Expensive Broadband is Pricing Millions Out of Accessing the Internet
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Expensive broadband is pricing millions out of accessing the internet
A lack of competition among broadband providers in some countries means millions of people around the world can't afford internet access, according to a report published Tuesday.
The internet affordability report, published annually by Tim Berners-Lee's Web Foundation and the Alliance for Affordable Internet, offers a snapshot of the barriers to people being able to afford to get online. In 2019, the report identifies a lack of competition in the market as one of the factors keeping costs too high in some countries.
[...] But in countries where there's one primary broadband provider with no real competitors, there's no incentive to keep prices low. In countries with just one operator, data costs on average $3.42 more per gigabyte than in countries where there's healthy competition in the market, the report found. With no rivals, 1GB of data can cost up to $7.33 more than if there was just one other broadband provider to choose from.
[...] For internet service to be considered affordable, people should be able to purchase 1GB of data for less than 2% of their monthly salary. In low- and middle-income countries around the world, the average cost of 1GB currently stands at 4.7% of people's salary, and across Africa it rises to 7.1%.
According to the Alliance for Affordable Internet, countries can tackle this by establishing competition in the market through policy initiatives and lowering the barrier to entry for new players. It also wants governments to invest in more free public Wi-Fi, especially in areas not served by the market.
"Competitive broadband markets provide the foundation needed to make universal access a reality," said Jorge. "Yet, governments must also play their role by pursuing public access policy and investments that build healthy, competitive markets that drive down the cost to connect."
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