1. Broadband use in the business sector Torbjörn Fredriksson (torbjorn.fredriksson@unctad.org) 23 November 2009 Side-event workshop at ICT for All (Tunis + 4) jointly organized by World Bank, infoDev and the UN Commission on Science and Technology for Development El Medina, Hammamet, Tunisia

2. 2 Content of the Report  Chapter I: Monitoring Connectivity for Development oDigital divide continues to narrow except in the case of braodband  Chapter II: Making Use of ICTs in the Business Sector oHuge gaps in ICT use, both between and within countries  Chapter III: Evolving Patterns in ICT Trade oICT goods exports fall sharply in crisis while ICT services are resilient

3. 3 Widening divide in broadband connectivity 400 million fixed broadband subscribers Broadband subscriptions per 100 inhabitants, 2003-2008, by country group 8 times higher penetration in developed than in developing economies… … >200 times higher than in LDCs! Source: UNCTAD, based on ITU and national data.

4. 4 The top 20 most dynamic economies in terms of increased broadband penetration 2003-2008 * 2003-2007 Source: UNCTAD, based on ITU and national data.

5. 5 ICT diffusion is improving in LDCs But broadband penetration is still very low, 2003-2008 Subscriptions or users per 100 inhabitants, 2003-2008 Logarithmic scale Source: UNCTAD, based on ITU and national data.

6. 6 Africa lags behind in broadband connectivity High concentration: five African countries account for 90% of all broadband subscriptions. Slow: broadband speeds often low in existing networks. Costly: 14 of the world’s 20 highest access fees in Sub-Saharan Africa. Source: UNCTAD, based on ITU and national data.

7. 7 Limited broadband access hampers development  Sufficient national and international bandwidth needed for many applications that promote development oTelehealth oDistance learning oDisaster management oE-government applications oE-commerce oExports of IT and ICT-enabled services

8. 8 Effects of Broadband Use by Companies  Evidence mainly from developed countries oUS: broadband user more likely to make purchases online oSweden: broadband led to more productive use of Internet  Stronger productivity effects in countries with relatively high levels of ICT use…  …but recent WB research suggests broadband effect on growth to be higher in developing than in developed countries.  Finland: broadband access – basic right… Source: studies by OECD 2008, Statistics Sweden 2008, LECG, 2009, Qiang, 2009.

9. 9 Broadband most used by larger enterprises (selected economies, latest year, % of enterprises) Source: UNCTAD Information Economy Database.

10. 10 The urban-rural broadband divide (selected economies, latest year, % of enterprises) Source: UNCTAD Information Economy Database.

11. 11 Internet use by companies (selected economies, latest year, % of enterprises) Source: UNCTAD Information Economy Database. Finland, 2006

12. 12 Broadband connectivity important to boost exports of IT and ICT-enabled services  Infrastructure aspects considered by companies oExtent of down time and Costs? oIs there redundancy? oAre there multiple suppliers of services?  Requirements vary by type of service, e.g. oVoice-based customer services – fibre-optic connections normally required to avoid latency problems oData traffic – may allow for some more flexibility  Infrastructure not enough oSkills and regulations other key factors

13. 13 More geographical diversification of offshoring Africa emerging as host location  Top destinations: India and Philippines  Share of Latin America and Central and Eastern Europe on the increase.  Top destinations in Africa: Egypt, Mauritius, Morocco, South Africa and Tunisia  Better international connectivity thanks to SEACOM and TEAMS may facilitate exports from more countries

14. 14 The Information Economy Report 2009 can be downloaded free of charge at www.unctad.org. Thank You!