In collaboration with Boston Consulting Group

Accelerating Digital Inclusion in the New Normal

PLAYBOOK JULY 2020 Cover: Getty Images/Dobrila Vignjevic

Inside: Getty Images/Subman; Reuters/Amit Dave; Reuters/Danish Siddiqui; Unsplash/Dan Burton; Reuters/Alessandro Bianchi; Reuters/Jason Redmond Contents

3 Executive summary

4 1 Role of connectivity in the time of COVID-19

5 2 Critical gaps in the

7 3 A growing digital divide in the ‘new normal’

8 4 The future of digital inclusion

8 4.1 Growth

13 4.2 Financing

18 4.3

21 Conclusion

22 Acknowledgements

23 Endnotes

© 2020 . All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.

Accelerating Digital Inclusion in the New Normal 2 Executive summary

The COVID-19 crisis has thrown into sharp focus particular, small and medium-sized enterprises the importance of digital connectivity in daily life. As (SMEs) lag behind large corporations, rendering many countries underwent lockdown periods, digital them more vulnerable to closures and job losses in infrastructure was critical to mitigate the impact of an environment where digital is increasingly key. stay-at-home restrictions. Connectivity players have contributed by taking short-term actions to ensure The post-COVID-19 “new normal” will likely see an continued access during the crisis. More importantly, increase in speeds, devices and budgets required their long-term investment in infrastructure over by households and businesses, exacerbating the past 20 years has driven a step change in the existing divides. As such, connectivity must level of fixed and mobile coverage and technology. become the top priority and stakeholders must aim This has enabled the continuation of key activities for United Nations targets: by 2025, broadband digitally, such as remote working, healthcare and internet1 user penetration should reach 75% , and underpinned the growth of sectors worldwide, and by 2025, broadband should such as e-commerce while supporting adjacent cost no more than 2% of earnings. It will also be industry players at a critical time. important to implement the UN Secretary-General’s Roadmap for Digital Cooperation. To achieve At the same time, the crisis has also exposed even this, stakeholders should aim to drive adoption of more clearly the gaps that still exist in digital access. high-speed beyond coverage targets and When essential services such as health, education take a “tech agnostic” approach, where traditional or simply being able to continue one’s professional business cases are insufficient – this incorporates activity depend on connectivity, the inequalities terrestrial and non-terrestrial infrastructure became exacerbated. There remains a divide in options for providing access to high-quality fixed access to high-speed fixed and mobile connectivity. broadband, wireless and satellite networks. Even among fixed broadband subscribers, many do not get sufficient speeds for effective remote At this watershed moment, telcos and industry work, telemedicine or study, including in developed verticals, multinational corporations, governmental countries. Beyond coverage, there is a bigger divide and non-governmental organizations must mobilize in adoption where those with coverage may not to develop strategies to accelerate digital inclusion. use the internet due to lack of affordability, digital This playbook builds on past efforts by the World skills or relevant content in the local language. Economic Forum and other groups (e.g. GSMA, Furthermore, these issues extend to businesses Broadband Commission) and highlights further key that faced similar challenges during the crisis. In recommendations across three pillars:

Growth Financing Technology

How can the public and private sectors How can the public and private sectors best What combination of existing and emerging stimulate growth in the industry to accelerate finance the infrastructure and digitization can efficiently and sustainably digital development in unserved and required to enable high-speed internet in deliver affordable connectivity? underserved regions? unserved and underserved regions? – Continue optimizing for the right mix of – Accelerate current efforts, particularly on – Accelerate relevant partnerships and technologies across fixed, wireless and new increasing adoption through improved regulatory actions identified non-terrestrial technologies across contexts affordability and digital skills – Involve more non-telco actors in infra-sharing – Accelerate the digitization of existing – Set up horizontal national digital strategies discussions operations through smart planning, and disburse unused funds via efficient automation, new architectures and ways of mechanisms – Creatively and assertively seek access to outside working, to improve the cost base and viability funding available for digitization and connectivity; of investments in underserved areas – Collaborate across sectors and governments explore ways to earmark recent recovery funding to facilitate the digitization of SMEs through end-to-end “digital SME in a box” solutions, – Collaborate with government to address as a key revenue growth driver bureaucratic hurdles of to speed up roll-out

Accelerating Digital Inclusion in the New Normal 3 1 Role of connectivity in the time of COVID-19

The COVID-19 pandemic has highlighted a newfound sense of urgency to the digital inclusion agenda. While the crisis has enabled hundreds of millions to work, learn and connect digitally, it is easy to see how it has also exacerbated the situation for far too many people in vulnerable situations around the world. Now, more than ever, connectivity should be at the core of all national and international priorities – from healthcare, education, government services and beyond. This new normal presents an unprecedented opportunity for cross-sector collaboration to bridge the digital divide and enable unforeseen growth opportunities for the economy and . Mauricio Ramos, Chief Executive Officer, Millicom, USA; Chair, Digital Communications Industry Community, World Economic Forum

The ongoing COVID-19 crisis has generated a mobile coverage has risen from 12% to 97% of the fundamental change in the context connectivity world’s population, with more than 85% enjoying and tech players operate in, as are 4G technology.3 increasingly recognizing the critical importance of digital infrastructure and services. By end of This solid digital infrastructure has enabled the April 2020, 70% of countries globally were faced continuation of key activities, allowing an estimated with some level of stay-at-home requirements, a 10% of the global labour force to work remotely, majority of which were strict lockdowns. During supporting close to 300 million jobs. This translates this period, internet use grew by as much as to an annual impact of $8 trillion, or twice the size 70%, the use of remote desktop by 40% and of the Germany’s economy. A similar number of the use of virtual collaboration tools by more -aged kids and university/ than 600%.2 Connectivity and tech players have students – ~100 million and ~200 million, played a key role in supporting this crisis with respectively, have also been able to maintain short-term response actions, as detailed in the access to education remotely. While this represents Digital Development Joint Action Plan and Call for 15-30% of the global student population, it is Action published in April 2020 by the World Bank, weighted towards developed economies.4 International Telecommunication Union (ITU), GSMA and World Economic Forum. Connectivity also had a significant impact on managing health-related issues during the crisis; However, beyond the instrumental role held by technology was used for pandemic planning, the industry in the short term, the most important surveillance, testing, contact tracing, quarantine enabler allowing the world to operate during and remote healthcare. Telemedicine consultations these lockdowns has been the substantial grew more in one month than in 10 years,5 which infrastructure roll-out and investments made by the played a key role in keeping lines down at hospitals industry since the internet boom. Operators and and maintaining patients in good health. While infrastructure providers have invested trillions of some sectors have been badly hit (e.g. travel and dollars over the past 20 years to create the digital hospitality), others have been able to grow during infrastructure coverage and capacity required to the lockdowns, directly enabled by connectivity, sustain lifestyles during COVID-19. From almost such as e-commerce, food delivery and online nothing two decades ago, today close to 45% groceries, with positive spillover effects to adjacent of global households have a fixed broadband industry players, all of which would have been subscription, of which close to half enjoy fibre impossible 20 years ago. connections and speeds. In the same timeframe,

Accelerating Digital Inclusion in the New Normal 4 2 Critical gaps in the digital divide

Despite support from the industry, the current to the recent crisis, as a result of increased crisis has also highlighted gaps in access and network traffic, hitting lows of 5Mbps in upstate exacerbated the existing digital divide, both in New York for example, preventing some developing and developed markets: communities, mostly rural, from accessing the internet at all.6 – Fixed network coverage, penetration and speeds are still lacking in many middle- and – Mobile connectivity coverage and capacity low-income countries. Indeed, less than 10% improvements are needed within the high- of households in low-income countries are fixed speed internet discussion, especially as 4G broadband subscribers, compared to 70% can bring speeds comparable to broadband in and close to 90% in middle- and high-income selected markets. Despite a 40% increase in countries, respectively. More importantly, the number of people connected to the internet over half of these low-income broadband (~1 billion) in the past five years, over 30% of subscribers have access to speeds <10Mbps. lower-income country populations are not yet Even in higher-income economies, such as covered by 4G and those who are benefit from the US or European markets, 10% of the relatively poorer speeds than their higher- broadband subscribers still get speeds below income counterparts. That said, an estimated 10Mbps and close to 30% below 30Mbps. additional 25% of the global population, beyond Speeds above these levels would enable a those enjoying high-speed fixed connections, more enhanced usage of connectivity, better can access internet speeds above 30Mbps simultaneous virtual communication (VC) for thanks to 4G connectivity today. A combination work and school, and an overall improved user of access technologies, including satellites, will experience. These speeds were impacted due be explored under technology.

– Beyond availability of infrastructure, a wide cost of a basic ($150) represents affordability gap continues to exist, driving more than 1.2 months’ wages in these low- a usage gap between penetration and income countries, and at least 3-4 times that coverage. In low-income countries, a monthly for laptops, which is becoming one of the broadband subscription costs 12% of gross largest barriers to internet adoption, even national income (GNI), far higher than the UN where coverage exists. Indeed, smartphone target of less than 2% by 2025. Similarly, the ownership drops to 30-60% in low-income

Accelerating Digital Inclusion in the New Normal 5 countries and only 21% for personal computer they lag far behind larger companies in terms of (PC) ownership. The ownership of PCs also ICT adoption and maturity. Less than half have remains too low in middle- and higher-income fixed broadband connectivity and overall less than economies at 57% and 85%, respectively, a quarter are digitized (offering some service online) driving significant limitations especially in compared to almost 100% for larger companies.10 terms of remote education during the recent Therefore, at most, 10-20% of SME employees lockdowns.7 have been able to work remotely during lockdowns versus over 50% for large companies, even in high- – Digital literacy is an additional barrier to income markets such as Japan.11 adoption by certain communities, both in developed and developing markets. In lower- This obviously exacerbated the already significant income economies, only 32% of the population impact of the COVID crisis on SMEs. They have has basic digital skills (i.e. defined as the ability been particularly vulnerable and at risk of suffering to copy or move a file or send e mails). Even more job losses and closures compared to in higher-income economies, this number larger companies; for example, 2.5 times more plateaus around 62% and drops rapidly to 44% redundancies/employee vs larger companies in if standard skills (i.e. defined as the ability to France.12 This gap is expected to widen as early use basic formula in a spreadsheet or create evidence shows resumption rate post-lockdowns electronic presentations) are considered, is slower for SMEs compared to larger companies, which also creates high barriers to adopting and a vast majority of support actions announced the required digital services to enable a globally disproportionately focus on large remote lifestyle.8 Digital literacy is also closely companies. They must not be excluded from the intertwined with the availability of relevant use digital inclusion discussion. cases, localized content, products and services attractive for user consumption, or lack thereof Despite billions of dollars of investments, massive in some markets. connectivity progress globally and strong continued efforts across the industry, these gaps have been These gaps do not stop at individuals and exacerbated in the recent crisis and are likely to households. Businesses, specifically SMEs, have persist and even worsen once the world reaches been lagging behind and are particularly exposed a “new normal” with pervasive digitization across in this crisis, despite the critical role they play in all aspects of life. Individuals and businesses global economies. SMEs represent more than will become accustomed, and will be expected, 90% of businesses worldwide and half of global to conduct key activities online, thus shifting employment, and even more in emerging markets consumer habits to more virtual lifestyles and where they drive more than half of GDP.9 However, increasing reliance on technology and connectivity.

Accelerating Digital Inclusion in the New Normal 6 3 A growing digital divide in the ‘new normal’

Reasonable Post-COVID-19, the “new normal” will likely see – Lower-income economies, especially speeds needed in an acceleration of digital activities across various households in rural areas, might make the new normal: aspects of daily life. While not all jobs can be a number of concessions on VC quality done remotely, and some level of in-person work and simultaneous access to applications. is likely to resume, there is likely to be increasing Household members might share 1-2 PCs, use of advanced virtual conferencing in day-to- but would likely need to own at least one day meetings, workshops, upskilling trainings, smartphone each and would still need reliable high-income or even team building for colleagues in different broadband speeds of at least 30Mbps to = locations. Similarly, are likely to continue conduct those activities online smoothly in the leveraging some level of online education in new normal. 100 the future, from sharing pre-recorded lectures, launching homework collaboration platforms, or In this new normal, total connectivity requirements Mbps allowing students to study from home once a (for devices and services combined) could easily week. There will be increased reliance on telehealth exceed $4,000 per household annually in high- and smart device tracking of health data as well as income economies, about $3,000 annually an accelerated shift toward digital services such in middle-income countries and, even with as e-commerce, e-banking and e-citizenship. concessions made on categories of devices Furthermore, consumers may increasingly pivot purchased, approach $1,000 annually in low- towards digital social and entertainment activities income countries. This exceeds any affordability middle-income such as on-demand streaming and gaming. These thresholds set for these families.14 Similarly, = shifts will generate increasing requirements across businesses including SMEs will require significant all types of economies and geographies:13 upgrades in digital infrastructure, services, budgets 50 and skills to adapt to the new normal. – High-income economies, especially urban Mbps centres, are likely to increase reliance on It is quite likely that until a vaccine is developed, simultaneous use of multiple devices and tested and widely administered, various parts of the Internet of Things (IoT), with ubiquitous the world will have subsequent waves of social use of VC for communication, high-definition distancing measures and lockdowns, impacting (HD) technologies or more, and integration of where people can work and recreate. Therefore, augmented reality (AR) in most applications. For it is important to maintain a playbook with key an optimal experience, they would need at least lessons for the industry. The Digital Development low-income = two devices per member (typically smartphone Joint Action Plan and Call for Action covers many and PC), often with additional smart devices potential short-term actions comprehensively, and (e.g. watches, tablets or home appliances). This both governments and industry players would be 30 will likely necessitate reliable fixed broadband well advised to start creating their own longer-term Mbps speeds approaching 100Mbps to manage daily contingency plans based on these emergency traffic in the long run. actions.

– Middle-income economies and even selected urban areas of lower-income economies will equally need to step up to close the digital gap. They would also likely require access to two devices for each household member, including both a smartphone and a PC to enable efficient remote working and education, and therefore reliable delivery of minimum broadband speeds of above 50Mbps.

Accelerating Digital Inclusion in the New Normal 7 4 The future of digital inclusion

In recent years, a lot of initiatives, including the United Nations to reach 75% broadband those from the Broadband Commission and internet penetration by 2025 and have it cost World Economic Forum, have been identified to no more than 2% of earnings. High-speed address the different barriers and gaps – from internet should be tech agnostic and standards access to affordability, literacy and financing should be set at use case levels rather than models of infrastructure. As a result of these specific technology roll-out levels. This imperative efforts, technological advances and the massive also goes beyond coverage targets to reflect investments made by the industry, the situation has the additional adoption challenge, as it has been already improved substantially compared to five established that a high-usage gap exists, driven by years ago, with increased smartphone penetration other limitations such as affordability or skills. and average broadband speeds across the world. While this playbook provides a high-level framing However, it is easy to see how the new normal of the breadth of priority actions to pursue, a and the higher requirements outlined above will number of them are not necessarily new and may widen the digital divide further, especially in terms already be covered through other efforts, which of the criticality of its impact (e.g. kids not being will be referred to in the spirit of collaboration. This educated, adults losing their livelihoods, businesses playbook will, however, attempt to highlight further shutting down). Connectivity – the connection recommendations particularly relevant in the post- to sufficient data, for useful services, at the right COVID new normal, and will address three key speed, on adequate devices – must become the questions: top priority; the risk of an increased divide needs to be addressed with even more focused effort and – Growth: How can the public and private collaboration. Fortunately, the current climate has sectors stimulate growth in the industry to increased global societal awareness to the need for accelerate digital development in unserved and connectivity, affordable services and devices, and underserved regions? digital skills, providing a strong opportunity to bring together various public and private sector actors to – Financing: How can the public and private drive concrete action. sectors best finance the infrastructure and digitization required to enable high-speed With the momentum at this juncture and a internet in unserved and underserved regions? better understanding of what the new normal could entail, there is great value in discussing – Technology: What combination of existing and building upon this playbook, with the aim of and emerging technologies can efficiently and accelerating or exceeding targets proposed by sustainably deliver affordable connectivity?

4.1 Growth

In recent years, service revenues for connectivity free cash flow margins have fallen from 17% in have been under pressure with average revenue 2016 to 6% in 2019 and are likely to be 0 by 2025 per user (ARPU) decreasing in most markets even given the current trajectory.15 Thus, to accelerate as data usage rose sharply. While industry players investment in underserved and non-economic areas, have continued investing to provide the necessary it is necessary for the public and private sectors infrastructure, this trend is unsustainable in the long to stimulate further revenue growth in the industry, term as cash flow is now constrained. For example, including through subsidization where required.

Accelerating Digital Inclusion in the New Normal 8 FRAMEWORK 1 How can the public and private sectors stimulate growth in the industry to accelerate digital development in underserved regions?

New use cases Drive digitalization across key sectors

New users Improve affordability of devices and services Growth Promote digital literacy and skills development

Price realization Manage industry fragmentation Safaguard price realization

Driving new use cases through digitization (fixed/wireless) despite living in areas covered by The post-COVID-19 new normal will rapidly them. The GSMA estimates this “usage gap” to increase the need for digitization due to shifting be around 3.3 billion people – around four times consumer habits and a desire to be prepared greater than the “coverage gap” of those who for future pandemics. Thus, businesses must lack coverage.16 To drive adoption, the public continue to transform to stay resilient, competitive and private sectors must continue to improve and relevant to customers. However, various affordability, promote digital literacy, and support barriers remain, from infrastructure to the lack of the development of relevant content and services a digitally trained workforce, particularly in smaller for the population. businesses. As such, governments and industry must help drive sector digitization as a key source Improving monetization and price realization of future connectivity revenue growth. This includes Monetization has a key role to play in ensuring creating regulatory environments that promote continued top-line growth for connectivity innovative digital services across sectors. players so they can continue to provide digital infrastructure sustainably. Thus, downward trends Stimulating adoption from new users in core connectivity revenue (e.g. close to a 30% Even as connectivity players continue to invest drop in global wireless ARPU in the past 10 years) in necessary infrastructure to grow coverage and margins need to be stabilized.17 This can be in underserved areas, there remains a sizeable done by promoting a healthy industry structure as population that does not use high-speed networks well as preserving price realization.

Accelerating Digital Inclusion in the New Normal 9 Selected actions with To accomplish the above, stakeholders should consider the following actions: significantly increased importance and urgency in new normal – others still remain critical

Key levers Potential actions Selected examples

Government-led actions (including the set-up of a conducive regulatory environment) e-Estonia movement to digitize Digitize government services, (e.g. online applications for government services permits, e-tax filing) Innovation Fund offering 75% co- Incentivize digital transformation of key sectors through loans, financing for SMEs (Denmark) grants, funds Smart Nation strategy (Singapore) Launch holistic national digital strategies across key sectors National Digital Health Strategy in such as education, health, energy, agriculture, commerce, etc. and Rwanda ensure a joint governance between ICT authorities and specific sector Digital transformation centres for SMEs Drive sector authorities (e.g. Ministry of Health) (Colombia) digitization Create clear regulatory regimes and horizontal standards (e.g. Dedicated department to support IP, data and security standards, guidelines for data protection and SMEs, including digitization (KSA, New normal: privacy, standards for telehealth and remote education, etc.) Rapid acceleration Malaysia) of demand for Appoint a Ministry for Digital Affairs GESAC where the Brazilian government digitization across Streamline or remove regulatory barriers to digitization (e.g. is connecting tens of thousands of New use cases sectors to sustain remove high taxes on e-commerce, open up the money market to schools, clinics and government viability, incl. SMEs support adoption of e-financial services, remove barriers to eHealth facilities by satellite services such as telemedicine, drive data sharing) Mexico Conectado where the Mexican Explore government-led procurement to aggregate demand government has connected tens of across sectors and industries and procurement guarantees/capacity thousands of schools by satellite demand commitments in non-economic underserved areas

Industry-led actions SK Planet offering ICT, digital marketing, data solutions (South Korea) Collaborate across sectors to provide integrated solutions for SMEs lacking trained workforce to lead transformations from the Vodafone V-Hub (resource hub for inside (see “digital SME in a box”) SMEs)

Cost reduction for consumers Cheaper aimed at Reduce mobile sector specific taxes and fees that discourage developing markets, e.g. Transsion internet usage and adoption of mobile devices (e.g. import duties) smartphones for ~$70 (Africa) Design cheaper devices with basic specs for “bottom of pyramid” Decree 771 to repurpose transportation Set up refurbished device programmes assistance subsidy to Internet connectivity subsidy for low wage Provide subsidies for device purchases and broadband workers (Colombia) subscriptions Improve affordability of devices and services Distribution of laptops to students by Lenovo (Tamil Nadu, ) New normal: Acceleration Direct provision Connect Rwanda of connectivity Directly provide devices and services through governments, Public access Wi-Fi networks (various) demand with schools, NGOs, social enterprise, tech, telco or infrastructure Viasat connecting millions of new users

New users increased players through satellite enabled community Wi-Fi importance of affordability gap Build communal Wi-Fi or computing facilities Digital villages (India, Nigeria, Ghana) with higher urgency ICT centres (the Philippines) to address Vouchers to targeted households (Spain, France)

Creative financing models Offer zero or low interest instalment payment schemes Safaricom Lipa Mdogo Mdogo through coordinated approach programme offering device instalment Offer payment schemes for the unbanked financing at ~$0.20/day (Kenya) Offer cheap device rentals

Accelerating Digital Inclusion in the New Normal 10 Key levers Potential actions Selected examples

Seed for the Future Literacy in schools ICT Academy Implement ICT curriculum in schools/universities Bharti Foundation free use of Provide training on digital and remote learning skills technology in education programmes throughout India

Literacy in healthcare Promote digital Improving digital health literacy in Train heath workers on digital tools; train health data analysts literacy and skills Europe (IC-Health) development, Include digital heath in medical curriculum in universities including through local use case Literacy in workforce UNESCO-Bharti Foundation New normal: partnership providing scientific and Acceleration of Provide subsidies for courses to upskill workers with digital skills

New users entrepreneurial trainings in African skills gap and Provide incentives (e.g. tax incentives) for firms to upskill workers markets increased impact (on education & livelihood) with Literacy in society Who Code (USA) higher urgency to Smart Africa Talent Academy address Address gender digital divide through programmes encouraging women in ICT African Union Digital Skills for AllGSMA Raise awareness of Internet benefits and reduce fears about safety and mobile operators Tech4Girls initiative Design handsets and content for less literate users (e.g. smartphone for elderly) MISST: Mobile Internet Skills Training Toolkit Invest in local language content production and talent to support relevant use cases Avanti Communications educating marginalised girls in 250 schools across Train decision-makers about connectivity/infra rural Kenya

Industry to seek M&A opportunities where financially logical to Manage industry serve customers more affordably and efficiently Four to three consolidation observed consolidation globally (e.g. Sprint-T-Mobile) Governments to support healthy industry structure

Governments to revisit selected regulations that may be driving down price realization to unsustainable levels (e.g. Preserve price selected wholesale deals) Airtel Thanks programme offering Monetization realization Industry to pursue price optimization strategies bundled products and services in India Industry to continue offering new value-added products and services

BOX 1 Key recommendations

Accelerate existing efforts on the be revisited urgently and accelerated in order to abovementioned actions support the required infrastructure investments. As summarized in the above framework, many Set up cross-sector national digital strategies potential actions to drive growth have been well At this turning point in the importance of digital for researched and documented by organizations individuals and businesses livelihoods, it is critical such as the United Nations Secretary-General’s to set up – or sharply accelerate – the development Roadmap for Digital Cooperation, Broadband and implementation of holistic cross-sector Commission, GSMA, World Bank, Alliance for digital strategies at national levels. Governments, Affordable Internet and the Forum’s “Internet for education, healthcare and financial services are All” initiative, particularly on increasing adoption obvious priority sectors, yet these strategies through affordability, digital literacy, and the should extend beyond to tackle all sectors, and all proliferation of locally relevant apps and use cases business sizes. These should be jointly developed (smart city, e-government and many others). and governed across the relevant ministries and Similarly, industry stakeholders have called for should include a solid effort on implementing continued efforts to manage fragmentation and the right conducive regulatory environment for improve monetization, supported by enabling the respective industries to thrive digitally. For regulatory environments. These actions must example, in order to drastically stimulate the usage

Accelerating Digital Inclusion in the New Normal 11 of e-financial services as a lever for connectivity, governments should aim to support and drive – Other infrastructure (e.g. cloud, VPN better interoperability across the sector. and cybersecurity): Other types of critical infrastructure need to scale up and down Funding-wise, there is an unprecedented according to small business requirements. opportunity to ensure that a certain amount of Moreover, data breaches are on the rise, the stimulus programmes that are being allocated which is likely to persist due to more telework. by financial institutions, the EU and national Beyond technology infrastructure, even unused governments, will be earmarked to digitize across physical real estate from larger corporations sectors (including healthcare, education, SMEs and could be packaged and repositioned as co-op others) in order to help better prepare people and space for selected SME services (e.g. customer businesses for the future. Moreover, unused funds service centres). should be distributed using efficient mechanisms (e.g. reverse auctions) and administered in a – Solutions: Various turnkey solutions timebound manner for coverage expansion projects. (e.g. productivity tools, digital marketing, web presence, data solutions, e-commerce) which These actions would have a twofold impact on are easy to set up and understand, even for demand and revenue growth for the connectivity SMEs without IT expertise. industry. On one level, driving digital transformation across sectors directly generates more demand – Education: Advisory programmes and online for connectivity and digital services from them. communities to increase the level of digital Beyond that, sector digitization also indirectly education within the SME workforce, such as drives connectivity demand by launching new use training courses for employees, fostering a cases, in turn driving adoption by new users who network of knowledgeable local IT vendor s begin to access these services online. Thus, sector who can assist with IT challenges, providing digitization can have wider beneficial knock-on affordable access to external experts and effects for revenue growth and broad adoption, in consultants, and making digital maturity turn driving further infrastructure investments by assessment tools to identify areas of strength the industry. and weakness for individual SMEs. Drive digitization of SMEs by promoting “digital – Financing: Mechanisms to ensure affordability for SMEs in a box” SMEs, such as creating SME-targeted products SMEs have a critical role in the global economy, at a reasonable price tag, ensuring SME-friendly but they already lag behind large organizations contractual terms with appropriate payment in digitizing their businesses. Thus, it is crucial to schedules and no minimum lines/subscriptions, focus efforts on SMEs to ensure they are not left and programmes for SMEs to access cheap even further behind in an increasingly digital post- loans and grants for digital investments COVID-19 world. In addition, focusing on SMEs (including smaller “non-commercial” organizations) In parallel, government should support in would support broader community adoption for establishing the right digital ecosystem for SMEs: connectivity services, as described above.

To address the unique challenges of SME – Regulation: Conducive regulatory environment digitization, players from different sectors (telco, (e.g. set up clear IP and data standards, tech, infrastructure, finance and others) must amend taxes on e-commerce, release one-stop collaborate to create holistic end-to-end offerings shop of guidelines to cybersecurity), potentially to facilitate digitization for SMEs with resource supported by the set-up of a dedicated constraints – i.e. a “digital SME in a box” concept. department to focus and work with SMEs

– Connectivity: Many smaller businesses are – Payment and contracting standards: For currently on residential-grade plans, without SMEs to effectively work digitally, a prerequisite sufficient upload/download speeds or priority is that there is a nation-wide digital payment support for down times, rather than business- and contracting standard they can use. grade plans. They usually cannot afford leased Governments have an essential role to play lines (up to ten times regular broadband prices) to facilitate the creation of standards and yet require speeds faster than a household. systems – both by the right regulation and also Specific SME-focused connectivity plans need stimulating the service creation, i.e. by adopting to be designed, alongside relevant added it themselves. services below. – Financing: Loans and grants to support – Devices: Sufficient and affordable devices digitization efforts to complement financing (e.g. laptops, smartphones, IoT-enabled smart mechanisms offered by private sector players; devices) for SMEs based on their needs, along alignment of investments with broader national with the maintenance of a compatible device digital strategy ecosystem and support infrastructure without a dedicated IT department or expertise.

Accelerating Digital Inclusion in the New Normal 12 – Education: Investment in large-scale reskilling commerce” concepts to collaborate on IT programmes, collaborating with private sector solutions or reap benefits of scale) players – Promotion of digital sovereignty: Awareness – Facilitation: Creation of hubs or marketplaces among SMEs of issues of technological of trusted digital vendors to help simplify dependency and advantages of open purchasing decisions; avenues to coordinate ecosystems, increasing supply chain resilience digitization across SMEs (e.g. “chamber of in ICT products and services

Requirements for digital SME in a box

1 Connectivity 2 Devices 3 Other infrastructure Fixed broadband and Personal devices (e.g. Cloud computing required speeds laptops, smartphones) VPN 7 Enabled by 2 Mobile connectivity for Other smart services (LoT) Cybersecurity integrated digital employees Device ecosystems and ecosystem compatibility 1 3 Conducive regulatory environment Ready financing of digital investments and education 4 Solutions 5 Financing 6 Education Productivity tools Affordable, fit-for-purpose Training for employees Facilitytion of marketplaces products of trusted digital vendors 6 4 Digital marketing Knowledgeable local IT and mechanisms to Web and Suitable contractual terms partners coordinate digitalization presence Access to loans and grants Access to external experts across SMEs 5 Supplier and customer if needed Promotion of digital management plateforms Tools for digital maturity sovereignty, open Data solutions assessment ecosystems and supply chain resilience E-commerce E-banking and payments

4.2 Financing

The expansion of internet connectivity drives Consequently, public and private funding for significant positive effects for the wider economy. high-speed internet infrastructure development For example, the World Bank has estimated that in unserved and underserved regions should be a 10% increase in fixed broadband penetration a priority. The post-COVID-19 new normal, in would increase GDP growth by 1.21% in which digital access is increasingly essential to developed economies and 1.38% in developing daily life, should drive even greater momentum ones. Over the next five years, operators will for stakeholders to collaborate in such financing invest $1.1 trillion in their networks globally.19 efforts.

Accelerating Digital Inclusion in the New Normal 13 FRAMEWORK 2 How can the public and private sectors best finance the infrastructure and digitalization required to enable high-speed internet in unserved and underserved regions?

Partnerships for utilization Drive higher utilization of assets where relevant

Partnerships for ressources Accelerate access to key ressources

Partnerships for Financing capital Facilitate long-term investment in digital development

New ways to prioritise affordable devices and digital services Explore innovate ways to ensure full usage of services and devices

Promoting partnerships, fostering the right – Partnerships and enabling regulatory regulatory environment and distributing funds environment to accelerate access to key While the concept of partnering to share assets resources and co-invest is not new, the new normal poses an acute challenge for industry players which – Partnerships and enabling regulatory had already experienced regulatory hurdles environment to facilitate long-term investment to collaboration and infrastructure roll-out. To and access to unused and recovery funds overcome these barriers, stakeholders should continue to explore the following partnerships and Exploring new ways to prioritize essential services rethink government regulations and policies to Governments and connectivity players can support a faster, cheaper and more efficient roll-out: collectively explore new ways to prioritize essential services, such as agreements to award spectrum – Partnerships and enabling regulatory in exchange for better connectivity guarantees, or environment to drive higher utilization of more targeted ways to achieve connectivity where infrastructure it is currently lacking, including in selected sectors (e.g. education, healthcare).

Accelerating Digital Inclusion in the New Normal 14 Selected actions with To achieve the points above, stakeholders should consider the following actions: significantly increased importance and urgency in new normal – others still remain critical

Key levers Potential actions Selected examples

Infrastructure sharing, where relevant, between industry players (telco, infra, utilities, others) Accelerate passive sharing partnerships such as site and mast sharing where multiple networks are not viable or where business case is insufficient, but promote infrastructure-based competition in competitive areas when it is most beneficial to end users Drive higher Promote active sharing of RAN and core network utilization of Africa Mobile Networks revenue-sharing infrastructure, Partner between local complementary networks and middle- models for connecting remote areas including power mile operators (backhaul in exchange of meeting licensing grids obligations) Revenue-sharing models in which the cell site and backhaul is New normal: provided and the MNO/other partners are invited to share the revenue Similar actions, yet higher urgency to Identify strategic partnerships with power supply providers in partner to reach emerging markets for network expansion non-economic areas

Policies to facilitate sharing Allow active sharing where it is not currently allowed Develop strategic planning between Promote establishment of IXPs to facilitate the exchange of traffic power, connectivity, and associated

Partnerships and regulations to drive higher utilization Partnerships and regulations network upgrades and expansions Allow mobile operators to pursue small cell-sharing agreements, including with utility providers

Actions, policies and regulations to reduce cost of resources Facilitate synchronization of infrastructural development across players to optimize construction costs Release new spectrum timely and affordably and on a technology neutral basis Take advantage of unlicensed spectrum to set up community networks Allow repurposing of unused or underused spectrum, Reduction of fees for small cell including microwave spectrum for backhaul for telecom networks, equipment () and satellite- serving multiple use cases receiving antennas (African countries) Allow spectrum sharing in a way that provides adequate Tax regime for small cells set at 10% of Facilitate access to access and protection to all users faster and cheaper tax for macro cells (France) Provide low-cost access to small cell deployment sites, e.g. key resources Removal of 16% VAT on low-cost on public property handsets, laptops (Colombia) New normal: Reduce ICT services and equipment taxes to lower cost to Unprecedented consumers urgency to roll out Offer incentives to pursue energy efficiency infrastructure rapidly Review sector-specific taxes that affect affordability of resources, incl. on equipment import, deployment of satellite receivers Consider NRENs to help connectivity in schools using excess capacity and capabilities from universities

Streamlined regulations/approvals to speed up Localities only recovering their costs incurred to small cell siting (United Simplify processes to get rights of way and small-cell deployment States) Partnerships & regulations to accelerate access key resources Partnerships & regulations Streamline regulatory and permit approval processes Reduction of time to give permits from Lower cost of right of way access 60 to 10 days (Colombia)

Accelerating Digital Inclusion in the New Normal 15 Key levers Potential actions Selected examples

Co-investment in infrastructure across sectors Pursue joint investments with financial institutions (e.g. banks, Facilitate access to pension funds, private equity), multilaterals (e.g. development banks) COVID-19 recovery funds allocated capital or government agencies (e.g. sovereign wealth, USF) portions to digital infrastructure Leverage COVID-19 recovery budget to enable infrastructure New normal: roll-out in underserved areas Unprecedented need for rapid financing and Multilateral and government policies to encourage private unprecedented sector investment Localities establishing “dig once” interest by non- Implement “dig once” policies to allow funders to bundle policies to futureproof needs with dark industry partners investments across different types of infrastructure fibre (e.g. community networks) facilitate long-term investment Partnerships and regulations to to Partnerships and regulations Provide anchor tenancies to improve business case for private investments

Explore market-based mechanisms (e.g. auctions for subsidies) to serve less economically viable areas with one player Government project to provide Explore new broadband to public schools (Brazil, Set up public-private partnerships to provide remote ways to prioritize Mexico, Jamaica) education devices to all students digital devices and Free spectrum in exchange for rural services Provide guarantees (e.g. coverage in underserved areas) in coverage obligations exchange for access to resources from governments (e.g. spectrum) New ways to New ways to prioritise services

BOX 2 Key recommendations

Continue to accelerate relevant partnerships communities could be economically efficient. Such and regulatory actions partnerships can significantly ease the business Many of the abovementioned actions related to case for expanding into underserved areas, and infrastructure sharing where relevant, partnerships moreover, network expansion in many emerging and other regulatory barriers have been well- markets will need to go hand in hand with power documented and researched in recent years, supply. including in a current effort from the GSMA, ITU and UN. Given the increased urgency to close the Governments can help facilitate infrastructure digital divide and the high momentum around such sharing by coordinating across sectors and actions, stakeholders must continue to act on and ensuring that players synchronize the laying of accelerate these opportunities. cable to prevent repeated digs. They should revisit regulatory barriers to sharing, such as those Facilitate sharing of infrastructure assets where preventing electricity transmission providers from relevant, including with cross-sector players commercializing their assets by partnering with Where infrastructure sharing has become more connectivity players. common, most importantly in regions lacking sufficient near-term business cases, there is Facilitate cross-sector financing of potential for more cross-sector collaboration to infrastructure, including global recovery improve utilization of infrastructure and facilitate budgets access to faster and cost-efficient resources. For Recent years have seen rising interest in example, electricity grids often include fibre optic connectivity investments from players outside the cables for system supervision and grounding, but traditional telecoms industry, such as infrastructure only 10% of this capacity is usually used.20 There investors and private equity firms. Governments is an opportunity for partnerships between energy and existing connectivity players have an and connectivity players to use the spare capacity opportunity to mobilize these investment dollars and/or infrastructure to reach new customers to finance infrastructure with the additional aim of without having to lay new cable or ancillary closing the digital divide. Specific initiatives could infrastructure, as demonstrated by the Relined include: Fiber Network in the Netherlands and the Balkans Digital Highway Initiative. As another example, – Bundling projects into infrastructure funds to community Wi-Fi with satellite may, for example, reduce individual risk exposure and attract need solar power. The Broadband Commission capital for smaller, critical, projects indicated that 77% of rural communities in sub-Saharan African lack reliable power, – Creating securitization mechanisms to provide hence collaboration to provide power to such various investment options

Accelerating Digital Inclusion in the New Normal 16 Explore new ways to prioritize and fund – Setting up official multistakeholder and co- essential services across relevant investment funds to coordinate investment As digital becomes increasingly intertwined with daily life, it is important to ensure that all can take – Encouraging the use of infrastructure advantage of digital services for activities such marketplaces to link up investors and players as education, healthcare, financial services and e-citizenship. Governments and other players need – Providing supporting schemes to potential to decide what these priority use cases are and investors such as technical assistance, risk consider creative ways to provide universal access underwriting and payment guarantees where commercial ventures are insufficient. For example, governments and connectivity players can – Issuing government grants and loans to reduce develop plans to connect all schools and students uncertainty for high-risk projects in a defined region within a set timeframe. Financing time-bound and use case-specific projects – Identifying and promoting a pipeline of mature would need to be provided through redirection of opportunities for interested funders selected government funds (including through the disbursement of the unspent universal funds) or – Offering risk mitigation insurance and partnerships between government and relevant instruments in case of government or partner industries, such as education. Beyond the above default illustration, regulators can also design auctions to allow single players to serve specific areas where While many of these initiatives were first highlighted a multi-player market may not be economically in the 2018 World Economic Forum report feasible but a single-player one could thrive. Financing a Forward-Looking Internet for All, the interest and availability of funds from such investors Actively resolve bureaucratic hurdles were still limited then. Recently, there has been far Even when the right partnerships and regulations are greater interest from such investors in connectivity in place, operators may face bureaucratic hurdles in the deployment process, such as opposition investments, for example in the form of tower cos, from landlords and municipalities, slowing down the fibre Cos, data centres, satellite constellations required roll-out and excessive right of way fees. and community Wi-Fi. There is an opportunity to Governments and regulators should play an active build on this momentum and availability of funds. role in addressing such hurdles and incentivizing Governments should promote such investments stakeholders to close the divide through subsidies, and explore ways to collaborate with investors. brokered agreements and the right policies. The Furthermore, there is an unprecedented German government has recently announced plans opportunity to ensure that the recent stimulus to create a new infrastructure entity to accelerate the programmes, which are being allocated by financial wireless infrastructure roll-out.21 While it is not clear institutions, the EU and national governments, will yet what role the new entity will play versus the mobile enable more infrastructure roll-out in underserved network operators, the plan to accelerate the roll-out areas. In parallel, a certain amount will need to be is ambitious and, in cooperation with the federal earmarked for connectivity and to digitize across all states, will reduce the time taken to build a new sectors (including healthcare, education, SMEs and site from two years to three months. Incentives to others), supporting current digital needs and better accelerate permitting and an information campaign to preparing people and organizations for the future. reduce public concerns are key elements of the plan.

Accelerating Digital Inclusion in the New Normal 17 4.3 Technology

A technology agnostic approach to bridging the consider a range of innovative technological levers digital divide can be most effective in the new to cater to specific circumstances. These levers normal. When doing so, it is important to note can be new access technologies as well as existing that unserved and underserved areas may have technologies that can be digitized to improve varying geographic, economic and social realities efficiency and, in so doing, improve the business and therefore distinct needs. Stakeholders need to case for connecting the unconnected.

FRAMEWORK 3 What combination of existing and emerging technologies can efficiently and sustainably deliver affordable connectivity?

New access technologies Explore a combination of terrestrial and non-terrestrial technologies globally

Technology Digitalization of existing technologies Enjoy smart planning strategies Leverage automation and AI Explore new architectures Adopt agile ways of working

New access technologies Digitalization of existing access technologies In the new normal, there is greater urgency than Besides optimizing the right mix of access ever before to address the digital divide and technologies, industry players must also leverage to explore a combination of new and existing technology to close the divide by digitizing their technologies that can reach and connect new areas existing operations. The new normal will drive faster. Public and private sector players should greater needs for digitization across all sectors, and consider leveraging the capabilities and economics telecommunications are no exception. Improving of terrestrial and non-terrestrial technologies in the efficiency of existing operations through urban and remote regions; collaboration between digitization can help reduce costs significantly and terrestrial and non-terrestrial operators can present improve the economics of delivering connectivity in unforeseen opportunities for growth. underserved non-economic areas today.

Accelerating Digital Inclusion in the New Normal 18 Selected actions with To achieve the above points, stakeholders should consider the following actions: significantly increased importance and urgency in new normal – others still remain critical

Key levers Potential actions Selected examples

Fibre-wireless broadband access

Integrate wireless access technologies with fibre infrastructure AirPON solutions by Huawei to provide faster, more efficient broadband in selected remote areas

Terrestrial networks – 4G/5G Rapidly accelerate 4G roll-out and leverage 5G where relevant $1.1 trillion investment planned in next to provide sufficient coverage and speeds in areas without fixed 5 years by MNOs broadband 5G FWB CPE solutions by Qualcomm Leverage existing Fixed Wireless Access over 5G can be a viable technology to and emerging cover the last mile connectivity in rural communities terrestrial technologies

Other technologies Rural Star by Huawei Explore a combination/hybrid of all available technologies to SES enabling 25 million citizens in the efficiently connect underserve areas (e.g. data transmission relays DRC connect to 4G thanks to next- and others) generation satellite backhaul

Viasat-3 Global Constellation

New access technologies Avanti Communications SES Inmarsat Non-terrestrial networks – satellites Intelsat Provide broadband connectivity through satellite networks Explore innovative that transmit data to and from space And in the future: non-terrestrial OneWeb technologies Starlink by SpaceX to reach areas Project Kuiper by Web that terrestrial Services technologies cannot reach Non-terrestrial networks – UAV and HAPS Provide connectivity through network of high-altitude balloons that drift through stratosphere, connect to ground stations Loon by Provide connectivity through solar-powered drones that use Internet.org by Facebook laser beams to transmit data Develop conducive regulatory environment

Smart roll-out planning (value-based rollout) Employ smart Telefónica planning Use of digital twins (virtual/digital of physical infrastructure to run simulations and optimize roll-out before actual deployment)

Automated design and run activities Integrate Elisa automation and AI AI-driven optimization of network configuration Jio in operations Predictive maintenance

Explore and Move to open standards Vodafone-Idea implement new architectures Virtualization of the network Airtel

Adopt agile ways DevOps in network operations Verizon Digitization of existing operations of working New roll-out approach

Accelerating Digital Inclusion in the New Normal 19 BOX 3 Key recommendations

Leverage the right mix of access technologies circumstances and needs in underserved areas, The innovative non-terrestrial technologies all stakeholders should remain open to using described above, such as high-throughput a range of technologies as long as they meet satellites networks and high-altitude balloons, offer those performance standards. Success metrics ways in which remote areas might be connected at government levels should also go beyond in the future. Billions of dollars are being invested “coverage” metrics to include “penetration” metrics by developers and operators of new advanced in order to reflect adoption challenges and support satellite technologies and constellations that have the right set of comprehensive measures. the potential of connecting hundreds of millions of the unconnected over the next five years. Accelerate digitization of operations Digitizing operations is a key way for connectivity Industry players and governments should continue players to reduce their cost base and improve to explore a combination of technologies where the financial viability of investing in non-economic relevant and view these technologies as potential areas. Such industry actions will complement collaborators and partners in closing the digital the initiatives and collaboration from other divide, complementing rather than competing with stakeholders, such as governments, multilaterals existing offerings. Non-terrestrial technologies and cross-sector partners, to work together should become an integral part of hybrid solutions towards the closing of the digital divide. (enabling for example community Wi-Fi or cellular backhaul) for ensuring timely quality access to the Network virtualization and centralization: internet. Virtualization of networks allows the development of new, more cost-efficient network architectures, While continuing to test new technologies, industry thus reducing network spending and broadening stakeholders should continue to leverage existing the network infrastructure ecosystem. Virtualization wireless and wireline technologies, including FWA is also a key enabler for network slicing. Rakuten, and 4G/5G. In some circumstances, wireless the Japanese retail giant, which launched its own connectivity can provide required speeds for telecommunications service in April 2020, built its households where fixed broadband is prohibitively expensive. For example, in May 2020, more network with more than 3,000 sites based on a than 60 countries worldwide had an average cloud architecture with OpenRAN. The network mobile speed of more than 30 Mbps, even deployment will be supported by a large diversity reaching 100 Mbps.22 Therefore, expanding 4G of vendors across the RAN, backhaul, core and even further can already be a big step toward operating systems. connectivity for the unreached. It should be noted that mobile operators are helping underserved Automation and self-organizing networks: and unserved areas to leapfrog directly from 2G Configuration, management and operation of to 4G, which would benefit from a combination mobile networks are complex tasks and there is of digital infrastructure approaches. 4G will still substantial potential to optimize these processes. be the primary technology well into the future, Near-term, programmable, rules-based automation especially for many areas in undeveloped and even of network processes can lead to significant developing countries. savings. In the intermediate and long term, machine learning and can help Governments should also do their part by network components learn from data to achieve setting clear performance standards (e.g. in fuller optimization and realize the vision of self- terms of speed, latency), which should be tech- organizing networks (SON). Elisa in Finland is an agnostic. Indeed, acknowledging the diversity of example of a leader in such network automation.

Accelerating Digital Inclusion in the New Normal 20 Conclusion

At this juncture, a heighten emphasis on public- – Finance connectivity infrastructure and private cooperation is critical to advancing the digitalization in unserved and underserved areas digital inclusion agenda in today’s new normal. by earmarking some of the COVID-19 stimulus No one-size-fits all approach towards bridging the budgets for digital infrastructure investment and digital divide will work. Digital development and digitalization of other sectors connectivity should be a top priority within nations and across international forums. The theme of this – Strive to collaborate across technologies to playbook presents the challenges of connecting the optimize the right mix to accelerate and offer unconnected through the prism of the new normal affordable and sustainable connectivity globally and built upon the pillars of growth, financing and technology. The economic and behavioural trends It is critical that the dialogue between the public brought about by the COVID-19 pandemic will and private sectors, and across industries, on the challenge public and private sectors to rethink priority actions highlighted be accelerated in order and prioritize digital in the future. To achieve 75% to join forces in tackling the digital divide holistically. broadband internet penetration worldwide and Only with all stakeholders playing their part will have it cost no more than 2% of earning by 2025, the digital divide reduce in the medium term; government and industry players must accelerate collaboration is more essential than ever to achieve action across all initiatives identified throughout this this ambitious goal. The above topics will continue report. Only strong collaboration and partnerships to be the focus of the World Economic Forum’s will be meaningful enough to close the digital divide initiative on digital development and connectivity, gap. Beyond the numerous current activities to which aims to leverage public-private dialogues to accelerate, this playbook aims to highlight a few advance the digital inclusion agenda. new priorities emerging from the new normal:

– Drive the rapid digitalization of all industry sectors by establishing holistic national digital strategies as well as concerted effort to facilitate SMEs digital inclusion via end-to-end offerings

Accelerating Digital Inclusion in the New Normal 21 Acknowledgements

This playbook is the result of a collaborative effort coordinated by a project team under the strategic guidance of the Essential Digital Infrastructure and Services Network (EDISON). The contribution of a multistakeholder working group was fundamental to the development and validation of the findings presented in this paper and contributing to the broader agenda of the World Economic Forum’s Shaping the Future of Digital Economy and New Value Creation Platform. Additionally, expert interviews and workshops provided invaluable insights.

Thanks to all contributors for their role in the creation of this paper, including the members of the working group and experts interviewed:

Aarti Holla-Maini, Secretary General, ESOA; Alix Jagueneau, Head External Affairs, GSMA; Becca Gould, Senior Vice-President, Public Affairs, American Tower Corporation; Bobbie Mellor, Head of International Policy and Public Affairs, Vodafone; Bocar Ba, Chief Executive Officer, Semena Telecommunications Council;Carlos Jarque, Executive Director, International Affairs, Government Relations and Corporate Affairs, América Movil; Dimitris Lioulias, Vice-President, Corporate Strategy, Saudi Telecom Company Group; Florence Gaudry-Perkins, Founder and Chief Executive Officer, Digital Health Partnerships;Irshaad Gouse, General Manager, Strategy and Transformation, MTN Group; Ivan Antonio Mantilla Gaviria, Vice-Minister of Connectivity and Digitalization, Ministry of Information and Communications, Government of Colombia; James Ryan, Senior Vice-Present and Chief Strategy Officer, Liberty Global;Jane Coffin, Senior Vice-President, Internet Growth, Internet Society; Javier Villamizar, Partner, Softbank Vision Fund; Maryam Mujica, International Government Affairs, Google; Mikael Bäck, Corporate Officer and Vice-President, Ericsson; Nawat Kamnoonwatana, Sustainability Officer, CP Group; Neha Idani, Vice-President, Head of Programs, Bharti Enterprises; Paul Mitchell, General Manager, Technology Policy, ; Piero Bonadeo, Assistant Vice-President, International External & Regulatory Affairs, AT&T; Robert Gojmerac, 5G Strategy, Cross Portfolio Solutions Strategy, Dell Technologies; Robert Pepper, Head, Global Connectivity Policy and Planning, Facebook; Stefan Hotze, Head of Corporate Strategic Planning, Nokia; Thelma Quaye, Head, Digital Infrastructure Program, Smart Africa; Tom Frazer, Corporate Strategy Director, BT Group; Tom Riege, Senior Vice-President, Office of the Chief Executive Officer, Telenor Group;Vibhor Gupta, Head of Strategy and Alliances, Airtel; Wassim Chourbaji, Senior Vice-President, Government Affairs & Public Policy EMEA, Qualcomm; Zhou Mingcheg, Vice-President, Global Affairs, Huawei Technologies

More details about this community and activities of the programme can be found at https://www.weforum.org/ projects/edison-project-essential-digital-infrastructure-solution-network.

World Economic Forum

Isabelle Mauro Head, Digital Communications Industry

Jonathan Bahmani Platform Curator, Digital Communications Industry

Rodrigo Arias Lead, 5G and Digital Transformation

Boston Consulting Group

Wolfgang Bock Managing Director and Senior Partner, Technology and Telecommunications, Germany

Maikel Wilms Director, Technology, Media & Telecommunications Advisory, Netherlands

Justine Tasiaux Principal, Technology, Media & Telecommunications Advisory, Singapore

Accelerating Digital Inclusion in the New Normal 22 Endnotes

1. This report uses the terms “broadband” and “high-speed” internet interchangeably. 2. Forbes [Internet growth]; ZDNet [remote desktop]; Microsoft [collaboration tools]. 3. GSMA [mobile coverage]; Ovum WBIS [broadband coverage]. 4. Ovum [broadband coverage]; World Bank [income classifications]; ILO [labour force, share of jobs in remote-working- enabled industries]; EdTech Hub [school closures]; UIS/UNESCO [student enrolments]; BCG analysis. 5. E.g. in France there were 10,000 teleconsultations/day in early March and this grew to 1 million/day by the end of March – Digital Health Partnership. 6. GSMA [mobile]; Ovum WBIS [broadband]; New York Times and Pew Research [speeds in US]; BCG analysis 7. Economist Intelligence Unit [broadband subscription prices, PC penetration]; World Bank [GNI]; Ovum [smartphone penetration]; BCG analysis. 8. ITU & UN SDG [definition and data on digital skills]; BCG analysis. 9. World Bank SME Finance; OECD Digital for SMEs Initiative. 10. UNCTADStat. 11. Nikkei & The Straits Times. 12. OECD Digital for SMEs. 13. FCC, GoBrolly and World Economic Forum White Paper 2018, “Financing a Forward-Looking Internet for All” [Internet speeds]; BCG estimates. 14. Statista [average cost of devices]; World Bank [GNI]; BCG estimates 15. Unlevered free cash flow margin, Capital IQ. 16. GSMA, “The State of Mobile Internet Connectivity”, 2019. 17. Tefficient. 18. World Bank, “Exploring the Relationship Between Broadband and Economic Growth”, 2016. 19. GSMAIntelligence. 20. World Bank, “Infrastructure sharing in energy and digital development: takeaways from cross-sectoral cooperation”, 2018. 21. Federal Ministry of Transport and Digital Infrastructure, “Mobile Communications Summit: Federal Government, federal states, local authorities and industry agree on mobile communications funding”, 16 June 2020. 22. Ookla Speedtest Global Index, May 2020.

Accelerating Digital Inclusion in the New Normal 23 The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation.

The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.

World Economic Forum 91–93 route de la Capite CH-1223 Cologny/Geneva Switzerland Tel.: +41 (0) 22 869 1212 Fax: +41 (0) 22 786 2744 [email protected] www.weforum.org