What is Internet Diffusion Rate

There is overwhelming evidence that the use of the Internetenabled applications and solutions provide unprecedented economic growth opportunities. However, the Internet diffusion rates remain low in many countries. According to the International Telecommunications Union (ITU), in 2004, less than 3% of the Africans used the Internet, whereas the average Internet subscription rate for G8 countries (Canada, France, Germany, Italy, Japan, Russia, the UK, and the US) is about 50%. Also, in nearly 30 countries the Internet penetration rates still remain below 1% (ITU, 2006). So, what are the key factors that explain this wide variation in Internet subscription rates in countries around the world? An understanding of these factors will be highly useful for policy makers, economic developmental agencies and political leaders in establishing and implementing suitable national developmental strategies and policies.