Introduction

As the average global mobile phone penetration rate approaches 83 mobile phones per 100 people, it is increasingly clear that ubiquitous broadband access provision is the next frontier in information and communication technologies (ICT) for all developing countries.

Broadband access is a key driver of economic and social development. Its effects are profound and pervasive. The direct economic benefits of broadband stem from the immediate value of the investments made in building the network through increased expenditures in industries such as construction and equipment supply. This, in turn, creates a multiplier effect in industries — such as telecommunications and media — that rely on the network. Indirectly, an investment in a broadband network has three major benefits. First, foreign investors — including multinational companies — are more likely to gravitate toward markets that are supported by a solid, fast, and reliable broadband infrastructure. Second, in the long term, greater broadband connectivity can lead to improvements in economic productivity and business efficiency (i.e., economic transformation towards the services sector). Third, investment in broadband infrastructure facilitates human capital formation by easing access to and the transfer of knowledge. This, in turn, promotes the development of a more highly-skilled workforce, leading to further improvements in efficiency and productivity.

Estimates show that if broadband penetration in emerging markets reaches approximately 50 per cent (the average level of European penetration), it would generate approximately 10 to 15 million jobs and create an estimated US$400 billion in GDP. In Asia alone, projections suggest that roughly 5 to 8 million new jobs would be created and that approximately US$150 to 180 billion would be added to the GDP (equivalent to a 1 per cent increase in GDP).

People in ASEAN Want to be Online

ASEAN member states can be categorized into three groups in terms of their mobile, broadband, and PC penetration levels, as shown in Figure 6.1.