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Broadband can cost more than $5,000 in emerging markets
Wednesday 15 September 2010 15:50:23 by John Hunt

Broadband costs in emerging markets are around three times more than in the rest of the world according to data from telecom analysts Ovum. Research in 15 emerging markets showed that consumers in these areas are paying for more than in the rest of the world even though they have lower wages.

"The cost of broadband in some emerging countries is three times as high as in mature markets, which when coupled with low wages, makes it an unaffordable luxury for all except a small group at the top of the socio-economic pyramid.

The striking difference in broadband prices in mature and emerging markets means there is a huge divide in terms of uptake of services."

Angel Dobardziev, Ovum

In Nigeria the cost of some broadband services reaches over $2,000 per year despite the GDP per capita being only $1,170. South Africa had the highest prices of all with some services costing a staggering $5,000 with a national GDP of $5,820 per year.

The high cost in these areas can be put down to various factors. Prices reduce with demand, and in poor countries with low wages, there is little income left for purchasing technology. Therefore, where services are purchased, there is a lower take up which will drive up the average cost of providing the service per user.

Comments

Posted by CARPETBURN over 6 years ago
Oh please whats this nonsense? Internet access here wasnt always the realm of any old tom dick or harry either when it first started. Many people even on resonable wages here couldnt afford it.
Who are Ovrum? Are they another silly little private pay us billions to reasearch pointless facts and statistics company? Christ not another quango i hope (Google time in a moment)
Posted by ElBobbo over 6 years ago
I wonder whether the use of "some broadband services" is to hide that $2000/year is satellite, or a leased line, or similar. If so, I'd like to point out that "some broadband services" in this country cost hundreds of thousands of pounds a year.
Posted by Somerset over 6 years ago
So what did they expect to find out?

And their website is down...
Posted by CARPETBURN over 6 years ago
quote"So what did they expect to find out?"

Exactly Somerset, makes you wonder. Seriously who funds stuff like this? (I suspect it was us tax payers again in some manner :( )
Posted by ian72 over 6 years ago
Ovum are indeed a research and analysis company, similar to gartner. They swallowed up another firm called Butler Group a few years back.
The results are obvious and didn't need a survey to prove them - and presumably someone did fund the survey, guess would be EU.
Posted by wirelesspacman over 6 years ago
I think Ovum sometimes do these studies themselves as part of their marketing budget.

I have my own view as to why the prices are so high in such countries. This is that they are in the business model where they fleece those who either have loads of money or cannot do without (eg businesses), rather than go for the masses. This is not helped by what wealth there is tending to be concentrated into a very small percentage of the population.
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