Drivers of Broadband Connectivity in Asia-Pacific Developing Economies

Broadband connectivity continues to be an important component of a digital economy. More so today with advanced Asia-Pacific economies gradually adopting emerging technologies (such as artificial intelligence (AI), big data, Internet of things (IoT), and cloud computing) for increasing productivity and welfare gains. High income countries have higher broadband connectivity access which enable emerging technologies to improve efficiency and innovation. Japan and the Republic of Korea are global leaders in access to broadband connectivity (fixed and mobile services). At the same time, these two advanced economies are also ranked highly in terms of the number of AI-related patent applications and cloud readiness (Japan was ranked 5th and Republic of Korea 7th in the world on cloud readiness) (ESCAP, 2017). Singapore's ‘smart nation' initiative which leverages on using technology to improve society's welfare is effective due to majority of its citizens' having access to broadband connectivity. As a result, the opportunities to leverage emerging technologies has significant socio-economic opportunities to Asia-Pacific developing economies.Yet, broadband connectivity continues to be a significant challenge in many Asia-Pacific developing economies. According to ITU data, 18 Asia-Pacific economies have less than 1⁄3 of their total population having access to mobile-broadband subscriptions, while 18 Asia-Pacific economies have less than 2 per cent of total population having access to fixed-broadband subscriptions (ITU, 2017). Consequently, if majority of a population does not have access to broadband connectivity, government services delivered online are effectively hindered. In addition, private sectors that rely on the Internet for delivering its core business services (such as online banking and e-commerce) will be severely constrained. Without connectivity, Asia-Pacific developing countries risk encountering a new emerging-technology divide, thereby severely hindering potential future development prospects. It therefore pegs the question, what is the most appropriate policy intervention to increasing access to affordable broadband connectivity in Asia-Pacific countries?