Inclusion in the information society A case study with AOL Europe

Transcription

1 DEESD IST Digital Europe: ebusiness and sustainable development Inclusion in the information society A case study with AOL Europe Summary April 2003 Project funded by the European Community under the Information Society Technology Programme ( )

2 1 Background Internet penetration continues to lag behind among traditionally excluded groups low income earners, the unemployed, disabled, elderly and those with poor levels of education. Policy makers are committed to internet access for all on the assumption that digital exclusion will further entrench social exclusion. But what evidence is there that digital inclusion leads to social inclusion? In an influential study conducted in the 1970s, sociologist, Mark Granovetter, demonstrated the importance of weak ties beyond family and close friends in providing access to new economic and social opportunities. Marginalised individuals such as the long-term unemployed tend to rely on strong ties often to other marginalised individuals. They are the network poor - individuals who do not have the kind of social network configuration that is most appropriate for the stage of life they have reached, to enable them to thrive (Perri 6, 1997). At this early stage in the integration of the internet into the economy and society, we cannot say categorically that there is a positive correlation between digital inclusion and social inclusion or that the cost of not being online is further social exclusion. Yet, there is evidence that digital technologies can play a role in helping the network poor build valuable social networks. Overtime, access to networks and the opportunities they unlock will become increasingly dependent on digital technologies. The opportunity cost of not being online will increase. But, we should avoid the naïve assumption that access to digital technology is inevitably a social leveller. Technology operates in a social context, so it should come as no surprise that an individual s ability to benefit from the potential of the internet is in part determined by social structures and opportunities (Norris, 2001). So, we should think less of a digital divide where you are either in or out of the Information Society than of a digital ladder with numerous rungs. 2 Objectives This case study, conducted in collaboration with AOL Europe, investigates the potential contribution of business contribution to digital inclusion but is not intended to be a comprehensive assessment. It considers connectivity and content as important drivers of digital inclusion. Other drivers, for example new media and technological literacy, are equally important but fall outside the scope of this study. It focuses on the internet as one of the most significant digital technologies for the development of an inclusive Information Society. Firstly, the internet is unique in supporting many to many interaction rather than many to one or one to one as is the case with broadcast media and telecommunications. This builds new potential for social engagement and interaction. Secondly, the chance connections facilitated by the internet create opportunities for individuals to develop new social contacts beyond existing networks. Finally, the internet provides access to rich content that can be both empowering and enabling In particular, the case study aims to: Identify barriers to wider internet access and use Identify ways in which business could promote digital inclusion Identify strategic drivers for business to contribute to digital inclusion Put forward policy and business recommendations for an inclusive Information Society. 3 Methodology This case study draws primarily on desk based research. It is based on data supplied by AOL UK and AOL Germany as well as supplementary studies relating to digital inclusion in 1

3 Europe and the USA. To support the research, interviews were conducted with representatives from AOL UK. 4 Barriers to take up and use of the internet The following have been identified as the key barriers to promoting digital inclusion in Europe. They are divided into demand-side and supply-side barriers. Demand-side barriers Lack of demand A significant proportion of EU citizens are not online and have no interest in being online. Traditionally excluded groups are over-represented among those who are not motivated to go online. Of the 27 per cent of non-users in the EU who are not interested or don t want to use the internet, 40 per cent are retired, 39 per cent are on a low income and 31 per cent are based in the home (European Commission, 2001). Ignoring them will only further limit their opportunity to benefit from online opportunities. Resistance to public internet access points Public internet access points (PIAPs) are intended to provide a first point of contact with the internet. The term refers to publicly funded internet access terminals in libraries and community centres, privately run internet cafes and internet access kiosks. But PIAPs are not fulfilling their function - 41 per cent of non-users are not interested in public access points under any circumstances. In fact, a study by OFTEL indicates that alternative access points are more popular among people who already have internet access at home (Oftel, 2002). Lack of awareness Experience in the UK, the only EU country so far to pursue a mass media internet awareness campaign suggest that ongoing resistance to the internet could benefit from a high profile awareness raising campaign. Internet penetration among low income individuals in the UK is higher than expected, indicating the success of the UK Online campaign (Booz Allen Hamilton, 2002). Perceived cost The low perceived value of the internet among non-users makes cost, or at least perceived cost, a significant barrier to internet access. 47 per cent of non users in Germany feel that the cost of access is too high (Kubicek, 2000). In the US, 11 per cent of non-users stopped going online due to high costs, and in the UK, cost prevents 8 per cent of non users going online (Lenhart et al, 2000)(Office of National Statistics, 2001a). When decisions have to be made about how limited household income is spent, perceived value is all important. Supply-side barriers Inadequate public internet access points The availability of PIAPS varies dramatically across the EU from 0.45 per 1000 inhabitants in Finland to fewer than 0.05 per 1000 inhabitants in France (European Commission, 2001). There are some noteworthy examples of PIAPs but they are often beset by problems, including: insufficient personnel to offer adequate training; precarious finances that threaten long term sustainability; and outdated or insufficient technology. 2

4 Real cost For Europe s lowest income earners, the real price of computer hardware remains a barrier. Estimates are that 15 per cent of the UK population cannot afford to purchase a computer (Department for Education and Skills, 2001). This figure will be far higher in the candidate countries. Limited availability of flat rate in Europe Evidence is mounting that online behaviour develops as usage increases. Experienced internet users spend a larger proportion of time online sending s, doing professional work, looking for news or trading stocks, whilst new users spend a greater proportion of time in chat rooms, playing games and browsing (UCLA, 2001). Time spent online is strongly influenced by pricing packages. In countries with metered access charges, the average person spends 5 to 9 hours a month online. This compares with 32 hours in the USA and 20 hours in New Zealand where a large proportion of users have flat rate access (OECD, 2001). Giving all EU citizens the choice of flat rate narrow band internet access poses a regulatory challenge. Lack of relevant content Research indicates that there is still a shortage of content to motivate disadvantaged groups online. A study by The Children s Partnership in the US identified four contentrelated barriers to getting disadvantaged communities online. There is a real lack of relevant, particularly local, information and very limited cultural diversity in the content available online. Information is still overwhelmingly in English and tends to be designed for an audience with average or advanced literacy skills (The Children s Partnership, 2001). 5 The business contribution to digital inclusion Invest in awareness raising Business support for awareness raising has clear social benefits if it can break down barriers to internet access among excluded groups. In Germany, the Federal Ministry of Economics and Technology has set up the Digital Chances Foundation with the support of the University of Bremen, AOL Germany and Accenture. One of its principle aims is to make people interested in the opportunities of the internet, to motivate them and support them in the beginning. If the Digital Chances initiative in Germany proves successful, a similar awareness raising strategy in conjunction with improvements to public internet access points could be adopted in other EU member states, particularly where internet penetration is low. Invest in public internet access points Business could play a greater role in addressing the failings of public internet access points. Where employees have relevant ICT skills, volunteering and mentoring could provide valuable support to over-stretched staff in libraries and community centres and a significant boost to employee morale. Greater business investment in public internet access points would secure the long term sustainability of many ventures. But it is important that criteria are developed to ensure that wise investment decisions are made. Develop simple, cheap internet access device Low-income users need not be dismissed as charitable cases. There are business opportunities outside the current market if innovation can be directed towards creating appropriate products and services. There is a need to stimulate the development and production of a simpler, cheaper internet access device in the EU. If alternative hardware is to promote inclusion, it needs to allow for GPRS connection as fixed line penetration can be as low as 30 per cent in Central and Eastern Europe and is often unreliable. 3

5 Improve accessibility through design Online service providers need to offer greater choice in the way content is displayed to reach more diverse audiences. A recent development in the US suggests that differentiated layout could be a possibility. Users signing up to AOL in the US can choose between different layouts according to their particular interests. A similar system could allow users to choose between levels of linguistic and typographical complexity. Improve relevance through community building User-generated content such as chat rooms and message boards have the potential to bring down content barriers to wider use of the internet and promote social interaction. Online service providers could become repositories for online community building tools and tips. Much of the necessary software is already available for free but users have to know what to look for and where to look. Making it all freely available in one place would be a way of actively promoting the social potential of the internet. 6 Business drivers for promoting digital inclusion Saturation in the mainstream market Estimates suggest that internet penetration in Europe will start to plateau at around 47 per cent in 2005, assuming PC penetration remains at 55 per cent (Raban et al, 2002). There appears to be a clear business rationale for AOL and other online service providers to extend their reach beyond the current market to attract lower income users and other disadvantaged groups. If UK figures are anything to go by, we are talking about 40 per cent of the EU population (DfES, 2001). This is an enormous market to ignore and one that spends significant amounts on technology in other areas. From narrowband to broadband Companies such as BT and AOL have staked their future on the success of broadband. But there is limited awareness of the benefits of broadband, it remain relatively expensive and its availability in some parts of Europe is limited. Flat rate narrow band access will be a stepping stone to broadband for some time to come. Promoting wider take up of narrow band internet access is critical to the future success of broadband services EU Enlargement Enlargement of the EU to include the 13 candidate countries will increase the size of the European single market by 170 million people. This represents a huge opportunity for market expansion. But success in these new markets will depend on developing appropriate products and pricing packages. Relevance will be the key. Social innovation stimulates business innovation Social innovation can be an investment in company-wide innovation with unforeseen benefits. In an article for the Harvard Business Review in 1999, Roasbeth Moss Kanter presents several case studies of leading companies such as Bell Atlantic and BankBoston that have used social engagement as a test-bed for wider business innovation (Kanter, 1999). The business value of corporate social responsibility In today s economy, a significant proportion of a company s value comes from its reputation and brand. Corporate reputation increasingly depends on a company s social, environmental and ethical performance. External pressure is growing on the media and ICT sectors to make a significant contribution to tackling the digital divide. Failure to do so can lead to a loss of reputation and trust among key stakeholders investors, employees, suppliers, consumers and government. 4

6 7 Recommendations The EU should: Use the European Convention as an opportunity to develop a new, compelling vision of a sustainable Information Society that will deliver economic and social benefit to Europe s citizens. Communicate its vision beyond Europe s elite to the citizens of the European Union and candidate countries. Evaluation of awareness raising campaigns in the UK and the proposed Digital Chances campaign in Germany should highlight effective means of reaching the public. Raise awareness of successful national policy initiatives as part of its eeurope benchmarking activities, for example, Sweden s tax reform to increase PC uptake and the UK s internet awareness raising campaign. This would stimulate the sharing and, where appropriate, roll out of best practice. Move to enforce current regulatory rules governing flat rate internet access so that all EU citizens can choose flat rate access. At the same time, the EU should work with member state governments to consistently bring down the price of broadband across the EU. Commission research to further investigate the relationship between digital inclusion and social inclusion in order to optimise policy initiatives aimed at bridging the digital divide. Research should investigate the implications of the digital ladder for the development of policy initiatives. Companies should: Invest in public internet access points aimed at disadvantaged communities. Financial investment could be accompanied by in kind support. For example, employees with ICT expertise could be encouraged to volunteer as mentors and trainers. This is particularly important in countries where PC ownership in the home is low. Criteria should be developed to guide company investment in PIAPs. Develop a low-cost internet access package including a simple access device. Devices should have options for GPRS connection so they can provide internet access where fixed telephone lines are poor. This should run alongside industry collaboration in the development of a strong second hand market for PCs, creating further low cost options for consumers. Investigate the possibilities for differentiating the design interface of websites in order to display the same content with different degrees of complexity. This could open up content to a wider range of users. Collaborate with public and voluntary sector organisations in the development of online content for disadvantaged groups. In particular, companies should continue to invest in local content, working in partnership with organisations on the ground, as an important way of increasing relevance. Act as a free repository of community building tools for voluntary organisations and community groups to encourage them to develop message boards, lists and chat rooms as a way of creating relevant online content and building supportive social networks. Integrate social responsibility more closely with the strategic direction of the business in order to capitalise on strategic opportunities for the promotion of digital inclusion in Europe The views expressed in this paper are those of Forum for the Future. Forum for the Future, 2003 For further information or to read the full case study visit 5