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Latest report: Global broadband service prices rise during the COVID-19 pandemic Fixed broadband has seen the largest increase

While all discussions about COVID-19 have highlighted the need to close the broadband affordability gap, a new report shows that the world has not succeeded in learning lessons.

Latest report: Global broadband service prices rise during the COVID-19 pandemic Fixed broadband has seen the largest increase

According to a policy brief prepared by the International Telecommunication Union (ITU) and the Affordable Internet Consortium (A4AI), broadband prices enjoyed by consumers around the world will become more expensive in 2021 after a "steady decline for many years". Fewer economies than ever before are meeting the UN Broadband Commission's Affordable Cost target, which stipulates that entry-level broadband services should be priced at a level lower than 2% of the gross national income (GNI) per capita per month in developing economies.

Latest report: Global broadband service prices rise during the COVID-19 pandemic Fixed broadband has seen the largest increase

来源:The affordability of ICT services 2021 policy brief via ITU and A4AI。

The brief looks at five categories of Internet services, including data-only mobile broadband, mobile data and voice (low consumption), mobile data and voice (high consumption), mobile cellular (low usage), and fixed broadband.

According to ITU and A4AI, fixed broadband prices as a share of GNI in 2021 will rise to 3.5% in 2021 from 2.9%. Mobile broadband prices also edged up to 2% of GNI in 2021 and 1.9% in 2020.

But the numbers are much worse in low- and middle-income economies, where consumers spend 5-6 times more on broadband services than in high-income economies.

Sonia Jorge, executive director of A4AI, said in a press release: "The gap in affordability of internet access between people living in low- and middle-income countries and people living in high-income countries is unforgivable. People in rural areas, as well as women around the world, are disproportionately affected. ”

In fact, the report shows that only four of the world's least developed countries (LDCs) have met the UN's "affordable cost targets": Bangladesh, Bhutan, Myanmar and Nepal.

Of the economies where mobile broadband prices exceed GNI by more than 10%, 16 out of 18 countries are considered least developed countries.

The study also shows that three LDCs did reach the 2% target by 2021 after failing to meet the 2% target (GNI) in 2020: Uzbekistan, Colombia and Lebanon.

Most people can't afford fixed broadband

Fixed broadband services emerged as the category with the largest price increase between 2020 and 2021 and the most expensive broadband service "by far," the report shows. As a result, fixed broadband remains unavailable in much of the world, and consumers in low-income countries are paying 28 times more than consumers in high-income economies.

Latest report: Global broadband service prices rise during the COVID-19 pandemic Fixed broadband has seen the largest increase

But affordability is an issue in all broadband service categories. As the briefing notes, while 95 percent of the world's population lives within 3G mobile network coverage and has "theoretically" access to mobile broadband, 2.9 billion people remain unconnected.

"These up-to-date ICT price statistics, particularly in the category of entry-level mobile broadband services, clearly show how insufficient affordability can lead these people to be unable to access the network," the report states. ”

"Countering Trends"

The report notes that the COVID-19 pandemic has brought "two major confrontational trends affecting affordability in 2021".

While operators and regulators have taken various steps to maintain and expand access to broadband services – although prices for certain services have fallen in parts of the world – the briefing said that "the real economic impact of the pandemic on national income levels in 2020 has reduced the affordability of ICT services for many users".

However, the report said, "in some economies where incomes have rebounded to pre-pandemic levels," some of the adverse effects could be temporary.

However, the report adds that achieving the UN Broadband Commission's 2% target by 2025 will "require intensified efforts to improve affordability, rather than relying solely on a return to pre-pandemic levels". in Ace

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