Double-Digit Mobile Growth in South Asia : World Bank

06th December 2009, www.nation.lk

The South Asia region has experienced a significant expansion in the reach and use of ICT networks and services over the past decade but still lags behind many other countries in overall ICT performance, say World Bank Group experts convened in Sri Lanka for the South Asia regional launch of Information and Communications for Development 2009: Extending Reach and Increasing Impact (IC4D).

This regular publication of the World Bank Group addresses the critical role that information and communication technologies (ICT) play in economic development. It found that regional improvements in ICT affordability in South Asia have led to 500 million new subscribers accessing telephone services and double digit growth in subscription to mobile telephone in each country in the region since 2004.

Globally, the report found that access to affordable, high quality internet and mobile phone services enables development across all levels of the economy and society. In fact, for every 10 percentage-point increase in high speed Internet connections there is an increase in economic growth of 1.3 percentage points. The report also identifies the mobile platform as the single most powerful way to reach and deliver public and private services to hundreds of millions of people in remote and rural areas across the developing world.

Broadband in particular plays an essential role in providing the basis for local IT services industries, which create youth employment, increase productivity and exports, and promote social inclusion. Report authors say that developing countries should seize this largely untapped opportunity, with less than 15 percent of the potential global market for IT services industries currently being exploited. In 2007, this market represented nearly US$500 billion.

In South Asia, reformed regulatory frameworks in the region now promote competition and private investment in the telecommunications sector. The region has also become a strong player in the global information and innovation economy. While India’s success in the information technology (IT) and IT-enabled services (ITES) sectors is well known, Pakistan and Sri Lanka have also emerged as potential destinations for offshore services. In addition, the use of ICT services continues to deepen, with governments across the region designing and implementing programmes to both automate and transform public service delivery.

However, more needs to be done to realise the development impact of ICT in the region. The report gave each of the South Asian countries scores of 3 or 4 on a scale of 1-10 in overall ICT performance, a measure that includes access, affordability, and adoption. This is because more advanced ICT services such as the Internet and converged services are not yet widely available compared to other regions. Given the low income levels in South Asia, there is still room to improve affordability and expand the addressable market. The use of ICT by governments and in businesses will have to deepen to have a lasting impact on improved transparency and service delivery.

“These technologies offer tremendous opportunities. Governments can work with the private sector to accelerate rollout of broadband networks, and to extend access to low-income consumers,” says Mohsen Khalil, World Bank Group Director for Global Information and Communication Technologies. “Governments should proactively encourage the development of local IT services industries through policies and incentives directed at entrepreneurs and the private sector, and through investments in skills and infrastructure.”

“Access to broadband completes the information foundation for a modern economy and should be a priority in national development plans.” says Katherine Sierra, World Bank Vice President for Sustainable Development. “Governments can play a key role in expanding broadband access by policies and incentives that encourage competition and private investment, she added.”