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Icts, Ldcs and the Sdgs Achieving Universal and Affordable Internet In Thematic report ITU Development LDCs and small island developing states International Telecommunication Union ICTs, LDCs and the SDGs Telecommunication Development Bureau November 2017 Place des Nations Achieving universal CH-1211 Geneva 20 Switzerland and affordable www.itu.int Internet in the least developed countries ISBN 978-92-61-25461-2 9 789261 254612 In Partnership with ICTs, LDCs and the SDGs: Achieving universal and affordable Internet in the least developed countries Internet in the least Achieving universal and affordable LDCs and the SDGs: ICTs, Printed in Switzerland Geneva, 2018 ICTs, LDCs and the SDGs Achieving universal and affordable Internet in the least developed countries Acknowledgements The present report was prepared by ITU experts Lishan Adam and Michael Minges, under the direction of the Least Developed Countries, Small Island Developing States & Emergency Telecommunication (LSE) Division of the ITU Telecommunication Development Bureau (BDT), in cooperation with the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS). ISBN 978-92-61-25451-3 (paper version) 978-92-61-25461-2 (electronic version) 978-92-61-25471-1 (EPUB version) 978-92-61-25481-0 (Mobi version) 978-92-61-25691-3 (USB) Please consider the environment before printing this report. © ITU 2018 All rights reserved. No part of this publication may be reproduced, by any means whatsoever, without the prior written permission of ITU. Foreword It is our pleasure to present to you this special report on ICTs, LDCs and the SDGs: Achieving universal and affordable Internet in the least developed countries (LDCs). Today, there is a clear recognition of the importance of information and communication technologies (ICTs) for the LDCs. The 2030 Agenda for Sustainable Development recognizes that “the spread of information and communications technology and global interconnectedness has great potential to accelerate human progress, to bridge the digital divide and to develop knowledge societies”. The im- portance of ICTs is further enshrined in SDG Target 9.c, where the international community commits 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”. This target illustrates the centrality of ICT infrastructure in enabling countries to become integrated into the information society and fully harness its development potentials. Broadband Internet, in particular, can help countries to leap-frog in various areas, including education, health, government services, and trade. ICT services can also deliver innovative services and applications and trigger new business opportunities. Similarly, the Istanbul Programme of Action (IPoA) for the Least Developed Countries for the decade 2011-2020, adopted by the Fourth UN Conference on the Least Developed Countries in 2011, recog- nizes ICT networks as an infrastructure priority on a par with water, electricity, and transport. This report provides insights into the great strides that LDCs have made in regard to information and communication technology access, and the opportunities that ICTs offer in addressing severe structural impediments to sustainable development in this group of countries. By the end of 2017, the number of mobile-cellular subscriptions is expected to increase to about 700 million, with a penetration of 70 per cent. Currently, more than four out of five people in the LDCs have access to a mobile-cellular network. ICTs have led to significant development outcomes in LDCs, in particular in the areas of financial inclusion, poverty reduction and improved health. This report shows that LDCs have also made great progress towards achieving universal access to and affordability of the Internet. Several LDCs are also on track to largely achieve SDG Target 9.c by 2020. In 2016, close to 60 per cent of the population in LDCs was covered by a mobile broadband network and, in a growing number of LDCs, mobile broadband services have become relatively affordable. At the same time the report highlights some variations among the LDCs. It documents differentiated economic, demographic and social features and development challenges across LDCs, including those that are also land-locked developing countries (LLDCs) or small island developing states (SIDS). The report provides specific recommendations in areas including regulation and public-private partner- ships, building on successful experiences in LDCs. Another key finding is that, at current growth rates, less than one-quarter of the population in LDCs will be online by 2020. The key barrier is the lack of the skills needed to use the Internet. Governments are therefore encouraged to adopt strategic ICT sector plans on building skills and enhancing collab- oration with the education sector. This finding highlights the importance for policy makers to address broader socio-economic challenges that lie outside the ICT ecosystem, such as educational levels, but also gender equality. iii In line with the spirit of more integrated and collaborative approaches in implementing the 2030 Agenda for Sustainable Development, the International Telecommunication Union (ITU) and the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), are working in close cooperation with other United Nations agencies and partners to ensure universal access in LDCs, LLDCs, and SIDS. We believe that producing this report and disseminating its findings is a good illustration of such efforts. We hope that this report provides many useful insights and sheds light on efforts towards achieving the full potential of ICTs for the SDGs and leaving no one behind. Fekitamoeloa Katoa 'Utoikamanu Brahima Sanou Under-Secretary-General and High Director Representative for the Least Developed Telecommunication Development Countries, Landlocked Developing Bureau (BDT) Countries and Small Island Developing International Telecommunication Union States (UN-OHRLLS) iv Table of Contents Acknowledgements ii Foreword iii 1 Introduction 1 1.1 The Least Developed Countries (LDCs) 2 1.2 Broadband Internet for the LDCs 4 1.3 SDG Target 9.c and the Internet 7 1.4 Digital gaps between LDCs and the rest of the world 10 1.4.1 The connectivity gap 10 1.4.2 The affordability gap 13 1.4.3 The socio-economic gap 14 1.4.4 Roadmap to the rest of the report 15 2 Expanding supply-side infrastructure 17 2.1 Local access networks 18 2.1.1 Mobile 18 2.1.2 Broadband 22 2.1.3 Quality 26 2.1.4 Electricity 27 2.2 National and regional backbones 29 2.2.1 National backbones 29 2.2.2 Regional and cross-border connections 33 2.2.3 International connectivity 34 2.3 The “Invisible Mile” 37 2.3.1 Moving to the fifth generation of regulation 38 2.3.2 Spectrum management 41 2.3.3 Infrastructure sharing, data protection and cybersecurity 42 2.3.4 Universal service funds 43 2.4 Conclusions 43 3 Sustaining the Internet ecosystem 45 3.1 The underappreciated ccTLD 46 3.2 The critical role of data centres 52 3.3 IXPs: Beyond exchanging traffic 55 3.4 Conclusions 59 4 Making the Internet affordable 62 4.1 Rethinking affordability 62 4.2 How much data is enough? 70 4.3 Zero-rated services and OTT: Supplements or artificial sweeteners? 72 4.4 Competition and pricing 76 4.5 Conclusions 80 5 Skills for using the Internet 82 5.1 Digital literacy 82 5.2 The power of secondary education 82 5.3 Digital literacy for the masses 86 5.4 Conclusions 89 v 6 Progress towards achieving SDG Target 9.c 90 6.1 Leap-frogging 95 6.2 Recommendations 96 References 100 Annex 1 102 Basic Indicators, 2016 102 Infrastructure Access Indicators, 2016 104 Infrastructure Backbone Indicators, 2016 106 Core Internet Infrastructure Indicators, 2016 108 Affordability Indicators, 2016 110 Skills Indicators 112 The three dimensions of SDG Target 9.c (Access, Affordability and Skills) and Internet Uptake 114 vi List of Tables, Figures and Boxes Tables Table 1.1: LDCs by ITU region and income grouping 4 Table 2.1: Preparation of households with a mobile phone (in %) broken down by urban/ rural households, latest available survey (2012-2016), LDCs 21 Table 2.2: Submarine cables in Africa 36 Table 2.3: LDCs by generation of regulation 38 Table 3.1: LDCs with active IXP, 2017 56 Table 6.1: Top performers by category 93 Table 6.2: Performance across three dimensions of Internet use: access, affordability and skills 93 Table 6.3: Experienced strategic private investors in Bangladesh and Myanmar 94 Figures Figure 1.1: Key components that will drive the achievement of SDG Target 9.c to provide universal and affordable access to the Internet in least developed countries by 2020. 2 Figure 1.2: Map of LDCs according to ITU regional classification 3 The Pink Phones project in Cambodia empowers female farmers 6 Figure 1.3: Internet use and proportion of population not online by country, 2017, LDCs 8 Figure 1.4: ICT penetration levels by level of development, 2017 10 Figure 1.5: Route metres of fibre and microwave backbone per capita by region, 2016 12 Figure 1.6: Share of total international Internet bandwidth and International Internet bandwidth per inhabitant, by region 13 Figure 1.7: Progress towards the target of making broadband affordable, 2016 13 Figure 1.8: Fixed- and mobile broadband prices 2016, and mobile broadband prices 2013- 2016 14 Figure 1.9: Proportion
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