Ovum: Global broadband divide widens further

As many people in emerging markets still lack broadband access, the global digital divide is gradually widening. Despite the general downward trend in tariffs, the latest report from analysts in the telecommunications industry consulting agency Ovum shows that users in emerging markets are significantly more expensive than broadband users in developed countries.

Ovum's survey of 19 emerging markets found that although broadband is increasingly considered a basic human right, broadband tariffs in some countries are more than three times that of developed countries. Analyst Richard Hurst said broadband in areas such as South Africa, Nigeria and Colombia is suffering from "astronomical prices", which will seriously threaten growth potential. It is shocking that broadband tariffs in some of these markets are double or even triple that of developed markets. For example, in South Africa, the entry-level broadband service charges reached 1,443 US dollars per year, and high-end service charges reached 6,000 US dollars. In comparison, the highest tariffs of British TV and telephone company Virgin Media will be dwarfed. Coupled with the fact that many of the countries surveyed are not particularly wealthy, the broadband access situation in emerging markets is even more severe. Although those at the top can afford these high tariffs, unfortunately, this means that the average person will not have access to broadband. Nigeria is particularly obvious in this regard. As one of the 19 countries surveyed with the lowest GDP per capita, its broadband tariff may be the highest unattainable. The entry-level broadband service tariff has reached $ 1211 per year. However, there is still hope that network service providers will reduce tariffs in the near future in order to attract more users, thereby driving tariffs to fall further.

But for emerging markets, mobile Internet is still the main way to get online. The study found that HSPA tariffs are the cheapest, with an average tariff of only $ 223 per year. Ovum said that although HSPA is a cheaper option than DSL lines, LTE or WiMAX, the disadvantage is that the data allowance is very low. Despite the high price, DSL is relatively cost-effective overall, so it is the only way out in emerging markets.

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