What determines the cost of mobile data?
Monday, December 14, 2020
A phone user on twitter. / Photo: Sam Ngendahimana.

Globally, mobile networks have continued to expand their reach. Actually reports indicate that billions of people around the world rely on their mobile phones for internet access every day.

In the last five years alone, close to one billion additional people have gained access to mobile data services.

However, despite the growing prevalence of these networks worldwide, the cost of gaining access can vary greatly from country to country, particularly when it comes to the price of the mobile data.

A report released on December 2 by the Alliance for Affordable Internet (A4A1) indicated that Africa showed the fastest improvements (6.7%) of the Affordability Drivers Index (ADI) scores.

The ADI is a tool developed to assess how a country is positioned to lower industry costs and ultimately create more affordable broadband. Ordinarily, the index is based on two sub-indices namely, infrastructure and access.

According to the report, mobile broadband prices have fallen consistently among countries

While declining prices can be explained in part by general improvements in technology and other efficiencies, strong government policy is key to reducing costs and making sure that internet access is affordable to all.

"Rwanda which has effective national broadband planning, has seen 1GB data fall to less than a fifth of its 2015 price, from 20.2% to 3.39% of average monthly income, and made faster progress than its East African neighbors,” reads part of the report.

Malaysia, Colombia and Costa Rica are the three countries with the highest index. The countries all stand out with the highest scores for national broadband planning.

The report highlighted that they all meet the UN Broadband Commission’s 1GB data for no more than 2% of average monthly income.

Lowering internet cost

Experts say that while the overall trend is encouraging, progress on reducing prices remains too slow particularly as Covid-19 has shown that internet access is not a luxury but a need.

One of the challenges highlighted in the report is that despite policy improvements, national differences persist, posing serious challenges to universal access.

The report noted that the internet costs are prohibitive and leads to billions of people missing out on even the basic access.

Almost half of the world’s population remains with no internet access, and many lack the meaningful connectivity that would allow them to engage in activities like online learning, remote working among others.

In addition to the budget, experts say that policies regarding internet infrastructure and access are crucial to ensure that cost is affordable.

In an exclusive interview with The New Times, Teddy Woodhouse, lead researcher said that the Covid-19 pandemic has left two major lessons in terms of making the internet more affordable.

"We learnt basically two things. How important internet access can be, not just about big economies but also human importance. Talking to friends, making video calls among others.”

Secondly, he added, "We also saw how countries with better internet penetration have been more economically resilient compared to countries that have lesser internet. So I think it shows again that internet access is a great enabler to achieve these other goals like being able to accommodate as many learners as possible.”

Cost reduction of 50 per cent

Last week, African leaders under the Smart Africa Alliance committed to bring down the cost of the internet under a project expected to be implemented next year.

Dubbed, bulk capacity purchase, the project aims at reducing the cost of the internet by 50 per cent in Africa.