Figure 2-2-2-8 Correlation between penetration rates of fixed phone lines and mobile phones (change since 1985)

(Source) Ministry of Internal Affairs and Communications "Survey on Elimination of the International Digital Divide" (2011)

(ITU “World Telecommunication/ICT Indicators Database 2010 (15th Edition)” Prepared on the basis of)

points to a key difference between the path of telephone infrastructure progress in developed and developing nations, with mobile phones constituting a particularly vital part of the ICT infrastructure in the latter.

### D. Speed of ICT infrastructure penetration

Examination of the speed of ICT infrastructure penetration, and specifically the number of years it takes a type of infrastructure to reach 10% penetration $ ^{25} $ , reveals that in terms of fixed-line phones there is a major gap between national income-level groups, with low-income nations lagging considerably. This gap is smaller, however, when it comes to mobile phones and the Internet. In fact, for mobile phones the number of years required for penetration grows shorter in accordance with declining income. It can be inferred that mobile phones are rapidly becoming commonplace in developing countries due to the lower development cost and reduced time required for network construction compared to conventional fixed-line phone networks. This phenomenon of “leap-fropping,” in which new technologies jump ahead of older technologies, contributes to the rapid development of ICT infrastructure in developing countries and in turn to the bridging of the international digital divide.

## (3) Analysis of factors contributing to the international digital divide

Paths toward elimination of the international digital divide are seen as diverging widely on the basis of countries' and regions' cultures and customs, or the economic and social challenges that they face, as well as the policy goals (development of broadband, strengthening of international competitiveness, etc.) they have established. Here we will analyze the contributing factors, focusing on development of ICT infrastructure and utilization, with the overall status of the international digital divide in mind.

### A. Promotion of ICT infrastructure development

Looking at the amounts invested in the information and communications sector (particularly in infrastructure projects which may feature participation by private enterprises) in other countries, we find that information and communications-related infrastructure investment is growing in South America, Africa, India, Eastern Europe and the Middle East. In particular, investment in information and communications has been increasing in low-income nations since 2004. This proactive investment is seen as helping to widen infrastructure coverage and raise the level of penetration overall.

In addition to a high level of proactive private investment, users in these regions benefit from the market participation of a large number of enterprises, leading to a larger market, availability of innovative services, and more affordable rates. Encouraging more businesses to enter the market is seen as one effective approach to bridging the digital divide.

### B. Penetration and utilization of ICT

## (A) Cost to users of accessing the Internet

Fees charged to users for Internet access are a major factor influencing ICT penetration and utilization. In the case of fees for fixed broadband services, countries with low penetration rates have higher fees relative to gross national income (GNI) than countries with high penetration rates. In particular, in most low mid-income to low-income nations, fees remain high and act as an obstacle to broader penetration and utilization. In order for ICT infrastructure to penetrate and bring benefits to a greater number of users, it is essential to lower fees through proactive investment and policy measures aimed at fostering a competitive business environment.

## (B) ICT penetration, utilization and literacy

Here we will analyze the correlation between ICT literacy and ICT utilization. ICT literacy is seen as depending to some extent on the general educational level of each country. With this in mind, we have analyzed the correlation between the Internet utilization rate and the senior high school enrollment rate, one index of national educational level. Generally speaking, countries with high Internet utilization rates are those with 90% or high