The Inclusive Internet Index 2018: Executive summary

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The Inclusive Internet Index 2018 Executive summary Written by

The Inclusive Internet Index 2018: Executive summary

Overview

Key findings

The Inclusive Internet Index, commissioned by Facebook and conducted by The Economist Intelligence Unit, returns for its second year. Expanded to cover 86 countries, up from 75 in 2017, the index provides a rigorous benchmark of national-level Internet inclusion across four categories: Availability, Affordability, Relevance and Readiness. This year’s index, which covers 91% of the world’s population, is published alongside a new global Value of the Internet Survey, which polled 4,267 respondents from 85 countries, from Singapore and Switzerland to Cambodia and Ethiopia, to gauge perceptions on how Internet use affects people’s lives. This executive summary presents the index and survey highlights.

Internet connectivity grew 8.3% over the past year, with a 65.1% increase in low-income countries. In the 70 countries included in both the 2017 and 2018 indices, the percentage of households connected to the Internet increased on average from 44.9% to 48.6%, growing by 8.3%. Progress was fastest in low-income countries, where the proportion of households with Internet access grew from 8.0% to 13.2%, a 65.1% improvement, with the largest year-on-year increases in Rwanda (490.8%), Nepal (138.1%) and Tanzania (87.8%). The mobile Internet gap between the rich and poor is shrinking. The availability of mobile Internet services is an especially vital component of inclusion in low-income countries, where fixed-line Internet access is expensive or inaccessible. This year’s index reveals that the coverage of 4G networking services grew significantly, as networks in low-income countries are being upgraded. Meanwhile, the cost of mobile connectivity is also falling. In low-income countries, the average cost of a 500MB mobile broadband connection fell from 12.1% of monthly income in 2017 to 10.0% in 2018, a 17.3% cost reduction. The gender gap in Internet inclusion is still far too pervasive. On average across the indexed countries, men are 33.5% more likely to have Internet access than women, and this gap is substantially more pronounced in lower-income countries. More men have access to the Internet than women in 69 out of the 86 countries included in the index. But governments have tools at their disposal to improve the enabling environment for women’s Internet usage, including setting gender-specific targets in national digital plans, embedding Internet access in wider gender equality plans, targeting women and girls in ICT skills training programs and making careers in ICT more attractive to them.

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© The Economist Intelligence Unit Limited 2018


Internet use is empowering, especially to citizens in Asia, the Middle East and Africa. More than half of Internet users surveyed report that it has helped them to become more independent (53.9%). This empowerment is more keenly felt in Asia, the Middle East and Africa. Some 68.3% of South Asian respondents say the Internet has helped them to become more independent, and 69.3% say it has given them the confidence to express themselves. Because of such gains, Internet access is viewed as far more than a convenience or a utility; 67.1% of survey respondents believe that access to the Internet should be a “human right”. Privacy and security concerns are limiting the use of the Internet, especially in Europe. Concerns about information security and privacy hamper Internet inclusion, the survey found. Less than half of respondents worldwide feel at least “somewhat” confident that their activity online is private. European Internet users are the least trusting of Internet privacy, with 60.8% saying they are not confident in it. In all, 85.2% of respondents say privacy concerns have limited their use of the Internet, while 46.3% say the same of security fears. The aim of the Inclusive Internet Index project is to provide a common dataset that researchers and policymakers can use to investigate inclusion in their countries. To explore the index and download the data, visit theinclusiveinternet.eiu.com.

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The Internet is a tool of unprecedented power, but if the ability to use and benefit from it is unevenly distributed, it could serve to deepen inequality.

Introduction

The Inclusive Internet Index was conceived as a contribution to a global effort to narrow the ”digital divide”. Launched in 2017, it seeks to measure the extent to which the Internet is not only accessible and affordable to all, but also “relevant to all, allowing usage that enables positive social and economic outcomes at individual and group level.”1 The index includes, but goes beyond, conventional metrics of Internet access by measuring a richer array of factors, including affordability, relevance to people’s lives, and the extent to which policies and other factors support its use. Measuring Internet inclusion at the country level requires understanding usage across income levels and demographic groups, ranging from technical factors like the number of Internet-connected households, the penetration of mobile cellular and broadband subscriptions, broadband speed, bandwidth, electricity access, and the availability of public WiFi. It also requires indicators measuring the relevance and usefulness of the The top ten countries in the Inclusive Internet Index 2018 by income bracket High income Rank

Upper middle income Score/ 100

Rank

Lower middle income Score/ 100

Rank

Low income Score/ 100

Rank

Score/ 100

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Sweden

89.9

1

Bulgaria

82.4

1

Ukraine

75.8

1

Tanzania

54.6

2

Singapore

89.1

2

Russia

80.7

2

Mongolia

72.9

2

Senegal

54.4

3

United States

86.9

3

Romania

80.1

3

Vietnam

72.4

3

Nepal

54.3

4

Denmark

86.8

4

Malaysia

78.7

4

India

69.0

4

Uganda

52.0

5

South Korea

85.9

5

Argentina

78.6

5

Indonesia

68.0

5

Rwanda

51.8

6

France

85.4

6

Thailand

77.8

6

El Salvador

67.5

6

Ethiopia

47.0

7

United Kingdom

85.3

7

Brazil

77.6

7

Sri Lanka

66.4

7

Mozambique

46.2

8

Chile

85.1

8

Colombia

75.9

8

Morocco

66.2

8

Burkina Faso

40.3

9

Poland

85.0

9

China

74.4

9

Philippines

65.7

9

Liberia

37.2

10

Canada

84.7

10

Mexico

74.0

10

Egypt

65.4

10

Madagascar

37.0

Source: The Economist Intelligence Unit

1 https://theinclusiveinternet.eiu.com/assets/external/downloads/3i-bridging-digital-divides.pdf

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The ten most improved countries in the Inclusive Internet Index by ranking 2017 rank

2018 rank

Change*

Chile

19

7

+12

Mongolia

39

29

+10

Kenya

50

44

+6

Poland

13

8

+5

China

29

25

+4

Mexico

30

26

+4

Colombia

26

23

+3

Ethiopia

66

63

+3

Guatemala

49

46

+3

Tanzania

56

53

+3

Country

*This list is drawn from the 70 countries that were included in both 2017 and 2018 Indices. Some indicators have been improved in the 2018 Index so ranking changes are indicative only Source: The Economist Intelligence Unit

Internet, such as the presence or absence of local language content, the availability of e-health and e-finance services, the existence of government programs to help the disadvantaged, and more besides. This broader perspective on Internet “access” reveals the role of connectivity and inclusion in achieving the UN’s Sustainable Development Goals (SDGs). Internet inclusion relates most directly to SDG 9, which includes the aim for universal and affordable access to the Internet in the least developed countries by 2020, and SDG 4, in which Internet access is part of the achievement of inclusive and equitable quality education.2 But it also influences, and is influenced by, multiple other SDGs including goal 5 (gender equality) and goal 10 (reduced inequalities). In 2018, the Inclusive Internet Index has been refreshed and expanded to cover 86 countries, up from 75 last year. As a result, the dataset now reveals how key indicators are moving over time.3 The framework has also been refined based on advice from an assembly of experts and the number of indicators for each country has increased from 46 to 54. Accompanying the index this year is a global survey of Internet users, the Value of the Internet Survey, from all regions covered in the index, which assesses the contribution that the Internet makes to their lives. Twentyfive questions, ranging from the impact of Internet usage on people’s empowerment and autonomy, to its relevance to self-expression, work and play, the survey provides fresh qualitative data on what Internet connectivity means to people, not just whether people can access its services. It reveals that the Internet is, for most users, a source of autonomy and independence, although it also presents concerns for many. Together the index and survey confirm the significance of the mission to increase Internet inclusion. The Internet is not a pastime or a plaything; it is a tool that is helping people to achieve their most cherished ambitions. Making that tool as widely available as possible is imperative.

2 https://sustainabledevelopment.un.org/content/documents/11803Official-List-of-Proposed-SDG-Indicators.pdf 3 For more information on the Index methodology, visit https://theinclusiveinternet.eiu.com/assets/external/ downloads/3i-methodology.pdf

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1. Progress towards Internet inclusion

The Inclusive Internet Index ranks countries across four categories: Availability, Affordability, Relevance and Readiness. In combination, these reflect both technical access—the availability and quality of Internet services—and the ways in which people leverage the Internet in pursuit of a range of personal, social and economic goals. The same, high-income countries dominated the upper echelons of the index this year, although Sweden overtook Singapore to take the top spot in 2018. However, it reveals that many low-income countries are making rapid progress on inclusion, especially in the domains of Availability and Affordability. Index categories Availability

Affordability

Relevance

Readiness

The quality and breadth of available infrastructure required for access and levels of Internet usage.

The cost of access relative to income and the level of competition in the Internet marketplace.

The existence and extent of local language content and relevant content.

The capacity to access the Internet, including skills, cultural acceptance and supporting policy.

Internet access is a necessary condition for inclusion, even if it is not sufficient to guarantee it. This year’s index reveals a positive trend in this regard. Among the 70 countries included in both the 2017 and 2018 studies, the average proportion of households that are connected to the Internet grew by 8.3% year on year, from 44.9% to 48.6%. This increase was especially marked in low-income countries with relatively low Internet adoption, where access improved from 8.0% to 13.2%, a 65.1% increase. This jump in connectivity relative to 2017 was especially high in Rwanda (490.8%), Nepal (138.1%) and Tanzania (87.8%). The availability of mobile broadband services is especially important in low-income countries, where a paucity of infrastructure often makes fixedline services expensive or simply unavailable. There is good news here as well; access to 4G networking services, which support faster download and upload speeds and lower latency, in low- and middle-income countries has improved appreciably as countries have upgraded their networks. The average 4G coverage rate for low income countries increased from 9.1% to 17.3%, with particularly rapid annual expansion in 4G in Guatemala (3,935.0%), Indonesia (658.8%), Thailand (366.7%), Zambia (330.6%), and China (244.0%). The mere availability of Internet services is, of course, not enough to ensure inclusion. Those services must also be affordable. Here there 5



is good news too, as the index shows that affordability in mobile broadband data—especially significant in low-income countries where the infrastructure for fixed-line services is often lacking—improved significantly over the past year. The average price of a 500MB prepaid mobile broadband data plan as a percentage of monthly income fell from nearly 3.3% last year to 2.9% in 2018, an improvement of 10.1%. In low-income countries, the cost fell from 12.1% of income to 10.0% in 2018, a decrease of around 17.3%. The steepest relative cost declines included Argentina (-89.2%), El Salvador (-76.5%), Tanzania (-69.2%) and Ethiopia (-60.9%), which could be either thanks to increased incomes or falling prices. However, the data show that people with low incomes are still paying a high relative share of their income on Internet access.

Gender inclusion As last year’s index confirmed, there is a concerning gender gap in Internet connectivity and usage. The proportion of men that access the Internet is, on average, 33.5% higher than the proportion of women. This inequity is widespread; more men use the Internet than women in 69 out of 86 countries included in the index. And it is far more pronounced in lowincome countries, which have an average gender access gap of 80.2% in favor of men, compared with just 3.7% among high-income countries. This is not to say women in lower-income countries are necessarily disadvantaged with respect to Internet access. In the Philippines, which is a lower-middle-income country, the average gender access gap is 14.3% in favor of women, placing the country top of the index on this metric. Nevertheless, there is much work to be done to close the gender gap, and the index tracks what governments are doing to promote female e-inclusion. The top performers in this regard are mostly high-income countries, such as France, the UK and South Korea, and some uppermiddle-income nations, notably Namibia and Malaysia. But there are standout examples of low-income countries with progressive policies. Nepal, Senegal, Tanzania and Uganda, for example, all have plans in place to provide digital skills training for women and girls, while Malawi and Mozambique have initiatives to encourage STEM (science, technology, engineering and mathematics) education for them. Initiatives such as these augur well for e-inclusion in these low-income countries. The Inclusive Internet Index will track their progress as time goes on.

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2. The value of the Internet

The index shows that progress is being made towards an Internet that is inclusive for more of the world’s population. But what does this mean for the lives of those included? To find out, The Economist Intelligence Unit conducted a global Value of the Internet Survey exploring the contribution that the Internet makes to its users’ lives. Its aim is to provide a qualitative complement to the index, gauging perceptions of the benefit of Internet use across a number of domains, and to reveal commonalities and contrasts between demographic groups. Conducted in October and November 2017, the survey canvassed 4,267 respondents from 85 countries.

Empowerment and independence “[The] Internet is a technology of freedom,” wrote sociologist Manuel Castells in a 2014 essay on its societal impact.4 Mr Castells described the Internet as the defining ”networked technology” that allows its users to interact with the institutions of society with greater autonomy and, as a result, greater wellbeing. The Economist Intelligence Unit survey confirms that the Internet has been, for the majority of its users, a source of empowerment. For example, over half (53.9%) agree that the Internet has helped them to become more independent. The empowering benefits of Internet use appear most keenly felt in Asia, the Middle East and Africa (see chart). Moreover, 68.3% of South Asian residents say the Internet has helped them to become more independent and 69.3% say it has given them the confidence to express themselves. For many respondents, Internet use provides economic independence. The majority of respondents say the Internet has given them greater independence in their ability to earn money (56.1%). It is now the goto resource for job-hunting, with almost three quarters having used the Internet to look for work. Traditionally, this meant using the Internet to find open positions at traditional employers. More recently, though, “gig economy” platforms such as TaskRabbit and Uber have allowed would-be workers to find opportunities more directly. But the empowerment benefits of the Internet go beyond the economic, the survey finds. Nearly six in ten (58.9%) say using the Internet has given them a way to support causes they care about, and nearly half (44.1%) have used the Internet to consider their life goals, with the same proportion agreeing 4 https://www.bbvaopenmind.com/wp-content/uploads/2014/03/BBVA-OpenMind-Internet-Manuel-Castells-TheImpact-of-the-Internet-on-Society-A-Global-Perspective.pdf

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that the Internet has given them confidence to express themselves (46.7%). So far, however, the contribution that Internet use makes towards selfdetermination is not equally distributed. Indeed, 60.9% of wealthier respondents—those with incomes four or more times the median in their country of residence—say the Internet has helped them decide what they want to do in life, compared with only 42.7% of those with below-median income. Clearly, many factors—including civil freedoms, net worth, skills and mobility—shape the degree to which an individual can freely determine their own future, and Internet use cannot wholly circumnavigate these constraints. Nevertheless, the economic and personal empowerment that Internet use affords confirms the necessity of expanding inclusion. The Internet supports individual independence, especially in Africa

(% of respondents who agree that ‘use of the Internet has helped me become more independent’) Sub-Saharan Africa

59.9

Middle East and North Africa

59.8

Asia

59.1

Latin America North America Europe

55.4 42.3 42.1 Source: The Economist Intelligence Unit

Privacy and security The survey confirms that the majority of Internet users are broadly positive about its impact on their lives, but most also have some reservations. A clear majority (85.2%) say that privacy concerns mean that they have limited their use of the Internet, and only 11.7% feel very confident that their online activity is private. European Internet users are the most uneasy, with 60.8% saying they are not confident of their online privacy. Meanwhile, just under half of respondents (46.3%) say that security fears prevent them making full use of the Internet. As discussed, anything that limits Internet inclusion also limits opportunities for economic and personal self-determination. But it also limits a country’s digital economy; only 62.1% of survey respondents feel that making purchases online is safe and secure. Efforts by governments and businesses to ensure that users feel safe and at ease online are therefore an important component of Internet inclusion, and can be directly tied to the achievement of a number of aforementioned SDGs.

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Real progress Commentary by Facebook

This year’s Inclusive Internet Index provides many reasons to be optimistic about progress towards a more inclusive Internet. As the summary above notes, Internet connectivity grew 8.3% over the past year, with even greater growth in adoption in the world’s lowest income countries. In addition, as more people have access to 4G mobile Internet, the “under-connected” gap is shrinking. Just as importantly, there is strong evidence that increasing connectivity makes a positive difference for people, societies and economies. As reported above, the Internet helps people feel more empowered and independent, especially in Africa and Asia, and people are using the Internet to create, find and excel at work. In sum, when people connect, they feel better about themselves and economies grow. Because of such gains, Internet access is viewed as far more than a convenience or a utility; in fact, 67% of survey respondents believe that access to the Internet should be a “human right”. More to be done Notwithstanding the significant progress closing the supply side gaps in extending the Internet and improving affordability, more needs to be done. For example, there are still areas—especially in predominately rural, emerging countries—where networks cannot support 3G and 4G services due to the lack of high speeds and quality backhaul. Likewise, although the cost of mobile connectivity is falling, in too many low-income countries, it is still not as affordable as the UN 2025 target of less than 2% of GNI per capita.1 On the demand side, a stubbornly persistent and pervasive gap still exists between men and women’s Internet use. Closing the gender gap is essential for achieving Internet inclusion. The good news is that this year’s study identified policy initiatives that some countries are already employing to close the gap. And, although the Value of the Internet Survey found overwhelmingly positive benefits of using the Internet—especially in developing countries— it also identified important areas such as perceptions about privacy and security, which have to be addressed.

1 https://www.itu.int/en/mediacentre/Pages/2018-PR01.aspx

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Moving forward The aim of the Inclusive Internet Index is to provide a common, publicly available dataset that policymakers, researchers and members of the private sector can use to diagnose national strengths and areas for improvement to help improve Internet inclusion in their countries. The rich data are intended to help diagnose national strengths and areas for improvement and, therefore, help policymakers develop and implement effective initiatives to improve Internet inclusion. As with progress so far, closing the remaining gaps in Internet inclusion will require collaboration among governments, the private sector, academics, technologists and civil society. Governments can help on the supply side with policies enabling new technologies, investment and networks, and on the demand side by helping foster eGovernment, public health or education applications. With enabling policies in place, the private sector can then continue to extend the Internet’s infrastructure and explore new technologies and applications that drive demand and give more people access to the Internet’s benefits. No single stakeholder or group can achieve Internet inclusion alone. Rather, we all have to work together, each leveraging our relative strengths and expertise, to achieve our mutual goal of Internet inclusion.

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Conclusion

The ability to participate in the Internet is not a luxury. As governments and companies rush to do more and more online, the question of Internet inclusion becomes critical to ensure the gains are universally available and equally shared. The unequal ability of people to harness the benefits of the economic, social and civic benefits of the Internet will compound over time. If disadvantaged segments of society draw more limited benefits from Internet usage, because it is slow, unreliable or irrelevant to their needs, they will fall further behind. The 2018 index shows positive trend-lines: Internet access is increasing, the quality of services is improving and the costs are coming down. The survey also shows that all of this is directly affecting people’s autonomy and empowerment. The task ahead for governments, companies and citizens is to work together to close the many gaps—whether income, region, gender or any other demographic trait—to ensure the Internet is, as its first founders envisioned, a truly open sphere.

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While every effort has been taken to verify the accuracy of this information, The Economist Intelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this report or any of the information, opinions or conclusions set out in this report.

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