Issue Brief

Addressing barriers to connectivity in G20 nations

Background

Connectivity is a core component of the modern and increasingly digitalized world with most communications globally taking place over the internet. Moreover, financial, economic, and logistical data and real time information is shared through the internet, which makes it critical for global economic activity. Therefore, Internet and Communication Technology (ICT) infrastructure serves a critical purpose in the facilitation of digital communications and global economic activity.

Telecommunications serve as the main medium of communications with approximately 4.6 billion people, or 57% of the global population, using mobile internet from handheld telecommunications devices¹. However, the distribution of mobile internet users across the world is not equitable. For example, in Europe, Commonwealth of Independent States (CIS), and North America, between 87 and 92 percent of the population has access to the internet². In Arab states and Asia-Pacific countries, approximately 70 and 66 percent respectively have access to the internet. However, in least developing countries (LDC) and landlocked developing countries (LLDC) only 35 percent and 39 percent of the population have access to the internet³.

The quality of telecommunications networks and accessibility to these networks has also improved over time. For example, access to 5G connectivity globally has increased from close to zero coverage in 2014 to approximately 51% coverage in 2024⁴ , after commercial deployment began in 2019. However, the distribution and accessibility of 5G varies greatly across geographies. For example, 5G connectivity is accessible to approximately 72% of people in Europe, 63% of people in the Americas, and 62% of people in the Asia-Pacific⁵. However, in Africa, CIS, and the Arab world, 5G is only accessible to approximately 11%, 12%, and 13% of the population respectively⁶.

There is also a significant socioeconomic split amongst high, medium, and low-income nations in terms of accessibility to 5G networks. In low-income nations, only 4% of the population has access to 5G networks and in lower-middle-income countries this share is only 35% of the population. Conversely, in upper-middle-income and high-income countries, approximately 65% and 84% of the population has access to 5G networks respectively⁷.

Finally, there is a significant gap between urban and rural areas in terms of access to 5G connectivity with 67 percent of people living in urban areas having access to 5G connectivity globally compared to 29 percent of people living in rural areas⁸ . These significant socioeconomic, geographic, and community gaps in 5G infrastructure globally have the potential to impact future growth and global equity.

Telecommunications Infrastructure in G20 Countries

During the Italian G20 Presidency in 2021, the OECD (Organisation for Economic Co- operation and Development) conducted a survey of G20 nations on accessibility of digital services. Based on the survey, OECD found that G20 countries had on average 19.6 fixed broadband connections per 100 inhabitants, 2.6 times the average of the rest of the world, which was 7.5 subscriptions per 100 inhabitants⁹.

Moreover, the OECD identifies significant gaps between urban and rural populations in G20 countries, including within high-income countries like the United States and Canada. For example, in Canada, approximately 93% of urban households had access to broadband connection, whereas in rural areas, only 67% of households had access.

Moreover, in the United States, approximately 77.7% of rural households had access to broadband connection, which is significantly less than the national average of 94.4%¹⁰. According to the OECD, Italy and Argentina had the largest rural-urban telecommunications gaps for fixed broadband, and Australia and the United States had the largest rural-urban gaps for mobile broadband.

B20 Actions on Promoting Telecommunications Infrastructure

B20 India’s Task Force on Digital Transformation addressed the broadband accessibility gap directly and recommended that G20 nations bridge the digital divide by accelerating universal, future-proof, and transformational connectivity across all regions and communities to increase digital penetration, drive sustainable investment, and deliver inclusive growth¹¹.

Under this recommendation, the B20 India Task Force on Digital Transformation suggested two policy actions. The first policy action recommends that G20 nations implement National Broadband Plans (NBP) to operationalize “broadband for all” through developing a roadmap for the implementation of newer broadband technologies like 5G and solidifying implementation enablers such as operational guidelines and outcome orientation.

Additionally, the B20 Task Force on Digital Transformation recommended that governments adopt a technology and vendor neutral approach to facilitate continuous broadband expansion of fixed and mobile services and innovate satellite systems to strengthen network deployment in areas with poor connectivity. It also urged G20 to facilitate greater private sector network investment and remove development barriers to increase broadband infrastructure.

Furthermore, the G20 countries should support a technology neutral regulatory environment by producing a harmonized spectrum and promote global, open standards to boost affordability and interoperability. Finally, the Task Force recommended that G20 countries should facilitate setting up a minimum broadband speed that enables easier development of Digital Public Infrastructure (DPI).

The second policy action recommended by the B20 India Task Force on Digital Transformation was to complement and amplify private sector efforts along the entire value chain. Specifically, it was suggested that the G20 should support the modernization of Universal Service Funds (USF), which are funding mechanisms established by national governments to provide universal access to digital services, to improve broadband connectivity within G20 nations. Second, the G20 nations should focus on improving broadband device affordability, for example, mobile phones, to improve access to broadband networks and reducing gender, regional, and other disparities.

The B20 Brazil Digital Transformation Task Force similarly advocated for increased investment in broadband and ICT infrastructure to address regional gaps. The B20 Brazil Task Force on Digital Transformation recommended G20 countries engage in three policy actions. First the B20 Brazil Task Force recommends accelerating the development of ICT infrastructure within the G20 through simplifying permitting processes, expediting spectrum availability, setting global standards, and ensuring a lightweight touch towards the ICT sector¹². Next, the B20 Brazil Task Force recommends promoting license granting models to prioritize infrastructure expansion over financial bids. Moreover, the B20 Task Force recommends that G20 nations address service and device affordability gaps and increase government-funded connectivity for essential services. Finally, the Task Force recommends that the G20 promotes public-private partnerships to improve connectivity and build resilient ICT infrastructure in underserved areas.

Finally, in the recently published Issue Note on Digital Economy by the G20 South Africa Secretariat. The G20 South Africa Secretariat calls for improving connectivity for inclusive digital development through expanding universal broadband connectivity by addressing infrastructure and information gaps particularly in low- and middle-income countries where internet connectivity and penetration are low¹³. Moreover, the Issue Note calls for more effective digital indicators to be developed to track progress towards Sustainable Development Goals (SDG) and ICT specific sub-targets.

Conclusion

Overall, digital connectivity is an essential component in the global economic system, and ICT infrastructure within countries directly facilitate it. Therefore, addressing barriers and discrepancies in accessibility to the internet and digital financial technologies are a crucial step to democratizing and increasing participation from lower income, rural individuals into the global digital landscape.

Note