A monthly series from the Web Foundation

The internet's affordability problem

The internet is so fundamental to life today, that it’s increasingly considered a basic human right.

But in many countries around the world, the cost of access puts it more in line with a luxury service rather than a public good.

Across Africa, for example, the average cost for just 1GB data is over 7% of average monthly income. And in some countries, users need to spend over 20% of their income for 1GB — far too expensive for all but the wealthiest few.

So what can be done to address this huge gap in broadband costs around the world and make sure that everyone, no matter their income, can afford to get online?

As the Alliance for Affordable Internet (A4AI) publishes its 2019 Affordability Report, we look at the internet's affordability problem, the progress that's been made to date, and what governments can do to solve it.
The global affordability gap, in numbers

51% — Percentage of the world's population using the internet (International Telecommunications Union)

24% — Percentage of the population in Africa — where data is least affordable — using the internet.  (International Telecommunications Union)
 
$373 USD — Amount the average US earner would pay for 1GB of data if they spent the same portion of monthly income (7.1%) on data as the average African user (A4AI)

26.2% — Percentage of monthly income the average user in the Democratic Republic of the Congo spends for 1 GB of data (A4AI)

1 for 2 — The United Nations' threshold for affordable access — 1GB data for no more than 2% of average monthly income (A4AI)

37 — Number of low and middle income countries of the 100 surveyed by A4AI that meet the 1 for 2 affordability target (A4AI)

$3.42 USD — People in countries with consolidated markets pay USD $3.42 more per GB for mobile data than those in similar countries with healthy markets (2019 Affordability Report)

900 million — Estimated number of people who currently live in countries where the cost of internet access is kept high by consolidated markets (2019 Affordability Report)
Quotation marks

The impacts are significant — not just for the individual person, but also for the country as a whole. The fact that prices are coming down and that more people are getting access is very important.

 

Resources to explore

Delivering affordable access

Competitive markets can drive down the cost of data. A4AI’s 2019 Affordability Report calls on governments to shape healthy, competitive markets that deliver affordable access to everyone. 

Measurement matters

If the price of mobile data is used as a measure of affordability, it must be supplemented with a relative measure of cost. Research Director Dhanaraj Thakur explains why this matters for policymakers looking to improve affordability.

A global fall in mobile data costs

A fall in costs can mean a boost for national economies. Web Foundation Research Director Dhanaraj Thakur joined BBC's Digital Planet to discuss the positive impact of lower costs.

The high cost to connect across Africa

While there have been positive trends of lower mobile broadband costs seen across low-income countries, the cost to connect remains high across Africa. Hear from A4AI Executive Director Sonia Jorge on CNBC Africa.
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The countries with the highest internet costs (as a proportion of average per capita income) have the lowest numbers of women online and the largest gender gaps in internet use.

 

Governments have the power to solve the problem
The lack of competition in broadband markets is a major barrier to affordable internet access. But governments have the power to shape healthy markets that drive down connectivity costs by:

1. Adopting policy and regulation that support market competition.
Fair rules for market entry and incentives to encourage new competitors can result in competitive markets that provide users with lower costs and high quality services.

2. Bringing down costs for new operators to compete.
Costs matter for internet service providers, too. Governments can support affordable access to infrastructure, so that potential competitors aren’t locked out by high capital barriers to entry.

3. Investing in public internet access.
Public access options like free public Wi-Fi and telecentres as well as community networks can expand internet coverage to those not served by commercial markets and provide consumers with more choices to get online.

The 2019 Affordability Report explores each of these policy recommendations in depth.
Read the report
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