Page 8 - Measuring digital development The affordability of ICT services 2024

The affordability of ICT services

The first section presents affordability trends The findings suggest that price reductions
for each basket at the global, regional alone are not sufficient. Structural constraints
and income-group levels. It then assesses such as low income levels, weak demand and
progress of countries towards the target of limited investment continue to impede digital
the ITU/UNESCO Broadband Commission progress.
for Sustainable Development for 2025: that
entry-level broadband services in developing Affordability matters because it has a direct
countries should cost less than 2 per cent of influence on Internet use. Figure 1 illustrates
GNI per capita. To complement these findings, this relationship: in countries – typically low- or
the section also examines absolute price lower-middle-income economies – where only
levels using purchasing power parity (PPP) a limited share of the population can afford
adjustments, which account for local price an entry-level data-only mobile-broadband
levels and inflation. basket, Internet use is low. As affordability
improves, a larger portion of the population
Subsequent sections provide in-depth comes online. Yet, the figure also highlights
analysis of affordability trends for each of the that affordability alone cannot fully explain
five baskets, drawing attention to the unique Internet adoption. Some countries, such as
challenges faced by least developed countries Kiribati, Jamaica, and Fiji, exhibit high use
(LDCs), landlocked developing countries rates despite high relative prices, suggesting
(LLDCs) and small island developing States that many people are willing to prioritize
(SIDS). Metadata collected alongside price connectivity even at significant personal cost.
data offer additional insights into service Conversely, some South Asian countries
quality and pricing structures. show limited use despite affordable services,
pointing to other barriers such as digital
Recognizing that national averages often literacy, infrastructure quality or cultural factors.
conceal vast disparities within countries, the These findings underscore the need to better
report also assesses affordability for different understand and address the multifaceted
population segments based on income nature of digital exclusion.
distribution. This analysis shows that many
individuals continue to face costs well above Figure 1: Affordability and Internet use
the 2 per cent threshold – even when the
national average appears affordable. 100

Changes in affordability occur against a 80
backdrop of fast-changing digital connectivity.
The final section explores correlations between 60
affordability and other key dimensions % of population using the Internet
of digital development, such as access, 40
use and economic variables relevant for
telecommunication operators and regulators. 20 High income
Upper middle income
The final section explores the interplay Lower middle income
Low income
between affordability, network access, 0 0 20 40 60 80 100
Internet use and telecommunication sector
investment. Grouping countries by their % of population for whom the mobile
2019 affordability levels helps to track how broadband basket costs less than 2% of
monthly income
affordability improvements have – or have
not – translated into greater access and use. Source: ITU

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