ICT Connectivity for Trade & Development
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1 Committed to Connecting the World WTO Symposium on the 20 th Anniversary of the Information Technology Agreement ICT Connectivity for Trade & Development Vanessa GRAY Head of LDCs, SIDS & Emergency Telecommunications Division Telecommunication Development Bureau International Telecommunication Union (ITU)
2 A decade of strong growth in ICTs Growth in ICT infrastructure, connectivity, access & use deliver development opportunities ICTs are key building blocks of the digital economy and facilitate trade and drive e- commerce Digital connectivity now intertwines with physical connectivity. Digital networks have rapidly become integral to global trade, and offer opportunities for growth as a market place. Note: * ITU estimates. Source: ITU.
3 Note: ITU estimates. Source: ITU. Inequalities in ICT access and use
4 Mobile as the key driver of access Population covered by mobile networks, world, G 5% not covered 3G LTE or higher 28% not covered 48 % covered 52% not covered 95% covered 72% covered Source: ITU.
5 Infrastructure remains a barrier Fixed infrastructure remains limited, including national backbone and international connectivity Mobile vs fixed Infrastructure impacts quality of service and speed International Internet bandwidth in kbit/s per inhabitant, 2015
6 Paradox of connectivity versus use More than 50% of the population in LDCs is covered by a mobilebroadband signal, but: Only 15% use the Internet Internet users per 100 inhabitants, 2016 Mobile network coverage and evolving technologies in LDCs >50% coverage % LTE or higher Source: ITU.
7 Falling prices, more affordable mobile Average handset based mobile-broadband prices have dropped from USD 26 in 2013 to USD 9 in 2015 Number of services and pricing models are increasing, also to adapt to the needs of developing countries The price of the device, in particular smartphones, remains high services Mobile-broadband prices as a percentage of GNI per capita, , 500 MB prepaid handset-based As a % of GNI p.c LDCs Developed World Developing Source: ITU.
8 Cost of equipment is too high Top barriers to household Internet access at home Source: ITU and Eurostat data
9 Barriers to Internet access at home Households without Internet access, by type of reason (%) Austria Belgium Bulgaria Croatia Czech Republic Estonia Finland France Germany Greece Hungary Ireland Latvia Lithuania Netherlands Poland Portugal Romania Russian Federation Slovakia Slovenia Spain Sweden Switzerland United Kingdom Bahrain Brazil Colombia Cyprus Egypt Hong Kong, China Iran (I.R.) Korea (Rep.) Macao, China Mauritius Mexico Morocco Oman Palestine Panama Qatar Singapore South Africa Turkey United Arab Emirates Cost of service is too high Lack of confidence, knowledge or skills to use the Internet Internet service is not available in the area Do not need the Internet Cost of the equipment is too high Have access to the Internet elsewhere Source: ITU and Eurostat data
10 Some regulatory tools Develop National ICT/Broadband Plans, set targets and track and monitor implementation Liberalization, privatization and inter and intra platform competition Creating an enabling environment, removing entry barriers, allow foreign ownership and investment PPP, universal service funds & obligations Tax incentives
11 Taxes on digital goods & services Governments need to consider the trade-offs between revenue generation and potential of longer terms revenues, benefits and opportunities. Limited taxes Increase the level of capital investment for the development of infrastructure Make ICT services and goods more affordable & expand demand Positive spill-over contribution on GDP growth ICTs increase efficiency of production processes, facilitate the circulation of goods, create new businesses
12 Highlights Growth in ICT infrastructure, connectivity, access and use promise great development opportunities ICTs are key building blocks of the digital economy, to facilitate trade and drive e-commerce Internet divide remains a key barrier to the global information society, particularly for LDCs Governments have an important role to play in creating an enabling environment, to make ICTs affordable, and to address key barriers, including through positive tax policies
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