Page 7 - Measuring digital development The affordability of ICT services 2024

The affordability of ICT services

Introduction

The concept of universal and meaningful The analysis is based on five ICT price baskets,
connectivity (UMC) has emerged in recent as defined in 2021 by ITU’s Expert Group on
years as a vital policy objective. UMC is Telecommunication/ICT Indicators (EGTI):
defined as enabling everyone to enjoy a safe, • the data-only mobile-broadband basket,
enriching and productive online experience requiring a minimum of 2 GB of data and
at an affordable cost. UMC does not mean at least 3G network technology;
everyone must be connected all the time but • the mobile data and voice low-
describes a situation where everyone can consumption basket, including a
access the Internet optimally and affordably minimum of 500 MB of data, 70 voice
whenever and wherever needed. minutes and 20 SMS messages;
• the mobile data and voice high-
Affordability is one of the main barriers to consumption basket, with a minimum of
UMC. It includes both the price of a device 2 GB of data, 140 voice minutes and 70
needed to connect and the recurrent cost SMS messages;
of telecommunication services. While • the mobile cellular low-usage basket,
device costs are important, the focus of this measuring the price of 70 voice minutes
and 20 SMS messages based on specific
report is on the recurring costs of accessing on-net/off-net/fixed ratios; and
telecommunication services, i.e. the use of • the fixed-broadband basket, which
Internet data, minutes of voice calls and text represents a monthly subscription with at
messaging, which represent a more persistent least 5 GB of data and a download speed
financial barrier. of at least 256 kbit/s.

Affordability is measured by taking the Together, the four mobile service baskets and
consumer price of a minimum set of the fixed-broadband Internet service basket
telecommunication services relative to a reflect the diversity of services that are available
given income, using monthly gross national globally, and thus allow a meaningful global
income (GNI) per capita as a proxy. This comparison of affordability. At the time of their
1
measure enables consistent and meaningful adoption, most of the baskets represented
comparison across countries, accounting for entry-level services (except for the mobile data
2
differences in income levels. and voice high-consumption basket).
This publication addresses two main questions:
1) How affordable are ICT services
worldwide and how has affordability
evolved in recent years?
2) What are the main affordability divides
across and within countries that continue
to hamper connectivity?
1 More specifically, the basket price is the total of
the monthly recurrent charges of the plan(s) and,
if necessary, add-ons or pay-as-you-go rates used
to reach the minimum allowance thresholds. This 2 As technology evolves, EGTI revises the basket
is divided by the monthly GNI per capita, both definitions to align with market realities. Given
expressed in local currency. In the rest of the that changes occur gradually, it is possible to
report, prices as a percentage of GNI per capita map basket definitions across methodologies,
rates are assumed to refer to monthly rates. The e.g. the data-only mobile-broadband basket with
plans used for the baskets need to adhere to 1.5 GB (2018-2020) and the one with the 2 GB
strict data collection rules, such as excluding allowance (2021-2024). The last revision took place
promotions, considering breakout fees in case of in September 2024, which will form the basis of
commitment periods exceeding a month, on- and ITU’s 2025 ICT data collection. This is the last report
off-net availability, technology used, etc. See the presenting findings for the baskets using the 2021-
Annex for details. 2024 definitions.

1