PRESS RELEASE: On November 27, 2023, the International Telecommunication Union (ITU) released a report assessing the ICT development in different regions around the world. The report says that approximately 67% of the world’s population, or 5.36 billion people, is now online, with some 280 million new Internet users in 2023. This means the world is a step closer to the United Nations’ goal of connecting 75% of the global population by 2025. Despite this success, 33% of the global population (or an estimated 2.6 billion people) is still in need of digital connectivity.
1. The ITU Report Reveals Two Digital Divides
- Digital divide — regional disparities: The report says that the number of unconnected people around the globe remains 33% (an estimated 2.6 billion people), primarily in the less developed countries (LDCs). In developed regions such as Europe, the Commonwealth of Independent States (CIS), North America, and the Asia-Pacific, around 90% of the population has access to the Internet, which is approaching universal service. Compare this to Africa, where just 37% of the population has access, there is still a considerably large majority of the population that is out of connectivity.
Internet use remains tightly linked to income levels. Despite broadband subscriptions and smartphones becoming cheaper in recent years, people in low-income countries are unable to afford them. In low-income countries, the typical price of an entry-level mobile broadband subscription is equivalent to 9% of the average income, a share twenty times higher than in high-income countries. The USD50 price of an entry-level smartphone is what most people earn in a month in low-income countries.
- Digital divide — urban-rural disparities: In 2023, 81% of urban dwellers use the Internet, compared with only 50% of the population in rural areas. The urban-rural gap has barely improved in recent years, underscoring the challenges to Internet access for people living in rural areas. The gap between urban and rural areas varies significantly across income groups, and the gap has almost been bridged in high-income countries. In contrast, in low-income countries, only 17% living in rural areas use the Internet, whereas this ratio reaches 47% for urban dwellers. Internet use is still impossible for people living in rural areas of low-income countries.
2. The ITU Report Reiterates the Urgency to Increase 4G Coverage in Low-income Countries
Since the commercial deployment of 5G began in 2019, 5G coverage has reached 40% of the world population in 2023. Distribution, however, remains very uneven. While 89% of the population in high-income countries is covered by a 5G network, coverage remains limited in low-income countries. Whereas 95% of the population in high-income and middle-income countries is covered by 4G or above, this proportion drops to 39% in low-income countries.
While accessing the Internet in high-income countries is incredibly easy, people in low-income countries often have to go to the rooftop, climb to the mountain top, or tread miles to get Internet access. For most LDCs, wireless network is the only choice. To provide universal access to the Internet, it is urgent to increase 4G coverage in low-income countries.
3. To Achieve the UN Goal of Connecting 75% of the World Population by 2025, Governments, Operators, and Industries Need to Ramp Up Cooperation
- International communities and national governments are actively engaged. International organizations are keen on achieving the goal of universal connectivity, and a good many of governments have defined it top priority to provide universal digital connectivity. In order to keep up with this goal, governments need to set tangible targets each year and work with operators by providing funds (USFs, government budgets, or international aids), spectrum/site resources, and switching off 2G/3G networks in order to improve 4G/5G network coverage. 4G/5G use can be increased for low-income populations through incentives such as lower taxes, mobile phone subsidies, and traffic subsidies. (*In 2023, the Bangladesh government invested BDT280 million, approximately USD35 million, to expand operator T’s 4G network coverage. This investment will be used to build 10,000 new 4G sites and upgrade the capacity of incumbent sites.)
- Equipment vendors provide innovative and inclusive network coverage solutions. Operators and equipment vendors are cautious when building rural networks due to low return on investment (ROI). Operators need low-cost solutions that can quickly provide universal connectivity in urban, rural, and remote areas. (*Huawei’s innovative Rural series provides low-carbon, simplified, and future-proof coverage solutions. RuralLink has won the GSMA GLOMO Award 2023 “Best Mobile Innovation for Emerging Markets”, in recognition of its competitiveness in providing scenario-specific coverage in remote areas. The solutions have been adopted in more than 80 countries and regions, such as Oman in the Middle East, Nigeria, Zambia, Cote d’Ivoire, and Kenya in Africa, and Brazil, Chile, and Colombia in Latin America, helping local operators bring greater wireless coverage to rural areas.)
- Strengthen device industry innovation to provide low-cost devices. Device manufacturers are working to optimize mobile phone costs (e.g., cheaper 5G mobile phones using RedCap innovation). Governments and operators in low-income countries work with device manufacturers to speed up the adoption of entry-level smartphones. Operators use their owner shops to sell low-cost smartphones to increase affordability. And financial instruments (such as installment payment) are used to lower the threshold of first-time smartphone buyers. (*In 2023, GSMA established the Affordable Handset Promotion workgroup, set to bring down the prices of smart devices and improve the affordability of mobile phones for Internet access. Mobile phone manufacturers can reduce costs, apply for tax privileges, work with operators, or use financial instruments to achieve this goal.)