Increasing Broadband Internet Penetration
In the OIC Member Countries
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On the consumer side, limited affordability is a critical adoption obstacle. Beyond the
competitive stimuli, the reduction of broadband service prices can be achieved through a
number of targeted public policy initiatives. These are generally implemented with the
objective of achieving universal broadband adoption. The underlying rationale for these
policies is that, beyond a competition model, government policies should be implemented to
further price reductions of broadband. One approach relies on state-owned
telecommunications operators to offer, under their public service imperative, a low-priced
broadband service.
Finally, addressing the digital literacy obstacle requires the implementation of programs that
build an understanding of the service offerings, and develop user confidence, explaining the
benefits of use, and understanding security and privacy constraints as well. In general terms,
four types of initiatives targeting digital literacy impediments exist: 1) inclusion of specific
digital training programs at all levels of the formal education system; 2) targeted digital
literacy interventions addressed to specific segments of the population, such as the elderly, the
disadvantaged or the rural population; 3) deployment of community access centers; and 4)
privacy and security training programs to build the levels of trust from consumers in order to
foster adoption of broadband.
The broadband situation in the OIC Member CountriesThirty-one percent of individuals residing in the OIC Member Countries access the Internet on
a regular basis. Internet penetration has been growing at a fast pace since 2008 when the gap
between these states and OECD (Organization for Economic Cooperation and Development)
countries has begun to narrow down. However, as of 2015, at this point the proportion of
Internet users in the OIC Member Countries (30.59%) remains half that of OECD countries
(77.24%). As expected, the percentage of Internet users varies significantly across the OIC
Member Countries. For example, Internet penetration in African OIC Member Countries
reaches 27.90%, while in Arab OIC Member Countries, it is 39.53%, and in Asian OIC Member
Countries, it is 28.05%.
Fixed broadband penetration within the OIC Member Countries has reached 14.95% of total
households, compared to 78.07% in OECD countries. In addition to the significant difference
between both groups of countries, it should be noted that fixed broadband among the OIC
Member Countries has not been increasing at a pace comparable to Internet adoption. On the
other hand, mobile broadband penetration has reached 29.41% of total population, compared
to 87.17% for OECD countries. In this case, the penetration growth trends indicate a slowing
down trend among OECD countries (which implies a gradual saturation) and an acceleration
among the OIC Member Countries, which reveals a convergence in adoption between both
groups of countries.
The fixed broadband market structure in the OIC Member Countries exhibits, in the aggregate,
a moderate level of competitive intensity. Of the countries with available information, thirteen
have three or more fixed broadband service providers (an indication of sustainable