3 Evaluating Growth in - Broadband Using the Commission's Targets
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3
Evaluating Growth in
Broadband Using the
Commission’s Targets
In January 2018, at its Special Session at broadband network services, and
the Annual General Meeting of the World reduce overall infrastructure investment
Economic Forum, the Broadband Commission costs. The network is currently
extended and updated its existing five over 90% population coverage.
broadband targets to a total of seven targets.
This report consider progress across all seven Policy analysis has helped guide the
targets. Policy analysis and targets can play Government’s planning and decision-
a significant role in informing, shaping and making process, right from the start of
influencing policy priorities at the national the ICT4D journey in 2000. The GoR
and regional levels – for example, Viewpoint has developed the National 5-year ICT
11 describes how policy analysis has helped Plans since 2001, revised every five
concretize policy thinking and priorities, from years. The fourth 5-year rolling plan, the
the perspective of the Government of Rwanda. Smart Rwanda Masterplan, was adopted
in 2015 and includes, among others,
a target for gender digital equality
Viewpoint 11: The Importance of
by 2020. The Broadband Commission
Policy Analysis for Shaping Policy
targets and policy analysis were key
Priorities in Africa – Government of
inputs to the formulation of this and other
Rwanda
targets for the Smart Rwanda Masterplan.
Rwanda has made significant progress
towards affordable broadband for all. In The Government’s vision, policy and
2008, the Government of Rwanda (GoR) plans recognize broadband and ICTs
embarked on a nationwide roll-out of in general, as a driver of economic
fibre optic as a backbone infrastructure growth, access to information and social
for broadband. This optic fibre cohesion, productivity and innovation
connected different parts of the country across all sectors of the economy. Steps
and provided high-capacity cross- have been taken to promote innovation
border links with onward connectivity and entrepreneurship, reduce the cost
to submarine cables. In 2013, GoR of end-user devices, stimulate the
published a new broadband policy development and uptake of relevant
aimed at restructuring the broadband content and diffusion of technologies
market under an infrastructure-sharing into various sectors of the economy.
regime, by putting in place a 4G LTE Broadband connectivity provides
wholesale open-access network, access to information and enables
as a means to accelerate roll-out of economic activities that create jobs,
34 The State of Broadband 2018
reduce the cost of communications and • Enabling efficient Government
improve government service delivery. service delivery through
e-Government;
At the continental level, the leadership
by H.E. President Paul Kagame and the • Putting the private sector first; and
work of the Broadband Commission
have been a factor in numerous • Sustainable Development.
developments, including the Smart
Africa Initiative. In October 2013, the first In conclusion, policy analysis by the
Transform Africa Summit was co-hosted UN Broadband Commission has been a
by the GoR and ITU, and culminated in useful input for ICT policy formulation in
the Smart Africa Manifesto as a continental Rwanda and, more generally, in Africa.
agenda to leverage ICTs for Africa’s
transformation. This manifesto was Source: Patrick Nyirishema, Director-General of RURA
(Rwanda Utilities Regulatory Authority).
adopted at the African Union Summit
in January 2014, effectively endorsing
Smart Africa as a continental agenda.
3.1 Advocacy Target 1:
The overall objective of Smart Africa is
to foster integration across the continent, Making broadband
towards a single African digital market, policy universal
spurring innovation, economic growth
and job creation. Great progress has By 2025, all countries should have a
been made, with 25 Heads of State and National Broadband Plan or strategy or
Government across Africa committing to include broadband in their UAS definitions
and embracing the Smart Africa Agenda,
which includes the following pillars: Growth in the number of countries with NBPs
has shown good progress, but has effectively
• Establishing an enabling stabilized over recent years (Figure 10, left).
policy environment; According to ITU data, 81% of all countries
now have a NBP, at 159 countries in 2018,
• Promoting and expanding up from 156 in 2016 and 151 in 2015. 35
broadband access; countries do not have a Plan (Appendix 1). For
example, in Lebanon, the state-owned fixed-
line telco, Ogero, has developed a network
and Internet strategy. This plan for a national
The State of Broadband 2018 35
fibre-optic upgrade aims for 85% of Lebanon’s while another six countries are working to
population to access the Internet at speeds develop their strategy. In its “Data-Driven
over 50 Mbps (ten times faster than many Development” report, the World Bank (2018)
current connections) by end 2020. Investments notes that “there is growing recognition
of USD 99 million are planned in the fibre within many governments that, in the digital
project investment in 2018. Ogero’s fixed voice economy, data is on par as an infrastructure
network equipment upgrade is scheduled asset with more traditional infrastructure
for the end of 2018, and wireless Internet like transport and public utilities. There is
coverage for rural areas for mid-2018, with the now interest in crafting policy that recognizes
public Wi-Fi programme due to end in 20181. data as an infrastructure asset2. Policies that
discuss data infrastructure in the government
Viewpoint 12 from the OECD discusses how typically focus on management of data
national broadband availability targets are assets (collection, access, reuse, sharing,
evolving. One obvious way in which NBPs preservation, security) and data governance
are evolving is to include new technologies, (ownership, funding)”3. This implies data is an
such as IoT. For example, China has a asset, similar to other infrastructure assets.
national strategy for IoT. Following efforts by
government and industries, China has built a
Viewpoint 12: Evolving National
huge narrow-band cellular IoT network, with
Broadband Availability Targets
over 700,000 active sites. In 2018, applications
will exceed one million connections (including In order to close broadband divides,
smart fire, smart gas, smart water and smart it is necessary to measure the
home), and a large number of innovative different availability and adoption
applications are emerging (including connected gaps. Given the capabilities within
cattle and electric vehicle monitoring). each broadband speed threshold,
a technology-neutral approach or a
Another way in which NBPs should evolve is speed-based approach disaggregated
to take into account AI and data. According to the smallest regional level possible
to Tim Dutton (2018), at least 15 countries is desirable, as it allows measuring
have concrete national strategies for AI,
Figure 10: Policy Leadership in National Broadband Plans, 2008-2018
Number of countries that have adopted a Plan or Strategy, planning to adopt or without (left chart); Growth in National
Broadband Plans, 2006-2018 (right chart).
Source: ITU. Note: Charts based on data for 196 countries. National Broadband Plan or strategy includes: a plan, strategy or
policy specific to broadband; digital plan, agenda, strategy or policy; ICT plan, strategy, or policy; or a communication plan,
strategy, or policy.
36 The State of Broadband 2018
Chapter 3
the accessibility gaps in terms of All OECD countries (apart from
QoS for each area and type of user. Japan4) have specific national goals for
broadband availability. In the majority
Baseline definitions of broadband remain of countries, goals for broadband
important for measurement of high- deployment are set in terms of speed
speed network availability. When the of service offered and percentage of
256 kbps threshold was established in coverage, penetration and specific
2001, it served the purpose of excluding groups. Luxembourg has the highest
ISDN and was, at that time, the lowest access target with a goal of offering 1
commonly offered commercially offered Gbps to 100% of households by 2020,
speed in OECD countries. Periodically, followed by Sweden with the goal of
it has been suggested that the threshold connecting 98% of both households
speed for data collection be raised, but and businesses with 1 Gbps broadband.
without consensus on a new baseline, Korea has the goal of connecting 90%
it was instead decided to introduce of urban areas with 1 Gbps by 2017.
speed tiers for reporting broadband Belgium aims for 50% of its households
subscriptions (e.g. 256 Kbps to 1.5/2 to have 1 Gbps by 2020 and Sweden
Mbps; 1.5/2 Mbps to 10 Mbps and so 98% by 2025. Australia, Israel and
forth with increasing tiers of service several European countries have set
to above 1 Gbps). While speed tiers national goals in the range from 25-
are useful for comparisons, the current 30 Mbps, while Chile has a target
256 kbps definition for broadband of 10 Mbps (see Figure below).
seems increasingly removed from
the expectations of all stakeholders,
including those in rural areas.
Box Figure: Matrix of OECD national broadband targets per coverage and quality
Source: OECD.
While broadband plans understandably people in rural areas live close to
focus on business and residences or highways and roads, even if their
aim at extending mobile broadband businesses and residences are
coverage in areas with little or no distant to towns or cellular towers.
coverage, the mention of railways,
highways and roads in Canada, the Policy frameworks that promote the
UK and EU goals is significant. Many maximum expansion of telecom and
The State of Broadband 2018 37cable networks are desirable – partly According to ITU’s Global Regulatory
because they reduce the area that Outlook Report 2017, a growing number
needs to be addressed by other means, of countries have adopted or are in the
but also because they are likely to be process of adopting more flexible regulatory
a key ingredient in providing those frameworks over the past decade, with a
alternatives. Connectivity targets for small, but growing, number of ICT regulators
digitalizing rural areas needs residents including the regulation of Internet content
to be treated as both consumers, as in their remit (Figure 12). Most regulators
well as producers, of content. Helping still focus on ‘traditional’ areas for ICT
rural areas be included in global value regulators, such as licensing and spectrum
chains means identifying targets not monitoring and enforcement (Figure 12).
only for higher download speeds, but
also higher upload speeds, so they Analysis of countries’ regulatory frameworks
can share and create content online shows that a growing number of countries
and benefit from developments such have adopted general or class licensing.
as cloud computing and big data. ITU holds an annual Global Symposium
for Regulators to debate the latest issues,
Of course, while important, national review international best practices. ITU
broadband strategies are just one part of publishes its Global Regulatory Outlook
the regulatory and policy framework in place Report annually to track regulatory
to govern the development of broadband developments around the world. Some
in a country. Countries also have broad countries have been moving to merge
sets of telecom and broadband regulatory regulators – the most recent is Zimbabwe,
requirements in place – for example, relating which merged its telecom and broadcasting
to the mandate of the regulator, as well regulators, on the basis that telecoms
as net neutrality. Of ITU’s 193 Member show convergence with broadcasting5.
States, 45% of countries have no clear policy
statement on net neutrality in place, with For example, in Singapore, the converged
the highest proportions in the Arab States telecommunications and media regulator,
(80%) and the Americas (71.4%). Europe IMDA, has adopted a regulatory sandbox
is the region with the highest proportion approach to enable the industry to test
of countries with a statement or policy on innovative technologies. For instance, to
net neutrality in place (70%) – Figure 11. facilitate trials of TV white spaces and 5G
Figure 11: Policies on Net Neutrality, 2017
Source: ITU World Telecommunication Regulatory Survey 2017. * Total 193 ITU Member States.
38 The State of Broadband 2018Chapter 3 Figure 12: Who Regulates What in ICT? Source: World Telecommunication Regulatory Survey 2018. * Total 193 ITU Member States. technologies, IMDA has waived certain In January 2017, the Broadband Commission licensing requirements and frequency lowered the de-facto standard for Internet fees. To encourage trials in Heterogeneous affordability to 2% of average income, from Network (HetNet) technologies as the the previous
Figure 13: Affordability & Broadband Prices, 2016
Source: ITU.
Digital Inclusion Programme aimed at benefited from: the PC-Bundle Scheme
building a digitally inclusive society providing students from low-income
that brings infocomm to people from households with new computers
all walks of life. The Digital Inclusion and 3 years of free broadband
programme consists of four key access at affordable prices; and the
areas – the Silver Infocomm Initiative, iNSPIRE Fund, which helps students
NEU PC Plus Programme, Home to earn their PC-Bundle by doing
Access Programme and Enable IT community service. To date, over
Programme. These programmes target 3,000 students have benefited.
four key groups of citizens: senior
citizens, low-income students, low- • The Home Access Programme was
income households and people with established in 2014 and aims to
disabilities (PWDs), respectively. make Internet connectivity more
accessible and affordable to low-
• The Silver Infocomm Initiative aims income groups. Under Home Access
to bridge the digital divide among 2.0, eligible households without
seniors aged 50+ by addressing school-children are provided
differences in educational with 2 years subsidized Internet
background, language and IT access, with an option for basic
competencies. Launched in 2007, equipment. Over 9,000 low-income
the Silver Infocomm Initiative adopts households have benefited so far.
a multi-pronged strategy to drive
IT awareness and literacy among • The Enable IT Programme aims to
seniors so that they can be digitally enable and enhance the abilities
ready and be actively engaged of PWDs in their daily activities
in the digital age. To date, over and employment through IT and
200,000 seniors have benefitted from assistive technology. Initiatives
activities such as the Silver IT Fest, Mass include educating PWDs, helping
IT Training, Silver Infocomm Junctions, them make informed decisions
Intergen IT Bootcamps and Digital Clinics. on the appropriate IT to adopt,
providing hands-on experience &
• The NEU PC Plus Programme aims to training and using IT to improve
provide affordable access students employability. The Programme
from low-income households is implemented through
by defraying costs of computer collaboration with IMDA, disability
ownership and Internet access. organizations and private firms.
Since launching in 2006, over
34,000 low-income households Source: Infocomm Media Development Authority of Singa-
pore (IMDA).
with school-going children have
40 The State of Broadband 2018Chapter 3
3.3 Advocacy Target 3: Viewpoint 14: Broadband for
Getting People Online Development in four LDCs:
Cambodia, Rwanda, Senegal and
By 2025, broadband-Internet user Vanuatu
penetration should reach: 75% worldwide,
65% in developing countries, and 35% in LDCs So many of us take using our cell-phones
and tablets for granted – instantly, we
Three years is an eternity in telecom, so can be connected. Connectedness
targets for 2025 are clearly optimistic means participation, it means inclusion,
at best. Estimates of Internet usage are and it means opportunities. Connection
based on a number of assumptions, each bridges space, connection is access to
of which can be challenged. For example, knowledge and innovation. However,
it uses median population projections connectivity is not an opportunity
from the UN (extrapolated between 1 July afforded to all, and many are still left
estimates for each year), subject to various behind. The group of LDCs – some
caveats (e.g. no major epidemics, conflicts, 47 countries – experience severe
famines, and constant fertility rates). structural obstacles to their sustainable
and inclusive development. The
Internet user growth rates are gradually LDCs truly risk being left most
reducing, at around 5.5% Internet user behind in the world’s economic and
growth for 2018, as easy-to-reach areas social development scorecard.
get connected. Having said this, there are
significant Internet mass connectivity On some fronts, remarkable progress
projects underway in some regions, and has taken place over recent years, but
mass area coverage by next-generation these countries still display some of the
satellite. The total number of Internet users lowest Internet access rates in the world.
can in fact go down, as well as up – for By end 2017, only 172 million people
example, as Governments and regulators of the nearly 1 billion people living in
revise their figures for inactive SIM cards or LDCs used the Internet, equivalent to
the latest consumer surveys. Each national a usage rate of 17.5%. At slightly over
figure is an estimate, based on operator 20 per 100 inhabitants in LDCs, the
subscriber data and/or consumer surveys, mobile broadband subscription rates
which may be more or less representative remain equally low. This is almost four
of each market, and the quality of the times less than in developed countries.
estimate depends on the quality of surveys.
Being connected means enhancing
Arguably, it is not just access and how many development potential. Thus, greater
people use the Internet which is of interest; access to and enhanced literacy in
it is how the Internet is used and the quality and use of broadband services are
of usage that matter. For example, in 2017, critically important to the sustainable
an estimated 1.66 billion people (under half development of the LDCs and their full
the global population online) purchased participation in achieving the goals of
goods online. Even in developed countries, Agenda 2030. There is no time to waste.
large gaps persisted across OECD countries For this reason, a Working Group on
for some Internet uses as recently as 2016, Vulnerable Countries (LDCs, LLDCs
with less than half of all online Internet and SIDS) was established under the
consumers using the Internet for telephony, auspices of the Broadband Commission
content creation, travel, software download, to fill the knowledge gap on how
cloud services, online job searches and LDCs are leveraging investments in
sales7. Viewpoint 14 explores the case of broadband for national development.
broadband in four developing countries –
Cambodia, Rwanda, Senegal and Vanuatu. The synthesized report on ‘Broadband
for National Development in four
LDCs: Cambodia, Rwanda, Senegal
and Vanuatu’ aims to contribute to
The State of Broadband 2018 41Figure 14: Internet User Penetration, 2017
Source: ITU.
filling that gap. This report is based on from a mix of local access competition
extensive case studies conducted in and wholesale PPP interventions in
four LDCs in three regions: Asian LDC Rwanda, to an unregulated and fiercely
(Cambodia), African LDC (Senegal) competitive market in Cambodia, a
with access to the sea, a landlocked regulated market dominated by the
LDC in Africa (Rwanda), and a small incumbent operator in Senegal and
island developing state in the South the mobile “duopoly” in Vanuatu.
Pacific (Vanuatu). It is very impressive
and highly encouraging to note that, in However, a gap persists between
just a few years, all the four countries deploying the necessary infrastructure
were able to significantly increase and then the utilization rates of the
broadband coverage and affordability. infrastructure to enhance development.
Rwanda is close to achieving universal The report reveals that, while broadband
coverage of mobile broadband – impacts have so far had modest
in 2016, over 90% of the Rwandan measurable impact, anecdotal evidence
population could access a 3G signal. suggests that narrowband services
and text messages have achieved
The market conditions leading to traction in sectors such as health,
these remarkable achievements agricultural and finance (m-money).
differed considerably, and ranged The report makes various insightful
42 The State of Broadband 2018Chapter 3
recommendations for leveraging and can use these technologies effectively in
broadband more rapidly in LDCs. their lives. It is vital to ensure that the poorest,
most marginalized and vulnerable people are
I sincerely hope this report and its not left behind and that tech investments
recommendations will contribute to contribute to improved learning and skills9.
furthering the ongoing conversation
on how we can best support LDCs to Effective education systems are essential for
connect to the emerging, and ever more meeting future challenges and delivering
rapidly evolving, digital world and on the SDGs. Although rapid technological
to reap its developmental benefits. change has taken place over the last thirty
years, education systems in many countries
Source: Ms. Fekitamoeloa Katoa 'Utoikamanu, Under-Sec- have remained largely unchanged over the
retary-General and High Representative for the Least
Developed Countries, Landlocked Developing Countries
last century. Education is about much more
and Small Island Developing States (UN-OHRLLS). than merely providing people with the skills
and knowledge to work, and must create a
framework through which people can lead
diverse and fulfilling lives. People of all ages
3.4 Advocacy Target 4: should have opportunities to learn about
Digital Skills & Literacy their own cultures, in their own languages.
New Employment Dynamics & Skills of the There is broad agreement that education
Future: By 2025, 60% of youth and adults needs to ensure that people gain four main
should have achieved at least a minimum skills: creativity, communication, collaboration,
level of proficiency in sustainable digital skills and critical thinking. Alongside skills such as
literacy and numeracy, people should now also
Demand is vitally important in creating a gain basic digital skills. They need to have a
sustainable Internet ecosystem. It is necessary comprehensive understanding of the rapidly
to address consumers’ ability to use the changing world in which they live, as well as
Internet, as well as fostering innovation. ICT their roles and responsibilities within it. ITU’s
infrastructure may often remain under-utilized, Global ICT Development Index (IDI) includes
due to factors such as lack of affordability, a measure of digital skills and capabilities.
interest or knowledge, which are obstacles
to the productive use of ICTs and Internet. There is considerable debate as to what
When challenges around affordability, proficiency in digital skills and an ‘adequate’
awareness and ability are addressed, level really mean. Digital skills have been
the value of ICT and broadband can be broken down into three categories: (1) the
realized and people can benefit greatly8. basic digital literacy needed for all workers,
consumers and citizens in a digital society;
A recent UNESCO/UNICEF report notes that (2) the advanced ICT skills (coding, computer
ICTs have immense potential to facilitate science and engineering) which are needed to
dramatic changes in learning and education develop innovative ICT products and services;
systems, while placing new demands on the and (3) e-business skills or the specific know-
knowledge and skills that people need to how needed for digital entrepreneurship10.
acquire throughout their lives. There are, Figure 15 shows how global averages for digital
however, significant challenges in ensuring skills vary from 5.2% (using a programming
that everyone can benefit from this potential, language) to 43.7% (transferring files).
The State of Broadband 2018 43Figure 15: Digital Skills Worldwide, 2017
Source: UNESCO. Note: Based on average skills available for the different numbers of countries available * = 50 countries.
It is likely that only some of these necessary national backbone network, enabling
digital skills can be taught in schools. Many Internet connectivity of up to 600 Mbps.
of the digital skills needed in the new From the Independence Monument in
economy may be self-acquired – or at least Hunsen Park, 24 Wi-Fi access points
self-perfected – through personal curiosity have been installed to cover the entire
and interest. Viewpoint 15 describes park. Along the Tonle Sap River in the
how KT is working with the Cambodian Royal Palace Park, local residents and
Government and Cambodia Telecom to many tourists benefit from free Wi-Fi.
promote digital skills through a digital
schools programme and public WiFi in Public Wi-Fi in Hunsen Park, Phnom
parks near the capital, Phnom Penh.
Viewpoint 15: The Cambodia Public
Wi-Fi & Digital Schools Project
To help bridge the digital divide in
Cambodia, Korea Telecom has worked
in close partnership with the Ministry
of Post and Telecommunications in
Cambodia and Telecom Cambodia on a
public Wi-Fi and digital schools project
providing free Wi-Fi in public places. It
has also launched a distance learning
programme for underprivileged schools
under the e-Education objective of the
Cambodian ICT Masterplan 2020.
In the “Samdach Hunsen” and “Royal
Palace” national parks near Phnom Penh,
visitors can take advantage of public Wi-
Fi. KT delivered ‘Giga Wi-Fi’ technology
connected to Telecom Cambodia’s
44 The State of Broadband 2018Chapter 3
Distance Learning Class in Tuol Kpos School (Quality Education) and SDG 9 (Industry,
Innovation and Infrastructure).
Source: KT Corp.
In Singapore, IMDA works in partnership
with the industry, community and other
government agencies in the Media Literacy
Council (MLC) to champion and develop public
education and awareness on media literacy
and cyber-wellness issues. The MLC’s outreach
initiative, the Better Internet Campaign,
encourages safe and responsible online
Cambodia’s mobile penetration rate has behaviour. The campaign messaging – “Be
risen rapidly over the last decade, but Safe, Be Smart, Be Kind online” – addresses
low-income families and unemployed issues such as cyber-safety and security,
still suffer under expensive data critical thinking and discernment of online
plans and Wi-Fi services offered by falsehoods, online civility and cyber-bullying.
private network operators. To address The MLC has also launched programmes with
information gaps between ordinary schools and tertiary institutions to develop
citizens and the underprivileged, curated resources in collaboration with
national network infrastructure is in high private sector and people-based organizations
demand for the digitally deprived. such as Google, Facebook, DQ Institute,
TOUCH Cyber Wellness and the Centre for
Cambodia’s rural schools 200-300 km Fathering to provide the community with
away from Phnom Penh have been tools and tips to navigate the online space.
transformed into digital schools through Viewpoint 16 explores how new employment
remote education opportunities. KT dynamics will impact future skills.
has developed a smart education
application, ‘K-box’, whereby teachers Viewpoint 16: New Employment
implement distance classes online Dynamics & Skills of the Future
and communicate with over 2,000
students via video-conferencing. For The combination of 5G and AI will
enrichment of e-learning services, change our world in ways we have only
multimedia classrooms were just begun to imagine. Improvements
established and Telecom Cambodia in healthcare, transport, energy
operates wireless networks to remote distribution, education and other areas
schools in cooperation with KT. will benefit the lives of billions of people.
At their best, the technologies behind
The Government of Cambodia has the Fourth Industrial Revolution (4IR)
defined an objective for enhancing will help us to create a safer, smarter
public education using ICTs to improve and more efficient world for everyone.
educational infrastructure in schools.
As a pilot, the project aims to improve The extent to which 4IR will impact the
digital literacy, develop video content socio-economic structures underpinning
and foster e-learning programmes. our societies is still uncertain, however.
On 9 May 2018, the public Wi-Fi at How will the nature of work change?
Samdach Hunsen Park opened, attended Which sectors will see increased or
by 1,000 citizens of Phnom Penh. KT decreased employment? And how should
and MPT Cambodia showed how PPPs we educate or re-train people in the face
can help address and resolve social of these changes? We still don’t know the
issues by promoting ICTs. This project answers to all these questions, but we
addresses the SDGs, including SDG 4 can prepare for different eventualities,
so our societies are ready for the
changes, as and when they happen.
The State of Broadband 2018 45Technological progress has broadly two also be facilitated, through measures
competing effects on employment11. On such as portable health insurance.
one hand, there is an ‘attrition’ effect as
automation substitutes for labor. On the • Investments in ICT infrastructure:
other hand, capitalization describes how In addition to investing in people,
an increase in demand for new goods we can embrace the future by
and services leads to the creation of accelerating investments in ICT
new occupations. Some types of jobs infrastructure and by ensuring
are more at risk of attrition than others adoption of new technologies
– repetitive manual labor tasks have by societies. The availability of
mostly already been automated, but appropriate ICT infrastructure is
now, higher-level routine or predictable a pre-condition for enabling the
jobs are also at risk. The radiology 4IR. Accelerated investments in
profession serves as a good example, as 5G infrastructure and ensuring
new technology allows medical images 5G-ready policy frameworks are
to be interpreted more accurately critical priorities, if we are to reap
and faster than previously possible. the benefits of digitalization.
Sophisticated algorithms may also Governments, regulators, industry
make knowledge-based jobs – such as players, NGOs, academics and decision-
those in finance or law – more prone making bodies have a critical role to
to replacement. Jobs that are less play in shaping our response to the
prone to substitution may include jobs effects of the 4IR. Policy-makers need
requiring entrepreneurial approaches to develop an environment for using
and creativity; jobs where people 4IR technologies that fuels the positive
need to collaborate with machines; outcomes and mitigates the concerns.
and jobs needing trust, empathy,
compassion and human interaction Source: Nokia.
(such as childcare or nursing). There
is an urgent need to develop new
skills and approaches to address
the disruption created by the 4IR: 3.5 Advocacy Target 5:
Digital Financial Services
• The importance of education: There
needs to be focus on entrepreneurial By 2025, 40% of the world’s adult population
and social skills, as well as on the should be using digital financial services (DFS)
development of educational models
for learning to work alongside Digital finance provides an effective way to
intelligent machines. Education swiftly connect large populations in many
systems need to incentivize the use countries, especially where traditional
of AI-powered tools in traditional infrastructure is lacking. With DFS
fields of activity, so future workers technologies, it will be possible to connect
can learn to use new tools such the unconnected and bring the excluded
as AR, VR and social learning. into the global financial system. The World
Bank has identified various benefits to
• New employer-employee enhancing DFS around the world12, including:
relationships: It is important to
develop new types of employment – Enhanced access to formal
contracts to fit the evolving nature financial services;
of work. Traditional employer-
employee relationships are – Lower costs of digital transaction
becoming a series of transactions platforms, as well as cash transactions;
between employer and employee.
Transitions between jobs should – Additional financial services tailored to
individual customer financial needs;
46 The State of Broadband 2018Chapter 3
– Potentially reduced risk of loss, markets. In 2017, Western Africa accounted
theft, or financial crimes; for an estimated 338 million accounts, with
Sub-Saharan Africa accounting for nearly half
– Promotion of economic empowerment or 49.1% of total global market share in 2017,
by enabling asset accumulation, with the strongest growth in South Asia14.
including for women.
In geographically dispersed countries (such
According to the World Bank, financial as the Maldives), citizens in rural areas
inclusion is growing, but the gains have been may face difficulties in accessing traditional
uneven. The World Bank suggests that 3.8 banking services. Digital financial services
billion people now have an account at a bank (such as the M-Faisaa mobile wallet, part
or mobile money provider, and 1.2 billion of Ooredoo Mobile Money) are playing
people have a mobile money account13, this an important role in accelerating financial
last equivalent to 15.8% of global population inclusion, focusing on convenience and
and around 21.4% of the adult population affordability. M-Faisaa allows customers to
(Figure 16). However, globally, 1.7 billion deposit, withdraw, pay and send money in
adults still remain unbanked and gender- Maldives instantly through their phones. It
based divides persist, with the divide between has a growing user-base of 12,000 customers
male and female in developing economies and 250 channel partners (including STELCO,
unchanged since 2011 at 9% (Figure 16). the State Electric Company, Medianet, the
cable TV service, and various online and offline
The GSMA found that 136 million mobile merchants) and also digitizes bill payments.
money accounts were added during 2017,
resulting in 690 million mobile money In Myanmar, Ooredoo’s ‘M-Pitesan’ mobile
accounts worldwide in 2017, a 25% increase money service allows users to store electronic
on 2016 (and up from 136 million mobile money and make transfers via their mobile
money accounts in 2012). Mobile money is phones. M-Pitesan supports over-the-counter
now available in 90 countries (including three- cash transfers between mobile money
quarters of low- and lower-middle-income agents. Given that 70% of Myanmar’s rural
countries) and has become a leading payment population remains unbanked even today,
platform for a digital economy in emerging mobile money services such as M-Pitesan
Figure 16: Digital Financial Services, 2018
Source: Based on World Bank (2018) and GSMA (2017).
Note: This graph assumes that one m-money account is allocated per adult individual, and that all bank accounts belong to
adults.
The State of Broadband 2018 47provide an alternative channel for the This target prepares MSMEs for a future
unbanked to access financial services. To where online presence is needed. There is a
date, M-Pitesan has 300,000 registered body of evidence that SMEs are instrumental
customers country-wide with 30,000 using in eradicating poverty, creating economic
the solution actively to transfer money, buy growth, and empowering citizens to become
airtime, pay bills and purchase tickets. productive. Connectivity, connectedness and
the adoption of digital technologies by SMEs
Digitalization may be applied beyond can offer the opportunity for tech SMEs to play
digital financing. Invoicing is an example of a major role in a country’s economy, as well
a business-to-business (B2B) transaction as the adoption of broadband connectivity
that cuts across businesses and sectors. and technology in SMEs in non-tech sectors.
E-invoicing can help businesses speed up
business transactions, minimize disputes and Research differs as to whether SMEs are
reduce errors and operating costs. E-invoicing more or less likely to adopt ICTs, or lag in
is the automated creation, exchange and the adoption of certain digital technologies.
processing of request for payments between There is evidence to suggest that SMEs are
suppliers and buyers. Singapore plans just as likely to use broadband as larger
to implement a nationwide e-invoicing firms; however, gaps in adopting more
framework in 2018 with end-to-end digital sophisticated digital tools exist. Figure 17
transactions enabling businesses to exchange shows that technology intensity and business
e-invoices with buyers and suppliers. use of Internet vary by sector in developing
countries, according to their degree of
technological sophistication, with primary
extractive industries showing lower tech
3.6 Advocacy Target 6: take-up. Viewpoint 17 describes the work
Getting businesses online of the Commission’s Working Group on
Digital Entrepreneurship, while Viewpoint
By 2025, overcome unconnectedness 18 explains the importance of connectivity
of Micro-, Small- and Medium-sized for SMEs, while Viewpoint 19 describes
Enterprises (MSMEs) by 50%, by sector how Singapore’s SMEs are going digital.
Figure 17: Business use of Internet and level of technology
intensity in developing countries, by industry
Source: UNCTAD World Investment Report 2017.
48 The State of Broadband 2018Chapter 3
Viewpoint 17: The Importance of neighbouring countries and drawing
Thriving Digital Entrepreneurship from international talent pools.
Digital development is not just about For developing countries in particular,
technology; it is also about overturning it is essential – and urgent – to promote
and recreating business models. Start- digital entrepreneurship, to build and
ups are known for accelerating creative scale new businesses based on the
disruption, breaking new ground technologies of 4IR. To achieve this,
with new approaches and products. however, is a formidable challenge.
But digitization has given traditional Despite progress elsewhere, the
SMEs new ways of doing business – at most active innovation ecosystems
a distance, with more customers, as and investments are concentrated in
well as with lower barriers to entry Silicon Valley and a few developed
and lower costs in many sectors. countries in East Asia and Europe.
A thriving landscape of digital In addition, automatization threatens to
entrepreneurship is essential for remove several rungs of development
meeting the 2025 Connectivity Targets: that would otherwise support the
transition to middle- and high-income
• Connectivity: new business economies. Automated and additive
models and services are needed manufacturing are reducing labour
to drive demand for faster costs and driving some manufacturing
connections, including 5G. tasks back to developed countries.
AI may make many outsourced
• On skills and gender equality, business services obsolete, including
digital technology allows female call centres and medical services.
entrepreneurs to manage and own
a higher proportion of online-only The issues of infrastructure and
businesses in developing countries. business environment relate to
digital entrepreneurship as well.
• MSMEs that use e-commerce and Along with the various obstacles
digital tools for their business will mentioned, digital entrepreneurship
help to achieve the connectivity faces particular difficulties in
targets, expanding the market for developing countries, where:
business services aimed at MSMEs.
• investment and access to
• Start-ups and MSMEs are financing remain low, compared
among the major users of with developed countries;
digital financial services, which
encourages their customers • small domestic consumer
towards higher rates of take-up. markets limit the growth potential
of start-ups and SMEs;
Digital entrepreneurship is also needed
for making progress on the SDGs. • innovation ecosystems remain
The success of mobile payments in underdeveloped, with poor
Africa has contributed to financial infrastructure and insufficient
inclusion across the continent, while cooperation between new
the delivery of medicines by drones, companies, academia and
pioneered in Africa, makes urgent existing enterprises;
medical care available to isolated
and rural communities. Digital • the talent base remains small.
entrepreneurship can stimulate regional As well as the lack of skilled
integration, with many start-ups looking engineers, entrepreneurs also
to grow by developing markets in
The State of Broadband 2018 49lack the business skills to succeed Enterprises in developed countries
at building digital companies. engaged in e-commerce and online
competition are principally concerned
In view of these factors, I initiated with generating sufficient online
a Working Group on Digital visibility; SMEs in developing countries
Entrepreneurship at the UN Broadband have more basic concerns relating
Commission. It has produced policy to setting up operations (such as
recommendations for all parties warehousing and delivery services).
involved – governments, businesses,
civil society and donor organisations Small enterprises in developing
– for digital entrepreneurship to be a countries raise concerns about
priority for developing countries, in the cross-border e-commerce, including
Digital4Entrepreneurship Report with complying with export requirements,
recommendations in 4 main areas: consumer protection regulations,
accessing and paying for e-payment
1) Digital economy success factors solutions and the availability of cost-
(connectivity, skills, regulatory effective transport options. Four common
openness, women, ICT); misconceptions persist among SMEs in
developing countries: e-commerce is
2) Digital entrepreneurship policy only for goods, not services; e-commerce
support (e-government, funding, is for consumer products (B2C) and not
innovation ecosystems); professional or industrial goods (B2B);
e-commerce requires mass production;
3) Strengthening e-commerce (online and there are more counterfeits online.
payments, regulatory measures,
cross-border parcel delivery); Connectivity alone cannot overcome
the hurdles that SMEs in developing
4) Governance of regional and countries face. Increased attention
global digital markets (including needs to be paid to building the
development aid assistance). capacities of local business managers
and policies that promote a vibrant and
Source: Andrus Ansip, EC Commissioner and Chair of the competitive local service ecosystem.
Working Group on Digital Entrepreneurship.
Source: “New Pathways to E-Commerce: A Global MSME
Viewpoint 18: The Importance of Competitiveness Survey”, ITC, Geneva, 2017.
Connectivity for SMEs
Viewpoint 19: Singapore’s SMEs Go
Connectivity to the Internet is a Digital
prerequisite for enterprises to conduct
e-commerce, but given the penetration SMEs are an important foundation of the
of mobile broadband coverage in economy as they make up 99% of all
many urban areas, small enterprises in businesses and 70% of the workforce
developing countries often face other in Singapore. In helping Singapore’s
priorities to successfully develop their SMEs thrive in the digital economy,
business online. Two key concerns the SMEs Go Digital programme,
are the suitability of e-commerce launched in April 2017, was designed
as a sales channel and the level of to make going digital simple for SMEs.
understanding and relevant skills This programme includes the Industry
needed for e-commerce. The majority Digital Plans for SMEs (IDPs),
of enterprises in developing countries which SMEs can refer to for guidance
do not have products which can be on the use of digital technologies at
sold easily through e-commerce; their different stages of their growth. IDPs
products are adapted to the low price will be developed for six sectors – food
of the local market and cannot support services, logistics, retail, wholesale trade,
additional channel and distribution costs. environmental services and security.
50 The State of Broadband 2018Chapter 3
Box Figure: Use of Digital Technologies by SMEs
Source: IMDA.
Source: Infocomm Media Development Authority of Singa-
Through the IDPs, SMEs can:
pore (IMDA).
• Use a digital roadmap to understand
the digital readiness of their business
and the trainings required to raise 3.7 Advocacy Target 7:
their employees’ digital skills.
Achieving gender equality in
• Identify pre-approved digital access to broadband by 2025
solutions relevant to their
Historically, the digital gender divide was
business. Examples of solutions
originally evaluated at 11% between men
include digital ordering and
and women (ITU, 2013), which then actually
payment, fleet management and
increased to 11.6% in 2017 (ITU, 201715 and
supply chain optimization.
Figure 18). Despite this adverse trend, it is
hoped that gender equality in Internet access
• Reach out to SME Centres for basic
can be achieved by 2025. The proportion of
advisory services with regard to
men using the Internet is higher than the
the digital roadmap, or be referred
proportion of women using the Internet in
to the SME Digital Tech Hub
around two-thirds of countries worldwide.
for more specialized advice.
According to GSMA, over 1.2 billion
• Participate in digital sector projects
women in LMICs do not use mobile
led by their industry leaders to pilot
Internet. Women are, on average, 26% less
emerging solutions with the potential
likely to use mobile Internet than men.
to scale and uplift whole sectors.
Even among mobile owners, women are
18% less likely than men to use mobile
• Engage digital project
Internet. Beyond cost, barriers to mobile
management services to help
ownership may relate to the local context,
implement digital solutions to yield
including low digital literacy and literacy,
maximum sustainable outcomes
and safety and security concerns in Latin
through business processes re-
America, all of which tend to affect women
engineering and job redesign.
disproportionately. Women may be generally
less aware of mobile Internet compared
The State of Broadband 2018 51with men, which can significantly limit their out of seven women is using the Internet
uptake, particularly in Africa and Asia. compared with one out of five men.
A strong link is observed between gender In conjunction with a number of other
parity in the enrolment ratio in tertiary partners, ITU has launched the EQUALS
education and gender parity in Internet use, partnership, a growing global network to
as the digital gender divide reflects broader bring women and girls to tech, and to bring
social inequalities16. The only region where a tech to women and girls (https://www.equals
higher percentage of women than men are .org). Viewpoint 20 describes how mobile can
using the Internet is the Americas, where help close the digital and financial inclusion
countries also score highly on gender parity gender gap, while Viewpoint 21 describes
in tertiary education. While the gender the Jazz-Unilever partnership addresses
gap has narrowed in most regions since the lack of access by women to DFS in
2013, it has widened in Africa. In Africa, the Pakistan by building on Unilever’s network of
proportion of women using the Internet female retail entrepreneurs, which enables
is 25% lower than the proportion of men women to act as mobile money agents.
using the Internet17. In LDCs, only one
Figure 18: Measuring the Gender Gap in Internet Usage
Source: ITU.
Viewpoint 20: Closing the digital and mobile service called Wazazi Nipendeni
financial inclusion gender gap gave them vital health information
during their pregnancies. I also met
Mobile has the power to transform new mothers, who were registering the
lives. In my role as Director General of birth of their newborn babies using a
the GSMA, I have seen this first-hand. mobile service from Tigo, giving their
I have seen how mobile can empower children an identity and a future.
women by making them feel safer, more
connected, and more able to access It is a disappointment to me that while
information and take advantage of life’s mobile connectivity is spreading rapidly,
opportunities. During my recent visit to it is not spreading equally. Mobile is
a health centre in Tanzania, I spoke with now the primary way to access the
expectant mothers, who told me how a Internet across the developing world. A
52 The State of Broadband 2018Chapter 3
recent GSMA study revealed the extent Women programme, designed to
of the gender gap in mobile Internet help the mobile industry reduce the
use across low- and middle-income gender gap, and unlock significant
countries (LMICs) and highlighted commercial and socio-economic
the persistent gender gap in mobile opportunities. Through the Connected
ownership. Over 1.2 billion women Women Commitment Initiative, 36
in these countries do not use mobile mobile operators have made 51
Internet, while women are, on average, formal commitments to reduce gender
10% less likely than men to own mobile gaps in their mobile money and/
phones and 26% less likely to use or mobile Internet customer base
mobile Internet. According to the latest across Africa, Asia and Latin America.
findings from the World Bank’s Global To date, the Connected Women
Findex database, women in these programme and its mobile operator
markets are also, on average, 33% less partners have delivered life-enhancing
likely to use a mobile money service. services to over 22 million women.
This is important because services such
as mobile money can increase women’s As mobile and digital technologies
financial independence and strengthen proliferate, it is important that the
their role as financial decision-makers. mobile industry, policy-makers and
With 276 live deployments in 90 development community continue to
countries, mobile money can help take action to address the gender gap
households to lift themselves out of through targeted interventions. I see
poverty and drives economic growth. being part of the digital economy as
a human right. Addressing the mobile
The mobile gender gap is driven by gender gap will ensure we do not leave
social, economic and cultural factors, anyone behind, while contributing to
which result in women experiencing achieving SDG 5, Gender Equality.
barriers to mobile ownership and use.
To close the mobile gender gap, we Source: Mats Granryd, Director-General of the GSMA.
need to address these issues and focus
on accessibility, affordability, usability Viewpoint 21: Collaborating to
and skills, safety and security, and Achieve Digital Financial Inclusion –
relevance. In India, Telenor aimed to An Example from Pakistan
address many of these barriers with a
‘combo-SIM’ product in an area where To empower women with low incomes
76% of men but only 29% of women and those living in rural areas, VEON’s
used a mobile phone. Telenor launched subsidiary in Pakistan, Jazz, announced
two paired-SIMs sold together, one to be its collaboration with Unilever Pakistan,
used by a woman and the other by her the non-profit Women’s World Banking,
husband, and recruited trusted female and Karandaaz, a development finance
community members to explain the company, to improve the availability
benefits to women and their families. and access to financial services.
This product challenged the social Achieving universal financial access
norms preventing women from using remains a challenge. By going it alone,
mobile phones in Uttar Pradesh, showed traditional banks may not cater to the
men the value of women having a needs of lower income groups or the
SIM of their own, and helped promote residents of remote areas, despite the
digital literacy among women. spread of smartphones. According
to the World Bank, some 1.7 billion
It is my vision that the mobile industry people are still financially excluded,
should do even more to drive digital with 30% of adults lacking access
and financial inclusion for women. I am in South Asia. In Pakistan, financial
a champion of the GSMA Connected exclusion is higher and only 21% of
adults have access to financial services.
The State of Broadband 2018 53Operators can build out infrastructure transactions, executed by a total user
and distribution networks and base of over 14 million (an increase of 8
capabilities (handling high-volume, million users on 2016) and a network of
low-value cash-to-airtime transactions) 75,000 agents across Pakistan. Despite
to provide low-cost access to digital this rapid growth, only 7% of women
financial services. Innovative fintech stated that they utilized financial services
companies are focusing on specific use in Pakistan, compared to an average of
cases that address specific user needs in 64% in South Asia (World Bank, 2018).
various ways – for example, identification Women face a number of barriers with
solutions to open an account. Pakistan regards to access to DFS, including
is leading the way in DFS in South Asia, limited financial autonomy, the lack of
with almost 7% of people having mobile phone shops run by females, and the
bank accounts, compared to 4% in South fear of the ‘negative side’ of the Internet
Asia. In 2017, Jazz processed 300 million that might damage family reputation.
Box Figure: Adults with access to financial services across South Asia
(% over 15+)
Source: World Bank.
The Jazz-Unilever partnership aims to 2017 and trained 32 female m-banking
address the lack of access for women by agents, and ended in June 2018, with
building on Unilever’s network of ‘Guddi training for 500 women per year in the
Baajis’ or female retail entrepreneurs, retail agent network. This project aims
who sell Unilever products in rural to help Pakistan make progress in the
and low-income communities across Commission’s targets 5 and 7 – increased
Pakistan. These women can now act use of DFS and gender equality. By
as mobile money agents and make developing a shared vision between
deposits/withdrawals, so all partners Governments, partners and stakeholders,
benefit: Unilever benefits from increased and building on each other’s strengths
supply chain digitization and access to while respecting each other’s limitations,
credit; women gain access to additional we can work to ensure a sustainable and
revenue streams and new services; and prosperous digital future for everyone.
Jazz increases its footprint in rural areas.
The pilot started in Kasur and Sialkot in Source: VEON.
54 The State of Broadband 2018Endnotes
1
https://www.telegeography.com/products/commsupdate/articles/2018/02/08/ogero-updates-internet-strategy
-targets/?utm_source=CommsUpdate&utm_campaign=e 3766b06cd-CommsUpdate+08+February+2018&utm
_medium=email&utm_term=0_0688983330-e3766b06cd-11619241
2
https://theodi.org/what-is-data-infrastructure
3
“Data-Driven Development”, ICT4 Development Report 2018, World Bank (forthcoming).
4
In Japan, 50% of households already have 100 Mbps and the other remaining 50% at least 30 Mbps, has chosen
not to set additional connectivity goals. Instead, in their broadband strategy, they target the establishment of
commercial 5G by 2020.
5
https://www.telegeography.com/products/commsupdate/articles/2018/04/30/zimbabwe-to-merge-regulators/
?utm_source=CommsUpdate&utm_campaign=5 b088ee7f1-CommsUpdate+30+April+2018&utm_medium=
email&utm_term=0_0688983330-5b088ee7f1-11619241
6
https://internethealthreport.org/2018/the-internet-is-more-affordable-but-not-enough/
7
Graph, “large gaps remain across countries for some Internet usages”; % of Internet users performing selected
online activities” (2016), at: www.oecd.org/sti/oecd-digital-economy-outlook-2017-9789264276284-en.htm
8
“Enabling the Use of ICTs and Broadband: Understanding What Works to Stimulate ICT Adoption”, Working
Group on Demand at: www.broadbandcommission.org/Documents/publications/WorkingGrouponDemand
-2016.pdf
9
UNESCO and UNICEF report “Technologies & the Future of Learning & Education for All”, with support from
other UN agencies.
10
The European Centre for the Development of Vocational Training (Cedefop) in “Skills, Qualifications and Jobs in
the EU: The Making of a Perfect Match?”, Cedefop, Thessaloniki, 2015.
11
Aghion, Philippe & Howitt, Peter, “Growth & Unemployment”, Review of Economic Studies, 1994, vol.61, issue
3, 477-494.
12
www.worldbank.org/en/topic/financialinclusion/publication/digital-financial-inclusion
13
“Financial Inclusion on the Rise, But Gaps Remain, Global Findex Database Shows”, Press Release 2018/130/
DEC, 19 April 2018, www.worldbank.org/en/news/press-release/2018/04/19/financial-inclusion-on-the-rise-but
-gaps-remain-global-findex-database-shows
14
GSMA Industry Report on Mobile Money 2017, available from https://www.gsma.com/mobilefordevelopment/
sotir/
15
ICT Facts and Figures 2017, available at: https://www.itu.int/en/ITU-D/Statistics/Documents/facts/
ICTFactsFigures2017.pdf
16
Report of the Broadband Commission Working Group on Gender, available at: www.broadbandcommission.org/
Documents/publications/WorkingGroupDigitalGenderDivide-report2017.pdf
17
ICT Facts and Figures 2017, https://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2017.pdf
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