Page 14 - Measuring digital development The affordability of ICT services 2024

The affordability of ICT services

Figure 5: Evolution of broadband affordability (percentage of economies)

Data-only mobile broadband Fixed broadband

100 5 4 2 4 3 100 7 7
6 6 6 9 12 12 13 12 12 11 11 9 8
13 12 11 12 9 8 11 12 15 11
75 22 19 75 14 16 14 14 12 13 15
24 26 26 26 27 >20% >20%
10-20% 24 27 29 10-20%
50 50 27 26 25 26
5-10% 5-10%
62 67 2-5% 2-5%
25 52 52 55 52 56 <=2% 25 <=2%
38 38 39 37 41 41 41

0 0
2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024

Note: The two charts show the distribution of economies by affordability, defined by the price of the data-
only mobile-broadband and fixed-broadband baskets as a percentage of monthly GNI per capita� Only those
economies that had basket data available for all years between 2018 and 2024 for mobile broadband (180
economies) and fixed broadband (164 economies) are considered�
Source: ITU

Figure 5 shows the evolution in the distribution income, it is also useful to examine the actual
of countries by affordability categories, price of ICT services. The most intuitive unit
including those meeting the affordability of comparison is a world currency, such as
target, since 2018. Despite a dip during the United States dollars (USD). However, prices
COVID-19 pandemic in 2021, the percentage collected in local currency converted to USD
of countries meeting the 2 per cent target using market exchange rates may be distorted
increased from 52 per cent in 2018 to 67 in by rates kept at artificial levels, by differences
2024. For fixed broadband, on the other hand, in local price levels, etc. An advantage of
only very modest progress was recorded, from comparing ICT prices in purchasing power
38 per cent of countries in 2018 to 41 per cent parities (PPP) rather than in USD is that
in 2024, with a similar decrease in 2021 as seen PPP provides a more accurate comparison
with mobile broadband. of absolute price levels across countries,
accounting for differences in local costs and
Price levels price levels. This makes PPP particularly useful
for international comparisons where the focus
It is critical to understand what underpins the is on the actual cost of services rather than
significant variations in service affordability: affordability relative to income. To correct for
the price of the service (the numerator in the inflation, basket prices are shown in constant
affordability equation) or the income level 2023 USD PPP.
(the denominator). Therefore, in addition to
affordability, which is a measure relative to

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