 | Issue: | Global-ICT 2005 |
| Article no.: | 17 | |
| Topic: | The telecom economy, digital inclusion and digital opportunities | |
| Author: | A. Reza Jafari | |
| Title: | Managing Director and Chairman | |
| Organisation: | International NeuStar, Advisory Board for India, China and America Institute | |
| PDF size: | 244KB |
About author
Reza Jafari is the Managing Director of International for NeuStar. He has more than 25 years of experience in Telecommunications, Information Technology and Media Industries. Mr Jafari was the Group President of EDS’ Global Communications, Media and Entertainment Industry Group. He is a Board member of the ITU TELECOM and the Chairman of the Advisory Board for India, China and America Institute. Reza Jafari received his MBA from Indiana University.
Article abstract
Discussion of the digital divide often neglects the fact that it is a symptom. The economic divide is the cause. To close the gap, to foster digital and social inclusion, we must address the economic divide. The digital divide and the economic divide form a self-perpetuating vicious cycle. Multifaceted issues, involving many groups – the private sector, policy makers, regulators, civil society and customers – must be resolved. Any solution calls for an ongoing, productive, collaborative, dialog between these groups.
Full Article
For several years now, we have been debating the digital economy, digital divide, digital content and digital lifestyle. The digital world enabled, by and large, by the proliferation of the World Wide Web or the Internet, has changed the way we live, work, play, learn and communicate. However, the digital world is not yet available to many of the world’s citizens. The gap still exists. We must continue our mission. Much has been written, said and recorded on the importance of the digital divide and the need to close the gap between the ‘haves’ and ‘have nots’. The centrepiece of these debates has been the access to Information and Communica-tion Technology (ICT) by citizens of the developing world. Absent from the discussion, though, is the fact that the digital divide is the symptom and the economic divide is the cause. To close the gap and foster digital and social inclusion, then, we must address the eco-nomic divide. Today, the digital divide and the economic divide form a self-perpetuating vicious cycle, to the detriment of the citizens of the developing world. Closing the economic divide will have a significant impact on the achievement of the UN’s Millennium Development Goals 2015. I strongly believe that access to Information and Communication Technology should be considered a basic human right. I strongly advocate the creation of enabling conditions to promote this principle. One of those enabling conditions involves our focus on the economic divide as the cause of the digital divide. This focus, in turn, will result in digital and social inclusion. Economic development Many members of the ICT industry realize and have long been involved in and contributed to the economic development of our communities and our nations. Despite the crisis in our industry, during the past 15 years we have created more than one million jobs worldwide through the proliferation of mobile communications and e-commerce. Thousands of jobs were created in the developing world and emerging markets. This is just the beginning. According to a study in Vodafone’s the Policy Paper Series (March 2005), mobile communications and teledensity have contributed positively to the quality of life indicators in many developing countries. These indicators include longer life expectancy, lower infant mortality and lower literacy. This contribution is not limited to the developing world. The Ovum report, The Economic Contribution of Mobile Services in the European Union before its 2004 Expansion, indicates that mobile services industry in the EU15 generated a GDP contribution of €105.6 billion in 2004. The emerging markets are the fastest growing ICT markets in the world. This promises to raise the standard of living for millions of people. According to a 2004 McKinsey study, potential users per region amount to: – China and India: 25 per cent of population, or 605 million people; – Pacific Rim: 34 per cent of population, or 441 million people; – Middle-East and Africa: 18 per cent of population, or 211 million people; – Latin America: 34 per cent of population, or 188 million people. Data communications can contribute to this growth. Many applications such as mobile workforce management, e-learning, e-government and electronic commerce contribute to more efficient service delivery and a better user experience and standard of living. Obstacles We still face many obstacles. Multifaceted issues, involving a multitude of entities, must be resolved. Our eco-system consists of the private sector, policy makers, regulators, civil society and our customers. Thus, any solution requires these groups to collaborate and sustain an ongoing constructive debate, a productive dialogue. Each entity has to play its role to guarantee success. We need operating mechanisms that continuously seek to improve our ability to deliver on our commitments and address the basic concerns. The members of our eco-system need to consider: – Customers (consumers and enterprise customers) need to be at the centre of our business models. We all need to listen to them – we are here because of them. Our customers should be active participants in this eco-system, bring their concerns and needs to the attention of policy makers, regulators and the private sector and recommend alternative solutions; – The private sector should make a long-term commitment to deliver value to their customers, not only to short term, one sided, gains. That is not to say that we should offer services without a reasonable profit. If we do, our customers and their employees will suffer in the long run. A viable business case that delivers positive results for all stakeholders is needed; – Regulators should be flexible, facilitate service offerings and guide the quality of services. Regulations should facilitate, guide and promote progress, not hinder growth; – Policy makers should encourage investment through incentives and innovative tax systems. They should promote private/public sector partnerships and comparative advantage with other nations. They should avoid isolationism and short-sighted political games. Choice is one of the foundations of freedom and democracy. We must offer citizens a choice when addressing their needs; – Civil Society has to develop guidelines, training and educational programs; – Media and the Press have a key role informing consumers and other members of the eco-system; – Law Enforcers need a zero tolerance policy for cyber-criminals to ensure our security. They need special training to deal with these crimes. The ICT industry is growing rapidly and has many stakeholders. A limited few should not control the velocity of this momentum. Our eco-system needs strong leadership with integrity to build mutual trust. Fulfilling the promise of the future will call for cooperation, recognition of mutual interests, and ongoing dialogue. The success of the next phase of our industry’s growth depends upon what we do now to eliminate the digital divide and upgrade the world’s standard of living. We need to show the world that ICT is a dynamic and exciting sector, and that we are an engine of progress and economic development, and that ICT contributes significantly to the global economy’s sustainable growth and to a better life. The destiny of our industry is a matter of choice, not a matter of chance. Let us make the choice together and fulfil our commitments. Let us show the world that there are no limits to growth and progress. We can do it together!
