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When is Cheap, Cheap Enough to Bridge the Digital Divide? Modeling Income Related Structural Challenges of Technology Diffusion in Latin America

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  • Hilbert, Martin

Abstract

Summary The article presents a model that shows how income structures create diffusion patterns of Information and Communication Technologies (ICTs). The model allows the creation of scenarios for potential cuts in access prices and/or required subsidies for household spending in Mexico, Uruguay, Brazil, and Costa Rica. One analyzed scenario would require the reduction of ICT prices to as low as 4% of the current price levels (to US$ 0.75 per month), or alternatively, a subsidy as high as 6.2% of GDP (a figure comparable to public spending on education plus health). This is the income reality of the poor. Neither existing technological solutions nor existing financial mechanisms are sufficient to cope with this economic reality. The alternatives, such as a prolonged period of public access, are discussed.

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  • Hilbert, Martin, 2010. "When is Cheap, Cheap Enough to Bridge the Digital Divide? Modeling Income Related Structural Challenges of Technology Diffusion in Latin America," World Development, Elsevier, vol. 38(5), pages 756-770, May.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:5:p:756-770
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    Cited by:

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    2. Jain Ritika, 2021. "Information and Communication Technology Adoption and the Demand for Female Labor: The Case of Indian Industry," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(2), pages 695-722, April.
    3. Josef Kuo-Hsun Ma & Todd E. Vachon & Simon Cheng, 2019. "National Income, Political Freedom, and Investments in R&D and Education: A Comparative Analysis of the Second Digital Divide Among 15-Year-Old Students," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 133-166, July.
    4. Ali, Mohammad Afshar & Alam, Khorshed & Taylor, Brad & Rafiq, Shuddhasattwa, 2019. "Do income distribution and socio-economic inequality affect ICT affordability? Evidence from Australian household panel data," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 317-328.
    5. Edward J Oughton & Niccol`o Comini & Vivien Foster & Jim W Hall, 2021. "Policy choices can help keep 4G and 5G universal broadband affordable," Papers 2101.07820, arXiv.org, revised Feb 2021.
    6. Zahiruddin Md. Babar, 2017. "Digital Divide: Concepts and Reality in Bangladesh," Journal of Business, LAR Center Press, vol. 2(2), pages 24-33, March.
    7. Omer Gibreel & Ahreum Hong, 2017. "A Holistic Analysis Approach to Social, Technical, and Socio-Technical Aspect of E-Government Development," Sustainability, MDPI, vol. 9(12), pages 1-12, November.
    8. Anca Elena-Bucea & Frederico Cruz-Jesus & Tiago Oliveira & Pedro Simões Coelho, 2021. "Assessing the Role of Age, Education, Gender and Income on the Digital Divide: Evidence for the European Union," Information Systems Frontiers, Springer, vol. 23(4), pages 1007-1021, August.
    9. Oughton, Edward J. & Comini, Niccolò & Foster, Vivien & Hall, Jim W., 2022. "Policy choices can help keep 4G and 5G universal broadband affordable," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    10. Paunov, Caroline & Rollo, Valentina, 2016. "Has the Internet Fostered Inclusive Innovation in the Developing World?," World Development, Elsevier, vol. 78(C), pages 587-609.
    11. Katja Prevodnik & Vasja Vehovar, 2014. "Presenting dynamics of social phenomena: should we use absolute, relative or time differences?," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(2), pages 799-816, March.
    12. Shao, Qinglong & Kostka, Genia, 2023. "The COVID-19 pandemic and deepening digital inequalities in China," Telecommunications Policy, Elsevier, vol. 47(10).
    13. Hübler, Michael, 2015. "Labor mobility and technology diffusion: A new concept and its application to rural Southeast Asia," Journal of Asian Economics, Elsevier, vol. 39(C), pages 137-151.
    14. Spada,Paolo & Mellon,Jonathan & Peixoto,Tiago Carneiro & Sjoberg,Fredrik Matias, 2015. "Effects of the internet on participation : study of a public policy referendum in Brazil," Policy Research Working Paper Series 7204, The World Bank.
    15. Katie Brown & Scott W. Campbell & Rich Ling, 2011. "Mobile Phones Bridging the Digital Divide for Teens in the US?," Future Internet, MDPI, vol. 3(2), pages 1-15, May.
    16. Anca Elena-Bucea & Frederico Cruz-Jesus & Tiago Oliveira & Pedro Simões Coelho, 0. "Assessing the Role of Age, Education, Gender and Income on the Digital Divide: Evidence for the European Union," Information Systems Frontiers, Springer, vol. 0, pages 1-15.

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