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

By - July 20, 2013 Share on LinkedIn
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

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you visit Facebook on a daily basis?

View Results

Loading ... Loading ...

More News

Telecommunications Minister to take legal action against ICASA

Siyabonga Cwele at SATNAC 2015

The Minister of Telecommunications and Postal Services plans to take legal action to review the actions of ICASA regarding its proposed spectrum auction.

How much Telkom executives got paid

Telkom logo light

Telkom Group CEO Sipho Maseko has been handsomely rewarded for completing a successful turnaround of the company’s fortunes over the past three years.

This comparison shows how Telkom’s new FreeMe contracts smash Vodacom and MTN’s

Mobile Network Operator Telkom Vodacom MTN Cell C

This is how Telkom’s new FreeMe contracts compare to the competition.

US military launches Space Mission Force

Satellite

The US Air Force Space Command has created the “Space Mission Force” to train soldiers to operate military satellites.

Free MyBroadband Newsletter
×