Connecting the Unconnected in Times of Crisis

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Connecting the Unconnected in Times of Crisis Internet Sectoral Number 1 March, 2021 Overview Year 13 Connecting the unconnected in times of crisis Overcoming the Rural entirely unconnected (International Telecom- munication Union [ITU], 2019). The global com- Digital Divide and munity, however, has failed to meet one of the COVID-19 Challenges Sustainable Development Goals established for 2020 – to achieve universal affordable Inter- to Achieve the net access – which at the current growth rate will not be met until 2043.4 The digital divide Universal Access Goal – that is, the disparity between those who have By Maiko Nakagaki1 and Eleanor Sarpong2 access or ability to use the Internet and those who do not – continues to worsen across many Introduction regions. Most of those who are offline today live in low- and middle-income countries where In- he COVID-19 pandemic has exposed the ternet access is out of reach due to costs, with shocking inequalities in Internet access and women and people in rural areas representing affordability that exist around the world with the majority. Without access to reliable connec- Talmost half of the global population still offline. tivity and devices, billions of rural populations Indeed, it amplified why increasing connectivity risk being further cut off from vital information is urgent. The United Nations Secretary General on health, safety, online learning, opportunities (SG)'s Digital Cooperation Roadmaps3 further ac- to voice their views and engaging in commerce. knowledges this as it ranks global connectivity by Even before the pandemic hit, bringing af- 2030 to be the SG’s number one priority. fordable Internet to many was a challenge. In a The Internet is no longer a luxury for the report the Alliance for Affordable Internet (A4AI) few, but a lifeline that must be for the many. partnered with the ITU, an estimated $428 bil- Nevertheless, nearly 3.6 billion people are still lions of investment is required over the next ten 1 Maiko holds a master’s degree from Johns Hopkins School of Advanced International Studies (United States) and has over a decade of international experience in digital policy, private sector development, and gender equality. At the Alliance for Affordable Internet (A4AI), she oversees and manages key relationships and partnerships with A4AI’s high-level Advisory Council members and more than 100 global members from leading sector stakeholders, including high-tech companies, international organizations, regional bodies, governments, and civil society groups from around the globe. 2 Eleanor holds an MBA from the Warwick Business School (England) and is an alumnus of the Harvard Kennedy School Executive Education Program. She is A4AI’s Deputy Director and Policy Lead, and responsible for policy and advocacy efforts in Asian, African, and Latin American countries. A public policy expert with 19-year experience in the private, public and not-for-profit sectors, her expertise includes ICT regulation, taxation, access, connectivity, universal service and data protection. 3 Find out more: https://www.un.org/en/content/digital-cooperation-roadmap/ 4 The 9.c target is to “significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020.” The Sustainable Development Goal 9 refers to “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.” Find out more: https://sdgs.un.org/goals/goal9. 1 /Internet Sectoral Overview years to deliver high-quality broadband for the world’s remaining uncon- nected population by 2030. Of that amount, a large segment refers to connecting the rural and remote areas, as shown in Figure 1.5 Encourag- ing such investment is a daunting task ahead for the involved stakehold- ers, yet it is a much needed urgent task to close the global digital divide to ensure everyone has Internet access. FIGURE 1 – INVESTMENT NEEDED TO ACHIEVE UNIVERSAL ACCESS TO BROADBAND CONNECTIVITY BY 2030 $450 ICT skills and content ~USD40 billion $400 Policy and regulation Maiko Nakagaki ~USD6 billion Alliance for $350 Remote Area Coverage Affordable Internet $300 ~USD70 billion (A4AI), Web $250 Network operation and maintenance Foundation. USD billion ~USD140 billion $200 $150 Metro and backbone fibre ~USD70 billion $100 $50 Mobile infrastructure Capital Expediture (CAPEX) ~USD104 billion $0 Source: ITU (2020a). Current Scenario of the digital divide in Rural Areas INTERNET ACCESS The vulnerable population hit hardest with the digital divide are those in rural and remote areas. Globally, 72% of urban households have Internet access while only 37% of the rural households do. This rural-urban digital di- 5 Universal Internet access is defined in the ITU’s Connecting Humanity report as connecting 90% of the global population who are above 10 years old, and 4G speed is used as a proxy for broadband. This report is available at: http://handle.itu.int/11.1002/pub/81630581-en 2 Overcoming the Rural Digital Divide and COVID-19 Challenges to Achieve the Universal Access Goal vide is more acutely felt in developing countries, where only 28% of house- holds in rural areas have Internet access – in Africa this proportion reaches a mere 6% (ITU, 2020b). The issue of digital divide is further aggravated by climate change. In Mozambique, 68% of the country’s population lives in sparsely pop- ulated rural areas, with 60% living along the coastline. Besides pre- senting unique connectivity challenges, the region is also susceptible to climate shocks (United Nation Development Programme [UNDP], 2021). In 2019 and 2020, Beira, Mozambique’s second largest city, and its surrounding rural areas experienced major disruptions from the impact of multiple cyclones, resulting in limited Internet connectivity. When everything went online in 2020 as a result of the lockdown measures adopted in face of COVID-19, rural and remote communities Eleanor Sarpong around the world became further pushed away from accessing public services, telemedicine resources, remote learning, and just keeping in Alliance for touch with families and friends. This especially impacted rural children Affordable Internet and young people in low- and middle-income countries from receiv- ing education, as they were less likely to have access to the Internet (A4AI), Web at home. Foundation. MEANINGFUL CONNECTIVITY Rural areas are also at a disadvantage from the perspective of “meaningful connectivity”6 – a comprehensive measure of the quality of Internet access that takes into account speeds, data allowance, de- vice type and regular access. In Latin America and the Caribbean, at least 77 million rural populations do not have meaningful connectivity (Inter-American Institute for Cooperation on Agriculture, Inter-American Development Bank, & Microsoft, 2020). With the pandemic, the rural-urban digital divide was exacerbated by the significant increase in Internet access around the world (World Bank, 2020). There are stark disparities in how men and women in rural areas access and use the Internet. This digital gender divide is significant for planning purposes. According to the GSMA, people living in rural areas in low- and middle-income countries are 37% less likely to use mobile Internet than those living in urban areas (Bahia & Delaporte, 2020), a challenge that is further intensified when examining how gender im- pacts connectivity: Women in rural areas from low- and middle -income countries are 20% less likely than men to use mobile Internet (Bahia & Delaporte, 2020). This is the case for a variety of reasons, includ- ing affordability, unreliable connection, and lack of service, as shown in Figure 2. 6 Meaningful connectivity is defined as when one can use the Internet every day using an appropriate device with enough data and a fast connection. Find out more: https://a4ai.org/meaningful-connectivity/ 3 /Internet Sectoral Overview Figure 2 – TOP FACTORS LIMING MORE FREQUENT USE FOR INTERNET USERS (% OF PEOPLE) (...) rural and remote TOTAL RURAL USERS URBAN USERS I cannot afford the 33% 26% communities mobile data 25% often experience plan/Internet service 29% 25% compounding 22% 13% The service is unavailable 19% (no good at all) effects of other 29% 17% forms of social 19% 12% The service is unavailable 14% (no connection at all) exclusion, such 17% 13% as gender, socio- 18% 26% economic class, I don’t have time 25% 23% 28% ethnicity or race. Source: World Wide Web Foundation, 2020. Unique challenges of rural connectivity Throughout the globe, rural areas face a unique set of challenges when expanding connectivity. Among the reasons for this, five factors stand out (Alliance for Affordable Internet [A4AI], 2020). First, rural areas are often sep- arated from existing infrastructure by significant distances and challenging terrain. Connecting them to the Internet is typically substantially more difficult and expensive than connecting urbanised areas, thus creating a disincentive for operators and Internet providers to expand to rural communities. Second- ly, rural areas often lack the resources and supportive infrastructure neces- sary to facilitate broadband deployment, such as technical skills and access to reliable electricity sources. This is especially true in emerging markets. Thirdly, rural areas have lower population densities than more urbanised ones, meaning the number of potential customers in these areas is smaller. This makes it difficult to support the traditional business case for the large
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