Contrasting Diffusion of Mobile and Internet in Pakistan

Over past decade mobile communications witnessed phenomenal diffusion around globe including developing countries, but internet diffusion and usage remains low among later. By comparing cases of mature mobile and lagging Internet markets in Pakistan, this paper tries to dig out why institutions and instruments for competition are unable to perform similarly for disparate technologies in developing countries. We argue besides regulatory and other institutions to manage supply side competition, perceptions based on characteristics of technology also affect diffusion. Whereas users are affected by complexity and usability of available media/technology, suppliers may base investments on complementary or substitute role between competing technologies. Therefore, competitive market forces can tilt balance in favor of preferable technologies, sometimes leaving gaps for holistic ICT diffusion. Then institutions in developing countries should not focus to promote market competition only for selective technologies but be additionally deployed and adapted to ensure access and usage of multiple technologies in long term.