Consumer Preferences, Perceptions, and Persistent Barriers: An Assessment of Internet Usage During and Post COVID-19 Pandemic in Peru

The COVID-19 pandemic has exposed the existing shortfall in telecommunications infrastructure in Peru, particularly in terms of Internet connectivity in urban areas, let alone rural ones. However, this challenge has also led to a shift in the population’s perception regarding the relevance of Internet use in daily activities. This study uses the digital technologies surveys from the 2020 and 2022 CORE project to examine changes in Internet use and attitudes in the post-pandemic period. This paper provides empirical evidence of changes in consumer preferences for Internet usage following a negative exogenous shock that transformed face-to-face activities into virtual ones. In addition, the study explores heterogeneities in usage, perception, and main barriers, allowing population preferences to vary by socioeconomic characteristics and COVID-19 exposure. Our main results show a decrease in Internet use related to education, work, and government transactions, but an increase in health Internet activities in places with higher rate of COVID-19 deceases (both in the extensive and intensive margin). In addition, we find that this negative effect over Internet use is mainly explained by affordability and skills constraints, informal and unskilled workers, less educated individuals and municipalities with poor quality fixed Internet. Finally, consumer perception turned negative towards government responsibility regarding the delivery of public services through the Internet.