Broadband prices drop 50% – ITU
Broadband service prices have dropped significantly by 50% as compared to charges in the last two years, according to new figures released by the International Telecommunications Union (ITU).
According to the ITU, consumers and businesses globally are paying on average 18% less for entry-level information and communication technology (ICT) services.
“Consumers and businesses globally are paying on average 18% less for entry-level information and communication technology (ICT) services than they were two years ago – and more than 50% less for high-speed Internet connections”, the ITU has said.
According to the organisation, “data from its 2010 ICT Price Basket also shows that relative prices for mobile cellular services decreased by almost 22% from 2008 to 2010, while fixed telephony costs declined by an average of 7%.”
Over the same period, the number of mobile cellular subscriptions worldwide grew from 4.0 to 5.3 billion, it said.
Fixed broadband prices also fell steeply, it indicated.
“The overall fall in prices for fixed broadband services is mainly due to price decreases in developing countries, where the fixed broadband sub-basket dropped by 52%, compared to 35% in developed countries”, said the Union.
However, the ITU also said it should be noted that steep price drops often reflect the extremely high cost of broadband in developing countries adding “even at half the price, the service is often still far beyond the pockets of average citizens.”
All the economies at the top of the ICT Price Basket (indicating most affordable ICT services) have high Gross National Income (GNI) per capita, including many small economies, such as Monaco, Macao (China), Liechtenstein, Hong Kong (China) and Singapore, it said.
The cost of ICT services averages 17% of GNI per capita in developing countries, it added.
In Africa, prices also fell.
“The regional price trends highlight that while ICT prices are falling in all regions of the world, the greatest price drops occurred in Africa, where fixed broadband prices fell by over 55% and mobile cellular prices by 25%.”
The ITU said while the drop is mainly due to price decreases in fixed broadband services, in several countries, including Benin, Kenya, Tanzania and Uganda, mobile tariffs also decreased considerably.
Despite this encouraging trend, the ITU states that Africa continues to stand out for its relatively high prices… “Fixed broadband internet access in particular remains prohibitively high, and, across the region as a whole, still represented almost three times the monthly average per capita income.”
Only one out of ten people in Africa is using the internet, the ITU stated.
“With ICTs now a primary driver of social and economic development, these results are highly encouraging,” said ITU Secretary-General Dr Hamadoun Touré.
He added, “Our next challenge is to find strategies to replicate the ‘mobile miracle’ for broadband, which is fast becoming basic infrastructure. Countries without affordable broadband access risk falling quickly behind.”
By Ekow Quandzie