The Economist Intelligence Unit has released its Inclusive Internet Index report.
The Facebook-commissioned index assesses the performance of countries in four categories: Accessibility, Affordability, Relevance, and Readiness.
Overall, South Africa placed 39 out of 86 countries – making it the top country in Africa
In the affordability category, the index placed South Africa at 33 for price, and at 24 for the level of competitiveness in the environment.
Price measures the cost of Internet access relative to income, while the competitive environment metric looks at the concentration of the marketplace for Internet service provision.
South Africa mostly ranked in the bottom half of the world when it came to “price relative to income” measures.
The table below summarises how South Africa’s overall rank for Internet pricing was calculated.
|South Africa – Price|
|Smartphone||27||94% affordable||Scores the price of an entry-level Internet-enabled handset.|
|Prepaid mobile phone service||52||1% of monthly GNI per capita||Price of 500MB prepaid mobile data plan.|
|Postpaid mobile phone service||51||2% of monthly GNI per capita||Price of 500MB postpaid mobile data plan.|
|Fixed-line monthly broadband||48||4% of monthly GNI per capita||Price of a 256kbps (or next nearest) fixed-line monthly broadband.|
The competitive environment measures the concentration of the marketplace for Internet service provision, and looks at average revenue per user and market share.
The table summarises how South Africa’s overall rank for its competitive environment was calculated.
The market share rankings are defined as follows:
- Unconcentrated: Hirschman-Herfindahl Index of <3,000
- Moderately concentrated: Hirschman-Herfindahl Index of 3,000-4,000.
- Highly concentrated: Hirschman-Herfindahl Index of >4,000
|Average revenue per user||40||$101||Average revenue per user for wireless operators (data and voice).|
|Wireless operators’ market share||24||3,414||South Africa is “moderately concentrated”.|
|Broadband operators’ market share||1||2,176||South Africa is “unconcentrated”.|