Page 96 - SAMENA Trends - May 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

Prices for Telecommunication Services Continue to Decline But Do Not

Translate Into Rapidly Increasing Internet Penetration Rates

On average, prices for mobile-voice, mobile-data and basket of 1.5 GB shrank from 8.4 per cent of GNI per capita in 2013
fixed-broadband services are decreasing steadily around to 3.2 per cent in 2019, at a compound annual growth rate of almost
the world, and in some countries even dramatically. -15 per cent. When expressed in USD, the global average price of
The reduction in price relative to income is even more a mobile-data basket of at least 1.5 GB dropped by 7 per cent on
dramatic, suggesting that, globally, telecommunication and average annually between 2013 and 2019.
information and communication technology services are • Good progress has been made towards the Broadband Commission
becoming more affordable. However, both trends do not for Sustainable Development's target of achieving affordable
translate into rapidly increasing Internet penetration rates broadband costing 2-5 per cent of GNI per capita by 2025, but still
which suggests that there are other barriers to Internet more remains to be done. There are still nine developing countries
use, concludes ITU in its new statistical report, Measuring and 31 LDCs that have yet to reach the 2 per cent target by 2025.
Digital Development: ICT Price Trends 2019. "Keeping • Fixed-broadband packages remain generally more expensive than
telecommunication and digital services as affordable as mobile-data packages (although data allowances are not always
possible has always been important to ensure broader directly comparable). Over the past four years, the affordability of
Internet uptake, especially for lower-income households fixed broadband has not changed substantially, but advertised
and consumers," said Houlin Zhao, ITU Secretary-General. download speeds continue to increase.
"In the face of COVID-19, this is more vital than ever. People
who do not have access to the Internet may not be able to
access information about how to protect themselves from
coronavirus, telework, learn remotely and connect with
families and friends during quarantine." The latest statistics
from ITU confirm that affordability may not be the only
barrier to Internet uptake, and that other factors such as low
level of education, lack of relevant content, lack of content
in local languages, lack of digital skills, and a low-quality
Internet connection may also prevent effective use. "The
COVID-19 crisis has clearly shown us that nobody is safe
until we are all safe. By the same token, we will not be able
to use the full potential of digital technologies until we are
all connected," said Doreen Bogdan-Martin, Director, ITU
Telecommunication Development Bureau. "To connect all,
we need to address all factors that may prevent meaningful
connectivity."
Key results
• An entry-level mobile-voice basket remains broadly
affordable in most countries. In 70 countries, a low-
usage mobile-voice plan was available for less than
1 per cent of gross national income (GNI) per capita,
and in a further 37 countries it stood below 2 per cent.
Although causality is difficult to prove, price reductions
have undoubtedly helped contribute to the rapid rise in
the mobile-voice penetration rate, alongside growing
competition and better price monitoring and evaluation
by regulators.
• The expansion of bundled services has further reduced
prices, as combined data-and-voice baskets are generally
less expensive than the sum of the two separate baskets
in most markets.
• Prices have decreased from 2013 to 2019 relative to GNI
per capita The global average price of a mobile-data

96 MAY 2020