SA’s fixed broadband prices high, but not as bad as mobile

The World Economic Forum (WEF) released its Global Information Technology Report 2013 on 10 April 2013, showing that South Africa’s fixed broadband Internet tariffs are significantly higher than global standards.

The Global Information Technology Report 2013 features the latest results of the Networked Readiness Index (NRI), offering an overview of the current state of ICT readiness in the world.

This year’s coverage includes a record number of 144 economies, accounting for over 98 percent of global GDP.

According to the report, South Africa ranked 89th out of the 144 economies when it came to the affordability of fixed broadband Internet tariffs.

This means that South Africa’s fixed broadband services are expensive when compared to global standards. However, it is not as bad as our mobile rates.

The report showed that South Africa ranks at number 117 out of 144 countries when it comes to the affordability of mobile cellular tariffs.

South Africa’s poor overall ICT affordability

South Africa ranked at number 104 (out of 144 countries) when it comes to the overall affordability of access to ICT services.

This measure assessed the cost of accessing ICTs in a country, either via mobile telephony or fixed broadband Internet. It also incorporated the level of competition in the Internet and telephony sectors that determine this cost.

How fixed broadband Internet tariffs were calculated

The fixed broadband Internet tariffs were calculated using the monthly subscription charge for fixed (wired) broadband Internet service (PPP $).

Fixed (wired) broadband is considered any dedicated connection to the Internet at downstream speeds equal to, or greater than, 256 kilobits per second, using DSL.

The amount is adjusted for purchasing power parity (PPP) and expressed in current international dollars.

The calculations were based on International Telecommunication Union, ITU World Telecommunication/ICT Indicators Database 2012 (December 2012 edition); International Monetary Fund, World Economic Outlook (October 2012 edition); World Bank, World Development Indicators Online (retrieved November 29, 2012); and national sources

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SA’s fixed broadband prices high, but not as bad as mobile