Measuring Digital Development: ICT Price Trends 2019
1
Executive summary
• To accurately track and compare prices in
statistical terms internationally and over
time is no straightforward exercise. Price
comparisons can be difficult, depending on
whether they are conducted within a country,
over time, or internationally (when exchange
rates and purchasing power parity (PPP)
can complicate matters). Market trends can
also complicate the exercise – for example
network convergence, the growing number
of operators, intensifying competition
(especially in mobile) and bundling.
• The International Telecommunication Union
(ITU), its partners and stakeholders devote
considerable time and effort to developing
and refining price methodologies, in
particular through the Expert Group on
Telecommunication/ICT Indicators (EGTI).
ITU maintains a set of different price
baskets to reflect different usage patterns
and behaviour. In 2017, ITU updated and
adjusted its price baskets to reflect current
developments in the fixed and mobile
broadband markets. The price baskets
cover three different technologies: mobile-
voice, mobile-data and fixed-broadband.
In addition, the 2017 revision introduced
combined data-and-voice baskets, as a first
attempt to monitor the prices of bundled
services, which is now a very common
commercial practice.
Mobile-voice, mobile-data and fixed-
broadband baskets
• Table 1 provides an overview of average
prices for the five price baskets: mobile-data-
and-voice (low usage), mobile-data-and-
voice (high usage), mobile-voice, mobile-
data and fixed-broadband. It shows the
impact of bundling on prices, as a combined
data-and-voice basket is less expensive
than the sum of the two separate baskets.
Fixed-broadband packages were generally
more expensive on average than mobile-
data packages (although data allowances
were not directly equivalent). In all cases,
adjusting for PPP gave a higher relative price
than the nominal dollar equivalent.
• The good news is that, on average, mobile-
voice, mobile-data and fixed-broadband
prices are falling steadily around the world,
and in some countries even dramatically.
The reduction in price relative to income
is even more dramatic, suggesting that,
globally, telecommunication/ICT services
are becoming more affordable. However,
this trend in annual average prices is
not necessarily true of all countries or of
the entire population in each country.
Furthermore, falling prices are not
translated into rapidly increasing Internet
penetration rates, especially in least
developed countries (LDCs), pointing to the
fact that affordability may not be the only
barrier to Internet uptake.
Mobile-data-and-voice baskets
• The ITU mobile-data-and-voice baskets
include voice, text messages and data
for two different consumption levels. The
low-consumption mobile-data-and-voice
basket includes 70 voice minutes, 20 SMSs
and 500 MB of broadband data while the
high-consumption mobile-data-and-voice
basket includes 140 voice minutes, 70 SMSs
and 1.5 GB of broadband data. For the
low-consumption mobile-data-and-voice
basket, large differences in absolute price
levels between developed, developing and
least developed countries were apparent.
For the high-consumption mobile-data-
and-voice basket on the other hand, little
difference was evident in absolute prices by
level of development.
• Expressing prices relative to GNI per capita
(GNI p.c.), as a measure of affordability,
reveals huge gaps between prices
for different levels of development. In
developed countries, the price of a low-
consumption mobile-data-and-voice basket
was equivalent to 1 per cent of GNI p.c. in
2019. In developing countries, this basket
cost 7.5 per cent of GNI p.c., while in the
LDCs this rose sharply to 17 per cent. For
high-consumption mobile-data-and-voice
baskets, the differences were even larger.