Access to Telecommunications in Africa
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Box 2.1 (continued)
Industry-wide standards for definitions of broadband subscribers in a predominantly prepaid market have not yet been developed in a systematic way. Therefore, considerable uncertainty exists about the true number of customers who are active users of broadband services. Despite this uncertainty about the total number of broadband users, it is clear that the number of Internet users and subscribers is growing rapidly as prices for services and devices fall and competition develops at all levels of the market. Source: Authors.
subscription-based, conventional fixed-line telephone service averaged $11 in 2009, ranging from less than $1 in Ethiopia to $24 in Senegal and Zambia (figure 2.8). Countries such as Ethiopia that have monopoly operators tend to have relatively low average prices. In countries that have privatized their fixed-line operator (for example, Côte d’Ivoire, Senegal, and South Africa), fixed-line prices have risen. In Nigeria, which has the most competitive fixed-line market in Sub-Saharan Africa, the fixed-line price basket is low—about $6 per month. The structure of fixed-line charges also varies by country. Fixed-line services usually have a two-part price structure that includes a fixed monthly subscription charge and a usage-based charge. The share of subscription charges in the total monthly price varies significantly. The high monthly fixed cost of subscribing to a wired telephone network limits access to ICT services, particularly for low-income households. The structure of charges for mobile services differs from that of fixedline services. Ninety-seven percent of mobile subscribers in Sub-Saharan Africa have a prepaid package with no fixed monthly subscription charge. The average monthly prepaid mobile basket in 2009 was $10 but ranged from $2 to $15 (figure 2.9). Note that the average price of mobile services is not significantly different from that of fixed-line services. This indicates that the limited usage of fixed-line services is not a result of their cost, but rather other factors, such as the availability of services and the charging structure (that is, usually postpaid). The price of mobile services has dropped as networks have expanded, competition has intensified, and operators have reduced their prices to pursue new customers from low-income households.