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Connectivity a challenge for global e-commerce
There are wide gaps in development despite Asian countries’ efforts in pushing information communications technology (ICT) infrastructure.
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There are wide gaps in development despite Asian countries’ efforts in pushing information communications technology (ICT) infrastructure. (Shutterstock/File)
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ross-border e-commerce has been a major development trend of international trade and globalization, which provides ASEAN and East Asia with greater opportunities. However, the digital economy presents both opportunities and challenges, and the difference between them is determined by each country’s economy, geography, politics, society, culture as well as market reactions to the new trend of economic digitalization. Among all determinants, connectivity is the cornerstone of development.
E-commerce connectivity involves networks and links in four layers: the smooth exchange of data and information (connectivity for information flow), the delivery of goods and services (logistics connectivity), the payment (connectivity for cash flow), and the seamless links between the virtual and physical part of an e-commerce network (integrating connectivity).
First, the development of e-commerce demands more stable and affordable internet connection with higher speeds. There are wide gaps in development despite Asian countries’ efforts in pushing information communications technology (ICT) infrastructure. This is evident in the difference in internet speeds across countries as well as that within the country. Overall, the quality of regional internet infrastructure looks satisfactory compared to the world average from the aspect of either the average or the peak speed of internet connection.
At the country level, the average internet connection speed in the region ranged from 20.3 Mbps in Singapore, ranked seventh globally, to 5.5 Mbps in the Philippines, ranked 100th. The peak internet connection speed in the region ranged from over 180 Mbps in Singapore, the world’s number one, to 42 Mbps in the Philippines, 97th in the world.
