The first-ever Affordability Report was conducted by the Alliance for Affordable Internet (A4AI), a global coalition of more than 40 members, whose sponsors are Google, Omidyar Network, the UK Department for International Development and US AID.
The World Wide Web Foundation, founded by Web inventor Sir Tim Berners-Lee, initiated the Alliance which launched in October this year.
A4AI’s goal is to achieve the UN Broadband Commission target of entry-level broadband services being priced at less than 5 per cent of monthly wages, to make universal access a reality. The report is the first step in understanding why some countries have been successful in making Internet access affordable and universal, and what other countries can do to catch up.
The report also includes an ‘Affordability Index’ which ranks nations across communications infrastructure and access and affordability indicators fundamental to achieving affordable Internet, A4A! said in a statement.
Amongst emerging nations, Malaysia ranked first, followed by Mauritius, Brazil, Peru and Columbia. In the developing world, Morocco had the most affordable access, followed by Indonesia, Kenya, Nigeria and Uganda. Zimbabwe, Malawi and Yemen prop up the foot of the table.
A4AI used World Bank classifications, with ‘upper middle income’ nations being classified as emerging, whilst ‘lower middle income’ and ‘low income’ countries were classified as ‘developing.’
“In just two years, the UN Broadband Commission target is for everyone, everywhere to be able to access broadband Internet at a cost of less than 5 per cent of their monthly income,” said Dr Bitange Ndemo, A4AI honorary chairman and former Permanent Secretary of Kenya’s Ministry of Information and Communications.
“Our data shows that there is a long way to go before this goal is reached, particularly for the world’s poorest people.”
A4AI executive director Sonia Jorge described Malaysia, as well as Brazil and Morocco as beacons of hope however, saying these countries showed how rapid progress can be made when innovative technologies are twinned with an enabling, forward-looking policy and regulatory environment which stimulates supply as well as demand. Malaysia was among the countries featured as a case study within the report.
When asked to identify what right moves Malaysia has made, Jorge told Digital News Asia (DNA) that “Malaysia has made rapid progress because policy has taken into account a broad range of factors, and has put in place measures both to improve supply and stimulate demand.”
Among them, she said the key highlights were:

  • Raising awareness via ‘Broadband Carnivals’;
  • Enhancing the usefulness of government web content in areas such as e-learning and e-health to increase demand from citizens;
  • Working with the private sector to enhance infrastructure via public-private partnerships.

However, “an even greater focus on enhancing locally relevant web content is required to ensure demand for broadband services remains high. Further efforts to connect underserved rural areas are also to be encouraged,” Jorge (pic) told DNA via email.
The report also drew a number of conclusions:
 

  • Overcoming the infrastructure barrier remains a priority to ensure affordable access;
  • Reducing prices and closing the access gap for under-served populations is critical for development;
  • National leadership is a critical ingredient to maximise the positive impact of broadband on jobs, productivity, economic growth and innovation; and, surprisingly
  • Competition is not a silver bullet.

“It is clear that competition alone, or the introduction of a particular number of players in a market, is not a sufficient condition to ensure affordable access top broadband services in emerging and developing countries,” read the report.
“The key to success is policies and regulations that look at market conditions … and there is no ‘one size fits all’ approach,” Jorge told DNA.
“Each country will have a different, optimal solution. In general, a competitive market twinned with policies that drive sustained demand from consumers, implemented alongside innovative strategies to connect poorly-served communities, creates the best outcomes,” she added.
Jorge also noted that in general, “broadband is far more affordable in developed countries.”
“According to the International Telecommunications Union (ITU), fixed broadband costs an average of just 1.7 per cent of monthly income in developed countries,” she said.
“In the developing world, that figure rockets to over 31 per cent. Driving costs down and closing this digital divide is the key reason for the Alliance for Affordable Internet,” she added.
When asked if ‘affordability’ takes into account the average income of the people in that country, Jorge said it does.
“However, ‘average income’ can often be a dangerous benchmark, particularly in countries with high income inequality. This is why our study also looked specifically at costs for those living on less than US$2 per day.
“In China, for example, mobile and fixed broadband cost 25 per cent  to 38 per cent of monthly incomes for the 360 million people living under the US$2/ day poverty line,” she said.
According to World Bank statistics, Malaysia has the worst GINI index, which measures income disparity, in Asia.
The Affordability Report called on all stakeholders to engage and collaborate by focusing on three key areas:

  • Expand broadband infrastructure through the implementation of innovative open access and PPP (public-private partnership) projects;
  • Reduce costs through effective and efficient use of Universal Service Funds; and
  • Support the development of National Broadband Plans

To download the full report, click here. 

— Digital News Asia

* The original article is published here.