When considering poverty, housing insecurities and resource issues such as lack of food or clean water emerge. However, with the transition into the digital age, a new type of poverty has arisen – internet poverty. Access to the internet has become paramount for social mobility across the world. This article explores how Lithuania and South Korea achieved fast, comprehensive and affordable internet coverage and the lessons internet-lacking countries could take from them.

What Is Internet Poverty?

Similar to other forms of poverty, internet poverty has specific parameters. The World Data Lab defines these parameters as each person having access to 1GB of data per month, with a download speed of at least 10 mbps. This internet expense should constitute up to 10% of an individual’s expenditure. 

Using these parameters, more than 1 billion people live in internet poverty. This figure represents 13% of the global population. Almost half of these people live in Africa, and more than 400 million live in Asia. By percentage, Chad is the most afflicted, with 83.6% of its population stricken by internet poverty. India houses the most number of affected individuals – more than 230 million. 

Internet connection is necessary, given how interconnected the world has become, especially since the COVID-19 pandemic and the subsequent increase in working from home. Firstly, the internet is crucial for social mobility. It allows people to search for jobs, access certain industries and overcome particular obstacles, whether regarding geography or physical disabilities. Secondly, the internet increases people’s knowledge through the literal means of education and access to the news and resources from around the world. Constant network access also improves safety. For example, features allowing people to share their location with friends have been crucial in improving safety for women. Considering the advantages of having internet access, it is no longer a luxury but a necessity. Without it, huge inequalities across the world persist. 

Lithuania and South Korea

Lithuania and South Korea are renowned for their internet coverage, with 90% and 96% of households having access to high-speed internet. Their internet speeds are fast, coverage wide and connections affordable. In this way, they subvert all three parameters of internet poverty. Despite being on different sides of the world, they share similar routes to internet supremacy. 

First, both countries aggressively invested in internet infrastructure. South Korea’s Information Infrastructure program (KII) began in the mid-90s. The program gave millions of dollars worth of government loans to urban and industrial areas and service providers to install copper and fiber optic networks across the country. In 2005, the government expanded this program to provide rural areas with coverage. Lithuania invested similarly, with a particular focus on telecommunications starting in the 2000s. This focus has helped it to stand out as one of the most digitally connected countries, which is especially impressive given that it only gained its independence from the Soviet Union in 1990.

Secondly, both countries worked hard to make their populations tech-savvy. Lithuania’s Internet for All initiative and South Korea’s Internet Dream Village taught their citizens how to use the internet and provided free public spaces for the same cause. The latter program focused mainly on rural residents. Ensuring people are technologically literate is crucial to ensuring everyone benefits from network upgrades and unlocking all the advantages of the internet. For example, South Korea has become a massive hub of online gaming, an industry that made over $16 billion in the country alone in 2022. 

Finally, both countries allowed the internet to flourish in a deregulated market. While aggressive investment was top-down, neither country provided extensive regulation to the internet market. As a result, numerous Internet Service Providers (ISPs) sprouted up with these investments, given that this market has a low barrier to entry. This change did two things. First, it pushed prices down, making connections affordable in both countries. Second, it encouraged innovation. For example, larger ISPs in South Korea switched to faster fiber-optic cables to fend off the competition they were receiving from smaller ISPs.

South Korea and Lithuania share similar paths to becoming internet leaders, and they provide examples of success stories that developing countries could take lessons from.

Looking Ahead

In conclusion, the emergence of internet poverty as a global issue highlights the importance of affordable and widespread internet access in today’s interconnected world. With more than 1 billion people affected by internet poverty, it’s clear that digital inclusion is crucial for social mobility, education and overall well-being. Countries like Lithuania and South Korea serve as success stories, demonstrating the effectiveness of aggressive investment in internet infrastructure, tech literacy programs and fostering a competitive, deregulated market. These lessons can provide valuable guidance for other nations seeking to bridge the digital divide and ensure that the benefits of the internet are accessible to all.

– Ryan Ratnam
Photo: Unsplash