ICANN Publishes Supplement to BCG Study

ICANN has released a supplement (“Which Wheels to Grease? Reducing Friction in the Internet Economy”) to the BCG study about how to reduce e-friction in developing countries who face obstacles in delivering services within their businesses. According to BCG, there is a potential of economical growth of at least 2.5 in GDP and 7% for the SME revenues.

The update was done by the Boston Consulting Group and analyzes the most important causes of the e-friction as well as nominating the countries that face the same problems and could work together for a common solution.  

While it is clear that once these issues are solved it will lead to more economic benefits and will speed up the countries growth, the study shows that improvements should be made in infrastructure, information and domain names industry. BCG also shows the main causes of this obstacle which seem to be financial condition, the propportion of urban and rural population, the English language knowledge, and the density of inhabitants in a certain region.

Thus, the main focus should be laid on developing rural areas infrastructure by investing more funds and implementing the best and most efficient technologies so that more people could be brought online by simplifying their access with the minimum of costs and removing bureaucracy.

According to Mr. Fadi Chehade, CEO at ICANN, there is an average rate of 10% per year in global growth of digital economy so the potential of investing in this domain is fairly consistent.