Page 7 - The affordability of ICT services 2023

The affordability of ICT services 2023

Figure 8: Mobile data and voice low- and high-consumption basket prices, as a percentage of GNI per
capita

17.2
140
15.5 Minutes 70
SMS 70
20
Data 2
10.9 11.3 (GB) 0.5
high-consumption basket
low-consumption basket 8.8 9.5 9.5 High cons.
8.0 Low cons.
8.0
6.6 7.1 5.5
4.9 4.3 5.2 4.3
4.6 3.0 3.9
2.6 2.4 2.3 2.4 3.8 3.4 3.2 2.2
2.7 2.4 2.0 2.0 1.6 1.3 2.0 3.0 2.5 2.0
0.6 0.5
1.7 1.7 1.6 1.3 1.0 1.0 0.5 0.5 1.6 1.4 2.5 1.5 1.3 0.7 0.5
0.5 0.5
Africa Americas Arab States Asia-Pacific CIS Europe World LDCs LLDCs SIDS Low Lower-middle Upper-middle High

2022 2023 Income

Note: Medians based on the 188 economies for which data were available for both baskets from 2022 to 2023 as a percentage of GNI per capita. Bars
show the difference between the price of the mobile data- and voice low- and high-consumption baskets. The low- (and high-) consumption baskets are
defined as the cheapest data and voice subscription available domestically, with a minimum of 70 (140) minutes, 20 (70) SMS messages, and 500 MB (2
GB) monthly data allowance with a 3G technology or above.
Source: ITU
Mobile data- and voice baskets GNI per capita. The lack of change from 2022 to 2023 in
low-consumption basket prices in low-income economies
The price of the mobile data and voice high-consumption indicates a structural problem, the combination of the
basket dropped to the 2 per cent threshold for the first less developed network infrastructure and low disposable
time in 2023. Mobile network operators increasingly offer income.
a wide range of bundles or packages of two or more
services (e.g., voice and data) that allow customers to top
up their data, voice or SMS allowances. These service Fixed broadband
bundles are generally cheaper than the pay-as-you-go In 2023, the affordability of the fixed broadband basket
rates and contribute to lower basket prices.
reached a global median price equivalent to 2.9 per cent
ITU monitors the prices of such combined data and voice of GNI per capita, a 0.3 percentage-point drop since
services with two allowances: a low-consumption basket 2022. In relative terms, the most significant drops were
that includes 70 minutes of calls, 20 SMS messages and observed in lower-middle-income economies, although
500 MB of data usage, and a high-consumption basket at 8.4 per cent of GNI per capita, it remains challenging to
that includes 140 minutes of calls, 70 SMS messages and afford. Affordability gaps are particularly high for the fixed
a 2 GB data allowance. The median prices of the baskets broadband basket across the world. The basket costs just
were equivalent to respectively 1.4 per cent and 2 per 1 per cent of monthly income in high-income economies,
cent of GNI per capita in 2023 (Figure 8). Over time, the but as much as 31.3 per cent in low-income economies,
price difference between the baskets has dropped, but where this service, if present at all, is in practice reserved
still remains significant in lower-middle- and low-income for businesses or the most affluent. In terms of differences
economies, notably in Africa, LDCs and LLDCs. Elsewhere, across regions, the affordability gap remains widest
in more mature markets the cost for the high-consumption between the Africa region and LDCs, and the rest of the
basket is negligible because the cheapest plans have world.
allowances that far exceed the low-consumption basket Affordability of the fixed-broadband basket is improving
threshold criteria.
at a slower pace compared to mobile baskets. This can be
In 2023, and for the first time, the median prices of low- attributed to the exponential increase in global data traffic,
and high-consumption baskets in Africa dropped below 5 80 per cent of which is routed through fixed networks,
and 10 per cent of GNI per capita, respectively. In the Arab which includes mobile devices connected to Wi-Fi
States and Asia-Pacific regions, the high-consumption networks (see ITU Facts and Figures 2023). Internet service
basket price decreased to the 2 per cent threshold. In providers (ISPs) must constantly upgrade their networks
low-income economies, neither basket is affordable, and ICT price basket metadata provides interesting
with the high-consumption basket at 15.5 per cent of evidence supporting this trend. Between 2019 and 2023,

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