Global inclusion in the Internet could bring seven percent of the world’s population – 500 million people - above absolute poverty levels, and add US$6.7 trillion to global economic output, according to a new study by Strategy&, PwC’s strategy consulting business.
The study, for Facebook, encompassed 120 countries over a 10-year period and describes how the Internet could change as more people from developing markets get online. It examines how barriers to accessing the internet could be removed, and how the internet could change as more people from developing markets get online.
Despite the ongoing digital revolution, the number of new Internet subscribers, most of whom are in developing nations, has slowed in recent years, only growing in single digits since 2013. This leaves 4.3 billion people disconnected from a modern economy that would benefit by over US$6 trillion with their participation.
According to the report “Connecting the World”, bringing the whole world online would create huge benefits for developing countries and for businesses over the coming five years, including:
Social and economic improvement for over 4 billion people
An additional global economic output of US$6.7 trillion
A $400 billion growth opportunity for telecom operators
A $200 billion opportunity for content providers
Progress has been slow due to barriers including the cost of coverage, existing infrastructure speed and capacity, and the need to implement new infrastructure where it does not exist. The study finds that with retail Internet prices needing to fall nearly 70 percent to make the Internet affordable to 80 percent of the population, action is required across key areas of connectivity, content and the retail service to bring more people online:
Replacing current 2G networks with 3G or 4GLTE could bring a 60-70% reduction in the cost per MB to serve developing markets, making it profitable for operators to provide internet services, and opening up the internet to over 2bn people.
Providing content through a series of local high speed networks, would make it affordable for a further 300m people.
Offline distribution of content, including through national and regional data exchanges would improve access and affordability for a further 170m people
To learn more about Connecting the World: Ten mechanisms for global inclusion, visit www.strategyand.pwc.com/ctw. A copy of the global study is also available from the media contact. Additional multi-media assets are also available.
About the Connecting the World report: The report, “Connecting the world: Ten mechanisms for global inclusion” was prepared by Strategy&, part of the PwC network for Facebook Inc. to assess the barriers to Internet adoption and consider mechanisms that could accelerate Internet penetration in support of Facebook’s Internet.org initiative.
The Strategy& Digital Prosperity Project brings together leading experts to provide thought leadership at the intersection of technology and economics. The project has developed measures of digitization and digital maturity to better inform policymakers and business leaders on how to use digitization to further economic and social progress.
Director - Marketing & Communications, PwC Cyprus