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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
54 ICT WORLD TODAY Spring 2008
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:
ICT WORLD TODAY Spring 2008 55
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.
56 ICT WORLD TODAY Spring 2008
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
ICT WORLD TODAY Spring 2008 57
58 ICT WORLD TODAY Spring 2008
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
ICT WORLD TODAY Spring 2008 59
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
60 ICT WORLD TODAY Spring 2008
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�