It’s not unusual for someone today to wear a smartwatch and use an iPhone, intuitively switching between email, photos, social media, and streaming apps. Today’s devices are certainly a far cry from the 1 kg-plus block of plastic and circuitry that was the first mobile phone 50 years ago. But the invention of the Motorola DynaTAC 800x, the first mobile phone, was the tipping point in the evolution of communications, kicking off decades of innovation. Wireless technologies such as GSM, LTE, WiMAX, Wireless LAN, and Bluetooth have revolutionized the way we communicate and exchange data through services that are available anytime, but, as it turns out, not anywhere.
Anytime, But Not Everywhere
As the world begins to enjoy the benefits of wireless cellular technology, the industry is developing strategies for the next generation of mobile communications. A new G technology has been deployed roughly every decade, but with each generation of wireless technology, upgrades become more complex and innovation more challenging. Looking into the future, 6G represents an even greater opportunity to expand wireless solutions into nearly every aspect of human-machine interaction. According to the information released by the companies spearheading innovation in the industry, we expect the deployment of the new standard to begin around 2030.
At the same time, broadband usage has been growing, with the estimated number of individuals using the Internet reaching 5.16 billion in January 2023, according to Datareportal. While the figures look impressive, a simple calculation shows that 2.8 billion people—or 35.6% of individuals worldwide—had never used the Internet due to lack of access. The figures also indicate that the number of global Internet users has been steadily increasing over the past decade and is now more than two times higher compared to the 2.53 billion reported in 2013.
While the industry continues to invest in innovative solutions and partnerships to extend connectivity to remote communities, the adoption of mobile Internet services has not kept pace with the expansion of network coverage. At first glance, the digital divide is the difference between those with Internet access and those without. But studies suggest that the digital divide is not binary. Its causes are multiple and vary by region, but generally relate to lack of accessibility, relevance, knowledge, and skills. These gaps in availability, accessibility, interest, and digital literacy exist at every level, from international down to neighborhood.
There are countries that, while having mainly high connectivity rates, show strong inequalities in rural, remote, and even urban areas. These gaps often fall alongside other disparities, such as income and social inequality.
Big Gaps Among Regions
Connectivity is deeply uneven globally, according to ITU’s State of the World’s Digital Connectivity 2022 report. In 2021, an estimated 2.9 billion people were still offline. The majority of the global offline population, 1.7 billion people, lives in Asia-Pacific and was concentrated in China and India, followed by Africa with 738 million people offline. The combined offline population in the other four regions was 470 million people.
“Europe, the Commonwealth of Independent States (CIS), and the Americas are close to achieving 95 percent usage. The Arab States and Asia-Pacific are also on a clear path to universal usage. Africa, however, has only 33 percent of the population online. In the least developed countries (LDCs), only 27 percent of the population use the Internet and in landlocked developing countries (LLDCs) the share is 35 percent”, according to the report.
Governments Are Preparing Measures
A 10% increase in broadband penetration in 2016 in the US would have resulted in more than 806,000 additional jobs in 2019 or an average annual increase of 269,000 jobs, Deloitte’s April 2021 study “Broadband for All: Charting a Path to Economic Growth” shows, finding a strong correlation between broadband availability and jobs and GDP growth. Therefore, it’s no coincidence that the Biden Administration wants everyone in the US to have access to high-speed Internet by 2029, having announced a $45 billion budget for the Internet for All Initiative (IFA) a year ago. IFA was developed with the help of 20 broadband providers to improve subsidized high-speed Internet plans made available to low-income Americans through the Affordable Connectivity Program. Several programs are designed to build high-speed broadband infrastructure, teach digital skills, and provide the technology needed to ensure that everyone in the US can fully participate in society.
Since 2010, the European Union has been setting broadband access targets as part of the Europe 2020 strategy. In addition to a range of policy and regulatory measures established by the EU, Member States have had around €15 billion available between 2014 and 2020, including €5.6 billion in loans from the European Investment Bank (EIB).
However, various factors related to funding, competition, and legal affairs have limited the Member States’ progress toward broadband targets. At the end of last year, the European Commission adopted a revised Communication on state aid for broadband networks (“Broadband Guidelines”). The revised Broadband Guidelines set out new rules that contribute to the EU’s strategic goals of ensuring 5G connectivity and coverage by the end of the decade, which is essential for achieving the Union’s digital switchover.
Conclusion
As we all know, a country’s development level, proxied by its gross national income per capita, strongly correlates with Internet penetration. With broadband connections allowing greater access to formal education and the expansion of the types of jobs available in any region, the positive effects on human capital are obvious and can help sustain stronger economic growth in the future.
