commentary issue global in-depth / bridging the digital divide … · 2015-02-24 · 52 ict world...

52 ICT WORLD TODAY Spring 2008

Bridging the Digital Divide for the e-Inclusive SocietyIn an information economy, digital divide deepens disparities or polarization in wealth and widens the existing social difference by worsening social conditions.

Doojin Choi

The IT revolution featuring the wide use of computers and the Internet has facilitated the fast shift from the industrial to information

society. IT functions not only as a core infrastructure in the information society, but also as the key to the survival and growth of nations, companies and indi-viduals. As a result, the capabilities to possess and use IT and related knowledge play a pivotal role in deter-mining survival and the quality of life in this new era.

Arrival of Digital DivideIn the broadest context, the term, 'digital divide,' refers to the inequality between social groups in terms of information or IT access and utilization. Advanced nations in informatization have promoted policies to bridge the digital divide since the mid-1990s. The US government has taken the initiative to alleviate the inequality since July, 1995, when NTIA (National Telecommunications and Information Ad-ministration) under the Department of Commerce released its first report on the digital divide among social classes, titled 'Falling Through the Net: A Sur-vey of the Have-nots in Rural and Urban America. And other developed countries such as the EU, the Republic of Korea, Japan, and Singapore have done their utmost to help the underprivileged gain access to computers and the Internet, the dominant media in the information society, as well as strengthen IT capabilities in the use thereof.

The advancement of information society will help

information utilization, rather than information ac-cess, to play a bigger role in ensuring economic op-portunities and easing social inequality. Against this backdrop, the US and Europe have recently preferred to use 'digital opportunities' or 'e-inclusion', rather than 'the digital divide.' i

In-Depth /

Commentary Issue Global

Different Place, Different Term

How to Call the ‘Digital Divide’

in the US and Europe

Digital Opportunities in the US

Opportunities through which the less privileged

can be equal to other brackets by accumulating IT

knowledge

Source: “From Digital Divide to Digital Opportunity” (Kuttan, A. & L. Peters, (2003)

e-Inclusion in Europe

e-Inclusion refers to:

IT-based alleviation of conventional social inequalities

appropriate policies for information-have-nots the

expansion of social participation

Source: “Directions and Challenges of Digital Divide Bridging Policy for the 2nd Generation

Internet” (Ju-seong Hwang & Ji-yeon Yoo, 2004)

ICT WORLD TODAY Spring 2008 53

Patterns of Digital DivideThe digital revolution facilitated a fast transition from the industrial economy to the IT network-based information economy, causing the resulting digital divide to deepen economic disparities or polarization in wealth. The gap may not only function as a link in the vicious cycle of structurally reproducing existing diverse social inequalities but also widen existing so-cial differences by worsening social conditions.

As Dijk & Hacker (2003) put it, the digital divide, a complex and dynamic phenomenon, is generated and reproduced through very complicated processes including economic, socio-demographic, geographic, and cultural factors. Therefore, the pattern of the digital divide varies by informatization phase.

The initial phase features the gap in information access or differences in IT device possession or in-formation access due to socio-economic disparities. Therefore, the policy objective is to ensure universal access.

The second phase is characterized by the wide dis-tribution of computers or the Internet and disparities in information use. Therefore, the policy should fo-cus on improving capabilities in information use.

The last phase featuring the universal distribution of computers or the Internet is expected to witness differences in information productivity. Productivity and efficiency in the use of IT devices will generate big differences. At this phase, the information poor means not only the socially underprivileged but also those who use information in a non-productive and inefficient manner.

A fully digitized society will put more emphasis on 'utilization' and 'performance' than 'access' and 'pos-session.' Therefore, target classes are also expected to expand from the traditional information poor to all IT users. The gap within the user group between the productive and non-productive use of IT services, the quality of knowledge and information, and the establishment of ethics and mature culture in IT uti-

Vicious Cycle of Digital Divide

Source: Overcoming Digital Divide in Digital Shockwaves & Korea's Choice Seminar, Samsung Economic Research Institute (Lee, Sang-min, Apr. 2000)

Digital Divide by Phase and Pattern

Digitization Phase Initial Take-off Maturity

Divide Type IT Access Divide IT Literacy Divide IT Productivity Divide

Divide Reason Socio-Economic Level Education & Learning Level Utilization Pattern & Recognition

Divide Area Owner & Non-owner User & Non-user Among Users

Policy Objective Universal Access Enhancement in Information Use Enhancement in Information Productivity

Differences in knowledge & information access

Excluded from the survival environment

Inheritance ofeconomic position

Differences in knowledge & technology

DIGITAL SOCIETY

Divide in Education

Divide in Human CapitalGap in Wealth

Digital Divide


Australia The Australian government announced

'Connect Australia,' a comprehensive infor-

matization plan, in 2005. The largest pro-

gram for closing the regional digital divide

in its history was designed to expand mobile

phone utilization and establish a new re-

gional information/communications network

by setting up broadband networks across

the nation.

It also disclosed the '2006 e-Government

Strategy' in order to establish an e-gov-

ernment by 2010. The initiative includes

the following action plans: 1) enhance user

satisfaction by quickly providing convenient

e-government services; 2) innovate na-

tional project implementation procedures

by promptly offering government services;

3) establish an efficient government by ex-

panding e-government services; 4) compre-

hensively improve public services in order

to complete the e-government project by

2010.

lization will become key policy issues for the following phase.

Policy GuidelinesThe pre-condition for bridging the digital divide is to form a universal information access environment in order to equally offer minimum information services to information have-nots, for example, public ac-cess centers at administrative agencies, libraries, and schools.

Another challenge in ensuring physical access is the issue over IT service fees. Universal information access rights should be guaranteed by applying differentiated service fees by income level, such as discount benefits for low-income brackets including the handicapped, farmers, and fishermen.

A more significant issue is disparities in IT capabili-ties and information use among social classes. Con-sidering the level and life cycle of the underprivileged in information, public education institutes including schools should develop a diversity of training pro-grams and offer practical educational services in order to narrow differences in IT capabilities. And, in order to iron out differences in information use, IT services need to be efficiently combined with various areas such as education, employment, economic activities, and welfare. Future policies must put more emphasis on social integration and digital opportunity maximi-zation through IT services than the possession of and access to IT devices.

Footnotes

i The Digital Divide as a Complex and Dynamic Phenomenon, The In-formation Society, Vol.19 (Van Dijk, J. & K. Hacker, 2003)

About the Article

The author of this article is Doojin Choi, the vice president at the Of-fice of International Digital Divide Closure Cooperation of the Korea Agency for Digital Opportunity & Promotion (KADO).

The pre-condition for bridging the digital divide

is to form a universal access environment to

information for offering minimum information

services into information have-nots, for example

public access centers at administrative agencies,

libraries, and schools.

National Policies to Bridge the Digital Divide

Case Studies:


Japan The Japanese government selected 'the

closing of regional digital divide,' 'the

promotion of digital broadcasting,' 'infra-

structure setup support,' 'security rein-

forcement' and 'R&D facilitation' as key

IT projects. The e-Japan initiative helped

high-speed Internet penetration rates soar

but widened the digital divide due to the

rapid expansion of infrastructure. This led

the government to announce the u-Japan

project. The u-Japan scheme, a mid-term

ICT policy vision that will last by 2010,

was designed to enable Japan to emerge

as a real global IT leader. In accordance

therewith, broadband zero villages will dis-

appear by 2008, setting up a nationwide

broadband access network by 2010.

Announcing 'a new IT innovation strat-

egy' in 2006, the government initiated a

5-year program (2006-2010) to create a

voluntary IT society and deal with social

challenges that have yet to be fully re-

solved.

Republic of KoreaThe Korean government set up the 1st

comprehensive plan for closing the digital

divide (2001-2005), pursuant to 'the Act

for Bridging the Digital Divide' legislated in

January, 2001. Based thereon, it devised

an implementation plan by year, helping

the information poor efficiently access

and utilize IT services through the estab-

lishment of high-speed communications

network, the installation of IT facilities, the

dissemination of IT devices, and IT training.

The Korea Agency for Digital Opportunity

and Promotion dedicated to closing the

gap was also set up in order to implement

such projects.

Since the year 2006, relevant Ministries

devised and executed action projects pur-

suant to the 2nd comprehensive plan for

bridging the digital divide (2006-2010).

In particular, the Ministry of Information

and Communication responsible for bridg-

ing the gap formulated a related legal

and institutional framework, continuously

providing IT awareness enhancement

and training services. It has also imple-

mented a diversity of activities including

IT accessibility research, training/aware-

ness improvement, assistive technology

development/dissemination, and used PC

dissemination, as well as participation in

bridging the digital divide and IT dysfunc-

tion counseling/prevention.

'The recommended guidelines for en-

hancing the access of the handicapped

and the aged (etc.) to IT services' enacted

in 2002 deal with key issues in informa-

tion accessibility. Required provisions are

clearly described therein in order to enable

the disabled and the old (etc.) to easily ac-

cess and utilize IT products and services.

UKSince it announced 'Connecting the UK,'

a comprehensive strategy for bridging the

digital divide, in April, 2005, the UK has

made every effort to close the gap between

the information rich and information poor.

In particular, it has raised the efficiency of

e-regional government services by pro-

ductively utilizing ICT through the 'Digital

Challenge' program which was introduced

as part of the aforementioned initiative.

The DDA (Disability Discrimination Act)

was enacted in 1995 to achieve such

goals, with web accessibility obligation

regulations being added in 1999 in order

to help the handicapped have access

to the Internet without difficulties. The

government has also done its utmost to

prevent digital inequality from occurring

before digital conversion scheduled for the

year 2012.

USAThe US Clinton Administration introduced a

full-scale policy to bridge the digital divide

in 2000 in order to enable all US citizens

to enjoy information opportunities. The

government has implemented IT policies to

help people have access to the Internet at

schools, public libraries, and hospitals at

low costs, setting up about 1,000 regional

access centers in low-income and rural ar-

eas. In addition, regional community lead-

er cultivation and IT training services have

been provided in order to ensure a wider

use of IT services, executing an efficient

policy for closing the divide by establishing

a cooperative network with private service

providers.

The subsequent Bush Administration set

'opportunity equality for higher-quality life'

as a fundamental concept of the policy for

bridging the digital divide, especially en-

couraging the handicapped to participate

in informatization. It also announced NFI

(New Freedom Initiative) composing of the

enhancement of the disabled's access to

assistive technology, training opportunity

expansion, individual work capability im-

provement, and social participation facili-

tation.

The US federal government disclosed

a three-year plan for broadband develop-

ment in June, 2004, which was designed

to implement universal ICT services no lat-

er than 2007 by promoting remote medical

services, education, business, job creation,

and economic growth through broadband

technologies. Private programs led by

conglomerates have also been strength-

ened in order to close the CSR (Corporate

Social Responsibility)-related digital divide.

Related Acts are as follows: Assistive Tech-

nology Act (1998), Telecommunications Act

(1996), Rehabilitation Act (Section 508).

About the Article

This article is written by Lee Yun Hee, a senior researcher at the International Digital Divide Closure Cooperation of the Korea Agency for Digital Opportunity & Promo-tion (KADO). Part of the research/analysis papers released by KADO, titled Policy to Bridge Digital Divide in Key Overseas Na-tions and 2005-6 White Paper for Bridging Digital Divide which are specially selected and reorganized for this article.


The digital divide continues to evolve and developing countries (most notably, India and China) are gaining on OECD countries

in terms of fixed line penetration, mobile cellular sub-scriber penetration, Internet usage, and broadband penetration. Least Developed Countries (LDCs) are also catching up with developing countries in terms of mobile phones, Internet usage and broadband.

Mobile telephony holds the greatest potential to bridge the digital divide. The number of mobile cel-lular subscribers around the world is growing rapidly.

Low income countries are making important gains in mobile telephony. By the end of 2008, more than half the world’s population is expected to have access to a mobile phone.

However, the digital divide is evolving from in-equalities in basic access to ICTs and their availability, to differences in the quality of the user experience. The debate over the future of the digital divide is now moving away from “quantity” in basic connectivity and access to ICTs to measures of “quality” and “ca-pacity,” or speed of access.

Get Real,

Become

HopefulThe digital divide is shrinking in most technologies, especially in mobile telephony, but the limitations in

availability and affordability of broadband remain a cause for concern.

In-Depth /

Commentary Issue Global

Digital Divide Anatomy


DiGitAl DiviDe AnAtomy

Broadband Internet

High-income economies account for nearly three-quarters of total broadband subscriptions world-wide.

Broadband service is currently commercially available in 170 economies with Lesotho, the latest country to introduce ADSL in spring, 2007. In terms of broad-band subscribers, high-income economies account for nearly three-quarters of total broadband subscrip-tions worldwide. Lower-middle income economies accounted for 20% (with China alone accounting for 87% of these or some 15% of the global total). Low-income countries accounted for less than 1% of the total global broadband subscribers, with India and Vietnam accounting for virtually all of these.

There is a striking digital divide in terms of the price of access to broadband between different parts of the world. Users in low-income countries pay, on average, some USD 186 per month for every 100 kbit/s of connectivity, which is more than ten times higher than the average price paid in high-income economies, and compares unfavorably with the best

practice prices of below USD 0.10 per 100 kbit/s per month in Japan and the Republic of Korea. In devel-oped countries, growth rates in Internet subscriptions tend to be lower, but many subscribers are exchang-ing their narrowband dial-up connection for a higher speed broadband connection.

Mobile Telephony

Of special interest is the emergence of strategic investors from developing countries like MTN, Vodacom, Orascom and Celtel with operations throughout Africa and the Middle East.

In many countries, mobile telephony is booming, as the result of market and regulatory reforms, alongside operators’ new initiatives and offers. In many coun-tries, the licensing of multiple operators has helped introduce competition and laid the foundations for growth with multiple operators offering competitive packages.

However, the private sector also has a vital role to play, with customer-oriented marketing strategies. Of special interest is the emergence of strategic investors from developing countries (e.g. MTN, Vodacom, Orascom and Celtel) with operations throughout Af-

Source: World Information Society 2007 Report (ITU,2007)

Digital opportunity worldwide


OECDBroadband networks continue to expand across the

OECD area. Digital subscriber line (DSL) networks have

the most extensive broadband coverage in most OECD

countries. DSL coverage is particularly high in Belgium,

the Republic of Korea, Luxembourg, the Netherlands and

the United Kingdom. Twenty-two OECD countries have

at least 90% coverage measured by lines, households or

population.

At 63%, the majority of broadband connections in the

OECD area are still over DSL. However, some leading

OECD countries are moving to upgrade last-mile,

copper-based connections to fibre. Broadband providers

therefore are looking to two other network topologies

to reach consumers of the last mile using fibre-to-the-

node (FTTN) or fibre-to-the-home (FTTH). The Republic of

Korea and Japan have the most subscribers with access

to the Internet via a fibre-based connection.

BRICSBroadband subscriptions have become more common

in the BRICS economies, with an estimated 26million

broadband subscribers in China at the end of 2004,

2.3million in Brazil, 675,000 in Russia, 235,000 in India

and 60,000 in South Africa. By the end of 2005, there

were 73 million Internet subscribers and 37.5million

broadband subscribers in China – approximately 3% of

the population.

Source: OECD Communications Outlook 2007, © OECD 2007, www.oecd.org/sti/telecom/outlook

Broadband in OECD and BRICS in 2004

Region OECD BRICS

Brazil Russia India China South Africa

subscribers 118,599 26,000 235 2,300 675 60 (thousands)

Source: revised on the basis of OECD Communications Outlook 2007 © OECD 2007

rica and the Middle East, enjoying subscriber growth far in excess of their counterparts in more mature markets. Low-income countries have huge potential for mobile telephony, accounting for over a third of the world’s population, but just 8% of the world’s mobile subscribers.

There is strong growth in third-generation (3G) mobile services, particularly in Asia and Europe, where nearly all the top ten largest markets are situ-ated. Mobile broadband (3G) services are now offered in many developing countries throughout central and eastern Asia, Latin America, and the Carib-bean. Wideband Code Division Multiple Access (W-CDMA) networks are operational in 49 countries at the start of 2007, while 24 countries have High Speed Download Packet Access (HSDPA) networks in com-mercial deployment.

Affordability

Low-income countries are less likely to have infrastructure-based competition in their broad-band markets, whereas many high-income coun-tries enjoy competitive markets with alternative products in cable modems and DSL.

ITU also explores the affordability of ICTs in terms of prices for mobile service, Internet access and broad-band for up to 181 economies around the world. The digital divide reflects structural differences in the

Distribution of major ICTs by income group of economies

High-Income

Upper-Middle

Lower-Middle

Lower-Income

Source: World Information Society 2007 Report (ITU,2007)

Growth Ruler (I): Broadband Network

Population Mobile Phones

Fixed Lines Internet Users Fixed Broadband

Total GDP

37.0

38.3

9.0

15.7

8.4

35.2

17.8

38.7

6.7

40.1

10.5

42.7

22.3

11.8

55.7

10.20.7

5.2

74.0

20.0 6.7

79.9

10.1

3.2


economics of the access and wholesale markets. Low-income countries are less likely to have infrastructure-based competition in their broadband markets, whereas many high-income countries enjoy competi-tive markets with alternative products in cable mo-dems and DSL.

In the wholesale market, low-income countries suf-fer from lack of supply, mainly due to barriers in cost. The small size of their Internet markets means that developing countries often cannot negotiate econo-mies of scale in bulk purchases of international band-width. Access to submarine fiber-optic cables may also be limited. In Internet access, developing countries frequently bear the full costs of connection to devel-oped countries, where most content originates. These differences result in the costs of broadband Internet access being far higher in many developing economies than in developed ones.

WHAt'S neXt

The world we live in has been changing rapidly with the emergence of the ubiquitous society bringing forward extraordinary benefits and opportunities to-gether with new challenges. The ability to create and utilize information now plays a significant role in the economic and social structure of our lives. Greater awareness of the importance of information in defin-ing our future has compelled nations across the world to commit themselves to the progressive development of ICT industries. On the other hand, ICT develop-ment has also deepened the problem of serious digital divide between developed and developing countries. Though, there has been a progress in narrowing the digital gap in most ICT areas, especially mobile tele-phony, there still remains a concern for the availability and affordability in some sectors such as broadband services whose prices are relatively high in low-income countries.

Advancement in informatization has also resulted in alarming increase of digital threats to online secu-rity. The sound development of ICT services is con-tinuously threatened by both new criminal offences in relation to computers (such as spam, viruses and hacking) and existing crimes committed using digital or computer technology (such as online fraud, harass-

ment, etc.) In this regard, WSIS is dedicated to build-ing confidence and security in the use of ICTs today and the future.

About the Article

This article is based on 2007 World Information Society Report: Beyond WSIS published by the International Telecommunication Union (ITU) and the United Nations Conference on Trade and Develop-ment (UNCTAD) in 2007. ITU tracks progress in the implementa-tion of the outcomes of the World Summit on the Information Soci-ety (WSIS). Reproduced with the kind permission of ITU.

Growth Ruler (II): Mobile Network

Source: revised on the basis of OECD Communications Outlook 2007 © OECD 2007

OECDThe number of mobile subscribers in the OECD area

continues to climb, albeit more slowly than earlier in the

decade. They grew by 41% between 1999 and 2000, but

the growth rate fell to 10% between 2004 and 2005. In

2005, over three-quarters of the OECD-area population

had a mobile phone. The absolute number of mobile

subscribers in the OECD area reached nearly 933 million

in 2005, or nearly 80 subscribers per 100 inhabitants.

Some have feared that the market for mobile telephony

would reach saturation in many OECD countries.

However, markets continue to expand, partly because the

age at which users get their first mobile phones continues

to decline.

BRICSAll the BRICS economies have seen mobile subscriber

numbers increase by more than 50% a year over the last

decade, with growth rates in Russia and India of 100% a

year or more. By the end of 2005 there were 393 million

mobile subscribers in China, 126 million in Russia, 86

million in Brazil, 76 million in India and 33 million in South

Africa. Penetration levels ranged from just seven mobile

subscribers per 100 inhabitants in India to 88 per 100 in

Russia and 72 per 100 in South Africa. This compares

with an average 80 mobile subscribers per 100 inhabitants

in OECD countries.

Source: OECD Communications Outlook 2007, © OECD 2007, www.oecd.org/st/telecom/outlook

Mobile Telephoy in OECD and BRICS in 2005

Region OECD BRICS

Brazil Russia India China South Africa

subscribers 933 86.2 126.3 75.9 393.4 33.0(thousands)

penetration rate 80 N/A 87.6 7 30 71.7(%)

More to Read Track down the Digital Divide

About the IndexThe Digital Opportunity Index (DOI) has been designed as a tool track-ing down progress in bridging the digital divide and adopted by the World Summit on the Information Society (WSIS). It provides a powerful policy tool for exploring the global and regional trends in infrastructure, opportunity and usage that are shap-ing the information society. The DOI covers from mobile telephony, broad-band, internet through fixed-lines.

Top Gainers in the DOIThe following table lists top ten gainers in terms of increases in ranks. Economies with lower ranks tend to exhibit more mobility in the index (both up and down). Analysis of changes in DOI scores over time shows that economies are gaining in strength in different areas. Five of the top ten gainers come from Africa. Morocco has the greatest overall

gain due to its remarkable improve-ments in utilization. Senegal has also made strong inroads in broadband access, with 89% of all Internet subscribers to broadband in 2005 as well as widespread Internet access through multimedia telecentres. The other African economies in the top ten (Ghana, Gabon and Cote d’Ivoire) have witnessed increased mobile coverage and greater access to tele-communications at reduced prices.

Other major gainers in the DOI include the Russian Federation and Romania, which have made strong gains in utilization, mainly through growth in Internet usage and broad-band access. Only the Russian Fed-eration and Antigua & Barbuda have succeeded in boosting infrastructure by an increase of more than 15 per-centage points over the three-year period (2004-2006), suggesting that improved infrastructure is a longer-term goal for most economies. Over-

all, however, the table suggests that improvements in the DOI are not lim-ited to any particular region-varied countries with different profiles in the development of their Information Society have enjoyed gains in digital opportunity.

Growth FactorIn many countries, growth in digital opportunity is being driven by reduc-tions in price of telecommunication services. ITU has measured the price of different telecommunica-tion services since 2002 notably for mobile, Internet and broadband ser-vices. Prices for mobile, Internet and broadband services have fallen since 2003, due to growing liberalization and more competitive markets.

Source:World Information Society Report 2007 (ITU, 2007). Reproduced with the kind permission of ITU.

top Gainers in the Digital opportunity index

Top Ten Gainers in the Digital Opportunity Index, 2004-2006

Economy DOI 2004 DOI 2006 Rank 2004 Rank 2006 ∆Ranks Drivers

1 Morocco 0.33 0.47 104 68 +36 U

2 Russian Federation 0.38 0.52 78 51 +27 I,U

3 Senegal 0.22 0.37 128 106 +22 O,U

4 Ghana 0.10 0.21 161 142 +19 O

5 Antigua & Barbuda 0.44 0.57 58 40 +18 I,U

6 Gabon 0.26 0.37 121 103 +18 O

7 Belize 0.34 0.42 100 84 +16 U

8 Bhutan 0.12 0.22 155 140 +15 O

9 Cote d'Ivoire 0.12 0.20 158 145 +13 O

10 Romania 0.42 0.52 63 50 +13 U

Average(top10) 0.27 0.39 113 93 +20

Average(world) 0.35 0.4

Note: O=Opportunity, I=Infrastructure, U=Utilization sub-index. A driver is defined as a sub-index where there is an improvement of score of 0.15 or more over the period 2001-2006.Source:ITU/UNCTAD/KADO Digital Opportunity Platform. Reproduced with the kind permission of ITU.

ICT WORLD TODAY Spring 2008 6�

commentary issue global in-depth / bridging the digital divide … · 2015-02-24 · 52 ict world...

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