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ITU releases latest global ICT pricing and penetration data

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Geneva, 15 September 2011 – New figures
released today by ITU show that information
and communication technology (ICT) uptake continues to accelerate worldwide, spurred
by a steady fall in the price of telephone and broadband Internet services,

The new data, released in
ITU’s flagship annual ICT report ‘Measuring the Information Society 2011’, rank
the Republic of Korea as the world’s most advanced ICT economy, followed by
Sweden, Iceland, Denmark and Finland.

A key feature of the report
is the ICT Development Index (IDI)*, which ranks 152 countries according to
their level of ICT access, use and skills, and compares 2008 and 2010 scores.
Most countries at the top of the ranking are from Europe and Asia Pacific. The
United Arab Emirates and Russia rank first within their respective regions and
Uruguay ranks highest in South America. Saudi Arabia, Morocco, Viet Nam, and
Russia were some of the most dynamic countries between 2008 and 2010, with all
of them making substantial improvements in their IDI ranks.

All countries included in
the IDI improved their scores this year, underlining the increasing pervasiveness
of ICTs in today’s global information society. “While the IDI leaders are all from
the developed world, it is extremely encouraging to see that the most dynamic
performers are developing countries,” said Dr Hamadoun Touré, ITU Secretary-General.
“The ‘mobile miracle’ is putting ICT services within reach of even the most disadvantaged
people and communities. Our challenge now is to replicate that success in
broadband.” This report shows that while ICT and income levels are closely
related, getting the right public policy mix can drive faster take-up and a
number
of countries, including Australia, Japan, New Zealand and the Republic of Korea
have higher IDI levels than their income level would predict.

Mobile now ubiquitous

The spread of mobile
networks in developing countries remains buoyant, with 20 per cent growth in
mobile sub scri ptions over the past year and no signs of a slowdown.

In developed countries,
on the other hand, mobile cellular penetration has reached saturation, with
average penetration now over 100% at end 2010, compared with 70% in developing
countries. With more than five billion sub scri ptions and global population
coverage of over 90%, mobile cellular is now de facto ubiquitous.

Mobile broadband (‘3G’)
services are also spreading quickly; by end 2010, 154 economies worldwide had
launched 3G networks. Wireless broadband Internet access remains the strongest
growth sector in developing countries, with mobile broadband growing by 160%
between 2009 and 2010. Countries registering the highest gains in the IDI ‘ICT use’
sub-index are mostly those which have achieved a sizeable increase in mobile broadband
sub scri ptions.

Conversely, the number of
dial-up Internet sub scri ptions has been decreasing rapidly since 2007 and,
based on current trends, the ‘death of dial-up’ is expected to become a reality
over the next few years.

Affordability improves, but developing world still
paying too much

Globally,
telecommunication and Internet services are becoming more affordable. According
to the 2010 ICT Price Basket (IPB), which spans 165 economies and combines the
average cost of fixed telephone, mobile cellular and fixed broadband Internet
services, the price of ICT services dropped by 18% globally between 2008 and
2010, with the biggest decrease in fixed broadband Internet services, where
average prices have come down by 52%.

All economies in the IPB top
ten have high GNI per capita, and, with the exception of the United Arab
Emirates, all are from Europe and Asia Pacific. In developed countries, average
prices for ICT services correspond to no more than 1.5. % of monthly per capita
income, compared with 17% in developing countries. But while broadband prices declined
sharply worldwide, a high-speed Internet connection remains unaffordable in
many low-income countries. For example, in Africa at end 2010, fixed broadband
services cost on average the equivalent of 290% of monthly income, down from
650% in 2008.

Big disparities in speed and service quality

Comparing fixed- and
mobile broadband technologies and services, the report also finds huge
differences in network capacity, speed and quality.

In many developing
countries, while the minimum speed for broadband (256 kbit/s) may be
sufficient for email and other very basic services, it is inadequate for graphics-rich
data-intensive applications and services. In addition, the report notes that the
actual speed experienced by both fixed- and mobile broadband customers is often
much lower than the advertised speed, and calls on ICT regulators to take steps
to encourage operators to provide consumers with clearer information on
coverage, speed and prices.

“A new digital divide is
unfolding between those with high-speed/capacity/quality access – as is the
case in many high-income countries – and those with lower
speed/capacity/quality access, as is the case in many low-income countries,” said
Mr Brahima Sanou, Director of ITU’s Telecommunication Development Bureau.
“Policy-makers should act swiftly to facilitate the spread of broadband and
ensure that broadband services are faster, more reliable and affordable.”

The report also points to
important qualitative differences between fixed- and mobile broadband services.
The average speed of a mobile broadband sub scri ption does not usually match
that of a high-speed fixed sub scri ption and usually includes data caps, unlike the
‘unlimited data’ fixed broadband offers that are now widely available. This
represents a challenge for countries where mobile is the only broadband access
technology available to end users – which is the case in many developing countries.

Targeting youth could be transformational

ITU research indicates
that targeting students may be the most effective way to increase Internet use
in developing countries. The Internet is only used by around 21 per cent of the
population in the developing world, compared with almost 70 per cent in
developed countries.

The Measuring the Information
Society 2011
report suggests that the main barriers to Internet use are not
always related to infrastructure and price. Usage patterns show major
differences related to education, gender, income, age and geographical location
of users (urban/rural). For example, there is remarkably little difference in
patterns of Internet use among highly educated, high-income individuals across
the developing and developed worlds. People with higher educational degrees use
the Internet more than those with a lower level of education, and in most
countries more men than women are online.

 Young people (below the age of 25) are online more
than older people, and there is a higher level of Internet use among those
currently in school compared with those no longer studying. Assuming that
people will continue using the Internet once they have become accustomed to
being online, those currently enrolled at school or university are more likely
to be future Internet users, too. For young people all over the world, social
networking and user-created content like blogs have become key drivers of
Internet uptake.

Given that 46 per cent of
the population in developing countries is below the age of 25 (representing
more than 2.5 billion people), the report suggests that one of the most
effective ways to increase Internet use in these countries is by targeting the
younger generation – for example through connecting schools and other educational
institutions, and improving enrolment rates.

# # #

* Note to editors:

The IDI combines 11
indicators into a single measure that can be used as a benchmarking tool
globally, regionally, and at national level, as well as helping track progress in
ICT development over time. It measures ICT access, use and skills, and includes
such indicators as mobile cellular sub scri ptions, households with a computer,
fixed and mobile broadband Internet sub scri ptions, and basic literacy rates.
For the first time this year, the IDI’s ‘ICT use’ sub-index grew more than the ‘ICT
access’ sub-index, reflecting the fact that many countries have reached
saturation levels in terms of basic ICT infrastructure and are becoming active
ICT users.

An Executive Summary of the report can be found at:
www.itu.int/ITU-D/ict/publications/idi/2011/

High resolution photos can be found at: www.itu.int/net/pressoffice/press_releases/2011/31_cover.aspx

Journalists wishing to receive a free copy of the
full report in PDF format should contact the ITU Press Office at
pressinfo@itu.int.

For more information, please contact:

Sanjay Acharya

Chief,
Media Relations and Public Information,

Tel: +41 22 730 5046

Mobile: +41 79 249 4861

E-mail: pressinfo@itu.int

Susan Teltscher

Head,
ICT Data and Statistics Division

Tel: +41 22 730 5937

Mobile: +41 79 5991409

E-mail: indicators@itu.int

About
ITU

ITU
is the leading United Nations agency for information and communication
technology. For over 145 years, ITU has coordinated the shared global use of
the radio spectrum, promoted international cooperation in assigning satellite
orbits, worked to improve communication infrastructure in the developing world,
and established the worldwide standards that foster seamless interconnection of
a vast range of communications systems. From broadband networks to
new-generation wireless technologies, aeronautical and maritime navigation,
radio astronomy, satellite-based meteorology and converging fixed-mobile phone,
Internet and broadcasting technologies, ITU is committed to connecting the
world.

www.itu.int