devices and
control systems
• Sensors
• Smart meters
• Power and
automation
technologies
• Turnkey substations
• Utility hardware and
software
• Smart parking
infrastructure
• Mobility integration
and parking
infrastructure
Infrastructure Focused
• Monitoring and
management of smart
city-related ICT
infrastructure
• Prevention, detection,
and reporting of
security threats
• Feature solutions for
premises, cloud, and
hybrid environments
• Support of in-house,
co-managed, and
outsourced options
• Management of risk
and compliance
Operations Focused

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Smart City Funding Mechanisms

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Funding Mechanisms of a Smart City
Special
Developments
Funds
These funds are
set up for
implementing and
scaling up
development/
smart city
initiatives.
Public-Private
Partnerships
A partnership of
government and
one or more
private-sector
companies funds
and operates
initiatives.
City Budget
Smart cities are
self-financed
from public
budgets in
collaboration with
central or state
governments.
Private Investment
Financing is
through
commercial
stakeholders,
service
providers, private
investors, and
venture
capitalists.
Funding Mechanisms of a Smart City, Global, 2014

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Smart
Governance and
Smart Education*
24.6%
Smart Energy
15.8%
Smart Healthcare
14.6%
Smart Security
13.5%
Smart
Infrastructure**
13.1%
Smart Building
9.7%
Smart
Transportation
8.7%
*Smart education include eLearning services for schools, universities, enterprises, and government entities.
**Smart infrastructure include sensor networks and digital management of water utilities not included in other segments.
***No data is available for smart technology and smart citizen.
Smart City Market: Market Segmentation and Revenue Opportunity Ranking, Global, 2014–2025***
Global
Smart City Market:
$1.5 T
(2020)
Smart City Market

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Smart City Market Ranking* in Latin America
*This ranking is a Frost & Sullivan assessment of Latin American opportunities in the smart city market based on an analysis of what has already been done and the
projects in progress in the region. The rankings are different than global opportunities shown on the previous slide, as these are not based solely on revenue.
1. Smart Governance and Smart Education: Latin American governments are putting significant effort in
citizen services, business development, public management, and public communication, but much more is
needed if compared with European countries.
2. Smart Mobility: Many Latin American cities have successfully set up extensive public transport systems,
but they have been as successful in getting people out of their cars. Lots of projects in progress are related
to traffic management and greener transportation.
3. Smart Security: The Latin American region must improve its overall surveillance and crisis management
systems. Integrating surveillance cameras into emergency services and managing all data generated by
citizens enable an efficient response to unexpected events.
4. Smart Infrastructure: Latin American countries lag in development of important indicators such as Internet
access, broadband quality, intelligent transportation systems, and digital system infrastructure to support
smart city projects.
5. Smart Energy: The Latin American market faces a relevant issue different than in many other regions:
endemic energy theft. Other key aspects that favor smart grid development including a relatively high
energy demand per capita and a huge potential for distributed generation.
6. Smart Healthcare: Latin American countries usually have poor healthcare systems (mainly in the public
sector). Some initiatives are being developed by the private sector, but the government’s role in policies
that encourage health and wellness as well as health monitoring and diagnostics as opposed to treatment
are difficult to highlight.
7. Smart Buildings: In Latin America, smart buildings can be found in cutting-edge construction by the
biggest companies, primarily in the commercial area. It is an area in which governments have less
influence, so private companies’ participation is essential to the development in the region.

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Latin America Featured Cities

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Latin American Featured Cities
Rio de Janeiro
Buenos Aires
Mexico City
Smart City Market: Cities Closest to Becoming Smart Cities, Latin America, 2014–2025
Bogota
Santiago

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Argentina Overview
• Argentina is the third-largest economy in Latin America, accounting
for 8.2% of the gross domestic product (GDP) of the region.
• Its population was about 42 Million in 2014, mostly concentrated in Buenos Aires
(6.8%), Cordoba (3.9%) and Rosario (3.2%).
• Buenos Aires has a useful Web site to find data regarding important issues for
citizens. It is the most advanced in the nation toward being a smart city.
• Buenos Aires has an entire ministry devoted to becoming smarter, called the Ministry
of Modernization.
• The 5 points that are being developed are open government, smart city, technological
infrastructure, human capital, and modernization of the administration.
Buenos Aires is Developing 3 of 8 Smart Diamond Parameters:
• Smart Governance and Smart Education: The government is providing policies and digital services that
help and support citizens’ adoption of intelligent solutions. A main example is the Buenos Aires city Web
site, where lots of information regarding the city, its government, citizens, social programs, transparency,
tourism, news and accessibility issues can be found. Transparency is evident through a catalog of city
data, such as public works in progress and planned public expenditure.
• Smart Mobility: Buenos Aires is an example of multimodal transport, with interconnection among bus
rapid transit (BRT), an extensive subway system, and the Ecobici bicycle program. A smart traffic system
has been deployed mainly to alleviate congestion in the city.
• Smart Technology: All citizens have access to a free Wi-Fi system. All 83 subway stations have free
Wi-Fi available; the city was the first in Latin America to provide free Wi-Fi in its entire subway system.
Source: World Bank; International Monetary Fund (IMF); Ministry of Economy and Production; Smart City Business Institute; Buenosaires.gob.ar; Frost & Sullivan

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Buenos Aires Initiatives
Ecobici: The bicycle-sharing system in Buenos Aires
began operating in 2010. The service is free to residents
and tourists, and is available around the clock. The system
is still being expanded; as of 2015, it has 155 kilometers of
its planned 200 kilometers of lanes completed. It is
expected to have 3,000 bicycles and 200 stations when
complete. Bicycles can be acquired via a smart card or
mobile phone app to verify identification. Tourists can
register online and use a scanned identification or visit a
local office to register. An app tells whether any bicycles
are available at a specific station.
Smart Traffic System: The government-operated system
includes a traffic control center in which operators can
change the synchronization of traffic lights in real time to
improve or prevent congestion; signage about parking lot
availability; and traffic light improvements such as time
countdown, accessibility to blind people, and buttons for
facilitate pedestrians crossing.
Smart Traffic System
Ecobici
Source: Smart City Business Institute; Fast Company; Buenosaires.gob.ar; Frost & Sullivan

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Buenos Aires Initiatives (continued)
Wi-Fi Network: More than 280 points of free Wi-Fi
connection have been installed. The huge network
includes parks and plazas, museums, public spaces,
subway stations, the downtown area, bus lines, libraries,
hospitals, and health centers.
Apps: Buenos Aires has launched applications related to
Wi-Fi connections, city maps, parking, real-time traffic,
public transportation, and bikeways, including BA Como
Llego, which indicates the best way to get around the
city and also the best routes in the greater area; BA
Móvil, which offers information about real-time traffic and
the price of available parking lots available; and
Estacionapp, which enables the user to find nearby
parking lots and their costs.
Public Wi-Fi network
Apps
Source: Smart City Business Institute; Fast Company; Buenosaires.gob.ar; Frost & Sullivan

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Brazil Overview
• Brazil is the top economy in Latin America, accounting for 41.8% of the region’s GDP.
• Its population totaled about 202 Million in 2014, with highest concentrations in
Sao Paulo (6%), Rio de Janeiro (3.2%), and Salvador (1.5%).
• Rio de Janeiro is the most advanced toward being a smart city because of:
o Strong local political and technical leadership.
o The resources and expertise of private actors operating in a safe and legal
environment.
o Use of data to effectively address city challenges—in particular, to manage problems
affecting the poorest communities, such as natural disasters.
Rio de Janeiro is Developing 2 of 8 Smart Diamond Parameters:
Smart Governance and Smart Education: Rio de Janeiro’s government is committed to smart city
initiatives. Projects such as Porto Maravilha, Operations Center Rio (COR), and Portal 1746 were developed
and are being managed by public institutions. Initiatives help the government handle crises quickly and also
protect people, property, and information.
Smart Mobility: The Porto Maravilha revitalization project includes 17 kilometers of bike lanes and a
requirement for new buildings to include public and private bike racks.. The reurbanization plan follows an
international trend of focusing on pedestrians and integrating sustainable transport modes.
Source: IMF; IFS; Brazilian Institute of Geography and Statistics (IBGE); IpeaData; Smart City Business Institute; Rio.rj.gov.br; Frost & Sullivan

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Rio de Janeiro Initiatives
Smart Mobility Initiatives
xxx
Porto Maravilha: The revitalization program of the local
government targets the city’s port area. The project has 3
pillars: urban revitalization, real estate development, and
socioeconomic development. Project goals are an increase in
green area from 2.5% to 10%, a reduction in pollution, an
increase in pedestrian areas, and a real integration of current
inhabitants to the new economy.
COR: The integrated operations center was developed with
support from IBM. It allows for real-time monitoring of
meteorological, crime, traffic, live camera feed, and
emergency data. Thirty agencies monitor the city from 560
surveillance cameras 24 hours a day. More than 400
professionals on three shifts monitor the city. The center
enables rapid crisis management from anticipation, reduction,
and preparedness, to immediate response to events such as
heavy rains, landslides, and traffic accidents. The COR
produced a cultural change in the management of institutions
that previously operated as scattered islands of information,
allowing for the adoption and implementation of a coordinated
strategic vision.
Porto Maravilha
COR
Source: Smart City Business Institute; Fast Company; Portomaravilha.com.br; Frost & Sullivan

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Rio de Janeiro Initiatives (continued)
xxx
Portal 1746: Citizens faced many difficulties when they tried to
reach out to City Hall, such as disparate standards and
processes, fragmented information among several databases,
106 different phone numbers, lack of SLAs for delivery of
services, and lack of monitoring and citizen feedback. The
government invested about $7 Million to develop Portal 1746,
the main communication channel for citizens contacting Rio’s
city hall. Communication can be via telephone, Web site, or
mobile app. Since its creation in 2011, it has received more
than 9.2 Million contacts and has the capability of receiving
300 simultaneous calls. The most requested services are trash
removal, resolution of parking complaints, and repair of
potholes and power outages. All requests are monitored via
dashboards and real-time geolocation.
Rio Data Mine: The Rio Data Mine is part of an initiative to
improve accessibility, transparency, and mobility. The
databases are available in a variety of formats and are
updated regularly. Data can be located by category, by agency,
or by the institution. Anyone can use these databases to
conduct research.
Portal 1746
Rio Data Mine
Source: Smart City Business Institute; Fast Company; Rio.rj.gov.br; Frost & Sullivan

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Chile Overview
• Chile is the 6th-largest economy in Latin America, accounting for 4.8% of the region’s GDP.
• Its population was about 18 Million in 2014, with large concentrations in Santiago (32.0%),
Concepcion (4.8%) and Valparaiso (4.7%).
• Santiago is the closest to being a smart city in the country.
• An open government policy or citizen participation strategy in Santiago was not identified.
• Open data, online services, and Wi-Fi zones are poorly developed in Chile compared to
other countries in the region.
• Santiago’s main weakness is the lack of a smart city roadmap, schedule, or action plan that
guarantees constant, measurable, and sustainable progress.
Santiago is Developing 3 of 8 Smart Diamond Parameters:
Smart Governance and Smart Education: Even without a roadmap, the city government is trying to
implement some initiatives. The Smartcity Santiago project is a prototype of a complete Smart City that is
being realized in a specific part of the city. The main target is to emphasize the use of sustainable energy,
and create environmentally friendly smart homes to improve quality of life.
Smart Buildings: Many buildings in the city have been constructed with a high percentage of
environmentally sustainable materials and display effective energy and water efficiency. Santiago is of the
most advanced cities in Latin America on this issue. More than 160 projects are being developed throughout
the country.
Smart Mobility: The city government is trying to improve citizens’ life through smart mobile solutions such
as Moovit14, which is available throughout the Transantiago public transport system.
Source: IMF; Central Bank of Chile; Smart City Business Institute; Smartcity Santiago; Frost & Sullivan

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Santiago Initiatives
xxx
Smartcity Santiago: Large enterprises such as Cisco and
Schneider Electric are involved in the huge program of projects
modeling the Santiago of tomorrow, with a goal of improving
quality of life by increasing access to energy, creating
environmentally friendly smart homes, and emphasizing the use
of sustainable energy. The project includes implementation of
smart homes with electronically controlled home appliances;
and electric buses and taxis for public transportation, featuring
installation of a service station with a rapid recharging facility,
smart meters with two-way communication, and electronic
information panels at bus stops.
Start-Up Chile: The program began as a pilot project in 2010
by offering startups from other countries $40,000 of equity-free
seed capital and temporary visas to develop their businesses.
Its goal was to have 1,000 companies participate by the end of
2014, with grants totaling $40 Million. Selected startups join a
24-week mentoring program in Santiago and are supplied with
office space and access to social and capital networks. A new
application process is expected to begin in early 2016.
Smartcity Santiago
Start-Up Chile
Source: Smart City Business Institute; Fast Company; Smartcity Santiago; Frost & Sullivan

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Santiago Initiatives (continued)
xxx
Sustainable Buildings: As Santiago continues to grow,
many new buildings are coming with an LEED
(Leadership in Energy and Environmental Design)
sustainability certification based on how efficiently water is
used throughout the building, how much energy was
saved during construction, and whether building materials
have a relatively low environmental impact.
Mobility: Users of the Transantiago public transportation
system can access real-time information and services
through mobile apps such as Moovit14, text messages,
and dozens of information panels. The Secretariat for
Transport of the Government of Chile is developing the
Intelligent City Transport Strategy 2020 Chile, which will
include 15 cities in a plan for national architecture of
intelligent transportation systems that integrates new
regulations, open data policies, and collaborative
ecosystems. Open data pilot programs will begin in 5
cities in 2016.
Sustainable Buildings
Mobility
Source: Smart City Business Institute; Fast Company; LEED; Frost & Sullivan

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Colombia Overview
• Colombia is the fourth-largest economy in Latin America, accounting for 6.6% of the GDP
of the region.
• Colombia’s population totaled about 49 Million in 2014, mostly concentrated in Bogota
(15.9%), Medellin (5.0%) and Cali (4.8%).
• Bogota is the most advanced toward being a smart city in Colombia.
• Bogota in 2012 created the High Council District of Information Technology and
Communications (ICT) of the Mayor to promote innovation and intelligence in various
industries and in the city. The program is shaping eGovernment, smart city, and
knowledge society initiatives with an objective to implement and strengthen universal
access, usage, and social appropriation of ICT, and increase the efficiency of public
administration.
Bogota is Developing 3 of 8 Smart Diamond Parameters:
Smart Governance and Smart Education: The local government is committed to smart city initiatives,
demonstrated by the creation of the Ministry of ICT. This ministry is responsible for advising, articulating, and
coordinating city projects. A Web site showcases its activities.
Smart Mobility: Bogota is interested green initiatives, such as the Biotaxi project and the largest extension
of bike paths in Latin America.
Smart Technology: The government is developing strategies to promote extensive connectivity such as
Wi-Fi points. The initial plan was to provide 143 points spread out over the city, but the number is increasing.
Source: IMF; National Administrative Department of Statistics; Smart City Business Institute; Tic.alcaldiabogota.gov.co; Frost & Sullivan

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Bogota Initiatives
xxx
BRT: The city’s TransMilenio bus rapid transit system has
dedicated bus lanes and subway-style turnstiles for streamlined
entrance and payment. More than 10 years after its launch, it is
used by 1.7 Million people daily, and has drastically reduced
traffic congestion. The system uses larger, low-emission buses,
and features central corridors allowing overpassing, stations
with multiple stops, regular and express services, and off-board
payment options.
Biotaxis Project: In 2013, the city launched an initiative to
create the largest fleet of electric taxis in the Americas. The
electric vehicle fleet has been driven over 1 Million kilometers,
averaging maintenance costs of 57% less than gasoline or
compressed natural gas (CNG) taxis, and producing 60% less
greenhouse gas emissions than gasoline taxis and 49% less
than the CNG taxis.
Public Wi-Fi: Fifty Wi-Fi zones were enabled in public parks,
squares, and pedestrian and cultural corridors; more than
800,000 users accessed the service in 2013.There are now
more than 90 free Wi-Fi zones; free Wi-Fi points have also been
implemented in 34 stations and 9 portals of the TransMilenio
BRT.
BRT
Biotaxis Project Public Wi-fi
Source: Center for Sustainable Urban Development; Smart City Business Institute; Fast Company; Ambientebogota.gov.co; Frost & Sullivan

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Bogota Initiatives (continued)
Ministry of ICT: The ministry is responsible for advising,
coordinating, and monitoring ICT in the city through
many initiatives, such as a Web site featuring all project
information; Digital Inclusion Centers, which allow
access to the Internet and technology tools; and a
unified population database that identifies citizens’ digital
profiles for the provision of public services.
Bike Paths: The local government is promoting
low-emission transport systems, such as its 350
kilometers of bike paths—more than in any other Latin
American city—that radiate from the city center. Every
new street that is built must include a bike lane. The
TransMilenio BRT offers secure bicycle storage near
major terminals, and parking lots are required to include
space for bicycles.
Ministry of ICT
Bike Paths
Source: Smart City Business Institute; Fast Company; Mintic.gov.co; Frost & Sullivan

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Mexico Overview
• Mexico is the second-largest economy in Latin America, accounting
for 21.1% of the region’s GDP.
• Mexico’s population of 124 Million in 2014 has a high concentration in Mexico City (32%),
Guadalajara (7%), and Monterrey (6.5%).
• Mexico City is the most advanced toward being a smart city in Mexico. The agenda for
developing it as a digital and knowledge city is financed with public funds aimed at
initiatives including:
o Evolution of computing and communications infrastructure.
o Research, technological development, and innovation.
o Resource-based ICT and knowledge with public and social services.
o eGovernment and security.
o Digital inclusion, digital ,and human capital formation.
Mexico City is Developing 3 of 8 Smart Diamond Parameters:
Smart Governance and Smart Education: Conditions have been created to improve and increase the
supply of ICT-based information to citizens and business services. The government has invested in video
surveillance cameras for predictive analysis and has created an agenda for smart city development.
Smart Mobility: Carsharing programs have been developed with a goal to reduce traffic congestion and,
consequently, carbon dioxide emissions.
Smart Healthcare: The government deployed a system that enables interoperability between local and
federal hospitals as well as creating electronic medical records for patients.
Source: National Institute of Statistics and Geography (INEGI); World Bank; IMF; Smart City Business Institute; Frost & Sullivan

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Mexico City Highlights
xxx
Carsharing: Carrot, the first carsharing enterprise in
Mexico, has grown to 40 vehicles—using the Nissan
March and Leaf models and the Xtrail SUVs, which
are the most energy-efficient vehicles sold in Mexico.
About 8,500 people have signed up for the program,
which is an alternative to car purchasing. Frost &
Sullivan research has found that for every new
shared car, 15 autos are taken out of circulation.
Open Data: Among Mexico City’s smart city projects,
the open data portal is one of the most advanced,
with an offer of 1,000 datasets related to public
transport, commerce, education, culture, health, civil
protection, environment, and public services.
Applications allow citizens to pay property taxes and
traffic fines; send requests for potholes and water
leak repair and tree trimming; and find out about
traffic and air quality.
Carsharing
Open Data
Source: Smart City Business Institute; Fast Company; Datos.gob.mx; Frost & Sullivan

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Mexico City Highlights (continued)
xxx
xxxSecurity: About 8,000 video surveillance cameras
for predictive analysis have been installed, and 7,000
more are in the installation process. About 1,000
cameras are in subway stations, and 3,000 will be
installed in housing colonies.
Healthcare: About 3.5 Million people in the city have
no access to the national health system, and instead
are served by 200 first-class clinics and 23 hospitals
in the city. To streamline and automate health
services at the local level, a hospital care information
system is being developed that will support
implementation of electronic medical records and
connectivity and interoperability between local and
federal hospitals. Five hospitals in the city have
already been integrated into this system; the goal is
to reach 50 hospitals.
Security
Healthcare
Source: Smart City Business Institute; Fast Company; Frost & Sullivan

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Key Conclusions
1 There are no smart cities in Latin America, but some smart projects can be found in the region.
2 Smart governance and education and smart mobility are the biggest opportunities in the region.
3 Data security and privacy will be the biggest challenges for Latin American smart cities.
4
Cities must move from treating citizens as recipients of services to active participants in improving
quality of life.
5 Development of open data and open platforms to mobilize collective knowledge is a must.
6
Companies need to converge and tap into each other’s industry value chains to develop a true
smart city.

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