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 Friday, October 06, 2006

‘Teledensity‘, or the number of phones per 100 inhabitants, is one of the more useful measures of an economy’s ICT infrastructure. In the early 1990s, ITU carried out research on the progress of Asia-Pacific economies in achieving the ‘teledensity transition‘ in their fixed-line networks (see left chart). The ‘teledensity transition‘ may be defined as passing from a teledensity of 10 lines per 100 inhabitants to 30 per 100. Below a teledensity of 10, access to telecommunications is restricted to a small part of the population and few businesses and therefore the impact of telecommunications on the economy and society is limited. With a teledensity above 30 per 100, access to telecommunications is available to a majority of households and virtually all businesses. Thus, the use of telecommunications can be expected to have a comparatively greater impact on the economy and society.

For the developed economies in the Asia-Pacific region, it took between 8 and 35 years (average 16 years) to make the transition between 1935 and 1995, with a progressive acceleration over time. However, for a sample of developing economies in the same region, it took only between 2 and 6 years (average 3 years) to make the transition between 1995 and 2006 (see right chart).

The main difference between the two charts is that the developed countries made the transition using fixed-line networks, whereas the developing economies have invariably made the transition using mobile networks. Mobile networks can generally be rolled out much more quickly, and more cheaply, and are more convenient for users (e.g., through pre-paid cards). Furthermore, mobile networks are relatively ‘development-neutral‘, in the sense that developed economies made the mobile teledensity transition only marginally more quickly (2.6 years) than developing ones (3.1 years).

For more insights from telecom transition and digital opportunity in the information society, please consult the World Information Society Report 2006.