Increasing Broadband Internet Penetration

In the OIC Member Countries

102

For example, operators could request a reduction in customer subscription taxes usually

added to the customer monthly payment. The possibility of extending the terminal tax

exemption mentioned above to the purchasing of a service subscription could be quite

powerful in improving affordability. Right now, when purchasing a mobile wireless

subscription a consumer pays 3% in a telecommunications specific tax and 18% in VAT. Since

both taxes are compounded, they amount to approximately 21% of the monthly subscription

cost. A tax exemption could significantly improve broadband affordability. If the regulator

agrees with such a recommendation, it would be presented to the Ministry of Digital Economy

and Postal Services, which would then draft a recommendation to the Council of Ministers, the

authority that needs to approve such a measure.

Let’s now turn to digital literacy. While lacking survey data on the country’s digital literacy, it

is safe to assume that there is a direct relationship between overall literacy and digital literacy.

Literacy is a foundational skill needed to attain higher levels of learning in all domains.

According to UNESCO, in Cote d'Ivoire, the literacy rate is 48% among the youth population;

this is lower than the average youth literacy rate in other lower middle-income countries.

Furthermore, nearly 34% of fifth grade students in Cote d’Ivoire performed below the lowest

performance benchmark in reading. In sum, Cote d’Ivoire is scoring at a low level in literacy,

and is reported as having low performance standards in the educational system.

These metrics would necessarily have an impact on the population’s ability to conduct the

most basic broadband Internet tasks such as search for information, utilize e-government

platforms and perform financial transactions. To deal with this barrier, the government is

implementing two initiatives:

“One citizen, one computer, one connection”: This initiative is based on the premise

that there is a direct relationship between social inclusion, digital literacy and

ownership of a device connected to the Internet. The program relies on the schools as

the anchor point for three reasons: a) there is a school in every village; b) schools have

multimedia centers to provide training on digital literacy; and c) given the high

illiteracy rate, it considers that literacy comes hand in hand with digital literacy.

The program works as follows: the broadband service provider is responsible to

provide both the terminal and the broadband connection. There is tax exemption for

acquiring the PC. As a result, total prices range between 50,000 CFA (US$ 83) and

150,000 CFA (US$ 249). Additionally, the program allows for payment in installments

to facilitate affordability.

Rural multimedia centers: A related initiative is the construction of multimedia centers

in all rural schools. This program is under the responsibility of the

Agence Nationale de

Service Universel de Télécommunications

, which funds the deployment of such centers

to link the literacy programs to digital literacy.