1 The Importance of the Digital Divide
2 Welfare Implications of the Absolute Divide
3 The Behavior of the Absolute Divide
4 Basic Concepts
1. | Absolute digital divide increases:
\( {\frac{{\rm Mobile\,phone\,stock\,developed\,countries\, (2006 )}}{{\rm Mobile\,phone\,stock\,developing\,country\, ( 2006 )}}} > {\frac{{\rm growth\,developing\,country}}{{\rm growth\,developed\,countries}}} \)
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2. | Absolute digital divide falls:
\( {\frac{{{\text{Mobile}}\,{\text{phone}}\,{\text{stock}}\,{\text{developed}}\,{\text{countries\, (2006)}}}}{{{\text{Mobile}}\,{\text{phone}}\,{\text{stock}}\,{\text{developing}}\,{\text{country\, (2006)}}}}} {\frac{{{\text{growth}}\,{\text{developing}}\,{\text{country}}}}{{{\text{growth}}\,{\text{developed}}\,{\text{countries}}}}} \)
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5 The Country Classification
5.1 The ‘Low–Low’ Category
Country | Penetration rate (per 100) | Income level ($) |
---|---|---|
Burundi | 1.9 | 100 |
Cambodia | 8 | 490 |
Central African Republic | 2.4 | 350 |
Malawi | 3.2 | 230 |
Mongolia | 21.8 | 1,000 |
Zimbabwe | 6.3 | 340 |
Haiti | 5.4 | 430 |
Madagascar | 5.5 | 280 |
Rwanda | 3.3 | 250 |
Sierra Leone | 2.2 | 240 |
Iraq | 2.1 | NA |
Cuba | 1.4 | NA |
Average = 5.29 | Average = $ 371 | |
Low-income countries = 14.3 | Low-income counties = $ 649 | |
SSA (Sub-Saharan Africa) = 13.5 | SSA (Sub-Saharan Africa) = $829 | |
Low-middle income = 381 | Low-middle income = $ 2,038 |
5.2 The ‘High–High’ Category
Country | Per capita income (2006) |
---|---|
Afghanistan | NA |
Albania | 2,930 |
Algeria | 3,030 |
Angola | 1,970 |
Bangladesh | 450 |
Colombia | 3,120 |
*Ghana | 510 |
*The Gambia | 290 |
*Kenya | 580 |
P.D.R. Lao | 500 |
Libya | 7,290 |
*Mali | 460 |
*Mauritania | 760 |
Pakistan | 800 |
Syria | 1,560 |
*Tanzania | 350 |
India | 820 |
AV. = $1,588.8 |
Most African countries still have only one gateway operated by the incumbent with little or no competition. While some progressive states have opened up their markets to multiple service providers—Kenya has more than ten gateways and cheaper international calls as a result—at least four (Benin, Central African Republic, Sierra Leone and Zimbabwe) have gone in the opposite direction.(Economist Intelligence Unit 2007)
The idea of the telecom project is to lend money to a [Grameen Bank] member in each village in Bangladesh for the purpose of purchasing a mobile phone. The phone owner then sells call-time to the other villagers, who, it seems, are willing to pay a relatively high proportion of their incomes on this service…Unlike many attempts to use IT for the benefit of the rural poor, the impact of Grameen Telecom extends well beyond the level of a particular village or region. In fact, some estimates suggest that ~45 million villages in Bangladesh now have access to a mobile phone, thanks to the Telecom endeavour (James 2007 p. 290).Still another example concerns India and the way in which that country has been able to facilitate network rollouts and increase coverage by allowing network sharing among mobile operators. One way in which this has occurred permits ‘providers to spin off their passive network infrastructure in order to offer it to other providers in the market. This new passive network company receives good access to government subsidies in order to keep expanding its network’ (Beardsley and Enriquez 2009, p. 70).
6 High Achievers
Country | Growth differentials less stock ratio |
---|---|
Algeria | 164.4 |
Mali | 63.7 |
Syria | 53.4 |
Pakistan | 38.9 |
Libya | 16.5 |
6.1 The ‘High–Low’ Category
Bolivia, Cameroon, China, Cote-d-Ivoire, Dominican Republic*, Namibia, Fiji, Mongolia, Honduras*, Indonesia, Jamaica*, Jordan, Lesotho, Nicaragua*, Paraguay*, Peru*, Philippines, Senegal, Sri Lanka, Sudan, Surinam*, Thailand, Togo, Vietnam, Zambia, Benin, Egypt, Iran |