Ibrahim Kholilul Rohman

Does broadband speed really matter as a driver of economic growth? Investigating OECD countries

This paper aims to measure the impact of broadband speed on economic growth in the OECD countries. All the variables used in this study were collected from OECD databases, except the speed data, which were gathered from Ookla, a company that provides broadband testing and web-based network diagnostic applications data on a daily basis. Quarterly balanced panel data for 33 OECD countries during the period 2008-2010 were examined. The study found that the estimated coefficient of broadband speed is statistically significant. The hypothetical result of this study shows that doubling the broadband speed will contribute 0.3% growth compared with the growth rate for the base year. The results convey that the impact of increasing broadband speed on GDP growth will largely depend on two aspects: 1) the size of the coefficient of the broadband speed (s); 2) the existing economic growth in each country. Finally, the paper provides suggestions for future research in this vein and further calibration of future models.

Digital Divide in ASEAN Countries: Explaining the Gap

Currently, the Information and Communication Technology (ICT) sector is a vigorous engine of economic growth. While the penetration rate, investment and development of technology have increased considerably, the gap between people in society regarding access, use and benefit from ICT is increasing. In particular, there is unequal access to ICT even though the sector is rapidly diffusing. The present study examines determinants of this digital divide in ASEAN countries (Brunei, Cambodia, Indonesia, Lao, Philippines, Malaysia, Myanmar, Thailand, Singapore and Vietnam). To explain the evolution of the ASEAN digital divide, the study focuses on potential causes which are the GDP per capita, the urban proportion of the population, the competition level and the independent regulator. Statistically, the first three of these factors explain the divide in the region concerned while the role of independent regulator is not statistically significant suggesting the need for the more effective role of regulator in conducting the market.

Will telecommunications development improve the quality of life in African countries

This study aims to measure quality of life (QOL) at the individual level in African countries in relation to the accessibility of mobile phones and the Internet. QOL is proxied by self-reported data on household income, participation in decision-making and productivity, which is measured in additional working hours. The main methodology is a descriptive analysis that presents a cross-tabulation of the QOL indicator before and after access to mobile phones and the Internet. A specific index of the Gini coefficient and Lorenz curve is also presented in relation to income distribution. The study found that access to telecommunication devices has contributed very little to closing the income gap in places where the mobile phone has had a slightly higher impact than Internet access. The impact on self-reported participation and productivity is also similar in places where there is no strong evidence that access to both devices is sufficient to motivate users to become more involved and productive. The choice of the QOL variables is still under discussion. It also has to be said that the proxies for QOL are still very raw, as is the way of measuring it. The descriptive analysis does not provide the causality between the variables, and is rather an indication of the phenomenon – whether access to telecommunication devices leads to a better QOL index. This paper indicates a need to design policies for the telecommunications sector in African countries with a stronger connection between access to and use of the devices and economic activities. The policy should also aim to reduce the polarisation of access and use by providing a telecommunications infrastructure in all the countries, thereby decreasing the cost of access and usage. Such policies require close collaboration between the governments and the private sector.

How Important is the Media and Content Sector to the European Economy

Many studies have been conducted to investigate the relationship between technology development and economic performance and to demonstrate the important role of information and communication technology (ICT) sectors.

Who Enjoys ICT Development? An Investigation into the Role of ICT Development in Asian Countries Using Dynamic Panel Data

Asian countries are at different development stages in the building of an information and communication technology (ICT) industry. Although East Asian countries, especially Japan and Korea, have reached a high penetration rate of broadband and telephony, most of the South and South-East Asian countries are still at the early stage of the diffusion process. It is even more interesting that some Asian countries have recently achieved robust growth in the penetration rate of particular ICT devices, for instance, cellular ones, amid sluggish socio-economic performance. This phenomenon raises the question of how the contribution by ICT affects society and who enjoys the development of this sector? In order to address these questions, this study aims to relate the network externality with regard to socio-economic variables included in the calculation of the Human Development Index (HDI): educational attainment and health (life-expectancy rate). The ICT variables of the analysis include the penetration rate of the fixed-line, Internet subscriber, computer and TV. The study covers roughly 35 selected Asian countries that represent all the sub-regions in Asia based on the World Bank and International Telecommunication Union’s database, and the figures range in time from 1983 to 2005. The study first identifies the unit root test and then builds cointegration between the series. As there are many gaps in the data, the Maddala-Wu (1999) estimation is implemented while the Westerlund (2007) cointegration test is applied to non-stationary series. The results are quite surprising in that most ICT device development has no statistical evidence of cointegration with socio-economic variables. Primary education has very weak cointegration with the development of ICT devices however. Thus, there is a need for further innovation in this sector to provide more socio-economic devices to support a better level of welfare.

PANS in the Swedish Cellular Industry: How Bright Will It Be?

As an aspect of Information and Communication Technology (ICT), the existence of the cellular industry is closely related to the achievement of economic development, especially due to the effect of network externalities and demand-side economics of scale. However, the adoption and buyer diffusion process from the demand side will depend on the availability of cellular content and services based on technological innovation and development on the supply side. Furthermore, there is a need to seek other sources of revenue by identifying new services, given the fact that the existing penetration rate in Sweden has been very high and, more importantly, the growth of revenue from traditional services has been declining considerably during the last couple of years. This study estimates the market demand especially in the services which are categorized as Pretty Amazing New Services (PANS) in the Swedish cellular industry – e.g. mobile games, mobile TV, mobile Internet, mobile news, mobile video and mobile payments. The source of data is the annual individual survey conducted during 2002-2009 by Post-och telestyrelsen (PTS), the Swedish post and telecom agency. The survey comprises about 1500 individuals per year around Sweden. The demand estimation applies a probit model which enables us to measure the likelihood ratio of demand for the services given different characteristics of respondents in terms of income, age, education, sex and geographical area. The results reveal that most of the new services will be more attractive for the profile of a customer who is identified as a male, living in a small city and having a middle/upper educational degree and income. It is also found that customers who travel regularly abroad are a potential market segment.

Competition in the Swedish Cellular Industry: Nobody Cares about Older People

As the competition becomes intense, cellular operators are asked to be as creative as possible in dealing with their existing market. The penetration rate in the Swedish cellular market is too high to create a possibility for further market expansion as a tool to gain additional profit. Thus, instead of enlarging the market, keeping the existing market is preferred unless new services can be generated. Moreover, expansion is only effective if it is applied in a specific target group which is still unobserved by other competitors. This research tries to map current competition in the Swedish market through the method of Limited Dependent Variable (LDV) in investigating the likelihood of demand. We can thus define the competition among operators in some specific segmentation based on ages, education, gender and income. With LDV, the unobserved market can be found. This study mainly utilizes the data from Mobile Barometer, a Swedish survey conducted by Chalmers University of Technology. The results are quite surprising: most operators are focusing on the younger adult market, leaving the older people left behind. So why did the market players not offer something interesting for them?