Digital connectivity post pandemic – The magic wand to a more successful future

Economists often speak of the so-called new economy - a buzz word which incorporates the need for digital connectivity in its core. The infamous pandemic re-enforced the need for digital connectivity and has paved the way for a plethora of business opportunities. The entire internet value chain, cloud service providers, Internet Exchange Points, fixed and mobile broadband operators have experienced a surge in demand when compared to precovid times. Yet recent local news may not augur well for the prospect of the use of digital connectivity for business needs in Malta.

Online conferences, were practically unheard of prior to March 2020. Yet, as the pandemic persisted, colleagues from across the world resorted to virtual platforms to discuss important topics, be it financial services, corporate services, health and so on. European Commission or Council meetings which were typically physically held in Brussels, were shifted online and critical international policy coordination conferences such as the G7 or G20 were also shifted on. Virtual health consultations also became more popular applications such as tabib.mt became popular as a way to communicate with various health professionals available through the application.

And what about shopping for basic needs? To the amusement of many, in March 2020 shoppers overloaded their shopping trolleys with basic necessities, without realising that supermarkets and grocery stores would still be available with supplies. Supermarket owners noted that demand for online shopping heightened especially for essential items. Those which were proactive and already had online facilities in place became even more popular and other similar businesses made arrangements to follow suit and keep up with the competition. Apart from this, given that Brexit caused duty fees for items from the UK, it became more evident that for individual consumers that local products have become more worthwhile rather than importing from abroad. As a result, Maltese owners were incentivised to open up an online shop complementing their physical one. This notion of opening an online shop was also of importance as health authorities forced shut non-essential businesses and this was key to keeping somewhat afloat.

Complementing this, digital connectivity became instrumental to popular applications for food delivery such as Bolt or Wolt. With a click of a button, food can be ordered at any time of the day and delivered straight to your door. This completely changed the food take-away businesses, and the mind-set of private consumers, spurring a new opportunity for restaurants which were shut-down by health authorities to still generate some amount of revenue during dire times. Naturally, such growth generated a derived demand for other services including the need for drivers to deliver the food, or administration needs of the application itself.

However, the growing demand for digital connectivity is not limited to business needs.

Covid-19 forced schools, university lectures, parents’ meetings to shift online, leading to a further increase in the use of a digital connection. Working from home or a mixed approach has become the norm for a number of companies, particularly because this approach worked well for so many companies during lockdowns or periods of high case numbers. It comes as no surprise that working from home requires a good digital connection, especially to attend team meetings and business webinars.

Official figures from Malta Communications Authority (MCA) indicate that subscriptions to fixed broadband increased by 4.3 percent in Q2 2021 over the same period of 2020 and specifically, the fibre internet to home (FTTH) network increased by 30.4% during the same period. This is corroborated by data issued by the National Statistics office, which also indicates that the percentage of individuals who use the internet is on the rise as at 2020. The NSO notes that the main activities for internet use include communication which is followed by entertainment and then access to information. Other activities include online services, eHealth and creativity.

We have to also remember that the world shifted the way people interact with each other, from physical interactions to strict social distancing measures as mandated by health authorities, which included long periods of lockdowns and quarantines. Psychologically, interaction is a basic human need and as expected the general population resorted to virtual means of communication to interact with their loved ones or colleagues. We have seen applications such as Messenger, Teams and Zoom becoming a hit in order to connect with each other and virtually interact. Also, as lockdowns or quarantine rules were mandated, individuals resorted to the use of digital connectivity to stream movies, browse the internet and communicate via social media platforms. Whilst it may be obvious, digital connectivity has become the norm, and the way forward to interact with each other when physical means is not possible.

Although demand for digital connectivity is on the increase, this week it has been reported that a recent study shows that Malta’s internet stability is considered to be poor with both broadband and mobile internet found to be unstable. The 2021 Digital Quality of Life study compiled by the cyber-security firm Surfshark ranked Malta at the 40th position out of 110 countries and at the 27th place of 38 countries in Europe. This index is formulated by the impact of five components: internet affordability, internet quality, electronic infrastructure, electronic security, and electronic government. Internet quality was the worst component, as Malta ranked in the 59th place, with Estonia being the only European country that scored lower. One begs the question – where does that leave us? Perhaps the pandemic is our wake-up call to urge connectivity companies to offer better and faster internet connectivity? Unstable and slow connectivity does not augur well in a competitive setting, as it reduces work efficiency and the way we communicate with each other. Perhaps this is the right moment for additional investment in digital services through better infrastructure?

… and what about the rise in inequality amongst society?

Using digital communications does not come without social costs. As the pandemic rolled from a few weeks, to months and years, it became even more evident that vulnerable groups were the least prepared to manage the necessary shifts in the way we communicate with each other. As lay-offs took their toll, it may not have been possible for everyone to afford a digital connection. Individuals whose digital skills are not up to date to keep up with any new rapid digital habits were also disadvantaged as it became difficult for them to adjust to the new realities.

The Covid-19 pandemic has made society realise the importance of good connectivity and adequate communication infrastructure. In the post pandemic era, one hopes that technological advances and investment to the local infrastructure are adequately made to improve connectivity and accessibility amongst all business and social groups, and allow our country to catch up with the rest of the competition.

“Covid-19 forced schools, university lectures, parents’ meetings to shift online, leading to a further increase in the use of a digital connection. Working from home or a mixed approach has become the norm for a number of companies, particularly because this approach worked well for so many companies during lockdowns or periods of high case numbers.”