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Media (R)evolutions: Despite tremendous growth in mobile broadband, affordability remains an issue in least developed countries

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

In recent years, as the number of mobile-cellular subscriptions surpassed 7.1 billion and mobile network population coverage approached close to 95%, growth in mobile subscriptions has greatly exceeded the growth in fixed connections, especially in developing countries. For many low-income groups, mobile devices are their only window to internet access.

The tremendous growth has not only contributed to greater access rates, but also to a fall in prices of mobile-cellular services around the world as providers seek to be competitive. Over the past year, the decrease in mobile-broadband prices worldwide made it, on average, 20 – 30% more affordable.  In least developed countries (LDCs), the mobile-cellular price basket continued to fall to 14% of GNI per capita by the end of 2014, compared with 29% in 2010.

Nevertheless, as the following graph from Measuring the Information Society Report 2015 by the International Telecommunication Union (ITU) illustrates, LDCs have a long way to go in order to achieve affordable mobile-broadband packages. The graph shows, the average prices for pre- and post-paid broadband connections on computers and mobile devices, as measured against monthly GNI per capita, in 2013 and 2014. 

Among the options, prepaid mobile-broadband is the most affordable. In this context, it will be important for broadband providers to offer more new services and packages for low-income groups, such as allowing users to buy data in small volumes.  

Mobile broadband prices