Infrastructure Friction

The sources of infrastructure friction include those that prevent users from readily accessing the Internet, such as fixed- and mobile-broadband connections, bandwidth speeds, and pricing, as well as factors related to architecture, such as the number of networks, Internet service providers (ISPs), and Internet exchange points (IXPs)—the data centers where networks connect and exchange traffic. Many countries do not have their own domestic IXPs, which slows speeds for users and raises prices.

Industry Friction

Industry-related sources of friction—such as workforce ICT skills, trade barriers, access to capital, and the strength of intellectual property protection—hold back successful online business operations. The strongest performers are countries with well-developed markets for international trade and a domestic business environment that fosters innovation and creativity. Open economies with traditionally liberal attitudes to trade perform well on this score.

Individual Friction

These sources of friction obstruct consumers’ interaction with the Internet economy. They include ICT literacy and access to and afford-ability of financial services. The prevalence of online payment systems, a big e-commerce enabler, and the level of trust consumers have in how personal data will be used on the Internet are key indicators for consumer-related friction.