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D. Murali

In the race to connect to the Internet, South Africa lies exactly mid-way between established and transition economies, says a research report. Where does India feature? Track the `X' factor.

ON the face of it, it may seem that recent report titled Internet shadow regions: need to sow when the time is right by Ashima V. Howai, of Frost & Sullivan Research, doesn't say anything new. Because you already know that a country's connectivity is no longer measured by road or rail, but by communications; and that investment in technology infrastructure "will lead to a substantial economic growth". Yet, you may be interested in the report because it speaks of the `Internet Access Index', a measure of "the extent of Internet reach and adoption".

Howai explains that the index factors in the use of the Net "in households, business enterprises, educational and government institutes" and compares various regions vis-à-vis South Africa, "as this country lies exactly mid-way between established and transition economies". She, therefore, pegs South Africa's index as `X', and uses the `X' factor to signify "the magnitude by which different geographies differ". Thus, North America (with a 46.9 per cent Internet penetration rate) gets a grade of 2.03X; it is, hence, "at least twice as better as South Africa". Western Europe and Latin America come second and third. The Middle East appears to be Net poor, though oil rich.

Another chart in Howai's paper shows colourfully the spread of the Net on a grid with low-medium-high of Internet penetration vis-à-vis high-medium-low of growth of Net users. Growth is the lowest in Western Europe though it has a Net penetration rate of 43.5 per cent. Why? Economic downturn and fall in tech investments are likely reasons, according to Howai. Latin America gets bad publicity for its unstable economic conditions, but it has "one of the highest rates of growth in Internet users". There, dissemination of technology is better because of proximity to North America, notes the paper.

India's Net penetration stands low among the 10, shown in yet another chart, and Egypt gives us company. Greece sprints at good speed. China has a good percentage to boast of, and one may wonder if in Venezuela more people are accessing the Net for beauty tips.

"In the Asia-Pacific, the regional Internet penetration of 7.8 per cent is driven by leading economies like Korea, Taiwan, Australia, Hong Kong, and Singapore," writes Howai. But developing countries such as China, India, Thailand, Indonesia, and the Philippines are working hard to catch up. There is hope, observes the author, that the region may achieve the goal of 11 per cent penetration by 2006. A positive note.

ITworks@TheHindu.co.in

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