Increasing Broadband Internet Penetration
In the OIC Member Countries
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Figure 24 presented the average pricing across the OIC Member Countries of four broadband
offerings in US dollars: a) most economic fixed broadband monthly subscription; b) most
economic mobile broadband postpaid monthly subscription for smartphone (500 MB cap), c)
most economic mobile broadband postpaid monthly subscription for USB (1 GB cap), and d)
most economic mobile broadband prepaid monthly subscription for smartphone (500 MB
cap). In all four cases, pricing has been declining in large part due to competitive intensity, as
discussed in the supply section above. The country level pricing trends helps identifying some
of the reasons why non-adopters mention cost as being a dominant barrier. For example, in
Morocco, where close to 18% of consumers indicated that service cost was a key adoption
barrier, pricing of the prepaid plan for smartphones has been relatively stable between 2013
and 2015 (it actually increased from US$ 11.47 to US$ 11.78). The Herfindahl-Hirschman Index
for Morocco’s mobile broadband industry is 3,756 indicating moderate competition. At the
opposite end, only 3.70% of Bahraini mobile broadband non-adopters single out pricing as a
barrier. Monthly price of the prepaid mobile broadband product dropped from US$ 13.30 in
2013 to US$ 7.98 in 2015. The Herfindahl-Hirschman Index for Bahrain mobile broadband
industry is 3,357. To sum up, competition leads to price reduction, which, in turn allows more
vulnerable consumers to acquire broadband service.
Potential risks related to the increased use of broadband
While this area is not generally well researched in the literature, it is beginning to be
investigated particularly in those countries that have achieved high broadband penetration,
such as Korea and the United States.
The first risk is the degradation of human relationships resulting from intense digital
consumption. Americans spend an average of five and a half hours a day with digital media,
more than half of that time on mobile devices, according to the research firm eMarketer.
Among some groups, the numbers range much higher. Once out of bed, users check their
phones 221 times a day—an average of every 4.3 minutes—according to a UK study. This
number actually may be too low, since people tend to underestimate their own mobile usage.
Research by Sherry Turkle (2015) argues that the digital revolution, by its intensity, is
degrading the quality of human relationships. Turkle finds the roots of the problem in the
failure of young people absorbed in their devices to develop fully independent selves. She
argues that digital devices disrupt the ability of children to separate from their parents, and
raise other obstacles to adulthood. Because they are not learning how to be alone, Turkle
contends, young people are losing their ability to empathize. Along these lines, social media
offer respite from the awkwardness of unmediated human relationships.
The second risk, particularly among adolescents, is the decline in conducting other knowledge
gathering activities such as reading. In a research by Prof. Raul Katz (Katz, 2012), high school
students in the United States spend on average 554.80 minutes (or 9.25 hrs.) a day using
technology devices during the week. Of these, 279 minutes are spent in front of a PC and 191 in
front of a cellphone. Given the increasing capability of cellphones, it is expected that future
studies would yield a much higher time allocation to smartphones at the expense of the PC.