The role of mobile broadband in poverty alleviation: a comparison of the effects of 3G and 4G network expansion in underdeveloped regions of Indonesia

Abstract

ABSTRACT Alleviating poverty remains a significant global challenge necessitating effective interventions. While Information and Communications Technology (ICT) is widely acknowledged as a contemporary solution for addressing socioeconomic issues, the impact of supply-side factors, notably mobile broadband expansion, remains uncertain. Our study bridges this gap by analyzing the effects of 3G and 4G coverage on poverty rates and gaps in 109 underdeveloped regions in Indonesia from 2017–2021. Through quantitative analysis and map charts, we ascertain that increased 3G and 4G coverage is associated with decreased poverty rates and gaps. Specifically, a 1 percent rise in 3G coverage corresponds to a 0.019 percent decrease in poverty rates and a 0.011 point reduction in the poverty gap. Similarly, a 1 percent increase in 4G coverage reduces poverty rates by 0.009 percent and the poverty gap by 0.004 points. These findings offer valuable theoretical and practical insights to inform future research and policy initiatives.