The developed world has the most affordable mobile broadband

IN THE past five years the number of mobile-broadband subscriptions in the world has increased fivefold. Almost half the global population is now covered by a 3G or 4G network, but prices and speeds vary wildly both across and within regions. According to a report published by the International Telecommunication Union (ITU), Austria has the world’s most affordable pre-paid mobile-broadband, when measured as a percentage of monthly gross national income (GNI) per person. By this yardstick, mobile broadband is generally cheaper in developed countries, though rates are surprisingly high in America, where 500 megabytes of pre-paid data a month costs $85, or 2.1% of GNI per person. This may owe something to the structure of a market with two main players, Verizon and AT&T, and to the fact that it costs more to build a network than it does in small, densely populated European countries. Pre-paid subscriptions are more expensive than contracts, but are commoner in developing countries because upfront payments to operators are more reliable. In these countries mobile broadband is now cheaper than the fixed kind, though this will bring little comfort to those in Sierra Leone, Niger and Congo where monthly service costs are still higher than GNI per person.

Update: Many commentators have questioned the accuracy of the data. The ITU's methodology is spelled out in its latest report (pages 92-95). On the surface, it might seem questionable. Why, for example, only use pricing from the country’s dominant operator? Other parts sound reasonable: special promotions excluded; taxes included. One can appreciate the difficulty of devising a methodology to apply to all countries. The ITU regularly hosts a group of experts to discuss telecoms indicators, but it is highly bureaucratic. Perhaps there is a better way.