Page 28 - Measuring digital development The affordability of ICT services 2024

The affordability of ICT services

Affordability, access and use

The price of ICT services evolves alongside and 5 per cent, and in Group 3, prices were
network access and use. As new mobile- and above 5 per cent. For each of the three groups,
fixed-broadband networks are deployed, a selection of indicators shows the levels of
more people gain connectivity and the market affordability, ICT access and use, and the
expands. This growth generates scale and financial performance of operators changed
network economies, allowing operators to between 2019 and the latest available year
reduce prices. Lower prices in turn improve (2023 or 2024).
affordability, attracting more consumers. This
enables a virtuous circle of rising demand As the left panel of Figure 17 shows, from 2019
for connectivity and supply of services and to 2024, median prices fell across all groups,
coverage. narrowing the affordability gap. The Group 2
median dropped below the 2 per cent target,
Yet this dynamic is not guaranteed: operators leaving only seven small island states above it.
still face challenges financing network Group 3 saw a 40 per cent price drop, but the
expansion or upgrading existing networks, median remained high at 5.6 per cent, with
and many users lack the devices or skills to get wide variation – from under 2 per cent in a few
online. Policy plays a key role in addressing cases to over 20 per cent in one.
these barriers, improving affordability and
accelerating uptake. Network access improved across all groups but
at different paces (Figure 17, middle panel).
This section analyses the developments in the Countries in Group 1 were not only already
mobile-broadband segment, providing recent leaders in 4G in 2019 but also led 5G roll-out
evidence for these dynamics. Economies over the period, which reached 85 per cent
were grouped in three categories according median population coverage by 2023. Group
to the affordability of the data-only mobile- 2 caught up on 3G and 4G, but 5G remained
broadband basket in 2019. Group 1 consists of limited – only 10 of the group’s 40 economies
economies with prices amounting to not more had any 5G in 2023. Group 3 saw notable
than 2 per cent of GNI per capita in 2019. In gains in 4G (35 to 75 per cent coverage) but
Group 2 economies, prices were between 2 continues to lag in 5G deployment.

Figure 17: Mobile-broadband affordability, access and use by affordability group

Mobile-broadband Share of population covered by mobile network Mobile-broadband
basket prices 3G 4G/LTE 5G penetration Internet users
% of GNI p.c. (% of population) per 100 pop. % of pop.
12 120 120
10 100 100 MBB Affordable
in 2019
(≤2% GNI p.c.)
8 80 80
MBB Price
6 60 60 2-5% GNI p.c. in
2019
4 40 40
MBB Price
2 20 20 >5% GNI p.c.
in 2019
0 0 0
2019 2024 2019 2023 2019 2023 2019 2023 2019 2023 2019 2023

Note: Median values for the three groups were defined by mobile-broadband prices in 2019� Group 1 consists
of 95 economies (prices up to 2 per cent of GNI per capita in 2019), Group 2 consists of 48 economies (prices
between 2 and 5 per cent of GNI per capita in 2019) and Group 3 consists of 40 economies (prices above 5
per cent of GNI per capita in 2019)�
Source: ITU DataHub

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