who do not, calling for continuous efforts to reduce costs and accelerate network and service deployments to achieve a truly inclusive digital society.Twenty years ago, only one per cent of the global population had a mobile cellular subscription, and 11 per cent had a fixed telephone subscription. Today, mobile cellular penetration is approaching saturation with nearly seven billion subscriptions worldwide, representing a 96 per cent penetration level. Global fixed- and mobile-broadband penetration had reached 9.8 and 32 per cent, respectively, by the end of 20141. While fixed broadband showed only cautious growth between 2013 and 2014, mobile-broadband subscriptions were three times higher than wire-line broadband connections worldwide and are growing fastest in the developing regions, where growth rates are twice as high as in developed regions. Mobile broadband has helped bring high-speed data and Internet services to unconnected areas2.But much more needs to be done to achieve universal access to Internet. In particular, the broadband divide between developed and developing countries remains large, with 82 per cent and 21 per cent penetration, respectively, for mobile broadband and 27.5 per cent and 6 per cent for fixed broadband3. ITU has estimated that there were 711 million fixed broadband subscriptions globally by the end of 20144. One industry analysis firm forecasts that global fixed broadband subscriptions will reach 920.2 million by 20195, driven by consumer demand for high-speed Internet access and the proliferation of Internet-connected devices within the home and at the workplace.Although 3 billion people worldwide were using the Internet by the end of 2014, and users are joining at a fast pace, with nearly a billion new users added over the last four years, accessing the Internet still remains a privilege. Indeed, 4.3 billion people were not online by end of 2014, of whom 90 per cent live in the developing world. Turning to mobile coverage, 450 million people still live out of reach of a mobile signal without access to the digital world6. Many millions more of ICT users lack the necessary digital literacy to have a meaningful Internet experience or access higher-paid, digitally literate jobs needing digital skills.This is where ICT policies and regulations have a crucial role to play to create an enabling environment to bridge the digital divide. Regulation can enhance innovation and investment as well as infrastructure development, and can impact ICT services uptake and, in turn, affect economic growth and social development due the spillover effects of ICTs on other sectors of the economy. While there is no unique recipe for effective regulation, countries that have created an enabling policy and regulatory environment by following market developments and adapting and reforming their policy and regulatory frameworks to meet the requirements of the changing ICT environment are generally those that have shown higher levels of ICT adoption (see Figure 1.2).Setting the conditions for ICT markets to flourish and remain vibrant, to attract investment and to foster innovation continues to be a high priority in most countries, alongside expanding universal access to the digital economy. This is why more than 140 countries have adopted national broadband-related policies, plans and digital agendas precisely recognizing the cross-sectoral and pervasive nature of ICTs on all aspects of the digital economy. More analysis of the impact of broadband policies and regulation on getting people connected is available in Sections 1.3 and 1.4.Taking connectivity to the next level: smart devices and network growth But it is not just the humans who are getting connected, things are also becoming smart. Sensors are deployed in a number of places to quantify (measure) almost anything from human, animals to machine activities. The Internet of Things (IoT), which connects many things to the Internet, and Machine to Machine (M2M) communications through cellular mobile networks are predicted to become the fastest-growing parts of the industry in terms of traffic. Many analysts agree that the Internet of Things (IoT) is now coming of age, and foresee strong growth in the IoT, which will also put additional pressure Trends in Telecommunicaiton Reform 2015 3 Chapter 1