Broadband6.03.2015

How to make broadband cheaper

Broadband

The Alliance for Affordable Internet (A4AI) has released its latest Affordability Report, which shows that almost 60% of the world’s population — most of whom live in developing countries — are offline.

“More than two billion people in developing and emerging countries are priced out of accessing the Internet,” the A4AI said.

Spanning 51 developing and emerging nations, the report found that a fixed broadband connection costs the average citizen in these countries around 40% of their monthly income.

Mobile broadband is cheaper at 10% of monthly income, but this is still double the affordability target set by the UN Broadband Commission in 2011.

Links between policy and cheaper prices

The report also maps the links between policy and lower prices, and found five factors that are needed to create affordable Internet.

  1. The existence of an effective National Broadband Plan
  2. An environment which promotes enhanced competition
  3. Strategies which permit efficient spectrum allocation
  4. Models designed to encourage or mandate infrastructure sharing
  5. Widespread public access through libraries, schools, and other community venues

Guidelines to make broadband more affordable

The report states that “affordable access to broadband Internet… requires all stakeholders to work toward achieving affordable, universal access in the coming years through a blend of infrastructure investment and policy and regulatory reform.”

The report made the following recommendations to reduce the price of Internet access in a country.

  1. Drive broadband infrastructure expansion through increased private investment and removal of barriers
  2. Intensify competition and level the playing field to increase access, reduce cost, and stimulate demand
  3. Open access and infrastructure sharing
  4. Access to spectrum
  5. Universal access to quality and affordable Internet

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