ICT Connectivity for Trade & Development

Vanessa GRAY Head of LDCs, SIDS &

Emergency Telecommunications Division Telecommunication Development Bureau

International Telecommunication Union (ITU)

WTO Symposium on the 20th Anniversary of the

Information Technology Agreement

Committed to Connecting the World

Note: * ITU estimates. Source: ITU .

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.

Inequalities in ICT access and use

Mobile as the key driver of access

Source: ITU.

28% not covered

72% covered

3G

48 % covered

52% not covered

LTE or higher 5% not covered

95% covered

2G

Population covered by mobile networks, world, 2015

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

Paradox of connectivity versus use

• More than 50% of the population in LDCs is covered by a mobile-broadband signal, but:

• Only 15% use the Internet

Source: ITU.

Mobile network coverage and evolving technologies in LDCs

LTE or higher

79.1 65.0 66.6

41.6 41.9

25.1

81.0

47.1 40.1

15.2

%

Internet users per 100 inhabitants, 2016 >50%

coverage

Falling prices, more affordable mobile services

• 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

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Mobile-broadband prices as a percentage of GNI per capita, 2013-15 , 500 MB prepaid handset-based

Source: ITU.

Cost of equipment is too high Top barriers to household Internet access at home

Source: ITU and Eurostat. 2013-2015 data

Barriers to Internet access at home

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Cost of service is too high Do not need the InternetLack of confidence, knowledge or skills to use the Internet Cost of the equipment is too highInternet service is not available in the area Have access to the Internet elsewhere

Source: ITU and Eurostat. 2013-2015 data

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

Taxes on digital goods & services

Make ICT services and goods more

affordable & expand demand

ICTs increase efficiency of production

processes, facilitate the circulation of

goods, create new businesses

Positive spill-over contribution on GDP

growth

Increase the level of capital investment

for the development of infrastructure

Governments need to consider the trade-offs between revenue generation and potential of longer terms revenues, benefits and opportunities.

Limited taxes

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