Report on the Evolution of Internet Access and its Alignment with Sustainable Development Goals

Introduction: The Legacy of Dial-Up and its Relevance to SDG 9

The recent discontinuation of AOL’s dial-up service marks the end of a foundational era in internet history. The development from early networks like ARPANET to mass-market dial-up services has profoundly shaped current digital infrastructure. This evolution provides critical insights into the principles of Sustainable Development Goal 9 (Industry, Innovation, and Infrastructure), which seeks to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. The legacy of dial-up, particularly its pricing models and technological limitations, directly influenced the trajectory of digital infrastructure development and accessibility, which are core tenets of SDG 9.

Economic Models and Their Impact on Sustainable Economic Growth (SDG 8) and Infrastructure (SDG 9)

The initial adoption of the internet was heavily influenced by the pricing structures of existing telephone networks. The distinction between metered and unmetered access models created divergent paths for digital inclusion and economic participation, impacting both SDG 8 (Decent Work and Economic Growth) and SDG 9.

• Metered Access: In many jurisdictions, internet access via dial-up was charged per minute, mirroring voice call pricing. This created a significant cost barrier, limiting online time and discouraging exploration of the nascent internet economy.
• Unmetered Access: In nations like the United States, Canada, New Zealand, and Australia (the “Fab 4”), local calls were unmetered. This allowed for effectively unmetered internet access, which dramatically accelerated adoption rates and usage.

This unmetered model fostered an “always on” mentality, encouraging longer online sessions and greater user engagement. This, in turn, stimulated demand for digital services and contributed to early growth in the internet economy, aligning with the objectives of SDG 8. The resulting infrastructure boom, including the installation of second phone lines in households, represented a significant, market-driven expansion of communication infrastructure as envisioned by SDG 9.

The Digital Divide: A Challenge to Reduced Inequalities (SDG 10)

The disparity in access models between the “Fab 4” and regions with metered calling created an early digital divide, a primary concern of SDG 10 (Reduced Inequalities). The Organisation for Economic Co-operation and Development (OECD) noted significant differences in digital development, urging policymakers in metered regions to adopt policies that replicated the success of unmetered access to ensure more equitable participation.

1. Higher Adoption Rates: The “Fab 4” quickly led OECD statistics in internet accounts per capita.
2. Increased Usage: Users in these countries spent significantly more time online, fostering digital literacy and innovation.
3. Economic Disparity: The potential to benefit from the internet economy was far greater in unmetered regions, exacerbating global economic inequalities.

This historical example underscores the critical role of access policies in either widening or narrowing the digital divide, highlighting the importance of inclusive infrastructure planning to achieve SDG 10.

Transition to Broadband: Fostering Innovation and Resilient Infrastructure (SDG 9)

The limitations of dial-up and competitive pressures spurred the transition to broadband, a critical step in building the resilient and high-capacity infrastructure central to SDG 9. The competition between incumbent telecommunication companies and emerging cable providers was a key driver of this innovation.

• Competitive Pressures: Dial-up models became unsustainable for incumbent telcos, pushing them to market broadband technology as a more profitable, higher-capacity solution.
• Technological Innovation: Cable companies leveraged their existing infrastructure to offer faster, unregulated internet access, often bundled with television and telephone services. This “triple play” model set a new standard for consumer telecommunications.
• Market Dynamics and Adoption: The transition to broadband was slower in the “Fab 4” countries because the high value of unmetered dial-up created a higher cost-benefit threshold for users to switch. This demonstrates how existing infrastructure can sometimes create inertia, a key challenge in the continuous upgrading required by SDG 9.

The marketing of connection speed as a status symbol, even when unnecessary for average user profiles, reflects the ongoing industry push for infrastructure upgrades, a dynamic that continues to drive innovation and investment in line with the goals of SDG 9.

Conclusion: Historical Lessons for Sustainable Digital Development

The history of dial-up internet, pioneered by companies like AOL, offers enduring lessons for achieving the Sustainable Development Goals. The evolution from metered access to unmetered models, and the subsequent competitive shift to broadband, illustrates the profound impact of policy, economic models, and innovation on digital inclusion. This history serves as a blueprint for understanding how to build the inclusive and resilient digital infrastructure required to achieve SDG 9, foster the economic growth outlined in SDG 8, and bridge the digital divides that challenge SDG 10.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 9: Industry, Innovation and Infrastructure

  The article is fundamentally about the evolution of internet infrastructure, from dial-up on telephone networks to broadband via telcos and cable providers. It details the innovations by Internet Service Providers (ISPs) like AOL and the competitive dynamics that shaped the telecommunications industry. The entire narrative focuses on the development, accessibility, and technological progression of this critical infrastructure.

• SDG 8: Decent Work and Economic Growth

  The article connects the development of internet infrastructure directly to economic benefits. It states that countries with greater internet uptake had “greater potential to benefit from the internet economy.” This highlights the role of technological advancement and access in fostering economic growth and productivity.

• SDG 17: Partnerships for the Goals

  The article mentions the role of the Organisation for Economic Co-operation and Development (OECD), an international organization, in promoting best practices. The text notes that the “OECD urged policymakers, in places where calls were metered, to replicate the Fab 4,” demonstrating international cooperation and knowledge sharing to advance technological adoption.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… with a focus on affordable and equitable access for all.

     The article discusses the development of internet infrastructure (telephone lines, broadband) and how pricing models like “unmetered access” were crucial for making it affordable, leading to wider adoption in the “Fab 4” countries (United States, Canada, New Zealand, and Australia).

   • Target 9.c: Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet.

     The central theme of the article is the historical progression of internet access. It highlights how competition, pricing strategies (“unmetered local calling”), and technological shifts from dial-up to broadband contributed to increasing the number of people with internet access.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

     The article describes the technological upgrade from dial-up to broadband and the innovations by competing ISPs and cable companies. This technological advancement is linked to the ability of the “Fab 4” countries to have “greater potential to benefit from the internet economy,” which is a direct reference to increased economic productivity.

3. SDG 17: Partnerships for the Goals

   • Target 17.6: Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing.

     The article provides a clear example of this target when it mentions that the “OECD urged policymakers” in countries with metered calling to adopt the unmetered model of the “Fab 4.” This represents international cooperation and knowledge sharing aimed at improving technology access.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article explicitly and implicitly mentions several indicators that can be used to measure progress:

• Internet accounts per capita: The article explicitly states that the “Fab 4” countries “raced to the front of the Organisation for Economic Co-operation and Development (OECD) statistics race for internet sophistication with more internet accounts per capita.” This is a direct indicator for Target 9.c.
• Time spent online: The text mentions “longer times on line” as another key metric where the “Fab 4” countries led, indicating deeper engagement and usage, relevant to Target 9.1 and 9.c.
• Telephone lines per capita: The article notes that in response to the demand for “always on internet,” “Telephone lines per capita boomed,” serving as an indicator of infrastructure development to support internet access (Target 9.1).
• Diffusion of broadband connections: The article discusses how the “diffusion of telco broadband connections was slower in the Fab 4 countries than in Europe” due to pricing factors, using broadband penetration as a key indicator of technological upgrading (Target 8.2 and 9.1).
• Prevalence of pricing models (unmetered vs. metered): The entire article uses the distinction between unmetered and metered calling as a primary factor influencing internet uptake, making it a crucial implied indicator for measuring affordability and access (Target 9.c).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

Source: aei.org