Christine Zhen-Wei Qiang
Broadband Beats Mobile Phones in Boosting GDP
Mobile phones are a ticket out of poverty for millions. No argument there. But check out this global ICT study by Christine Zhen-Wei Qiang, an economist at the World Bank for a surprising comparison with broadband Internet.
She found that for every 10 percentage points increase in broadband penetration, there is an incremental increase in economic growth of 1.3 percentage points. This compares to the 0.8 percent increase for mobile phones. I would not have expected such a great differential - almost a 2x greater GDP boost via broadband than mobiles,
Yet, because of the greater reach and density of mobile phone usage - more mobiles than light bulbs in Uganda - they have a larger aggregate effect than broadband, for now. Soon though, we should see the new broadband connections in East Africa competing with mobile phones in penetration and usage.
Back at the macro telecommunications level, developing countries received a greater boost from all ICT formats than developed countries. Christine says this is because telecommunications services in the developing world have more to gain when ICT helps public and private sectors:
- improve the functioning of the markets,
- reduce transaction costs,
- and increase productivity through better management.
Like what you read? Then subscribe to ICTworks updates via RSS, Email, or Twitter
Wayan Vota
InveneoWayan Vota is a technology expert focused on appropriate information and communication technologies (ICT) for rural and underserved areas of the developing world. He is a Senior Director at Inveneo and is the editor of ICTworks


A student at jkuat i need a laptop what are my chances? kindly respond
regards
I absolutely concur with papaedu, What else could have brought us this far? we need to embrace the concept bearing in mind we have great...
Very cool post, Lindsay. Here in Haiti, some teachers and principals seem to want computers just for the sake of having them. There's a...
Computers, if they can be supplied and teachers know what to do with them, should not be a waste of money poured down the drain for...
To reach pastures green and still waters calls for leaders who can see beyond the confines of a desert.a good business person should be...