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The Relationship Between Local Content, Internet Development, And Access Prices

The Relationship Between Local Content, Internet Development, And Access Prices

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Published by InternetSociety
THE RELATIONSHIP BETWEEN LOCAL CONTENT, INTERNET DEVELOPMENT
AND ACCESS PRICES
This research is the result of collaboration in 2011 between the Internet Society (ISOC), the
Organisation for Economic Co-operation and Development (OECD) and the United Nations Educational,
Scientific and Cultural Organization (UNESCO). The first findings of the research were presented at the
sixth annual meeting of the Internet Governance Forum (IGF) that was held in Nairobi, Kenya on 27-30
September 2011.
The views expressed in this presentation are those of the authors and do not necessarily reflect the
opinions of ISOC, the OECD or UNESCO, or their respective membership
THE RELATIONSHIP BETWEEN LOCAL CONTENT, INTERNET DEVELOPMENT
AND ACCESS PRICES
This research is the result of collaboration in 2011 between the Internet Society (ISOC), the
Organisation for Economic Co-operation and Development (OECD) and the United Nations Educational,
Scientific and Cultural Organization (UNESCO). The first findings of the research were presented at the
sixth annual meeting of the Internet Governance Forum (IGF) that was held in Nairobi, Kenya on 27-30
September 2011.
The views expressed in this presentation are those of the authors and do not necessarily reflect the
opinions of ISOC, the OECD or UNESCO, or their respective membership

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Published by: InternetSociety on Oct 15, 2013
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THE RELATIONSHIP BETWEEN LOCAL CONTENT, INTERNET DEVELOPMENTAND ACCESS PRICES
This research is the result of collaboration in 2011 between the Internet Society (ISOC), theOrganisation for Economic Co-operation and Development (OECD) and the United Nations Educational,Scientific and Cultural Organization (UNESCO). The first findings of the research were presented at thesixth annual meeting of the Internet Governance Forum (IGF) that was held in Nairobi, Kenya on 27-30September 2011.The views expressed in this presentation are those of the authors and do not necessarily reflect theopinions of ISOC, the OECD or UNESCO, or their respective membership.
 
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FOREWORD
This report was prepared by a team from the OECD's Information Economy Unit of the Information,Communications and Consumer Policy Division within the Directorate for Science, Technology andIndustry. The contributing authors were Chris Bruegge, Kayoko Ido, Taylor Reynolds, Cristina Serra-Vallejo, Piotr Stryszowski and Rudolf Van Der Berg.The case studies were drafted by Laura Recuero Virto of the OECD Development Centre with editing by Elizabeth Nash and Vanda Legrandgerard.The work benefitted from significant guidance and constructive comments from ISOC and UNESCO.The authors would particularly like to thank Dawit Bekele, Constance Bommelaer, Bill Graham andMichuki Mwangi from ISOC and J
ā
nis K 
ā
rkli
ņ
š, Boyan Radoykov and Irmgarda Kasinskaite-Buddebergfrom UNESCO for their work and guidance on the project.The report relies heavily on data for many of its conclusions and the authors would like to thank AlexKozak, Betsy Masiello and Derek Slater from Google, Geoff Huston from APNIC, Telegeography(Primetrica, Inc) and Karine Perset from the OECD for data that was used in the report.The report was peer-reviewed by Abhimanyu Singh, Andrea Cairola, Qingyi Zeng, Min Bahadur Bista from UNESCO’s Office in Beijing, Jaco Du Toit from the UNESCO Office in Windhoek.The designations employed and the presentation of material in this publication do not imply theexpression of any opinion whatsoever on the part of the Secretariat of ISOC, OECD, or UNESCOconcerning the legal status of any country, territory, city or area or of its authorities, or concerning thedelimitation of its frontiers or boundaries.In addition, the co-publishers (ISOC, OECD, UNESCO) have made every effort to ensure that theinformation contained in this publication is correct and current at the time of publication but takes noresponsibility of its frontiers or boundaries.
This document and any map included herein are without prejudice to the status of or sovereignty over anyterritory, to the delimitation of international frontiers and boundaries and to the name of any territory, cityor area.
 
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeliauthorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East  Jerusalem and Israeli settlements in the West Bank under the terms of international law.
 
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TABLE OF CONTENTS
MAIN FINDINGS AND CONCLUSIONS .................................................................................................... 4
 
INTRODUCTION .......................................................................................................................................... 9
 
SECTION 1: KNOWLEDGE SHARING AND LOCAL CONTENT ......................................................... 11
 
Information theory ..................................................................................................................................... 11
 
Steps of knowledge sharing ....................................................................................................................... 12
 
SECTION 2: EXISTING TOOLS AND THE INTERNET SUPPORTING LOCAL CONTENT .............. 15
 
Oral knowledge sharing............................................................................................................................. 15
 
Paper/printing ............................................................................................................................................ 15
 
Communications and Multimedia ............................................................................................................. 16
 
Recording media ....................................................................................................................................... 18
 
Personal computers.................................................................................................................................... 20
 
The Internet ............................................................................................................................................... 21
 
SECTION 3: A FOCUS ON DEVELOPMENT........................................................................................... 30
 
Infrastructure investments that can reduce costs ....................................................................................... 31
 
Local content and IXPs ............................................................................................................................. 33
 
A focus on competition ............................................................................................................................. 33
 
Policy coherence for local content, Internet development and access prices ............................................ 33
 
SECTION 4: DATA AND EMPIRICAL ANALYSES ............................................................................... 35
 
BIBLIOGRAPHY ......................................................................................................................................... 61
 
ANNEX 1: MOBILE LOCAL CONTENT AND INFRASTRUCTURE .................................................... 64
 
Mobile content markets ............................................................................................................................. 67
 
Examples of mobile content development ................................................................................................ 69
 
ANNEX 2: CASE STUDIES ........................................................................................................................ 82
 
Arab Republic of Egypt ............................................................................................................................. 82
 
China ......................................................................................................................................................... 88
 
Brazil ......................................................................................................................................................... 94
 
France ...................................................................................................................................................... 103
 
Kenya ...................................................................................................................................................... 110
 
Republic of Korea ................................................................................................................................... 118
 
Senegal .................................................................................................................................................... 125
 

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