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Increasing Broadband Internet Penetration

In the OIC Member Countries

89

countries, the demand gap ranges between 10% and 20% (Chad, Indonesia, Kazakhstan, Oman,

Qatar, Sudan, and Uzbekistan), while in the rest of countries, the demand gap exceeds 20%.

When prorated by population, the mobile broadband demand gap across the OIC Member

Countries varies widely (see table 34).

Table 34: OIC Memb r Countries: Mobile broadband demand gap (2015)

Mobile Broadband

Coverage (3G) (

%

)

Mobile Broadband

Penetration (

%

)

Mobile Broadband

Demand Gap (

%

)

OIC Asian Region

62.69

29.62

33.07

OIC African Region

57.71

17.30

40.41

OIC Arab Region

74.30

42.09

32.21

Total OIC

64.16

29.41

34.75

OECD

97.78

87.17

10.61

Sources: GSMA Intelligence; International Telecommunications Union; Telecom Advisory Services analysis

The difference between the mobile broadband demand gap among OECD countries and OIC

Member Countries is clear. Among industrialized countries, the mobile broadband supply and

demand are close to reaching equilibrium with only 10.61% of the population covered by

networks not acquiring the service. The situation is more worrisome among the OIC Member

Countries: while the gap reaches 40.41% among African countries, in the case of Asian and

Arab OIC Member Countries, the demand gap hovers at around 33%, bringing the prorated

average for the whole community at 34.75%.

The factors driving these high numbers? In Chapter III, it was explained that the residential

broadband demand gap is the result of three obstacles:

Limited affordability: certain portions of the population either cannot acquire a

device or purchase the subscription needed to access the Internet,

Lack of digital literacy,

Lack of relevance or interest: the value proposition of applications, services, and

content does not fulfill a need of the adopting population.

A compilation of research on adoption barriers indicates that affordability remains a

preeminent variable in explaining the non-adoption of broadband, particularly in emerging

countries. Among the OIC Member Countries, approximately 9 % of non-adopters have

responded that affordability is one of the reasons for not acquiring broadband, while 6%

mentioned lack of digital literacy and 14% responded that they either did not need the

Internet or argued that a cultural barrier prevented them from acquiring the service (see table

35).

Table 35: Reasons of broadband non-adopters for not purchasing broadband (percentage of

responses) (%)

Country

(year of

survey)

Cost is too high Lack of

Digital

Literacy

Do not need

it or

“cultural

reason”

Privacy or

security

concern

Acces

Internet

elsewhere

Service is

not

available

Service Handset

Bahrain (2015)

3.70

4.20

6.80

10.30

0.20

3.80

Egypt

1.60

1.90

0.60

1.60

1.30

56.40