Developing mobile telecommunications to narrow digital divide in developing countries? Some lessons from China

Abstract

This study examines the question of whether the geographical digital divide in China has reduced with the introduction of mobile, including 3G, telecommunications. Geographical digital divide is measured primarily by teledensity at the provincial level. Changes of the geographical digital divide over time are analyzed within the framework of hardware, software, and other factors. Following this analytical framework, mobile or wireless telecommunications has higher potential of equipping the poor and narrowing the digital divide, especially in developing countries. In terms of hardware, the installation cost of wireless technology is often lower than fixed-line telephone services, especially in remote rural areas and/or areas of difficult terrains. The hardware required by users, notably mobile handsets, is also cheaper to own than personal computers (PCs). In terms of software, a greater variety and more flexible packages are often offered for mobile telecommunication services, and most applications on mobile phones are simpler and more user-friendly. Moreover, the requirements of mobile technologies on some other key factors known to affect information and communication technology (ICT) adoption rates are also lower. In particular, the requirements for language, especially English, proficiency and computer literacy are lower. Furthermore, proactive government measures have been implemented in China to narrow the digital divide through supportive policies influencing the factors named above. Under these circumstances, the well-known association between economic growth and widening digital divide (a difficult dilemma faced by governments of most developing countries) has been reversed in China after 2005.