Page 26 - Measuring digital development The affordability of ICT services 2024

The affordability of ICT services

Affordability gaps within countries

Affordability gaps exist not only between per cent of the population would spend less
countries but also within them. Even where a than 2 per cent of their actual income, because
basket is considered affordable (i.e. defined of the highly unequal income distributions.
as costing less than 2 per cent of income) The figure shows that in other regions,
based on the average GNI per capita, income significant shares of the population face similar
inequality can mean that lower-earning challenges.
segments of the population spend much more
than 2 per cent of their income. Although the entry-level mobile-broadband
basket is generally affordable for the vast
Calculating affordability by income decile majority of the population in high-income
helps reveal the extent of these inequalities. economies, affordability can act as a barrier
Figure 16 shows that in African countries with even there. For instance, in Panama the
available income inequality data, the majority basket is affordable only to 40 per cent of
of the population cannot afford an entry-level the population. In Bulgaria, Canada, Greece,
mobile-broadband plan. Even in Côte d’Ivoire Romania, Uruguay and the United States, the
and Kenya, where the basket price relative to poorest 10 per cent of the population has to
the average GNI per capita is lower than 2 per pay more than 2 per cent of their income.
cent (light blue in Figure 16), only around 40

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