Internet connectivity became less affordable globally in 2021, a new report by the International Telecommunication Union (ITU) and the Alliance for Affordable Internet (A4AI) has revealed.
According to the latest statistical analysis, the share of people’s incomes spent on fixed broadband and mobile Internet services increased globally, amid climbing demand and use, compared with 2020.
The ITU-A4AI policy brief, ‘The affordability of information and communication technology (ICT) services 2021’, shows that relative prices of fixed broadband services climbed to 3.5% of gross national income (GNI) per capita globally in 2021, up from 2.9% in 2020, while the relative prices of mobile broadband services increased from 1.9% of GNI a year to 2% of GNI per capita.
The report indicates that people who had access have largely stayed connected, even at relatively higher prices, sacrificing other goods and services to maintain reliable Internet access during the Covid-19 pandemic.
“Broadband services have ceased to be a mere luxury. They are a necessity for communication, teleworking, online education and other essential services. Still, we must urgently address the issue of affordability if we hope to achieve our goal of universal and meaningful connectivity,” says ITU secretary-general Houlin Zhao.
The affordability gaps have persisted or widened over the past year, with fewer economies now meeting the United Nations (UN) Broadband Commission’s affordable cost target of 2% of monthly GNI per capita for entry-level broadband service.
Globally, 96 economies – seven fewer than in 2020 – met the UN Broadband Commission target for the prices of data-only mobile broadband prices in 2021, while 64 economies met the target for fixed-broadband prices, which is down by two from 2020.
In 2021, consumers in low- and middle-income economies typically paid five to six times more, relative to their income, to use ICT services than consumers in high-income economies did.
Consumers in Africa paid more than three times the global median price for mobile broadband services and over five times the global median for fixed broadband.
Among the world’s 46 least-developed countries, entry-level fixed or mobile broadband Internet costs less than 2% of GNI per capita in only four cases: Bangladesh, Bhutan, Myanmar and the Republic of Nepal, the report shows.
The report notes, however, that broadband operators in many countries increased the data allowance included in their benchmark baskets, and users who could afford those baskets received greater value for money.
“These findings are a warning sign and significant improvement is needed as the Broadband Commission’s 2025 target date for achieving global broadband affordability edges ever closer,” says ITU Telecommunication Development Bureau director Doreen Bogdan-Martin.
“The past few years have proven that connectivity is vital. As we move to post-pandemic recovery, we need to make connectivity affordable for everyone to ensure that we leave no one behind in this digital era.”
“The affordability gap for Internet access between those living in low- and middle-income countries and those living in high-income countries is inexcusably high,” says A4AI executive director Sonia Jorge.
“Moreover, people in rural areas, and women everywhere, are disproportionately affected.”