Monday, May 25, 2015

Mobile Internet Access Prices are Dropping

Affordability is a key problem for use of the Internet in many developing markets, including India. The good news is that service prices and the cost of devices are dropping.

In India, 20 percent of smartphone users top up their data plans daily. In the Philippines, 60 percent of smartphone users top up daily.

In Nigeria, 56 percent of users top up daily.

Because they’re buying the smallest packages of data they can afford, they miss out on the cost savings of purchasing larger ones.

To be sure, prices are dropping. Portio Research estimates that the cost per megabyte of mobile data around the world decreased by 93 percent from 2008 to 2012.

In Latin America, GSMA observed that the monthly price of low-end smartphone data plans (250 Mb usage cap) fell from USD 17.68 in 2010 to USD 8.33 in 2013, a decline of 52 percent in just three years.

Plans with a higher usage cap (1GB) also saw significant declines, dropping 37 percent annually from 2010 to 2013, from USD 23.07 to USD 14.44
data trap figure 2_

 When you look at the cost of a 500 MB mobile data plan in relation to income, it’s pretty clear to see why 50 percent of smartphone users in India deactivate their data plans. 

1 hour of work high cost of data

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