This leap forward has often been aided by government policies to promote deployment. However, greater access to these networks cannot, in itself, increase the availability and adoption of new ICT services.
As with networks, new ICT services can also overtake traditional ones. For example, in Kenya and the Philippines, more than half of the adult population uses mobile money for transactions—far more than those with access to traditional banking services. Yet, despite the benefits these new services can bring to underserved or unserved populations, this success has not been replicated in other countries. Beyond mobile money, policymakers face a host of other new opportunities to transform how businesses operate, how governments deliver services, and how citizens interact, but they may need to rethink their approach to policy.
In many countries, internet policy is a continuation of traditional telecommunications regulation, which focuses primarily on infrastructure. Specifically, telecommunications regulation in general aims to extend network coverage through universal access or service programs, as well as introduce mobile and fixed-line competition to provide new services and cap prices. This approach has often been extended to the internet, with access schemes to reduce the digital divide, alongside competition to increase speed and/or reduce the price of broadband. These policies have been successful in expanding network coverage—as with voice services, broadband availability is driven by infrastructure investment, which in turn drives its adoption by end users.
However, the availability and adoption of new ICT services—which cover a wide variety of sectors, such as banking, education, and healthcare—cannot be promoted through infrastructure alone. For example, many countries boast the network coverage and penetration of Kenya and the Philippines, but none have come close to replicating their success with mobile money. Indeed, rather than providing a roadmap, these successes are more likely to have created obstacles in other countries, as different stakeholders position themselves to either reap the benefits of the new services or stifle the resulting competition.
The policies needed to promote these services must consider fundamental elements, such as digital authentication for personal services and data privacy standards for sensitive services, as well as sector-specific regulations to facilitate services like mobile banking and online banking. Furthermore, the services themselves must drive infrastructure needs—for example, distance learning is an effective way to reach remote students, but video requires high bandwidth and quality of service. Meeting these infrastructure needs must stem from a broader approach to derived services.
This broader focus on services must, in turn, be driven by a high level of government, capable of considering the wide range of sectors whose services can migrate online, rather than focusing solely on regulating telecommunications services.
Author: Michael Kende, Partner at Analysys Mason
