Broadband needs its digital communities

Governments in the Middle East and North Africa, like governments elsewhere, have recognised the power of information and communications technology to boost social and economic growth.

Regional leaders have acknowledged that nationwide high-speed broadband - enabled by a combination of fixed and wireless networks - is a crucial foundation for socio-economic development, and they are pushing forward to construct such "digital highways".

Etisalat, in which the UAE Government owns a majority stake, has announced it will invest Dh55 billion (US$15bn) in upgrading its broadband infrastructure.

But broadband networks alone are not enough. These digital highways become truly effective only when "digital communities" spring up beside them, with functions such as e-health, e-education and smart grids developed to take advantage of the connectivity that broadband offers.

When policymakers and telecommunications operators collaborate with leaders in other sectors, they are laying the groundwork for profound improvements - boosting national competitiveness, innovation, economic productivity and social inclusion. As a result, these efforts offer crucial benefits to the citizens of countries whose leaders push to build digital communities.

For countries in the Middle East and North Africa (Mena) region to realise the ultimate potential of broadband, they must first make its access widely available and affordable. The GCC countries have high broadband adoption, but internet speed varies significantly.

However, these countries are taking steps to continue promoting broadband. In the UAE, Qatar and Saudi Arabia, telecoms operators and policymakers are exploring new business models that could potentially separate their network assets from services.

These multi-layer business models allow operators to reduce their focus, investment and dependency on traditional revenue streams and instead position themselves to scale next-generation networks and related apps and services.

As the construction of the region's digital highways continues, members of the broadband ecosystem are unlocking the true potential of digital highways by facilitating the creation of digital communities: apps that deliver better services and boost national competitiveness.

One example is "smart government". Information and communications technology (ICT) today is playing a key role in helping governments to maintain public service standards while they attempt to curb national spending.

Countries such as Bahrain rank high on the UN e-Government Readiness Index. In Egypt, government portals have allowed citizens to go online to register appeals in court cases, make utility service payments, and retrieve birth certificates, national ID card details and family records.

Health care offers another example. ICT is vital in enhancing the quality and reducing the cost of health care, via apps such as electronic health records and e-health services.

Finally, digital communities can enhance environmental sustainability: the adoption of green ICT apps could produce a 15 per cent reduction of global emissions by 2020, according to a Smart 2020 study.

Applications such as smart grids are enabling sustainable smart city concepts such as Abu Dhabi's green city of Masdar.

Each member of the broadband ecosystem needs to play a role in building communities around digital highways.

Policymakers will need to adopt a holistic approach that encourages the development and use of apps. This will require collaboration with their counterparts in adjacent industries - such as health care, education, energy and transportation - to develop sector-specific ICT policies. They must also stimulate the development of apps, such as cloud computing, including selectively investing in the initiatives needed to drive their use.

For operators, the foremost priority is to develop their ability to create and maintain partnerships, as they will need to engage and incentivise large developer communities and build go-to-market partnerships that offer access to specialised skills. They will also need to move away from their traditional focus on network deployment to emphasise services and apps.

Device manufacturers and application developers will need to collaborate with each other as well as with operators on the propositions that will most appeal to users. Specifically, there is a clear and increasing need to develop tools for search capabilities, information management and prioritised storage, as well as security and privacy protection.

Finally, there is the need to quantify the impact of broadband and the apps it enables.

A standard global approach to understanding and measuring how broadband affects socio-economic progress will be critical to unlocking its potential.

Mena countries that hope to compete in the 21st-century economy must take a carefully considered approach to their digital futures.

Their success will rely on a collaborative, committed and capable ecosystem that not only delivers high-speed broadband but also builds vibrant communities around it.

Communities that facilitate stakeholders' innovation, adoption and collaboration will realise the extraordinary potential of broadband.

Karim Sabbagh is a senior partner and the global practice leader for communications, media and technology at Booz & Company, while Bahjat el Darwiche is a partner and Milind Singh is a senior associate