Expensive broadband widens divide

Although shocking, it’s not surprising that a recent study from Ovum has shown that broadband costs in emerging markets remain punishingly high. For example in Nigeria broadband costs were around $2,000 per year, compared to an average per-capita GDP rate of just over $1,000. South Africa had the highest broadband costs of Ovum’s sample, with the annual costs of some services clocking in at a staggering $5,000 per year – and its average GDP per capita is under $6000. According to Ovum – this is three times as high as the rest of the world. Compare this to the UK, where my home broadband costs less than $400 per year.

This cost disparity needs to be addressed, and hopefully will be a topic covered in this week’s Broadband Commission for Digital Development meeting in New York. They are producing a report, which will be available shortly – I’ll report back when I’ve read it.

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