Consumers living in emerging markets are paying up to three times more for broadband than their mature market counterparts, according to Ovum. Research by the

Emerging markets paying three times more than rest of the world for broadband

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Consumers living in emerging markets are paying up to three times more for broadband than their mature market counterparts, according to Ovum.

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Research by the independent telecoms analyst into broadband in 15 emerging markets revealed that emerging consumers are paying far more on average than the rest of the world, despite earning the lowest wages.

Angel Dobardziev, an Ovum practice leader and author of the report on broadband pricing in emerging markets*, said: “The cost of broadband in some emerging countries is three times as high as in mature markets, which when coupled with low wages, makes it an unaffordable luxury for all except a small group at the top of the socio-economic pyramid.

“The striking difference in broadband prices in mature and emerging markets means there is a huge divide in terms of uptake of services.”

Nigeria’s broadband tariffs were among the most expensive of those sampled by Ovum, with the annual cost of some services reaching more than $2,000 per year, despite the country having a low GDP per capita at $1,170.

South Africa had the highest broadband prices of all the countries sampled. The annual cost of some services was found to be more than $5,000, against a GDP of $5,820 per year.

Angel adds: “The key to making broadband more affordable for emerging markets will be an increase in supply and competition, which is currently modest in most markets and non existent outside the key urban areas.

“However, many markets will require concerted regulatory and policy efforts to increase competition and supply and bring affordability within reach of the mass consumer market. As yet it is unclear how quickly this will happen.”


ABOUT OVUM
Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Datamonitor group.

13 comments

  1. Well…. What more can be said. The article says it all. We are being ripped off and ‘enjoying it’.

    How sad.

  2. That’s not suprising, it’s something quite a number of people have known for a while.

    glo 1 and main one are you guys listening?

    Common let’s feel your impact.

  3. this info is well known news. Ehem….! Yomi, who did u say will crash internet prices? This mystery network better act fast. Much as i know, it still make depressing reading

  4. Archie,

    I am not sure what exactly is responsible for the delay, but I gather that this network and another are currently squared off and watching each other hawkishly. Apparently, A got wind of B’s plans and then B too got wind of some things from A. There’s a spy game going on now, but you can be sure that the consumer will benefit the most when it happens.

    There is a snowball effect already triggered.

  5. @ Yomi

    What’s up with state of the mobile report for August?

    You have now switched to BlackBerry Bold

  6. Just To state another instance of unending ripoffs by our telecoms providers..
    i wanted to switch to one of Zain.s new tariff. KoolMax or something. I dialled *444#, got an error message and N100 was deducted , stolen from me. I was not migrated, but zain did not forget to remove my money. Characteristic!

    I did not bother to complain.

    This is similar to the same robbery of getting billed for undelivered or undeliverable smses.

    I guest we need a more business friendly environment that will engender true competition.

    What we still have is MULTIPLE MONOPOLIES in the telecommunications sector…but it will get better….

  7. Keweno,

    Reviewing phones and mobile services is my job. That means you will regularly see me with different phones.

    News about our mobile reports coming soon.

  8. @ yomi. this expected drop in data tariff, is it coming from any of the GSM operators? sometimes i ask myself, do we really have broadband internet in Nigeria?

  9. I really do think that the operating condition of a lot of the telecoms companies, for that matter any company in Nigeria, makes offering the most competive rate a huge hurdle. Alternative power generation cost these companies billions of Naira, just imagine if there was constant power supply.
    In as much as I do not condone this high traffic, I do understand their is some greed on the parts of the operators but I do sympathize with them in a way, I have been involved in some business in Nigeria where we had to generate our own power and it is not child’s play especially to your bank account. Until the issue of electricity and corruption are squarely tackled, let’s forget the comparison issue.
    So many things In Nigeria defies logic, why is is that a airline ticket going to Nigeria on the same flight for the same day cost twice as much if the flight originates from Nigeria and half the price if it originates from the United states, go figure…..

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