broadband strategies handbook.pdf - Khazar University

previously had no broadband access. In such cases, governments maydecide that there is no need to stimulate demand. In Kenya, for example, atthe end of September 2010, broadband subscriptions increased to 84,726subscribers from 18,626 in the previous quarter (a growth rate of over450 percent) without any specific attempt by the government at demandsidestimulation (CCK 2011).As time passes, however, growth in demand is expected to slow down asthe potential pool of users evolves from motivated early adopters to potentialusers who do not necessarily understand all that broadband has to offerand may be concerned with the potential threats to privacy and data security.This is when government policies to stimulate demand may have themost beneficial impact. By educating users through digital literacy programs,governments can help to drive adoption to a broader user base andeducate them at the same time. Such programs may become increasinglyimportant as adoption rates rise in order to avoid the social and economicinequities associated with broadband “haves” and “have nots.” One importantissue that policy makers should consider as they address broadbanddemand development is the opportunity cost of using (limited) public moneysfor broadband demand programs as opposed to other worthy publicuses. In some cases, governments have decided that stimulating broadbanddemand was important enough for reaching national economic and socialgoals. This may not be the case in all countries, particularly in countrieswith the fewest resources to spare.The role of government in stimulating demand will vary by country. Insome countries, with populations that are more technically literate, theremay be less need for direct government intervention. The appeal of socialnetworking and video streaming as an entertainment source may be moreself-evident than more mundane uses such as e-government or multimediamail. In such cases, demand will be driven by attractive offerings madeavailable by private sector developers. In other cases, however, basic illiteracy,lack of understanding of what the Internet can do, or costs mayrequire governments to step in to fill out and aggregate demand, particularlyamong at-risk groups. Policies to support digital inclusion will be animportant leveler to ensure that broadband can bring benefits to all segmentsof the population.Efforts to increase demand typically fall into three categories: awareness,affordability, and attractiveness. In order to drive broadband adoption anduse, policies must address these three categories, especially targeting thosepopulations that are generally less likely to adopt and use broadband Internetservices. Mechanisms to address awareness include improving digitalliteracy and encouraging the use of broadband in education and by smallPolicy Approaches to Promoting Broadband Development 61