Page 29 - Measuring digital development The affordability of ICT services 2024

The affordability of ICT services

Internet use mirrored affordability levels for Group 3 (at USD 73 per subscription).
(Figure 17, right panel). In Group 1, use grew While telecommunication service prices are
from 82 to 89 per cent; Group 2 advanced from a key factor in determining revenues, the
60 to 76 per cent, approaching saturation. relationship between prices and revenues is
Group 3 made the largest gains but still lagged moderated by a complex interplay of market
far behind at 34 per cent in 2023. The gap dynamics, customer behaviour, company
between Internet use and mobile-broadband strategies, the regulatory environment and
penetration suggests multiple factors at technologies. Nevertheless, with prices
play, including use of fixed connections, and relatively aligned globally (as shown in the
differences across markets depending on how section on price levels), such low revenues
common it is for individuals to have multiple reduce operators’ ability to invest, slowing
SIM cards. progress on both affordability and access.

Affordability differences largely reflect In fact, the difference in investment levels
disparities in economic development. The is striking (Figure 18): Group 1’s median
median GNI per capita of Group 1 was almost telecommunication investment in 2023 was
triple that of Group 2 and over 12 times that USD 808 million, versus USD 192 million in
of Group 3 (Figure 18). These gaps widened Group 2 and just USD 58 million in Group
between 2019 and 2024. 3. Catching up in connectivity infrastructure
would have required Group 3 to boost
Mobile operators in Group 1 countries, where investments; however, investment levels in
the disposable income was the highest, this group declined from 2019 to 2023. Only
generated about twice as much revenue Group 2 managed to attract more investment
per subscription as in the other two groups in the same period.
(Figure 18). With revenues per subscriptions
declining over time worldwide, by 2023, the Motivations for investment in
difference between Groups 2 and 3 nearly telecommunication services are manifold:
disappeared. At USD 150, operators in Group expanding the network, modernizing it for
1 still earned around twice the typical amount efficiency gains, or improving services to

Figure 18: GNI per capita, mobile network revenues and investments by affordability
group
Mobile network revenue Investment in
GNI per capita per subscription telecommunication
'000 USD PPP (constant 2024) in USD (constant 2024) in USD (constant 2024)
60 250 900
800
MBB Affordable in
200 700 2019
(≤2% GNI p.c.)
40 600
150 MBB Price
500 2-5% GNI p.c. in
2019
400
100 MBB Price
20 300 >5% GNI p.c.
in 2019
50 200
100
0 0 0
2019 2023 2019 2023 2019 2023

Note: Median values for the three groups defined by mobile-broadband prices in 2019 (see in text)� In line with
corporate financial reporting practices, revenue and investment figures are provided in USD�
Source: ITU DataHub�

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