1、Affordability Report www.a4ai.org A global coalition working to make broadband affordable for all 2019 Research and analysis for the 2019 Affordability Report was led by Teddy Woodhouse and supervised by Dhanaraj Thakur. The report was written by Teddy Woodhouse and Calum Cameron. Sonia Jorge and Dh

2、anaraj Thakur provided valuable advice and contributions. Nathalia Foditsch and Carolina Rossini provided extensive analysis and support for the section on wholesale open access networks. David Townsend contributed research and writing for the section on public access, including the examples from ac

3、ross Southeast Asia and the history of public access. The Affordability Drivers Index research was carried out by Siaka Lougue (African Institute for Mathematical Sciences). Nicola Bidwell, Leah Junck, Temitope Ogundipe, and Primus Tazanu each wrote impact stories, grounding the policy issues in thi

4、s years report into human impact: we thank them for their contribution. We also thank the A4AI member organisations for their inputs and suggestions to an early draft. Any errors in this report remain the authors alone. Finally, we are grateful for the support of A4AIs global sponsors Sida and Googl

5、e and that of the Alliances entire membership. Suggested citation: Alliance for Affordable Internet (2019). The 2019 Affordability Report. Washington DC: Web Foundation. This report is made available under a Creative Commons 4.0 International licence. For media or other inquiries: presswebfoundation

6、.org. Acknowledgments Welcome 4 Executive Summary 5 The state of internet affordability 7 Affordability Drivers Index 2019 8 How broadband markets affect affordability 10 Understanding broadband and its markets 12 Market competition supports affordable access 13 How governments shape broadband marke

7、ts 15 Governments define the market environment 16 Regulatory strategies for supporting competition 17 Investing in multiple parts of the internet 18 Building wholesale open access networks 20 for competitive markets Open access strategies 21 Mexicos Red Compartida 22 Rwandas 4G network 23 Assessing

8、 wholesale open access networks 24 The role of public access in broadband markets 25 History of public internet access 26 Economic and market impacts 26 Social benefits of public access 29 Public access in the market 30 Steps to shape healthy broadband markets 31 Promote competition with dynamic reg

9、ulation 32 Supply affordable backhaul and infrastructure 32 Invest in public access solutions 33 Annexes 34 Annex 1: Full 2019 ADI Results 34 Annex 2: Methodology: Affordability Drivers Index 36 Annex 3: Methodology: Full linear regression results and sources 39 Annex 4: Methodology: Average mobile

10、broadband market projections 41 1 2 3 4 5 6 www.a4ai.org 3 Welcome to the 2019 edition of the Affordability Report! This years report calls on policy makers and regulators to promote competitive and diverse broadband markets as key ingredients to drive down the cost of internet access. With new anal

11、ysis and insights to inform policy action, this years report is accompanied by five impact stories. From Grace in Cape Town to Francisco in Mexico and Anita in Cameroon, we share the stories of how policy actions indeed impact human life. Competitive and diverse markets, especially those with robust

12、 public access options, emerge as a path forward for increased inclusion and the expansion of digital economies. Our analysis also shows a very encouraging trend in low-income countries policy progress towards affordability. The report outlines several key actions governments can take to ensure the

13、health of markets in their countries. Beyond regulation, we note that policy makers should prioritise public investment strategies such as open access wholesale networks and public access solutions all key elements of A4AIs Good Practices Policy Framework. To support the analysis and recommendations

14、, we share a number of case studies highlighting the lessons learned in specific country examples. As we continue to advocate for improved policy frameworks, it is clear that we need to raise the bar on internet access. Despite progress, far too many people remain offline, mostly in low- and middle-

15、 income countries. Even among those connected, there is a wide disparity in the quality of internet they access. To address this gap, we recently introduced Meaningful Connectivity, a new measurement standard to encourage policymakers to target both improved quality of service and expansion of acces

16、s. By designing policies that support market growth and expansion, and developing initiatives to secure equal and affordable access where the market does not see commercial viability, governments can make affordable and meaningful connectivity a reality for everyone. Across the globe, we have seen t

17、he impact of good policy practices in action. To share these experiences and lessons learned, A4AI has launched a Good Practices Database. From the Kenyan governments elimination of taxes on handset purchases to Costa Ricas national plan for universal connectivity, these case studies aim to support

18、policy makers and all stakeholders in their work to bring down the cost to connect and expand access. While we continue to grow this database of policy good practices, we look forward to your feedback and welcome suggested examples to add to this public resource. We hope you enjoy and learn from thi

19、s 2019 Affordability Report and these other new resources. We invite you to join us on this journey towards digital equality. Become a member of our global coalition to be part of our research and policy advocacy work. Together, we can make access to the internet affordable and meaningful for all. S

20、onia Jorge Executive Director Alliance for Affordable Internet Welcome 4 A4AI Affordability Report 2019 Internet access should not be a luxury. Not only a pathway to information, communication, and economic opportunity, the internet is increasingly necessary to access basic commercial and public ser

21、vices. As more of the world becomes digital, those unable to connect will be left behind. It is therefore crucial that everyone has the opportunity to get online. For the 50% of the world unable to connect, the greatest barrier remains affordability. Across Africa, the average cost for just 1GB data

22、 is 7.12% of the average monthly salary. In some countries, 1GB costs as much as 20% of the average salary too expensive for all but the wealthiest few. If the average US earner paid 7.12% of their income for access, 1GB data would cost USD $373 per month! This gulf underlines the challenge we have

23、to bridge the global affordability gap and ensure that everyone has affordable internet access. The Affordability Report looks at the policy progress low- and middle-income countries are making to support affordable internet access. This year it explores how governments can shape healthy, competitiv

24、e markets1 supported by public access solutions to deliver affordable and meaningful connectivity to everyone. 1 This report analyses market competition as the number of service providers, their market share and competitive behaviour, and additional external factors, such as regulatory environment.

25、Competitive markets lead to affordable internet access The Affordability Drivers Index (ADI) measures government policies that impact internet affordability. This years index shows that: Low-income countries made impressive strides towards affordability: In this years ADI, low-income countries incre

26、ased their scores three times as much as middle-income countries, on average. As a group, low-income countries saw a 15.6% increase in their ADI score from 2018 to 2019: this compares to 4.5% and 5.1% for lower-middle and upper-middle-income countries, respectively. Competition is core to successful

27、 broadband markets: Our analysis shows that healthy market competition leads to more affordable internet access, giving consumers choices and adding competitive pressure to lower prices. Conversely, a lack of competition is one of the biggest barriers to affordability. Our analysis estimates that co

28、nsumers in countries with consolidated markets pay USD $3.42 more per GB for mobile data than those in similar countries with healthy markets. Policymakers and regulators must work to encourage competition and support new entrants to enter their markets. Public access options are vital to strengthen

29、ing markets: While promoting competitive markets should be governments top priority, competition only goes so far. Markets should be complemented with public access options such as free public Wi-Fi and telecentres to fill gaps in the market and add further competitive pressure. Executive Summary 5

30、www.a4ai.org While it is clear that competition is core to the success of broadband markets, many countries are falling short. Of the 136 low- and middle-income countries studied in this report, only 65 have fully competitive markets. Globally, over 260 million people have just one choice of major m

31、obile network operator, and an estimated 589 million people live in countries where a lack of competition keeps internet prices higher than they should be. While there is a historic trend towards liberalisation, this years report shows that progress on market competition is stalling and, in some cas

32、es, markets are becoming more consolidated. For example, international telecoms company Millicom exited from African markets, threatening a wave of consolidation across the continent. In India, operator Reliance Jio which was once a disrupting force bringing millions online via mobile internet is no

33、w rapidly consolidating the market. Governments can support healthy broadband markets Governments should use their policy and regulatory powers to build competitive broadband markets that provide users with lower costs and high quality services. They should focus on three core areas necessary to sup

34、port healthy, competitive markets: 1 Shaping a competitive market environment for broadband In robust and competitive markets, operators face more pressure to innovate and provide value. Governments can help by setting fair and clear market rules for entry into the market, with clear licensing requi

35、rements for traditional providers and community networks. Policymakers should support robust operating rules, and regulators should provide regulatory certainty for service providers to help their long-term planning and to encourage network investments. They should intervene where necessary but, mos

36、t importantly, must establish incentives to ensure market environments continue to support competition. With the telecommunications landscape constantly changing, the International Telecommunications Unions (ITU) proposed concept of collaborative regulation is particularly critical, supporting polic

37、y innovation to address threats to competition as they evolve. 2 WOANs are a form of shared infrastructure designed to separate the business model of physical network provision and maintenance from internet access services offered to consumers. 2 Supporting affordable backhaul and infrastructure Acc

38、ess to backhaul connectivity must be affordable so that additional service providers are able to enter the market, providing more competition. Regulators and policymakers play a key role in facilitating infrastructure sharing among operators, investing in high-capacity backhaul networks, and allocat

39、ing spectrum in a fair and transparent way. To help make connectivity more affordable for providers at the wholesale level, a growing number of governments are trialling investments in wholesale open access networks (WOANs)2. An examination of trials in Mexico and Rwanda, where WOANs are most develo

40、ped, suggests they could offer a viable option to countries with low connectivity and consolidated broadband markets that are in need of substantial reform. 3 Investing in public access options to complement markets Public access and community networks complement the commercial market. They supply a

41、ccess where there are market gaps, expand connectivity to more people, build digital skills in new communities, and cultivate demand for internet access. They can also increase competition by providing more choice to consumers, which adds pressure for operators to improve services and lower prices.

42、Governments should invest in public access as a priority. Market competition and public access options are powerful, complementary forces that motivate providers to innovate and provide affordable, quality services for users. Governments should use their regulatory powers to support a competitive ma

43、rket environment as well as invest to open up markets to new providers and end users. By taking these steps to shape healthy, stable broadband markets, governments will help more citizens get online with affordable internet access. 6 A4AI Affordability Report 2019 Executive Summary 1 The state of in

44、ternet affordability The world remains years, if not decades, away from achieving universal, affordable internet access. The stubborn digital divide mirrors wider inequalities that divide the worlds population today: income, gender, location, and education are highly predictive of whether an individ

45、ual has access to and can regularly use the internet. Closing this divide holds enormous economic and social benefits. As stakeholders across the telecommunications sector work towards this effort, the Affordability Drivers Index aims to guide policy discussions towards more affordable and more reli

46、able connectivity for as many as possible. KEY INSIGHTS Infrastructure investments explain this years major improvements, moving some countries to higher positions on the Affordability Drivers Index (ADI). The two most improved countries in this years ADI, Cameroon and Mali, both adopted new nationa

47、l broadband plans. Overall, broadband policy change falls short of whats needed to reach international targets for universal access. 7 www.a4ai.org 1.1 Affordability Drivers Index 2019 The ADI is a tool developed by the Alliance for Affordable Internet (A4AI) to assess how well a countrys policy, re

48、gulatory, and overall supply-side environment is positioned to lower industry costs and ultimately create more affordable broadband. The ADI does not measure actual broadband prices, nor does it tell us how affordable broadband is in a given country. Instead, it scores countries across two main poli

49、cy groups: Infrastructure the extent to which internet infrastructure has been deployed, as well as the policy framework in place to encourage future infrastructure expansion; and Access current broadband adoption rates, as well as the policy framework in place to enable equitable access. High ADI scores correlate with reduced broadband costs on both the industry side and for consumers. As Figure 1 shows, there is a negative and statistically significant correlation between a countrys ADI score and the affordability of a 1GB mobile prepaid broadband plan