South African broadband prices low enough?

The Broadband Commission has set a broadband price target of no more than 5% of GDP per capita by 2015 – this is how South Africa compares

July 20, 2013
Broadband

The Broadband Commission, an international body set up by the ITU and UNESCO, has a 2015 broadband affordability target aiming for entry-level broadband services to cost less than 5% of the average monthly income in a country.

This forms part of the Broadband Commission’s other 2015 targets which include:

  • Making broadband policy universal. By 2015, all countries should have a national broadband plan or strategy or include broadband in their Universal Access / Service Definitions.
  • Making broadband affordable. By 2015, entry-level broadband services should be made affordable in developing countries through adequate regulation and market forces (amounting to less than 5% of average monthly income).
  • Connecting homes to broadband. By 2015, 40% of households in developing countries should have Internet access.
  • Getting people online. By 2015, Internet user penetration should reach 60% worldwide, 50% in developing countries and 15% in LDCs.

South Africa’s government wants all its citizens to have broadband access by 2020, but to date details on how this will be achieved remain sketchy.

One of the most important aspects of making broadband available to more people is affordability. The cheaper broadband access is, the more people will subscribe to these services.

This raises the question of how far South Africa is from the Broadband Commission’s entry-level broadband cost target – 5% of average monthly income.

Fixed broadband pricing in South Africa

Telkom’s entry level 1Mbps uncapped ADSL service costs R477.37 per month.

The average monthly earnings paid to employees in South Africa in the formal non-agricultural sector is R13,981 per month (Stats SA).

This means that 5% of the average monthly income in South Africa is R699 – much higher than the R477.37 per month which Telkom charges for an entry level fixed broadband service.

This means that South Africa’s entry level broadband prices already satisfy the Broadband Commission’s 2015 broadband affordability target.

Broadband price articles

Mobile broadband prices: Vodacom, Cell C, MTN hit back

More mobile broadband price cuts needed: ISPA

Top rated mobile broadband service in SA

Top rated fixed broadband service in South Africa

Tags: ADSL, Broadband Commission, Headline, ITU, Telkom, UNESCO

Free Email Newsletter:
Subscribe

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Which smartphone do you have?

View Results

Loading ... Loading ...

More News

Communications Minister tells ANC MPs to back off

Faith Muthambi

Communications Minister Faith Muthambi told ANC MPs not to interfere in her department’s affairs after they told her to show leadership

Full Vodacom iPhone 6 contract prices

iPhone 6 and iPhone 6 Plus press shot

Vodacom has released its iPhone 6 and iPhone 6 Plus contract prices, which start at R499 per month

Vodacom iPhone 6 Plus contract prices

iPhone 6

Vodacom’s iPhone 6 and iPhone 6 Plus contract prices are starting to emerge

Municipalities use e-accounts as Post Office strikes

SA Post Office

More municipalities are sending out electronic accounts to clients as the two-month post office strike continues

Free MyBroadband Newsletter:
Subscribe
X
bool(true)