Page 21 - Measuring digital development The affordability of ICT services 2024

The affordability of ICT services

Box 1: Off-the-shelf bundles or do-it-yourself combinations?

Consumers in different parts of the world face very different offers when looking for
what constitutes the mobile-broadband high-consumption basket. Bundles covering a
combination of data, voice and SMS services have become prolific in mature markets. In
fact, 69 per cent of the high-income economies had bundles covering all the elements
of the high-consumption basket (Figure 11). In these economies, bundles are generally
cheaper than the pay-as-you-go rates and contribute to lower basket prices. Yet, in
low-income economies, the cheapest option to meet the basket requirements relies
on consciously combining complex solutions (such as multiple compatible plans, add-
ons, pay-as-you-go options, etc.). Interestingly, as SMS is becoming less and less used,
it shows up as an extra that consumers need to pay for in addition to a bundle.

The low share of all-in-one bundles (or combo packages, as they are sometimes
called) in low-income economies in Figure 11 does not mean that consumers cannot
find bundled services. Rather, it shows that combined services are marketed in the
premium segment, often with additional minutes, SMS messages and data allowance
exceeding basket requirements by far, and thus were found more expensive than a
careful combination of plans (often weekly ones, in combination with add-ons).

Figure 11: Percentage of economies with all-in-one bundles used for the high-
consumption basket by income level

100
21
41 35
75 10
77
4 15
50 Complex solution
1 Bundle + extra SMS
69
25 56 50 1 All-in-one bundle
23
0
Low income Lower- middle Upper- middle High income
income income

Note: Based on the type(s) of plan(s) identified as the cheapest solution during the 2024 ICT price
data collection to meet the mobile data and voice high-consumption basket requirements� All-in-one
bundle refers to cases where a monthly allowance of at least 2 GB of data, 140 minutes of voice and
70 SMS messages is included in a single plan available “off the shelf” from the representative mobile
operator� Bundle + extra SMS refers to cases where a monthly use of 70 SMS messages requires, in
addition to a single bundle, an additional add-on or package, or a specific amount at pay-as-you-go
rates�
Source: ITU

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