A Leap from Digital Divide to

Digital OpportunitiesOctavius Kahiya

+263 732 139 939

okahiya@telecelzim.co.zw

Scope of divide

• Access• Use• Knowledge of ICT

Inequality in terms of:

• 30 % of Americans do not have broadband at home (Pew internet and American Life Project Survey)

• 0nly 35% of Zimbabweans have access to the internet (POTRAZ)

Evident within same countries

• IDI Rankings 2013: ITU

• South Korea ranked # 1 in the world Niger ranked # 157, Zimbabwe ranked #115. Zimbabwe ranked top 10 of most improved.

More pronounced Developed vs

Developing Countries

What is the IDI?

Access - captures ICT readiness

Fixed-telephony

Mobile telephony

International Internet bandwidth

Households with computers

Households with Internet

Use - captures ICT intensity

Internet users

Fixed (wired)-broadband

Mobile broadband

Skills - captures ICT capability

Adult literacy

Gross secondary enrolment

Gross tertiary enrolment

Composite measure of three clusters created by the UN-ITU

Computers per 100 people

Computers per 100 peopleFixed Subscriptions 2007* 2010^ 2013*^

Africa 0.1% 0.2% 0.3%

Americas 10.9% 14.1% 17.1%

Arab States 0.9% 1.9% 3.3%

Asia & Pacific 3.2% 5.5% 7.6%

Commonwealth of Independent States 2.3% 8.2% 13.5%

Europe 18.4% 23.6% 27.0%

Mobile Subscriptions 2007* 2010^ 2013*^

Africa 0.2% 1.8% 10.9%

Americas 6.4% 22.9% 48.0%

Arab States 0.8% 5.1% 18.9%

Asia & Pacific 3.1% 7.4% 22.4%

Commonwealth of Independent States 0.2% 22.3% 46.0%

Europe 14.7% 28.7% 67.5%

ITU 2013

An Illustration of the digital divide

“Our overall objective is to ensure universal access to the benefits of information and communication technology – including for the two-thirds of the world's population currently not on-line. A digital divide has no place in the information age and 21st century knowledge economy. The management of information and communication technology should be transparent, democratic and inclusive.“Bin Ki Mon

Advantages of the Great Leap Forward:

1. Economic benefits of broadband for the European Commission’ there is a consensus that a 10% increase in broadband penetration results in an increase in GDP growth of between 0.9% and 1.5%

2. Engine of economic growth and developmentImproves education and skillsIncreased employment opportunity Increased efficiencies

3. Improves educational and economic prospectsHarnessing ICT improves competitiveness, development, employment and well-being

4. Allows rapid dissemination of information5. Enhances social transparency6. Lower socio-economic groups will get an opportunity to reduce

marginalisation and social exclusion

Research by Analysis Mason

We can make history!

Digital Natives

High literacy

IDI going up for past 2

years

We have the momentum

How

Policy MakersPolicy Direction and LegislationPrivacy and SecurityBuild infrastructureEnsure access to technologyEncourage InnovationDevelop Human CapitalEnsure affordability

BusinessesStrengthen and renew core capabilities to prosper inan all-digital world. Develop deep analytic skills - as segments get smaller -Its now 1 to 1.Ensure investments are clearly aligned with consumer shifts. Behaviour shifts - for many big TMT players, if you can’t connect with Millennials, you’llprobably be out of business in ten years.

Implement the ICT Policy that

has been in the Offing for long

What Are the players Doing

Lowered the cost of Sim Cards

Internet penetration rates in Zimbabwe have moved from 0.4% in 2000 to 35% in 2013 (Potraz)

Telecel has increased 2G & 3G coverage throughout Zimbabwe• 2G Population

coverage of 87% still growing

• 3G Population coverage of 52% still growing

Providing 3G enabled handsets on credit

Reduced pricing of USB modems to the level of subsidising customers.

What Opportunities are there1. Health – Reducing infant mortality & the personal health attendant

2. Air Travel – Self Check in

3. Inner City Public Transport – Swipe and Board (new business Model)

What Opportunities are thereE-Government – Pensioners Case study

Tourism – Use of Bank cards for hotel Check Booking.

Agriculture – The milking Parlor

What Opportunities are there

Mobile Financial Services for the

unbanked.

The social front

The digital era is here Children born in this era are the “millennials”

Cyber Vicesto

Cyber parenting skills

The unregulated journalist“Breaking: Two explosions

in the White House and Barack Obama is injured”.

Impact on Dow Jones

Effort Cohesiveness

Thank You