The Internet as the great equaliser

Just less than four years ago, virtually nobody had access to the Internet or mobile communications, but within the next five years, 90% of the country’s population is slated to have coverage.

With changes such as this, we are at a tipping point when it comes to the ability for emerging economies to lead the way into the digital world. This newfound access to the educational, professional and social opportunities brought by the mobile Internet can bring about a sea change in the entrenched socio-economic gaps faced by many in emerging Asia.

In fact, a report published by the Asia Development Bank (ADB) last year found that Asian inequality as measured by the Gini coefficient rose about 1 per cent each year throughout the 1990s and 2000s. The ADB also found that while GDP in the Asia Pacific grew at an average rate of 8.2 per cent in the 2000s, average living standards did not keep pace. The ADB cites various factors contributing to this, but highlights unequal access to opportunity as a major element, referring especially to education and health services.

As a telecommunications provider, Telenor Group believes the Internet is the great equaliser. It allows knowledge and opportunity for all, regardless of where people live or what background they are from. The impact that access to digital communications has had on people, societies and local communities is immeasurable – it is a matter of continuing to improve access through an unwavering commitment to enabling a digital future for all, not just the few.

We have done this by taking a mass-market approach with services that are tailored to what consumers in these Asian markets can afford. The reality is that most people in low-income markets cannot afford post-paid plans, so they buy our pre-paid services with the cash they have on hand – similar to how they would buy individually-portioned shampoo packs or hand soap.

With this affordable connectivity comes a wave of new opportunities, such as financial, health and education services. For example in Bangladesh, our Grameenphone business unit has created online schools that allow children in rural areas access to teachers located in urban centres.

Mobile financial services will be another catalyst for change, providing access to banking services for people who do not have geographical access to brick-and-mortar banks. More than 90 per cent of Bangladeshis are “unbanked” and offering them mobile banking options opens up countless opportunities for everything from taking out loans to paying bills without having to travel far and queue for hours.

In Pakistan, Easypaisa, the country’s first and largest branchless banking solution, moved nearly 2 per cent of the country’s GDP in 2014. The service is also offering insurance in a market where insurance penetration is estimated at less than 1 per cent – one of the lowest in the world. Micro-health insurance offers a promising way to improve access to health care by providing affordable assistance for those who would be most hard-hit by unexpected illness or accidents.

While the gap between the haves and have-nots in Asia is rising, we can reverse these inequalities through greater connectivity and breaking down the digital divide. This in turn will help emerging economies – and all members of their societies – seize the opportunity to leapfrog into a digital future.

 

Håkon Bruaset Kjøl is senior vice-president and head of Corporate Affairs, Asia, Telenor Group.