communication technology (ICT) developments and tracks the cost and affordability of ICT services, in accordance with internationally agreed methodologies.
Its core feature is the ICT Development Index (IDI), which ranks countries†performance with regard to ICT infrastructure, use and skills.
performance evaluation based on quantitative indicators and benchmarks, as an essential input to the ICT policy debate in ITU Member States
services continue to decrease globally, in most developing countries the cost of a fixed-broadband
An enabling telecommunication regulatory environment can significantly influence the affordability of services. The report finds that the price of ICT services falls with better market regulation and increased
competition. For example, in developing countries, fixed-broadband prices could be reduced by 10 per cent and mobile-cellular prices by 5 per cent if competition and/or the regulatory framework
improved. International regulatory best practices, such as the ones adopted by the ITU Global Symposium for Regulators (GSR), may serve as a guideline for effective regulatory frameworks which
can lay the foundations for affordable fixed-broadband services In this fast-changing digital era, one of the key challenges in measuring the information society is
the lack of up-to-date data, in particular in developing countries. ITU is joining the international statistical community in looking into ways of using new and emerging data sources †such as those
associated with big data †to better provide timely and relevant evidence for policy-making. Calls for
potentials in view of the widespread use and availability of mobile networks and services. This report provides the reader with a comprehensive and critical overview of the role of big data from the
on international bandwidth, revenue and investment. Helpful inputs and suggestions were received from Joan Calzada Aymerich from the University of Barcelona (Chapter 4), Jake Kendall from the Gates
1. 4 Revenue and investment in the telecommunication sector...13 1. 5 Use of ICTS...
Chapter 4. ICT prices and the role of competition...107 4. 1 Introduction...107 4. 2 Fixed-telephone and mobile-cellular prices...
4. 5 The impact of competition and regulation on telecommunication prices...152 Chapter 5. The role of big data for ICT monitoring and for development...
1. 14 Annual investment by telecommunication operators, world and by level of development 2007-2012, total in USD (left) and annual growth (right...
1. 19 Fixed-broadband access in enterprises using the Internet, selected countries, 2005-2012.19 1. 20 E-government Development Index (EGDI), 2003-2014.20
1. 21 E-government services provided by countries (transactional services, left, and e-participation services, right...
20 1. 22 Proportion of schools with Internet access (total and fixed-broadband), 2012 or latest
4. 11 Availability of mobile-broadband services by type of service, by level of development
4. 21 Competition in fixed-broadband markets and fixed-broadband prices as a percentage of GNI p. c.,2008-2013.155
4. 22 Competition in mobile markets and mobilecellular prices as a percentage of GNI p. c
4. 1 Mobile-broadband services by type of device/plan...125 4. 2 Relationship between regulation, competition and prices...
154 4. 3 Composition of the variable measuring the regulatory environment...156 5. 1 The five Vs of big data...
176 5. 2 An overview of telecom network data...182 5. 3 Customer profiling using telecom big data...
3. 2 The top five economies in each region and their ranking in the global IDI, 2013.85
information and communication technology ICT) infrastructure and in ICT uptake by citizens and public and private organizations.
-broadband services provide a response to the demand for high-speed Internet access in view of the lack of affordable fixed-broadband
services, whereas in the developed world both fixed-and mobile-broadband uptake is growing continuously
The data also show a continuous increase in Internet usage, with growth in the number of
Internet services and the higher levels of skills required to make effective use of online content
and services, while the opposite is often the case in rural and remote areas of many developing
and services, covering the fixed and mobile (voice and data) market segments, and considering both
trends in terms of investment and revenue in the telecom sector. Then, a number of key indicators
WSIS+10 review, the demand for a data revolution and the role of big data for ICT monitoring
has access to mobile communication services Closer examination and disaggregation of the data reveal, however, that digital divides still exist
access to communication networks First, there are populations living in rural areas that are covered not by a mobile-cellular signal
affordable mobile-phone services in rural areas Further research and data would be necessary to determine people†s access to,
communications and to identify other potential barriers, such as those related to poverty, literacy education or lack of electricity, as well as cultural
of the larger economies, such as China, India, the Islamic Republic of Iran and Malaysia. Europe†s
for example, no mobile-broadband services are available, but fixed-wireless and satellite services are offered. In Saudi arabia, 30 per cent of all
wireless-broadband subscriptions are fixed -wireless and satellite subscriptions Mobile broadband remains the fastest growing market segment, with continuous double-digit
few years. 4g4 services came onto the market only recently and 4g subscriptions still account
-broadband infrastructure and services were available much earlier than in most developing countries, and before fast mobile-broadband
services and smartphones entered the market This has contributed to the higher uptake of fixed broadband in developed countries.
service offerings, mobile-broadband services are increasingly becoming an alternative to fixed broadband, and indeed the preferred
data based on ITU and Telecom Advisory Services calculations more and more countries upgrade their mobile networks. As mentioned earlier, 2g population
+technologies and services, and given the strong growth in mobile-broadband subscriptions. At the same time, the issue of spectrum allocation
increasing demand for high-speed mobile access can be met, including in rural areas, where the additional spectrum represented by the digital
to opportunities for service providers to increase their subscriber base (ITU, 2014 Another key indicator that provides further
services through high-speed networks. While fibre transmission networks constitute an essential infrastructure that has to be available in
investment in backbone infrastructure in all parts Chart 1. 7: Fibre and microwave routes, share of route kilometres (left)
internal demand and also its location: most transatlantic submarine cables land in the UK as do several cables linking Western Africa and
limited and affordable services are much less available in rural areas, thus preventing rural households from purchasing Internet services
At the same time, the benefits brought by ICTS and the Internet are especially impactful in rural areas, which often also lack access to other
and communication Research has shown that the potential of libraries and post offices to provide public Internet access
1. 4 Revenue and investment in the telecommunication sector In 2012, total telecommunication revenue stagnated at around USD 1. 88 trillion,
overall pattern of their economies as a whole (in the European union, for instance, GDP increased in 2011 and decreased in 2012) 11 suggesting
telecommunication services. In addition to the adverse economic context, the voice market in developed countries is declining or reaching
competitive environments, thus also exerting pressure on the revenues generated by the strongest growing market segments, such as
Chart 1. 14 shows the evolution of investment in telecommunications, which is fundamental to supporting ICT uptake and innovation.
investment grew by 4 per cent to USD 307 billion globally. Despite the progression seen in global
investment since 2010 (6 per cent compound annual growth rate), the 2008 investment levels have not been restored
The recovery of investment levels has been hampered by the situation in developed countries where the downturn experienced in 2008 was
strongest(-16 per cent) and the reduction in telecommunication investment persisted in 2009 -2 per cent.
The overall economic environment of restricted access to capital markets and the efforts of some operators to reduce debt exposure
explain the sluggish investment levels seen in 2011 and particularly in 2012.13 In developing countries, investment in
telecommunication infrastructure and services has been more stable, with a smaller drop in 2008(-4 per cent) and moderate growth in the
following years (4 per cent compound annual growth rate between 2009 and 2012. This led to the 2008 investment levels being restored
by 2011, and an all-time high of USD 121 billion at end 2012. The developing countries†share of
total investment was almost 40 per cent in 2012 which is compared relatively high with the
share of global telecommunication revenues generated in developing countries 32 per cent The investment-to-revenue ratio in the
telecommunication sector stood at 17 per Chart 1. 14: Annual investment by telecommunication operators, world and by level of development
2007-2012, total in USD (left) and annual growth (right Note: †World†includes countries accounting for 91 per cent of world GDP. †Developed†includes 35 developed countries accounting for 98 per cent of total GDP
telecommunication services, USD 17 were reinvested in capital expenditure (i e. in upgrading the fixed assets needed to extend
and improve telecommunication services. The investment-to-revenue ratio was somewhat lower in developed countries (15 per cent) than
in developing countries (22 per cent. In other words, the investments made in developing countries were larger relative to the revenues
they generated. This may be explained by two factors. On the one hand, telecommunications is a capital-intensive industry and part of the
capital investments are delivered by global equipment providers, resulting in only limited investment cost reductions across countries. 14
On the other hand, revenue per user in several developing countries is constrained by low income levels, which limit the margin for
make the investments necessary to bridge the infrastructure gap between developing and developed countries 1. 5 Use of ICTS
affordable services, people are more likely to use the Internet at locations outside the home, such
-filesharing site with services in 61 countries. As of early 2014, Youtube boasted more than 1â billion
Private-sector enterprises are early adopters of ICTS, and are driving the information economy across the globe by providing online services
and content, engaging in e-business at both the wholesale and retail levels, and transforming entire business sectors and creating new value
ICTS in the economy has been found to facilitate macroeconomic performance and business growth by increasing labour productivity
enterprises are collected annually by the United Nations Conference on Trade and Development UNCTAD), but availability is limited apart from
annual surveys on the use of ICTS in enterprises compiled by Eurostat. The latest results show
that in Europe Internet access in enterprises stood at 95 per cent in 2012 (up from 94 per
survey revealed that more and more enterprises are making use of social media. In 2013, around 30 per cent of European enterprises used social
media, ranging from 15 per cent of enterprises in Latvia to 55 per cent in Malta. 18 Activities are
mostly related to social networks (e g. Facebook followed by multimedia content sharing websites (e g. Youtube) and blogs (e g.
enterprises are scarce and only collected by few countries. The proportion of businesses with Internet access varies between 48 per cent in
size and location of the enterprise †small and Table 1. 2: Total Internet domain registrations by world region, 2003,2008 and 2013
large enterprises, and rural enterprises are less connected than urban enterprises (Partnership 2014). ) As has been shown earlier in this chapter
backbone connectivity and international Internet bandwidth is still lacking in many regions of the developing world.
Access to high-speed quality broadband services, however, is especially important to the business sector, in the same
way as other basic infrastructure and services necessary to run a successful business E-government
Not only are government entities major users of ICTS, but governments are also increasingly using the Internet to provide services to their citizens
E-government contributes to increased efficiency and greater transparency and accountability in government, reduces cost
services provided online, tracked by the United Nations through its E-government Survey, which is carried out every two years.
When it comes to the provision of e-services the results from the latest UN survey show that
and services on government website portals increased threefold, with 70 per cent of countries providing a one-stop shop portal in 2012, as
Fixed-broadband access in enterprises using the Internet, selected countries, 2005-2012 Source: UNCTAD Information Economy Database, 2014, available at unctadstat. unctad. org
P e rc e n ta g e o f e n te rp ri
transactional services and e-participation services (Chart 1. 21. Despite the major progress made, disparities remain in the use of ICTS in
government across countries. As illustrated in Chart 1. 20, Europe tops the E-government Development Index, followed by The americas
E-government services provided by countries (transactional services, left, and e-participation services, right Source:
UNDESA. Data from United nations E-government Survey (2014 101 73 60 46 44 42 41
Transactional services are advanced relatively services that are increasingly being provided by governments. For example, income-tax forms can be submitted online in 73 countries
registering a business can be carried out online in 60 countries, and people can apply for birth
to transactional services and e-participation services (Chart 1. 21. While, globally, around 20 per cent of countries provided information to
their citizens on national e-participation policies in 2013, in Europe the proportion was nearer to
growth of mobile-broadband services, it may be expected that more and more schools will have broadband access in the near future and that the
economic growth, environmental balance and social inclusion At its meeting in May 2014, the UN Commission
communication technologies for development and considers that it should be reflected as appropriate in the post-2015 development
information, knowledge and key services. In this context, ITU members are discussing a set of global ICT goals and targets to be achieved
In addition, diffusion of ICTS in the economy has been found to facilitate macroeconomic performance and business growth by increasing
opportunities related to employment, education health, governance or peace-building, thus accelerating progress towards the achievement
society and high-speed communication networks become an indispensable infrastructure, the tracking and measurement of ICT developments become even more relevant
statistics in the areas of the economy, health education, labour, etc. all of which are crucial to
other stakeholders such as the private sector, civil 27 Measuring the Information Society Report 2014 Box 1. 2:
on the opportunities offered by ICTS to developing countries calls surfaced for reliable and comparable data in order to
economy and the Partnership has contributed significantly to monitoring and tracking those changes, by developing new indicators and standards, providing technical assistance
society and economy, is used widely by countries in the course of their national ICT data collection.
than 100 economies worldwide, and data on Internet use in businesses by almost 70 countries,
Broadband services should cost no more than 5%of average monthly income in developing countries by 2020
Worldwide, 90%of the rural population should be covered by broadband services by 2020c Target 2. 5. A:
Enabling environments ensuring accessible telecommunications/ICTS for persons with disabilities should be established in all countries by 2020
and adapt to the changing telecommunication/ICT environment Target 4. 1: Telecommunication/ICT environment conducive to innovation
Target 4. 2: Effective partnerships of stakeholders in the telecommunication/ICT environment society and international organizations should be
involved. New data sources could include big data mostly provided by private-sector companies which could help â€oeimprove the timeliness and
official statistics on the economy, society and environment. Furthermore, administrative records, which are used widely by official
Note: acost of ICT services to be 60 per cent of the 2012 value. bexisting
and additional targets for Goal 2 are being reviewed and adjusted, based on contributions from Member States. c Due to data limitations, currently mobile-broadband signal coverage is considering in determining this target
•To formulate an adequate communication strategy for data providers and users on the issue of use of big data for official statistics
communication and advocacy of the use of big data for policy applications; and build public trust
enterprises will be essential in order to identify the extent to which stakeholders in the ICT sector can be used as an alternative data source.
Without ICTS, no ICT-driven data revolution will take place In view of the link between big data and ICTS, work
further examine the challenges and opportunities of big data, in particular data coming from ICT companies; that regulatory authorities should
the opportunities for big data and address current challenges in terms of big data quality Chapter 1. Recent information society developments
•In view of the ubiquitous availability of communication networks, the use of new information technologies (e g
•Sustained investment in national statistical capacity both technical and institutional, is essential and needs
also include investment in the development of concepts measurement frameworks, classifications and standards •New, nontraditional data sources should be explored
satisfy the demand for data needs in new areas, such as big data, geospatial information and geographical
/3 http://www. censusindia. gov. in/2011census/hlo/Data sheet/India/Communication. pdf 4 4g refers to fourth-generation mobile network or service.
The Economist, April 12 2014, â€oenigeria†s GDP step change†13 Telefã nica, for instance, reduced its net debt by EUR 4 819 million in 2012 after several years of sustained increases in
15 For instance, the average revenue per user per month for GSM services in India was less than USD 2 in March 2012, almost
of national online services, telecommunication infrastructure and human capital in all countries. See http://unpan3. un. org/egovkb/global reports/index. htm
benchmark measure that serves to monitor and compare developments in information and communication technology (ICT) across
countries. The IDI was developed by ITU in 2008 and first presented in the 2009 edition of
Economic growth and development will remain below potential if economies are not capable of exploiting new technologies and reaping their benefits
Therefore, the IDI includes a measurement of the capability to use ICTS effectively A single indicator cannot track progress in all
have access to ICT equipment or services the equipment/service should generally be available for use by all members of
were three economies that were identified as outliers, namely Hong kong (China), Luxembourg and Malta The reference value for mobile-cellular
No fewer than 104 economies of the 166 included in the IDI have passed the 100
surveys (demand-side indicators. An indicator such as the percentage of individuals using a mobile-cellular telephone (which ITU collects
mobile-cellular services. While the number of countries that collect this information is increasing steadily, still only 42 countries
countries/economies as compared with 157 in last year†s edition The remainder of the chapter is structured as
economy from Asia and the Pacific (Hong Kong, China)( Table 2. 2). Differences in IDI value
Economy Rank 2013 IDI 2013 Rank 2012 IDI 2012 Economy Rank 2013 IDI 2013 Rank 2012 IDI 2012
Economy Rank 2013 Access 2013 Rank 2012 Access 2012 Economy Rank 2013 Access 2013 Rank 2012 Access 2012
Economy Rank 2013 Use 2013 Rank 2012 Use 2012 Economy Rank 2013 Use 2013 Rank 2012 Use 2012
Economy Rank 2013 Skills 2013 Rank 2012 Skills 2012 Economy Rank 2013 Skills 2013 Rank 2012 Skills 2012
ten countries being high-income economies (see section 2. 3). 6 The following section looks at the
economy accounted for more than 5. 8 per cent of GDP, and it continues to grow.
to the general economic downturn, Denmark†s government sees ICTS as a major driver for growth, innovation and economic development
service provider (ISP) TDC is making investments to provide access to ultra-fast speeds for over
order to meet the increasing demand generated by wireless-broadband services. There is an obligation for the licensees to ensure that by
2015 users in areas with the lowest speeds will Chart 2. 1: Fixed (wired)- broadband and wireless
Korea was the first country to offer 3g services commercially in 2002, and LTE was offered first
wireless services to improving quality and speed In July 2013, SK TELECOM launched the â€oeworld`s
domestic demand for data driven by the high volume of local content, and domestic Internet
next-generation communication infrastructures of the coming decadeâ€. A total of EUR 3 billion have been pledged over the next seven years
this investment by up to five times. 13 European top performers stand out when it comes to ICT access at home.
The economy ranks in ninth position with an IDI value of 8. 28. Hong kong (China) is
instance, mobile-broadband services were only commercialized in mid-2013 in Burkina faso, 21 which is among the most dynamic countries
in competition (i e. the awarding of further licences), lower prices (see Chapter 4) and increased uptake by users.
Postes et des Communications Electroniques 2011), placing the country among the most dynamic on the use sub-index.
services were launched only in December 2011 and by 2013 operator CVMOVEL had expanded 3g services to all the islands of the archipelago. 23
Bhutan is one of the most dynamic countries in the use sub-index, moving up eight places.
-broadband services were introduced as early as 2008 by state-owned operator Bhutan Telecom under its B-Mobile brand), major developments
expanded its 3g services, which had been limited to the nation†s capital Thimphu, to 15 out of 20
launched its high-speed 4g services in Thimphu Chart 2. 3: Wireless-broadband penetration Bhutan, 2008-2013
services by the country†s only private-owned operator Tashi Cell in late 2013 has helped
to increase coverage and competition in the market, which in turn has led to higher adoption rates. 25 Apart from those major improvements in
access to wireless-broadband services, uptake is ascribed also to the growing popularity of social media and increased availability of
to make services faster, more affordable and more secure. One of the core projects of the Qatar National Broadband Network
52 per cent for wireless-broadband services by end 2013. This is one of the highest wireless
-income economies. The launch of 3g was much anticipated in Thailand, following the long delay
of mobile-broadband services was spurred by heated competition among operators offering subsidized smartphones and promotions on
mobile data plans. 35 During 2013, operators further extended their wireless infrastructure and services throughout Thailand,
and are planning to provide further network updates. 36 Figure 2. 3: IDI spider charts, selected dynamic countries, 2012 and 2013 (continued
-broadband services in particular is still relatively limited. On average, fixed-broadband penetration reached 6 per cent in developing countries by end
value following the introduction of 3g services in 2012/2013, there were still a few countries that
had launched not services by end 2013. In 2014 close to 4. 3 billion people, most of them living in
of land area, size of the economy, population or geographic location. Indeed, adverse geography is cited often by economists to explain why
some countries are doing better than others in terms of economic development. 37 Jeffrey Sachs
Basic voice services are more widely available although LCCS like Eritrea (6 per cent), Myanmar (13 per cent) and
the least connected, most notably such populous economies as India, Pakistan and Nigeria. In total, close to 2. 5 billion people
between IDI, the economy, geography and population, the following variables were selected for each country •Urban population:
•Gross national income (GNI) per capita GNI is the sum of value added by all resident producers plus any product
domestic economy by nonresidents. GNI calculated in national currency, is usually converted to United states dollars at official
economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large
Given the large investments that are required when deploying ICT infrastructure private operators assess the profitability of
providing their service depending on the demand and the specific business case in each geographic area.
The marginal cost of service provision in densely populated urban areas is usually much lower than in rural areas.
a return on their investment. This points to other important factors, apart from service availability
economy (measured by GNI p. c.).GNI levels are correlated also with other variables, such as population density and share of urban population
services, as well as the skills to make effective use of ICTS. This applies in particular to most LCCS
For example, some economies with small land areas such as Barbados, Bahrain Hong kong (China), Singapore, Monaco, Iceland and Luxembourg have high IDI levels, while
education, government and health services, and empower people by providing a platform for communication, the impacts of which are more
difficult to measure Since the Millennium Declaration was issued in 2000, ICTS have grown unprecedentedly, a trend which has underscored their potential for
also means access to information and services that may have previously been unavailable especially to people living in rural and remote
147 economies for which data were available for 2002 and 2013 shows that the global IDI value has doubled almost from 2. 52
same set of 147 economies in order to ensure comparability. Therefore, IDI 2013 values differ from what was presented in previous sections of this chapter
Simple averages based on 147 economies Source: ITU strong correlation between GNI p. c.,(most MDG indicators and IDI
complement and facilitate those essential services through the monitoring of maternal health, for example, via SMS and by providing information
have on the environment, as the manufacture and use of ICTS and ICT equipment require increased energy consumption and lead to the
exert on the environment. The use of ICTS requires electricity, which is one of the contributors to high
A similar principle has been adopted for ICT equipment and services, i e. they should be available for use by
17 Ofcom and the European union define superfast services as those delivering download speeds of 30 Mbit/s or more
Czernich, N.,Falck, O.,Kretschmer, T. and Woessmann, L. 2009), Broadband Infrastructure and Economic growth http://papers. ssrn. com/sol3/papers. cfm?
World bank (2009), Information and Communication for Development: Extending Reach and Increasing Impact, http://go. worldbank. org/NATLOH7HV0.
46 http://www. multidisciplinaryjournals. com/wp-content/uploads/2014/01/THE-ROLE-OF-INFORMATION-COMMUNICATION -TECHNOLOGY-ICT.
47 UNCTAD (2011), Measuring the Impacts of Information and Communication Technology for Development http://unctad. org/en/docs/dtlstict2011d1 en. pdf
fall either side of an important benchmark, as only the CIS and The americas regional averages
and regional rankings of the top five economies in each of the six regions, in order to provide
economies from Asia and the Pacific also rank relatively high globally, all of them coming in the
The top five economies in each region and their ranking in the global IDI, 2013
Economy Regional rank 2013 Global rank 2013 IDI 2013 Global rank 2012 IDI 2012 Global rank
†29per cent by end 2013 †but customers are consuming more data, indicating an increase in
oil-rich, high-income economies and are part of the Cooperation Council for the Arab States of
are characterized by a high level of competition and high levels of multi-SIM ownership (GSMA and Deloitte, 2013.
customers. 8 Wireless-broadband penetration levels vary considerably across the region. The number of subscriptions exceeds the population in Bahrain
-broadband services in 2013 (see Chartâ 3. 5 However, there is some room for optimism as 3g licences were awarded finally to three
mobile-broadband services in the lower-income countries are much less affordable than in the
Economy Regional rank 2013 Global rank 2013 IDI 2013 Global rank 2012 IDI 2012 Global rank
broadband) services are much more popular in the region. The majority of Arab States have a
Economy Regional rank 2013 Global rank 2013 IDI 2013 Global rank 2012 IDI 2012 Global rank
economies, including Australia, Japan, Macao China), Republic of korea and Singapore, had already reached very high levels of penetration
competing for 143 million potential customers Data from household surveys collected in a number of CIS countries underline that mobile
region to launch 3g services in 2007.21 Since then, operators have expanded their mobile -broadband networks beyond the main cities
Economy Regional rank 2013 Global rank 2013 IDI 2013 Global rank 2012 IDI 2012 Global rank
services were launched in the Russian Federation in 2012.22 The highest growth in wireless -broadband penetration from 2012 to 2013 took
Economy Regional rank 2013 Global rank 2013 IDI 2013 Global rank 2012 IDI 2012 Global rank
Wireless-broadband services are available in every European country, and the large majority of countries have a penetration rate of more than
operator launched its 3g services in early 2013 increasing competition in the market. 25 Operators
in Slovakia and Romania have extended and upgraded their networks and started to offer LTE services to customers.
The top five countries in the world in terms of fixed-broadband penetration (Monaco, Switzerland, Denmark Netherlands and France) are all European
-broadband services still not available in 2013 and a fixed-broadband penetration of less than 1 per
Economy Regional rank 2013 Global rank 2013 IDI 2013 Global rank 2012 IDI 2012 Global rank
LTE services were first launched in the country in early 2013.28 Antigua and Barbuda (from 23 per cent to 49 per cent
their wireless-broadband networks, services were still not available in Cuba, Dominica, Guyana and St vincent and the Grenadines by end 2013
28 http://www. rcrwireless. com/article/20121214/carriers/claro-first-launch-lte-services-brazil /Endnotes
competition 4. 1 Introduction The price of ICT services constitutes a determining factor for ICT uptake and, as such, continues to be a
focus of attention for regulators and policy-makers Affordability remains the main barrier to Internet access at home in many developing countries.
services, and its impact goes beyond access, also influencing usage: over half of EU citizens limit their
In response to the demand for global benchmarks on ICT prices, ITU has been collecting ICT price
fixed-broadband services. Since 2012, the data collection has been extended to include mobile -broadband prices. These data have proved to be
affordability and income inequality, competition and regulation. The objective is to single out some salient explanatory factors for the
factors may help in making ICT services more affordable and thus increase ICT access and use
Chapter 4. ICT prices and the role of competition 108 income distribution stems partly from the tracking
The effects of competition in driving prices down and fostering innovation have been most apparent in the mobile-cellular market, where
mass uptake of mobile-cellular services observed in the developing world in the last decade;
competition, and is thus the lever which policy -makers and regulators can use to influence
competition. As a result of all the important elements in the analysis of the affordability of ICT prices, competition and regulation are those
upon which telecommunication administrations may exert more direct control. They therefore merit particular attention This chapter will present
services. It will first look at prices in the voice market and their evolution in the period 2008
Then, the affordability of ICT services will be analysed in the light of household income inequalities, thereby quantifying how far low
the impact of competition and regulation on ICT prices. Based on an econometric model, a number of conclusions will be presented on the
effects of competition and regulation on mobile -cellular and fixed-broadband prices The results of the latest ICT Price Basket (IPB) are
mobile-cellular and fixed-broadband services as well as the general IPB ranking combining the three sub-baskets expressed in terms of GNI per
of the economy of each country, thus pointing to the affordability of each ICT service at a country level
the most ubiquitous ICT services, overtaking historical ICTS such as radio and television broadcasting in many countries.
that mobile-broadband services are likewise less available than mobile voice and SMS (see Chapter 1). Subscription figures confirm this
Such a ubiquitous uptake of voice services would not have been possible without affordable prices Chart 4. 1 shows the evolution of fixed-telephone
Based on 140 economies for which 2008-2013 data on fixed-telephone and mobile-cellular prices were available
Chapter 4. ICT prices and the role of competition 110 16.2) per month. 6 This compares with an average
such different services, the results roughly confirm that fixed-telephone and mobile-cellular prices are the cheapest among ICT services
suggesting that low prices have contributed to the widespread adoption of traditional voice and SMS services
Fixed-telephone prices have followed an almost flat evolution, with a small decrease in prices observed during the period in developing
and mobile-cellular services from a demand-side perspective (Chart 4. 2 From this perspective, voice services are less
affordable in developing countries than in developed countries. By end 2013, a basic fixed-telephone service cost on average 1. 0 per
Based on 140 economies for which 2008-2013 data on fixed-telephone and mobile-cellular prices were available
ADSL services. Since ADSL is currently the predominant fixed-broadband technology, 9 it is thus relevant to track the cost of fixed-line
mobile-cellular services still cost more than 5 per cent of GNI p. c. in 2013.
mobile-cellular services remains a major barrier to further adoption in several African countries of the 20 countries with the least affordable
practices of other economies in the region, such as Kenya and Ghana, which have succeeded in
competition †such as fostering inter-operator competition continuing with the glide-path set for mobile termination rates (MTRS)( CCK, 2010
allowing the entry of MVNOS11 and streamlining mobile number portability12 †and policy initiatives to strengthen the demand side
Chapter 4. ICT prices and the role of competition 112 Table 4. 1: Fixed-telephone sub-basket, 2013
Note:**Data correspond to the GNI per capita (Atlas method) in 2013 or latest available year adjusted with the international inflation rates.**
**Country not ranked because data on GNI p. c. are not available for the last five years
Rank Economy Fixed-telephone sub-basket GNI p. c USD 2013*Rank Economy Fixed-telephone sub-basket GNI p. c
USD 2013 *as%of GNI p. c. USD PPP$ as%of GNI p. c. USD PPP$
or latest available year adjusted with the international inflation rates.****Country not ranked because data on GNI p. c. are not available for the last five years
Rank Economy Mobile-cellular sub-basket GNI p. c USD 2013*Rank Economy Mobile-cellular sub-basket GNI p. c
USD 2013 *as%of GNI p. c. USD PPP$ as%of GNI p. c. USD PPP$
Chapter 4. ICT prices and the role of competition 114 Mobile-cellular services are very affordable in
most developed countries, corresponding to less than 2 per cent of GNI p. c. in the majority of
8. 1 per cent), where mobile-cellular services are the least affordable in the developed world.
uptake of mobile-cellular services in these countries, and therefore requires regulatory and policy attention
reliable Internet services. Despite the growth of mobile-broadband subscriptions, less than 3 per cent of global IP traffic corresponded to mobile
Based on 143 economies for which 2008-2013 data on fixed-broadband prices were available Source:
with entry-level fixed-broadband services costing more than USD 100) saw little improvement in prices in 2013.
developed world suggests that competition in the market is centred around higher-end users contracting higher speeds and/or fixed
broadband bundled with other services. This is in line with the findings on bundle adoption from
entry-level fixed-broadband plan, customers in developing countries are getting a connection five times slower on average than that enjoyed
by customers in developed countries In line with the reduction of fixed-broadband prices in PPP$ and USD, entry-level fixed
-broadband services, the average price for an entry-level fixed-broadband plan still represented Chart 4. 4:
Based on 143 economies for which 2008-2013 data on fixed-broadband prices were available Source:
Chapter 4. ICT prices and the role of competition 116 25.8 of GNI p. c. in the developing world at end
â€oeby 2015, entry-level broadband services should be made affordable in developing countries through adequate regulation and market forces
This suggests that competition is taking place in other (higher-end) segments of the market
Based on 165 economies for which 2013 data on fixed-broadband prices were available Source: ITU
Indeed, customers in most urban areas of Ireland can subscribe to FTTH services, thus benefiting from Internet access at high speeds (50 Mbit/s
for as little as USD 19.9 in addition to the cost of the fixed-line rental. 15 The countries with the least affordable prices
entry-level fixed-broadband services is the Commonwealth of independent states, with an average price corresponding to 3. 8 per cent
Chapter 4. ICT prices and the role of competition 118 high gross national income (the highest in the
CIS), but also by the low prices: USD 6. 3 for a fixed-broadband plan at 5 Mbit/s, the lowest
economic growth continues. However, policy and regulatory action will be necessary to step up a gear in broadband adoption, since fixed
The scarcity of international Internet bandwidth is further confirmed by the fact that the entry-level plan
services are less affordable. The relatively high prices in Moldova are explained by the characteristics of the fixed-broadband plan
regulatory measures to promote competition and ease the international connectivity bottleneck could help drive prices down to the
promotions for ADSL services with some of the most advantageous prices in the region USD 6. 1, by far the cheapest price offered by
suggests the need for more investment in broadband network equipment and network roll out to enable the take-off of fixed-broadband
services in Kuwait Mauritania is the Arab country where entry-level fixed-broadband prices are the least affordable
-broadband services would need to target both the supply and the demand sides (Box 4. 1
The average price for an entry-level fixed -broadband plan in The americas region corresponds to 0. 6 per cent of GNI per capita
affordable entry-level fixed-broadband services in the region (0. 7 of GNI p. c),
Chapter 4. ICT prices and the role of competition 120 Box 4. 1: Challenges for fixed-broadband adoption in Mauritania
Unaffordable fixed-broadband services in Mauritania are the result of factors on both the supply and the demand side
On the supply side, there are only two facilities-based fixed -broadband operators in the market, with the incumbent
Regulatory interventions to promote competition and to improve international connectivity could greatly contribute to stimulating the fixed-broadband market
On the demand side, GNI per capita in Mauritania is the lowest of all Arab countries included in the comparison of fixed-broadband
public policies to support demand for fixed-broadband services could lead to wider adoption and thus give a positive signal to
services, including prepaid plans, starting at USD 10.9 for unlimited monthly usage, the cheapest prices in USD in The americas together
-broadband services in these countries cost more than in the United states, despite the difference in income.
subscriptions are priced still as premium services with similar tariffs as leased lines. As a result dial-up (narrowband) Internet remains the de
customers in the island. 19 Asia and the Pacific is a region exhibiting striking contrasts in fixed-broadband prices, with the
It is home to the economy with the most affordable entry-level fixed-broadband plans
Other high-income economies in the region such as Singapore and Japan †with fixed -broadband prices corresponding to 0. 4 and 0. 6
Chapter 4. ICT prices and the role of competition 122 Chart 4. 9: Fixed-broadband prices as a percentage of GNI p. c. in Asia and the Pacific, 2013
benchmark), fixed-broadband plans cost more than 100 per cent of GNI p. c. Chart 4. 10.
the region†s economies and therefore low GNI levels in the region. Half of the African countries
included in the price benchmark have a GNI p. c. below USD 1 000, which means that fixed
in the price benchmark), and most of these countries are in the developing world. In Africa
competition and to facilitate backhaul (e g. by setting a reference offer for the leased lines of the incumbent that provide connectivity
entry in the market, and stimulate competition in broadband services. This would contribute to opening up fixed-broadband markets to
competition in Africa, and alter the status quo in several African countries, where the market is concentrated in a single operator.
With the exception of micro states and small islands fixed-broadband markets have been opened to a much larger degree of competition in other
regions, to the benefit of customers Entry-level fixed-broadband prices are below the 5 per cent affordability threshold in five
African countries: Mauritius (0. 8 per cent of GNI p. c.),Seychelles (1. 6 per cent), South africa (2. 9
by the countries†relatively strong economies and therefore high GNI levels, coupled with their low
Chapter 4. ICT prices and the role of competition 124 Table 4. 4: Fixed-broadband sub-basket, 2013
or latest available year adjusted with the international inflation rates.****Country not ranked because data on GNI p. c. are not available for the last five years
Rank Economy Fixed-broadband sub-basket Speed in Mbit/s Cap per month in GB
2013*Rank Economy Fixed-broadband sub-basket Speed in Mbit/s Cap per month in
offers to try to attract new customers. On top of the main types of mobile-broadband plans for
allowing customers to pool the data consumed by different devices in a single subscription. 23
Mobile-broadband services by type of device/plan Source: ITU Mobile broadband Handset-based Computer-based
Chapter 4. ICT prices and the role of competition 126 plans are bundled often with mobile voice and
of mobile-broadband services, particularly for postpaid plans where it is sometimes cheaper to buy a package including Internet, voice and SMS
cost) for mobile-broadband services based on high-speed networks. These plans are often labelled as †4gâ€
-cellular services, for which prepaid plans are most popular in the developing world. Globally the mobile-broadband service available in the
modalities of mobile-broadband services are offered In view of the dynamics of the mobile -broadband market, this section will focus on
Availability of mobile-broadband services by type of service, by level of development, 2013 and 2012
services, because operators will usually offer lower prices to customers who subscribe to a monthly service,
since they generate a more predictable revenue flow. This is particularly true in developed countries, where postpaid
computer-based mobile-broadband services the prices for postpaid and prepaid handset -based mobile-broadband plans were similar
smartphone customers A feature of postpaid handset-based mobile -broadband plans is that they are in some
Based on 119 economies for which data on mobile -broadband prices were available for the four types of plans
Chapter 4. ICT prices and the role of competition 128 common in developing countries, where fewer
of USD, mobile-broadband services cost almost the same on average in developed and developing countries (Chart 4. 13.
to streamline their mobile-broadband services and offer cheaper prices. Indeed, operating costs should be lower in developing countries and, if
enough competition exists in the market, these lower costs should be passed on to retail prices
and mobile-cellular services. 26 The fact that this is not fully happening for fixed-and mobile
-broadband services may be explained by the early stage of development of these services in the developing world.
Operators are in the process of rolling out new infrastructure and most markets have not yet grown enough to allow operators to
Computer-based services with a monthly allowance of 1 GB are about six times more affordable in developed countries, on average
Based on 119 economies for which data on mobile -broadband prices were available for the four types of plans
Based on 119 economies for which data on mobile -broadband prices were available for the four types of plans
-price mobile-broadband services priced per connection or per 15 minutes; Orange CÃ'te d†Ivoire also offers discount plans priced per hour
the other regions, mobile-broadband services will have to become more affordable in Africa so that most applications enabled by a broadband
less than 2 per cent of GNI p. c. for all services At the other end of the scale, Asia and the
all services except prepaid handset-based (500 MB In the Arab States and the CIS, handset-based
Based on 119 economies for which data on mobile -broadband prices were available for the four types of plans
based mobile-broadband services. The americas region also has average prices corresponding to slightly more than 5 per cent of GNI p. c.,prepaid
that these services target high-end customers rather than the average user. Postpaid mobile -broadband dongles include much lower monthly
mobile-broadband customers Average prices for computer-based mobile -broadband plans with a monthly data allowance
Chapter 4. ICT prices and the role of competition 130 Chart 4. 16: Comparison of postpaid fixed-broadband and postpaid computer-based mobile-broadband
Arab States, 29 economies in Asia and the Pacific, 10 countries in the CIS, 41 countries in Europe and 27 countries in The americas
fixed-broadband services are unaffordable for a majority of the population Chart 4. 16 shows a comparison of prices for
fixed-broadband services: both are postpaid are based computer and include a monthly data allowance of at least 1 GB.
in the price benchmark, mobile-broadband prices were more than USD 10 cheaper per month than fixed-broadband prices.
for broadband services is achieved, thanks to affordable mobile-broadband plans. In the Solomon islands, Timor-Leste and Vanuatu
services There are four countries in The americas that attain the 5 per cent affordability target by virtue
Chapter 4. ICT prices and the role of competition 132 Table 4. 5: Mobile-broadband prices, postpaid handset-based 500 MB, 2013
Rank Economy Mobile-broadband postpaid handset-based (500 MB GNI p. c USD 2013 *Monthly data
Rank Economy Mobile-broadband postpaid handset-based (500 MB GNI p. c USD 2013 *Monthly data
or latest available year adjusted with the international inflation rates.****Country not ranked because data on GNI p. c. are not available for the last five years
Chapter 4. ICT prices and the role of competition 134 Table 4. 6: Mobile-broadband prices, prepaid handset-based 500 MB, 2013
Rank Economy Mobile-broadband prepaid handset-based (500 MB GNI p. c USD 2013 *Monthly data
or latest available year adjusted with the international inflation rates.****Country not ranked because data on GNI p. c. are not available for the last five years
Rank Economy Mobile-broadband prepaid handset-based (500 MB GNI p. c USD 2013 *Monthly data
Chapter 4. ICT prices and the role of competition 136 Table 4. 7: Mobile-broadband prices, postpaid computer-based 1 GB, 2013
Rank Economy Mobile-broadband postpaid computer-based (1 GB GNI p. c USD 2013 *Monthly data
or latest available year adjusted with the international inflation rates.****Country not ranked because data on GNI p. c. are not available for the last five years
Rank Economy Mobile-broadband postpaid computer-based (1 GB GNI p. c USD 2013 *Monthly data
Chapter 4. ICT prices and the role of competition 138 Table 4. 8: Mobile-broadband prices, prepaid computer-based 1 GB, 2013
Rank Economy Mobile-broadband prepaid computer-based (1 GB GNI p. c USD 2013 *Monthly data
or latest available year adjusted with the international inflation rates.****Country not ranked because data on GNI p. c. are not available for the last five years
Rank Economy Mobile-broadband prepaid computer-based (1 GB GNI p. c USD 2013 *Monthly data
Chapter 4. ICT prices and the role of competition 140 the region mobile broadband is more than USD
This reflects the early launch of 3g services in Europe28 and the maturity achieved in the mobile
mobile-broadband services (Tables 4. 5 to 4. 8 4. 4 Income inequality and broadband prices
The affordability of ICT services depends as much on the price of the service itself as on
capita, thus showing how much ICT services cost relative to the economic value generated by each country.
However, overall economic levels, as measured by macroeconomic variables such as GNI, do not reflect the actual means of
ICT services, other variables such as household disposable income need to be considered Measurement efforts related to tracking the
services for a number of countries for which data on the distribution of household income
and use of, broadband services Household disposable income and GNI are two fundamentally different economic indicators
economy as a whole, including the business sector. It is a measure of the value of the national
production of an economy, and is calculated in the context of national accounts. It is similar to
of broadband services for households from different economic levels Chart 4. 17 shows the household income and
Chapter 4. ICT prices and the role of competition 142 broadband prices in terms of GNI p. c.,Chart
services between these two countries, and even larger differences within each country. In Chart 4. 18, the affordability of a fixed-broadband plan
fixed-broadband services within a country, and between countries with similar fixed-broadband prices expressed as a percentage of GNI p. c
of residential fixed-broadband services. As an example, Chart 4. 19 shows that the price of an
-middle-income economies by the World Bank: several Latin american countries Colombia, Dominican republic, Ecuador and Peru), two African countries (Angola
fixed-broadband services among low and middle-income households, since price may still be a barrier for many households
Chapter 4. ICT prices and the role of competition 144 Table 4. 9: Fixed-broadband prices as a percentage of household disposable income, selected countries
Chapter 4. ICT prices and the role of competition 146 unaffordable for large segments of the
high-income economies in the region, in Cambodia, Nepal and the Philippines fixed -broadband prices represent more than 5
the affordability of mobile-broadband services Table 4. 11 and Table 4. 12 show the price of
four mobile-broadband services for which ITU collects price data (Chart 4. 13), and is currently the
Handset-based mobile-broadband services are affordable for the large majority of the population in all developed countries except
handset-based mobile-broadband services for low-and middle-income households is holding back mobile-broadband adoption in the country
mobile-broadband services differs considerably across developing countries and within some developing countries because of income
services in countries such as Ecuador, El salvador Honduras and Paraguay corresponds to less than 1. 5 per cent of household disposable income
-based mobile-broadband services are affordable for almost the entire population. This suggests that neither handset-based mobile-broadband
-broadband services are affordable for most of the population, mobile broadband may help to connect the 20-30 per cent of households with
-broadband services is made on the basis of the cost of one handset-based mobile-broadband
Chapter 4. ICT prices and the role of competition 148 Table 4. 11: Prepaid handset-based mobile-broadband (500 MB/month) prices as a percentage of
Chapter 4. ICT prices and the role of competition 150 Sweden, there is on average more than one
high-income economies (Australia and New Zealand) to unaffordable for a majority of the population in Bangladesh, Nepal and the
Chapter 4. ICT prices and the role of competition 152 broadband services: although they represent less
than 5 per cent of the equivalized household expenditure for half of the inhabitants in the
-broadband services, but in some cases also determines whether individuals can afford their own subscription or have to share a subscription
-broadband services across developing countries and income inequality similar differences within countries. Thus, mobile-broadband usage
4. 5 The impact of competition and regulation on telecommunication prices The impact of ICTS as development enablers
depends on access to ICT services and the use that is made of them (see Figure 2. 1). In turn
a large extent by the affordability of ICT services Therefore, the ultimate goal of policy and regulatory
sustainable reduction in the prices of ICT services and in many cases this is achieved through
regulatory actions to promote competition, such as mandating local-loop unbundling or granting 153 Measuring the Information Society Report 2014
of the role of competition and regulation in shaping prices for mobile-cellular (voice and SMS) and
fixed-broadband services. Among all ICT services mobile cellular and fixed broadband have been selected for the analysis because of the availability
of comprehensive data series on the prices for these two services, which makes it possible to study
the impact of different factors on prices across countries and time There is an extensive body of literature looking
at the effects of competition and regulation on ICT adoption. 41 However, research is more
of competition and regulation on prices, and is limited often in scope because of lack of data for developing countries.
on the links between competition, regulation and telecommunication prices, based on a worldwide representative sample, and to check
-tion, competition and prices The fall in telecommunication prices in the last decade, and in the period analysed in
passed on in terms of lower prices for customers is competition. In recent decades, there has been a global trend towards the liberalization of
telecommunication services and the privatization of incumbent operators. In parallel, national regulators have been created to establish a
level playing field and monitor the liberalized electronic communication markets (ITU, 2013b Regulators have thus become the custodians of
competition in telecommunication services at the country level From the literature on cross-national institutional
Competition directly affects prices in markets where retail prices are deregulated, such as the majority of mobile-cellular and fixed-broadband
Chapter 4. ICT prices and the role of competition 154 indirectly on retail prices through wholesale price
Regulation also affects the level of competition in each market, for instance by dictating the number of licences issued in mobile-cellular
drivers for investment and competition. In addition, regulation can promote efficiency, e g infrastructure and spectrum efficiency, which
environment on prices is measured as the combination of the effects of the regulator†s autonomy, enforcement power, mandate and
regulation on competition (i e. 3 in Figure 4. 2 is considered not, as it cannot be separated
Relationship between regulation, competition and prices Source: ITU from the effects of competition on prices (i e. 1
in Figure 4. 2), which are accounted for by the variables on competition Market competition is one of the main drivers
of affordable prices in telecommunication services. Chart 4. 21 shows the evolution of average entry-level fixed-broadband prices
and competition. The latter is measured using the Herfindahl-Hirschman Index (HHI) for the fixed-broadband market.
The HHI is a measure of market concentration, and is calculated as the sum of the squared market shares (in terms of
number of subscriptions) of each Internet service provider (ISP. The result ranges from 0 (perfect
competition) to 1 (no competition, with only one operator in the market. The fall in entry
an increase in competition in the period 2008 -2013. Chart 4. 22 shows the evolution of entry
-level prices and competition in mobile-cellular markets, where the decline in prices during the
increase in competition These simple descriptive statistics do not necessarily mean, however, that there is a causal
Competition Regulatory environment Institutional framework Prices Autonomy, enforcement power, mandate and regime of the regulator
Retail and wholesale price regulation 2 Competition & foreign participation allowed by regulation 3 Impact of market competition on
prices 1 Legal certainty Level playing field Efficient regulation 155 Measuring the Information Society Report 2014
Chart 4. 21: Competition in fixed-broadband markets and fixed-broadband prices as a percentage of GNI p. c
2008-2013 Note: Simple averages for 140 economies with available data on fixed-broadband prices and competition for the period 2008-2013
Source: ITU. Herfindahl-Hirschman Index (HHI) data sourced from Informa Chart 4. 22: Competition in mobile markets and mobile
-cellular prices as a percentage of GNI p. c.,2008-2013 Note: Simple averages for 140 economies with available data on mobile-cellular
prices and competition for the period 2008-2013 Source: ITU. Herfindahl-Hirschman Index (HHI) data sourced from Informa
competition and the openness of the market to private and foreign investment The scores of each cluster are combined into a
single value for the Regulatory Tracker. The higher relationship between competition and prices because there are other factors apart from
competition that may also have contributed to improving the affordability of fixed-broadband and mobile-cellular prices in the period 2008
-2013. For instance, economic development may have increased incomes, and thus made services more affordable even if prices have been kept
constant. Other factors, such as demographic changes, migrations or exchange-rate fluctuations may also have had an impact on the affordability
of fixed-broadband and mobile-cellular services In order to take into account all these factors, the following section presents an econometric model
based on panel data regression. This enables us to go beyond descriptive statistics and draw some robust conclusions on the link between
competition and prices The model is applied also to measure the link between regulation and the prices of mobile
-cellular and fixed-broadband services. The regulatory environment in each country is assessed based on the ITU ICT Regulatory Tracker
hereinafter the †Regulatory Trackerâ€. 48 The Regulatory Tracker includes 50 indicators divided into four different clusters, each one quantifying
a specific aspect of the regulatory environment •Cluster 1: the independence, decision and enforcement powers, autonomy
and accountability of the regulatory authority •Cluster 2: the regulatory mandate in the different segments of the
the competition framework set by the laws and regulations that defines the level of competition in the
different markets (based on what is legally permissible), and the measures to protect 0 10 20
HHI fixed (competition +-H H I fi xe d b ro a d b a
HHI mobile (competition Chapter 4. ICT prices and the role of competition 156 the value, the more conducive the regulatory
environment to ICT developments. For the analyses in this section, data from the Regulatory Tracker have been extracted for clusters 1, 2 and
3, and combined into a single value per country per year (Figure 4. 3). Cluster 4 is excluded
because it is linked directly to competition, which is considered already in the models through a specific variable on competition (i e. the HHI
The combined value of clusters 1 to 3 is used to test the link between regulation and prices of
mobile-cellular and fixed-broadband services Choice of the model The analysis was conducted through econometric modelling using panel regressions
Composition of the variable measuring the regulatory environment Source: ITU the changes in a variable that is modelled as the
Existence of competition authority 9. Appeals to decisions 8. Dispute resolution mechanism 7. Sanctions or penalties imposed by regulator
competition and regulation metrics, using panel regressions with fixed effects Prices for fixed-broadband and mobile voice
services are modelled as two separate variables as they follow distinctly separate patterns †fixed broadband has generally become subject
to competition much later than mobile services and penetration levels are significantly lower for fixed broadband, especially in the developing
effects of technology choices, competition and regulation. At the same time, parameters like economic development, local geography institutional quality, usage characteristics
telecommunication services vary with levels of economic development Therefore, gross national income per capita (GNI p. c is included in the model
to control for the differences in economic resources that play a role in shaping prices
networks requires large investments that operators evaluate depending on the demand for the service and the specific
The marginal cost of service provision in dense urban centres is often much lower than that in remote villages, pointing to
•The degree of competition for the fixed -broadband and mobile-cellular markets is captured through the Herfindahl
may provide more competition than several small competitors. For instance, a mobile-cellular market with three players
Chapter 4. ICT prices and the role of competition 158 Box 4. 2: Panel regression models for fixed-broadband and mobile-cellular prices
GNI p. c. †Gross national income per capita in current USD by year and country, as reported by the World bank
concentrated, i e. higher HHI values indicate less competition and, conversely, lower HHI values indicate more competition.
Data sourced from Informa Herfindahl-Hirschman Index for mobile cellular (voice and SMS with Li being the number of mobile-cellular subscriptions of firm i,
benchmark of each country†s legal and regulatory frameworks using as a reference internationally recognized regulatory best practices
effective regulatory environment to foster ICT developments. Data collected by ITU, see www. itu. int/tracker for more information
Descriptive statistics calculated for 124 economies that have complete data for the two models Source: ITU
Competition in the market as measured by HHI is correlated significantly to prices, and the sign
indicates that increased competition reduces prices. The model suggests that changing from two ISPS with 50 per cent market share each to
Chapter 4. ICT prices and the role of competition 160 equal market shares for all ISPS in the market
words, competition was not as strong in the developing world. According to the results of the
competition levels of developed countries, entry -level fixed-broadband prices could be reduced by as much as 10 per cent in the developing
The effects of competition on prices could be particularly beneficial in the 21 developing countries that by end 2013 still had no
competition in fixed-broadband services. Indeed if the fixed-broadband market were liberalized in these countries and a second operator achieved
market to some competition in the remaining 13 developing economies would be a natural option with a view to boosting fixed-broadband
penetration, which in all these countries is below 5 per cent Another important finding is that stronger
an enabling regulatory environment for affordable fixed-broadband prices. Although there is no one-size-fits-all approach, international regulatory
affordable fixed-broadband services For instance, a country with a separate telecommunication/ICT regulator that has
and this in turn fosters competition and ultimately contributes to achieving lower fixed-broadband prices The analysis of the variables that affect
to competition only. The results previously discussed are only valid if considered in combination with the other explanatory variables
customers are willing to pay for a given service In a country with high economic levels, there
are potentially more customers who can pay more for the same service than in a country with
when benchmarking prices of ICT services internationally, rather than as an area of direct policy action
economies with higher percentage of urban population tend to have higher GNI p. c. This
Chapter 4. ICT prices and the role of competition 162 monthly consumption for fixed-broadband plans
i e. the marginal cost of additional Internet data beyond 1 GB is still non -negligible in many countries
competition in the fixed-broadband market and the ICT regulatory environment, may together be a greater determinant for fixed-broadband prices
than the price difference explained by GNI p. c and percentage of the population living in urban
Competition HHI %163 Measuring the Information Society Report 2014 of competition across countries are estimated to account for 6 per cent of the variations
observed in prices. This provides a quantitative assessment of the benefits that competition and enabling regulation can bring to fixed
-broadband markets, particularly in developing countries, as previously highlighted. Differences in fixed-broadband prices are not just a matter of
on an adequate regulatory environment in the markets. It is therefore in the hands of policy
on increased competition Results for mobile cellular The results of the panel regression for mobile
Competition in the market as measured by HHI is correlated significantly to prices, and the sign
indicates that increased competition reduces prices. For example, the model predicts that in a market with two mobile-cellular operators
Competition in mobile-cellular markets is stronger than in fixed-broadband markets and differences in competition levels across
mobile-cellular markets are on average smaller Nevertheless, mobile-cellular markets in developing countries were on average more
Chapter 4. ICT prices and the role of competition 164 According to the results of the econometric
countries were to achieve the competition levels prevailing in developed countries, mobile -cellular prices could be reduced by up to 5 per
services. The 10 per cent of countries with the lowest regulatory value are all (except one) from
that stronger competition can have on mobile -cellular prices in highly concentrated markets The link between competition, regulation and
prices in mobile-cellular markets discussed is only valid if considered in combination with the other explanatory variables included in the
prices for mobile-cellular services: a 5 per cent increase in the percentage of the population
that the impact of regulation and competition on prices is assessed discounting the effects of these
services. This suggests that economic levels are less of a determinant, probably because prices were already low enough in 2008 (for a lower
market, competition is a stronger determinant of pricing trends Different competition levels may account for an
estimated 7 per cent of the differences in mobile -cellular prices observed across countries. Taking
smaller than in fixed-broadband services, 56 this finding highlights the importance of competition as a driver for lower prices in mobile-cellular
markets Regulation is found to have a weak explanatory power of only 2 per cent, suggesting that
development of competition in the market, since the degree of liberalization achieved in mobile -cellular markets is compared high
investments, and yet enjoy a stronger position than resellers have fixed in-broadband markets This could explain the dynamism observed in
competition and lower prices in mobile-cellular services, whereas in fixed-broadband markets stronger regulatory action may be needed
because essential facilities †such as the local loop or the international gateway †may be controlled by the incumbent
impact of competition and regulation on fixed -broadband and mobile-cellular prices •Fixed broadband:
Different competition levels may explain around 6 per cent of the differences in prices observed
competition plays an important role in determining prices in fixed-broadband markets. Another factor that is found to
Competition (HHI) Regulation clusters 1-3 Regulatory Tracker Chapter 4. ICT prices and the role of competition
166 Table 4. 15: ICT Price Basket and sub-baskets, 2013 Rank Economy IPB 2013
Fixed telephone sub -basket as a%of GNI per capita, 2013 Mobile-cellular sub -basket as a%of GNI
Rank Economy IPB 2013 Fixed telephone sub -basket as a%of GNI per capita, 2013 Mobile-cellular sub
or latest available year adjusted with the international inflation rates Source: ITU. GNI p. c. and PPP$ values are based on World bank data
Chapter 4. ICT prices and the role of competition 168 and that policy-makers and regulators
data caps, competition in the fixed -broadband market and the ICT regulatory environment, are together more of
a determinant for fixed-broadband prices than exogenous factors, such as overall levels of economic development
prices, and competition is stronger in mobile-cellular markets. Different competition levels largely explain the
differences in mobile-cellular prices observed across countries (an estimated 7 per cent), whereas differences in the
regulatory environment have less of an impact in setting mobile-cellular prices, since regulation in most countries
competition. Regulatory efforts should be focused on ensuring that higher levels of competition are achieved, particularly in those countries where dominant
operators still hold market shares above 60 per cent, thus limiting the possible benefits that competition may yield
in terms of more affordable prices for customers. Efficient spectrum allocation and assignment could allow the entry
of new players or the consolidation of stronger alternative operators and thus help to spur competition in some markets
even if penetration levels are already high 169 Measuring the Information Society Report 2014 1 Examples of international organizations that have specific programmes in the area of income inequality include IMF
exchanged into national currency at market exchange rates) can buy more products or services. Therefore, the ICT service
3 GNI takes into account all production in the domestic economy (i e. GDP) plus the net flows of factor income (such as
rents, profits and labour income) from abroad. The Atlas method smooths exchange-rate fluctuations by using a three-year
4 Voice over internet services, such as Skype or Voipbuster, are excluded from the analysis in this section because they require
They are considered under broadband services 5 Source: Census of India 2011. Mode of communication 2001-2011.
Available at http://censusindia. gov. in/2011census/hlo/Data sheet/India/Communication. pdf 6 Prices for each service are calculated on the basis of a low-user basket that defines the number of calls, minutes and SMS
in the case of mobile-cellular plans) that are consumed per month. For more information on the baskets and the price
comparison with the other telecommunication services. Therefore, the average for handset-based mobile-broadband prices
11 The Communications Commission of Kenya (CCK) issued mobile virtual network operator licences to three operators in April
These data suggest there is limited competition among operators 13 Advanced mobile technologies refer to standards agreed by the ITU Radiocommunication Assembly for next-generation
because fixed-broadband services in the island are only available to business customers, the only Internet access available to residential customers being dial-up
15 For more details on Eircom†s FTTH roll out, see http://www. eircom. net/efibreinfo/map
16 The most visited websites in Tunisia by December 2011 were predominantly in English. Initiatives to promote Arab digital
17 For a map of the availability of Qualitynet fixed-broadband services, see http://www. qualitynet. net/map/qnetmap. htm
Chapter 4. ICT prices and the role of competition 170 18 Mauritel reported 7 352 fixed Internet subscriptions by end 2013,97 per cent of which trhough ADSL (source:
25 Data for mobile-broadband services have been collected since 2012 through the ITU ICT Price Basket Questionnaire,
29 For example, outflows of profits generated by a multinational operating in country A and transferred back to the country of
31 Household incomes include wages, salaries, self employment incomes, capital and property income, private transfers and
39 Household disposable income or consumption figures are equivalized using the square root scale to account for economies
Regarding mobile services, see for instance Gruber and Verboven (2001), Grzybowski (2005) and Koski and Kretschmer (2005
50 The mean HHI for fixed broadband is calculated as the simple average of the HHI of 139 economies for which price and
This includes 95 economies from the developing world and 44 from the developed world 51 The mean value of clusters 1 to 3 of the Regulatory Tracker is calculated as the simple average of the scores of 142
economies for which price and market share data were available for 2013. This includes 99 economies from the developing
world and 43 from the developed world 52 http://www. itu. int/en/ITU-D/Regulatory-Market/Pages/bestpractices. aspx
which doubled the speeds of Home Broadband customers at no extra cost in March 2014,
55 The mean HHI for mobile cellular is calculated as the simple average of the HHI of 140 economies for which price and market
This includes 96 economies from the developing world and 44 from the developed world 56 The coefficient of variation of fixed-broadband prices is compared 1. 7
communication technologies (ICT) sector is evolving rapidly, as are the types of service and application that are driving the information
and there is an opportunity to explore their use in order to complement the existing, but often limited, ICT data
telecommunication networks and services there are significant data gaps when it comes to understanding the development of the
for example, is available on the demand side While an increasing number of countries currently collect data on the individual use
recorded in the developing economies, where ICT penetration levels have increased and where big data hold great promise for development
stakeholders involved in the area of big data from the ICT industry 5. 2 Big data sources, trends
-economic value that may be generated by big data (Jones, 2012)( Figure 5. 1 Included within the scope of big data is the
is to understand their customers, are now increasingly shifting from conventional methods such as surveys, to the extraction of customer
customers to the production process in a way that enables companies to tailor and segment their products at low cost.
Wind turbines represent a major investment and have a typical lifespan of 20 to 30 years.
environment and allowed the company to manage and analyse weather and location data in ways that were previously not
customers per kilowatt-hour produced, while increasing the accuracy of the customer†s return-on-investment estimates
Source: ITU, based on IBM (2012 a speed that are unprecedented. Google for example, is running about a thousand
out new services, among other things for the purpose of pricing. Telecom operators also use
Big data from the ICT services industry are already helping to produce large-scale development insights of relevance to public
inflation and asset-price movements. This has the advantage of providing near real-time inflation statistics that are published traditionally monthly
179 Measuring the Information Society Report 2014 UN Global Pulse, a UN initiative to use big data
job opportunities and Freedom from discrimination. Also highly ranked, in 7th position, was phone and Internet access. By clicking
the United states Federal Communications Commission (FCC) has released mobile apps that enable consumers to check their
Better job opportunities Freedom from discrimination A good education Political freedoms Protecting forests rivers and oceans
penetration in developing economies is expected to reach 31 per cent by the end of 2014,
developed economies. In addition, as Internet penetration rates remain limited, Internet users are not yet) representative of the population
services, non-Internet-related mobile -network big data seems to have the widest socioeconomic coverage in the near term
also in developing economies There are various examples of how mobile phone records have been used to identify
information that mobile networks and services generate Telecommunication data The mobile telecommunication data that operators possess can be classified into different
time and duration of services used and the technology used, for example, for the mobile network (2g, 3g, etc..
customers, as outlined in this section Mobile networks capture a range of movement and location variables to identify user location
telecommunication services come with an international mobile station equipment identity IMEI) number, operators can identify some
include a history of the services accessed, service option preferences as well as other details (as referred to in Chapter 5 Annex
services, from which information on a customer†s usage patterns and preferences can be extracted The information outlined above is used at the
the uptake of different services and on their business performance and revenues (Box 5. 3
of particular services, identify market shares and monitor their business performance, as well as for reporting purposes.
VAS, and level of use of different OTT services. These data can be reported as averages (over time or for different categories of
which identify their most important customers on the basis of the revenue they generate for the company
premium customers is maintained at the highest possible level Source: ITU evaluate existing policies and establish new
benchmark countries†ICT developments, monitor the evolution of the information society and identify digital divides The telecom industry†s use of big data
in order to improve existing services and create new ones. For operators, big data open up opportunities for better understanding of their
customers, which in turn leads to improved sales and marketing opportunities. At the same time big data can help optimize network operations
and create new revenue streams and business lines, for example when selling data Customer profiling Telecom operators capture a range of
behavioural data about their customers Chapter 5. The role of big data for ICT monitoring and for development
184 Customer profiles include details about customers†mobility patterns, social networks and consumption preferences. Collectively, these
and segment their customers based on a variety of metrics (Figure 5. 3). Depending on the country
OTT services. DPI can also be used to categorize interests based on sites visited (as opposed to content accessed
consumption of different services including on the basis of spending (often in relation to other services), types of
device used, frequency of change of handset, and so on •Likelihood of churn: The churn rate is a
measure of the number of customers leaving the network or a particular service offered by an operator.
of customers leaving the network (or opting out of a given service) by focusing on the customer†s existing service usage
•Level of influence of customers Operators are keen to leverage service and technology diffusion among their
additional, customized services. This often calls for an understanding of the level of influence of each subscriber†s social
CUSTOMERS LIKELIHOOD OF CHURN MOBILITY PROFILE 185 Measuring the Information Society Report 2014 in competitor networks.
most frequented by their customers, in order not only to ensure a high Qos in those areas,
mobility profiles of their customers that can be leveraged for location-based services Sophisticated customer profiling enables
operators to personalize and market new services more effectively. For example, by understanding their customers†relationships to their social
networks (and their relative importance within them), operators are able to model the diffusion of services and create targeted promotions
Furthermore, social network insights can be used by an operator to market its services to the off-network contacts that are connected
to its customers, or to reduce churn rates. In the Republic of korea, for example, SK Planet, a
subsidiary of SK TELECOM, uses big data to help its parent company to cut churn and generate new
operator found that customers planning to quit their current package tend to use specific search
When operators suspect that customers may be looking elsewhere, they may try to keep them by
the geospatial distribution of demand, and to plan and manage their networks more effectively through optimal resource allocation.
customers and high-revenue regions, operators can adapt their resource allocation to ensure that more resources are channelled into active
demands placed on their networks by the use of popular OTT services New business lines To increase revenue streams,
operators may also seek to monetize the data they hold. The simplest way of doing this is to sell (anonymized
or using value-added services are all examples of interactions for which the time, location device, user and other detailed information
liquidity needs prediction Income and poverty assessment Mapping social divides GDP estimates through mobile data
commodity fluctuation prediction Assessment of mobility restrictions Disease containment targeting Migratory p opulation tracking Predicting
developed economies. Transportation systems are being fed with sensor data from a multitude of sources such as loop detectors, axle counters
management of transportation services, thereby reducing congestion (Berlingerio et al. 2013). ) By simply extending one bus route
earthquake, but outside the capital 19 days later. The circles represent the numbers of people who were displaced.
Operators may offer such specialized services based on passive or active location data) either directly, or by providing data to third parties.
the only one) in developing economies that contain behavioural information on low-income population groups
data, namely subscriber communication data and airtime credit purchase records, to assess socioeconomic and income levels.
specifically communication patterns, but also airtime credit purchase records) from Orange to estimate the relative income
areas of high economic activity (yellow to red areas Source: Gutierrez et al. 2013 Figure Box 5. 7:
local economy (i e. economic shocks. One of the challenges has to do with operator sensitivity regarding revenue data and the difficulty this
By examining social communication patterns based on telecommunication data it has become possible to obtain insights
The Cignifi business model is founded on the idea that â€oemobile phone usage is not random †it is highly
both developed and developing economies Sobolevsky et al. 2013 However, telecommunication data are also revolutionizing the study of societal structures
-stakeholder initiative launched in 2004.24 This list includes, among others, the key-infrastructure access and individual-use indicators that ITU
and of the use of mobile services in rural versus urban areas. It would thus be possible to gain a
customers may report through a survey Service activity and use: All subscription data could provide information as to location.
understand the utilization of services †including voice, data and VAS †over time, and the intensity
services to provide additional insights. This could be done by using probabilistic analyses to match the profiles developed using data from online
services with customer profiles generated from analyses of mobile-operator data. This would require telecommunication operators, OTT
their customers in terms of the type of content they consume (as revealed through clickstream analyses), DPI may provide greater insights for
on the use of different services and applications intensity, frequency, and the geographic 195 Measuring the Information Society Report 2014
services and applications. All of these insights on subscribers could potentially be further disaggregated by different demographic
cases be using ICT services from more than one operator or device, additional techniques need to be leveraged if the insights articulated
While the opportunities discussed above present what is analytically possible, data access and privacy considerations are complex and
consensus among the many diverse stakeholders involved (telecom operators, network equipment manufacturers, system developers, developmental
requires major investments of time. All the parties to such agreements have to address the necessary parameters as to how data are to
stakeholders to the same table, remain critical to the efforts being made to open up private-data
stakeholders The sharing (subject to appropriate privacy protocols) of privately held data such as mobile -phone records can be mutually beneficial to both
cloud-based services. But as storage prices continue to fall, they are expected to be less of
stakeholders must see tangible benefits from such data sharing. These stakeholders include not just the public and private sectors, but also
significantly, the general public, who in many cases are the primary producers of such data
personal data economy, and hosts consultations to deepen understanding of what type of trust frameworks are needed between individuals
those of private-sector stakeholders looking to protect their competitiveness. The most common approach to addressing this issue
levels of †datafication†in developing economies are still quite low. Where mobile-phone records are concerned, the large majority
prepaid customers (GSMA, 2013b), but even with registrations becoming mandatory for prepaid connections, the registered user and the actual
initiated a global multi-stakeholder dialogue on personal data that advocated a principle-based approach, with the principles arising from a new
confluence of appropriate stakeholders. But as UN Global Pulse suggests, research into the use of big data for development can be â€oesandboxedâ€
of prepaid customers generally chose to recharge using scratch cards. Higher denomination scratch cards were not as readily available as those with
Economist, Hal Varian, notes, â€oethere are often more police in precincts with high crime, but that
The behavioural economist Sendhil Mullainathan notes that inductive science (i e. the algorithmic mining of big data sources) will not drown out
techniques when rolling out new services or, for that matter, for pricing purposes. The question
NSOS from 200 economies, conducted by UNSC respondents identified the development and 203 Measuring the Information Society Report 2014
mismatch between the supply of and demand for talented individuals with the requisite broader skill sets,
predicts that by 2018 the demand for data-savvy managers and analysts in the United states will
competition from the private sector when seeking to attract the right talent. Unfortunately developing countries,
comparison with developed economies. Until such time as systematic capacity development yields proper rewards, it will remain essential
limited information is available on opportunities for using big data to complement official ICT statistics. Although this report highlights some
identify opportunities and understand needs and constraints. Since many of the big data sources lie within the private sector, close
stakeholders Given their business concerns, operators and Internet companies may hesitate to pool and share their data with those from other sources
Governments have different opportunities and different roles to play in the exploitation of big data for monitoring and development.
consultation with other national stakeholders are placed best to lead the corresponding discussions and bring together the relevant
stakeholders In particular, NSOS, given their legal mandate to collect and disseminate official statistics and set
•Fostering big data competition and openness: Regulators could foster big data competition in increasingly concentrated big data markets, including
by ensuring that data holders allow others to access their data under fair and reasonable terms
International stakeholders International stakeholders †including UN agencies and initiatives (such as ITU and UN Global Pulse), the Partnership on Measuring
ICT for Development, ICT industry associations and producers of big data (Google, Facebook etc.)) †have an important role globally.
and opportunities related to big data in the ICT sector. To this end, the key international stakeholders have to work together to facilitate
the global discussion on the use of big data UN Global Pulse, as one of the main UN initiatives
be formed to explore new opportunities and address challenges, including in the area of international data comparability and standards
stakeholders in defining the state of the art with respect to leveraging big data for development They, more than others, have been the first to
demand for data at both an individual level and at aggregate levels, and the understanding thus gained can be used
understand the demand for particular applications and websites Service access detail records Whenever a user utilizes a telecommunication
be used to build a rich profile of customers, as outlined in Section 5. 3 Chapter 5. The role of big data for ICT monitoring and for development
providing location-based services. The large-scale capture of such higher-resolution data is undertaken mainly by operators
in developed economies. Operators in developing economies use some of these methods, but often on a case-by-case basis
and not for their entire subscriber base. 43 However, this trend is currently changing, and an increasing number of regulators are
through data-mediation services, but these are not universally implemented Passive location data from the billing records are obviously
telecommunication services come with an international mobile station equipment identity IMEI) number. This 15 or 16 digit number is
telecommunication services. In addition to serving as a unique serial number for the handset, parts of it can reveal information
when services were activated and/or deactivated specific service option preferences and the current account status, current international
billing records for their current and past services This information, which associates a customer with his/her usage patterns and history, is
subscriber, but also for individual customers Mobile operators can associate such data with traffic data to understand the revenue that is
which acknowledges that Big data represents new opportunities and challenges for Official Statistics, and which encourages the European Statistical System
communications (the eprivacy Directive), which focuses more specifically on the processing of personal data in the
/13 Mobile phone records have been used to infer locations of economic activity within, and patterns of migration to, slum areas
Taking into account the increasing trend towards the bundling of telecommunication services (e g double-and triple-play offers), revenue figures disaggregated per service are in most cases not comparable across operators
details of mobile customers in the CDRS. This is in addition to the cell ID and would have to have an accuracy estimate of up
Arpce (2011), Agence de Rà gulation des Postes et des Communications Electroniques: Rapport d†activitã 2011
Bouckaert, J.,Van dijk, T. and Verboven, F. 2010), Access regulation, competition, and broadband penetration: An international
Information, Communication & Society, 15 (5), 662†679. doi: 10 1080/1369118x.2012.678878 Broadband Commission (2013a), The State of Broadband 2013:
CGALIES (2002), Report on implementation issues related to access to location information by emergency services (E112) in the
European union, Coordination group on access to Location Information for Emergency Services. European commission DG information society
Competition and commercial strategies Information Economics and Policy, 27,24-38 CETIC. BR (2013), TIC Domicã lios (2012), Pesquisa sobre o Uso das Tecnologias de Informaã§Ã£o e Comunicaã§Ã£o no Brasil.
Coletiva de Imprensa, June 2013, SãO Paulo. Available at http://www. cetic. br/usuarios/tic/2012/apresentacao-tic-domicilios-2012. pdf
CCK (2010), Communications Commission of Kenya: Interconnection Determination No. 2 of 2010, August 2010. Available at
CCK (2013), Communications Commission of Kenya: Quarterly sector statistics report, second quarter of the financial year
European commission (2013), E-Communications Household Survey, in Special Eurobarometer 396, November 2013 Available at http://ec. europa. eu/digital-agenda/en/news/special-eurobarometer-396-e-communications-household-survey
European commission (2014), E-Communications and Telecom Single Market Household Survey. Special Eurobarometer 414 March 2014.
Available at: http://ec. europa. eu/public opinion/archives/ebs/ebs 414 en. pdf European commission (2014a), Broadband access in the EU:
Proceedings of the Fifth International Conference on Information and Communication Technologies and Development -ICTD †12 (p. 76.
Gruber, H. and Koutroumpis, P. 2013), Competition enhancing regulation and diffusion of innovation: The case of broadband
Journal of Regulatory Economics, 43.2 (2013): 168-195 Gruber, H. and Verboven, F. 2001), The diffusion of mobile telecommunication services in the European union.
European Economic Review, 45,577-588 Grzybowski, L. 2005), Regulation of mobile telephony across the European union: an empirical analysis. Journal of Regulatory
Economics 28.1 (2005): 47-67 GSMA and Deloitte (2013), Arab States Mobile Observatory 2013. Available at
How innovative enterprises extract value from uncertain data. Retrieved from: http://public. dhe. ibm. com/common/ssi/ecm/en/gbe03519usen/GBE03519USEN. PDF
ITU GSR discussion paper (2014), Big data-Opportunity or Threat. Retrieved from: http://www. itu. int/en/ITU-D/Conferences
Koski, H. and Kretschmer, T. 2005), Entry, standards and competition: firm strategies and the diffusion of mobile telephony
Journal of Law, Economics and Organization, 10 (2), 201†246 Levy, B. and Spiller, P. 1996), Regulations, institutions and commitment:
for innovation, competition, and productivity. Retrieved from: http://www. mckinsey. com/insights/mgi/research /technology and innovation/big data the next frontier for innovation
Mao, H.,Shuai, X.,Ahn, Y.-Y. and Bollen, J. 2013), Mobile Communications Reveal the Regional Economy in Cote d†Ivoire.
Economic policy Research, 2012 North, D. 1990), Institutions, institutional change and economic performance. Cambridge, MA: Harvard university Press
http://stakeholders. ofcom. org. uk/binaries/research/telecoms-research /bbspeeds2010/Mobile bb performance. pdf Ofcom (2013), Ofcom Communications Market Report 2013, August 2013.
Available at http://stakeholders. ofcom. org. uk/binaries/research/cmr/cmr13/2013 uk cmr. pdf Ohm, P. 2010), Broken promises of privacy:
Responding to the surprising failure of anonymization. UCLA Law Review, 57 (6 Ortiz, J. R.,Zhou, H.,Shay, D. K.,Neuzil, K. M.,Fowlkes, A l. and Goss, C. H. 2011), Monitoring influenza activity
Partnership UNSC (2011), Report of the Partnership on Measuring Information Communication Technology for Development December 2011.
Ros, A. 1999), Does ownership or competition matter? The effects of telecommunications reform on network expansion and
Journal of Regulatory Economics, 1 (15), 65†92 219 Measuring the Information Society Report 2014
Review of Network Economics, 2 (3), 270†286 Simmering, J. E.,Polgreen, L a. and Polgreen, P m. 2014),
Seizing Opportunities, Preserving values. Executive Office of the President. Retrieved from http://www. whitehouse. gov/sites/default/files/docs/big data privacy report 5. 1. 14 final print. pdf
Eradicate Poverty and Transform Economies through Sustainable Development. The Report of the High-level Panel of Eminent Persons on the Post-2015 Development Agenda.
Wallsten, S. 2001), An econometric analysis of telecom competition, privatization, and regulation in Africa and Latin america
Journal of Industrial Economics, 49 (1), 1†19 Wang, H.,Calabrese, F.,Di Lorenzo, G. and Ratti, C. 2010), Transportation mode inference from anonymized and aggregated
wire, voice services using Internet Protocol IP) delivered over fixed (wired)- broadband infrastructure (e g. DSL, fibre optic), and voice
services provided over coaxial-cable television networks (cable modem. It also includes fixed wireless local loop (WLL) connections, which
are defined as services provided by licensed fixed-line telephone operators that provide last-mile access to the subscriber using radio
communications. It excludes subscriptions via data cards or USB modems, subscriptions to public mobile data services, private trunked
mobile radio, telepoint, radio paging and telemetry services 3. International Internet bandwidth (bit/s) per
Internet user International Internet bandwidth refers to the total used capacity of international Internet bandwidth, in megabits per second (Mbit/s
of communication services, including the World wide web, and carries e-mail, news entertainment and data files, irrespective of the
-powerline (BPL) communications. Subscriptions with access to data communications (including the Internet) via mobile-cellular networks are
services (over a mobile network) that allow access to the greater Internet and which are purchased separately from
voice services, either as a standalone service (e g. using a data card such as a USB modem/dongle) or as an add-on data
package to voice services which requires an additional subscription. All dedicated mobile-broadband subscriptions with
with national income, hot-deck imputation was chosen as the method for imputing the missing data, where previous year data are not
year adjusted with the international inflation rates. Prices for 2008,2009, 2010,2011 and 2012 which are shown also
or to existing customers, etc 8. Local calls refer to those made on the same fixed network (on-net) within the same exchange area
With convergence, operators are increasingly providing multiple (bundled) services, such as voice telephony, Internet access and television reception, over their networks.
then the additional services that are included in the price are specified in a note Source: ITU
available to all customers. In countries where no prepaid offers are available, the monthly fixed cost (minus the free minutes
the prices applying to the capital city are reported. The selected city should be mentioned in a note in the monthly subscription indicator
or to existing customers, etc 9. With convergence, operators are increasingly providing multiple (bundled) services such as voice telephony, Internet access and
television reception over their networks. They often bundle these offers into a single subscription. This can present a challenge
then the additional services that are included in the price plan should be specified in a note
if it can be used for other services as well. If a monthly rental for the physical
covering prepaid and postpaid services, and supported by different devices (handset and computer), mobile-broadband prices were
customers would and could purchase given the data allowance and validity of each respective plan
7. Prices should be collected for prepaid and postpaid services, for both handset and computer-based plans.
Preference should be given to packages that are bundled not (with voice services, for example. If the plan chosen includes other
services besides mobile-broadband access, these should be specified in a note 15. Prices refer to a regular (non-promotional) plan
Customers can then pay an excess usage charge in order to continue to have full speed connections. In some cases, even throttled speeds
revision, EGTI agreed that ITU should collect prepaid and postpaid prices, for both handset-and computer†based services
Economy 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 1 Afghanistan 0. 3 0. 3 65.5 70.0 1†229 2†774 2. 3 2. 5 1. 9 2. 1
Economy 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 84 Lao P. D. R. 6. 8 10 10.0 13 64.7 15 66.2 9'397 9 10'636 8. 7
Economy 2012 2013 2012 2013 2012 2013 1 Afghanistan 5. 5 5. 9 0. 0 0. 0 0. 4 1. 2
Economy 2012 2013 2012 2013 2012 2013 84 Lao P. D. R. 10.7 12.5 0. 1 10 0. 1 2. 1 18 2. 4
Economy 2012 2013 2012 2013 2012 2013 1 Afghanistan 54.0 54.0 3. 7 3. 7 31.7 31.7
Economy 2012 2013 2012 2013 2012 2013 84 Lao P. D. R. 46.5 46.5 16.7 16.7 72.7 72.7
1) Numbers are down due to data cleanse. 2) ACMA Communications Report 2011-12.2) incl. payphone, excl.
communication in the last month. 6 december 2012.7) Total number of subscriptions (including non-active: 2 082 589.8
offer voice communications, but excl. mobile data subscriptions (via data cards, USB modems and M2m cards).
or equal to, 512 Kbps. 15) Rightel (Tamin Telecom) has been given license to operate 3g services and started
services from February 2011 (http://www. rightel. ir/./Data refer to the sum of fixed wireless broadband and active mobile
mobile subscriptions using data services 2. Dedicated data subscriptions 3. Add on data packages. 20) Based on 2013q3
sample of operators than annual report. 26) Wireless Broadband services are not being offered in St vincent as yet.
anticipate that Mobile broadband and terrestrial fixed broadband services would be in place by the end of 2014.27) OFCOM
1. 4 Revenue and investment in the telecommunication sector 1. 5 Use of ICTS 1. 6 Emerging ICT measurement issues
competition 4. 1 Introduction 4. 2 Fixed-telephone and mobile-cellular prices 4. 3 Broadband prices
4. 5 The impact of competition and regulation on telecommunication prices Chapter 5. The role of big data for ICT monitoring and for development
Overtext Web Module V3.0 Alpha
Copyright Semantic-Knowledge, 1994-2011