STATE OF THE WORLD'S CITIES 2012/2013 Prosperity

system in 2009, and when fully operational in 2012 is
expected to reduce car use by 30 per cent. 36 In 2010, the
Greater Amman Municipality launched a USD175 million
Box 2.2.2
Information and communication technologies (ICTs) and the Prosperity of Cities
Over the past decade, worldwide expansion in ICTs has been
nothing short of phenomenal. In the sole mobile telephony
area, for instance, the total number of subscriptions increased
from 962 million in 2001 to six billion in 2011 – resulting in a
worldwide ratio of 867:1,000. 38 It is worth noting that developing
countries account for over 75 per cent of global mobile cellular
subscriptions. No other component of infrastructure has
witnessed such spectacular growth. Advances in ICTs and
liberalization of telecommunications markets have led to wealth
creation and economic growth, with cities the major beneficiaries.
ICTs play a major role in any city’s competitiveness, productivity
and prosperity as they facilitate innovation, efficiency and
effective service delivery. An overwhelming majority of surveyed
experts – 85 per cent in Africa; 96 per cent in Asia; 86 per cent in
Latin America and the Caribbean; and 90 per cent in Arab States –
rank telecommunications infrastructure as ‘highly developed’ or
‘developed’ in their cities.
FACT
In Africa, the total number of mobile telephone
connections has grown an average 30 per cent
per annum since 2001, and by 2011 over 60 per cent
of the population was connected. In Asia-Pacific,
the number of mobile connections increased from
824 million in 2005 to three billion in 2011– making
the region the largest mobile telephone market in
the world. Remarkable growth rates have also been
recorded in the Middle East, where the number of mobile
connections increased from 177 million in 2007 to
334 million in 2011. 39
ICTs in African cities: Mobile telephones have leapfrogged
landlines in Africa when compared with developed regions that
invested in landlines before moving to mobile networks. 40 At least
90 per cent of households in Abuja, Accra, Dakar, Lagos, Luanda
and Nairobi own mobile telephones; even where ownership
of mobile telephones appears to be low, it hardly falls below
50 percent. The use of mobile telephones surpasses fixed lines
in virtually all cities. In Kinshasa, there are 119 times as many
households owning mobile telephones as fixed lines. In Lagos,
Harare, Kampala and Mombasa, households are 12 times more
likely to own mobile telephones than landlines. Apart from
facilitating connectivity and communication, the cell-phone
industry also serves as a catalyst for growth, contributing an
55
Urban Infrastructure: Bedrock of Prosperity
BRT project along three busy corridors totaling 32km; when
completed in 2012, the system will have a transport capacity
of 6,000 passengers per hour. 37
estimated average USD56 billion or 3.5 per cent of GDP, to the
regional economy every year, 41 as well as employment for over
five million Africans.
ICTs in Asian cities: Mobile telephony has also expanded
dramatically in this region. India’s four major cities – Delhi,
Mumbai, Kolkata and Chennai – feature mobile telephone
connection rates of 138 per cent, 112 per cent, 102 per cent and
143 per cent respectively. 42 In Singapore, telecommunications
infrastructure is highly developed. In 2010, the household fixedline
penetration rate was 103 per cent, and the mobile population
penetration rate was 144 per cent, with 82 per cent of households
having access to Internet. 43 ICTs are major contributors to
economic growth in Asia accounting for USD485 billion, or
2.7 per cent of GDP; they also provide 11.4 million jobs – for
each job created by a mobile operator, eight additional ones
are generated. 44 The major role played by the mobile telephone
sector has seen it act as a buffer against economic recession in
the region.
ICTs in Latin American cities: The ownership of mobile
telephones is fairly widespread. Urban areas in Brazil, Chile,
Panama, and Paraguay feature the highest connection rates, with
at least 80 per cent of households owning mobile telephones. 45
In major Mexican cities, ownership varies between 66 and
84 per cent of the population. Compared with Africa and Asia,
fixed lines are more developed in Latin American cities. For
instance, between 41 per cent and 68 per cent of households
in Mexico’s major cities have fixed lines. The mobile telephone
industry contributes significantly to the region’s economy:
1.7 per cent of regional GDP 46 (or USD82 billion) in 2010.
Increases in mobile telephone connectivity have also been found
to boost GDP per capita.
ICTs in Arab States cities: Urban ownership of mobile
telephones in Arab States, especially Gulf Cooperation Council
countries, is widespread. Penetration rates in Doha, Dubai,
Amman, Kuwait, Muscat and Riyadh are in excess 100 per cent
(Dubai’s penetration rate is the highest in the world with over
200 mobile telephones per 100 residents). The UAE and other Gulf
Cooperation Council countries have invested in ITC-dedicated
parks as a boost to socioeconomic growth and diversification
away from an oil-dependent to a knowledge-based economy. The
ICT sector plays a significant role in the region’s economy. In the
case of the UAE, the sector contributed 5.3 per cent to GDP in
2010, up from 4.1 per cent in 2007, and currently employs over
11,500. 47