A 2018 update of how affordable domestic fixed Internet broadband service is in 18 countries across the Caribbean region.

 

Following on from our most recent Snapshot of Internet speed and pricing, we are examining the affordability of Internet broadband service across the Caribbean region. It should be noted that we have updated some of our tests, to better utilise the data that has been collected. After we present our findings, we share a few thoughts on the results.

Approach

In our most recent Snapshot: 2018 update of Internet speeds and pricing across the Caribbean, we examined the variation of fixed (wired and wireless) Internet download speeds and monthly pricing for select Internet plans across 18 Caribbean countries:  Anguilla; Aruba; the Bahamas; Barbados; Belize; the British Virgin Islands; the Cayman Islands; Curaçao; Dominica; Grenada; Guyana; Jamaica; Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; Suriname; Trinidad and Tobago; and the Turks and Caicos Islands.

Having examined monthly pricing, now we seek to determine the affordability of those Internet plans using the following approach:

  1. The rates recorded are compared against estimated monthly income, using per capita Gross Domestic Product figures, sourced from the International Monetary Fund and the United Nations, which will be used as proxies.
  2. The resulting ratios are expressed as percentages, which indicate the proportion of a person’s income that would be spent on the stated plans, and hence indicates the extent to which it might be affordable to the average consumer.

In this year’s review, three exercises are conducted. In the countries examined, we wish to determine:

  • the fastest Internet plan by download speed for no more than 5% of an individual’s monthly income
  • the portion of an individual’s monthly income would be consumed by the slowest advertised download speed Internet plan; and
  • the portion of an individual’s monthly income would be consumed by the fastest advertised download speed Internet plan.

How affordable is Internet service in 2018?

First, we used as a benchmark, the global target set by the Broadband Commission for Digital Development that the cost of fixed-broadband services should be less than 5% of monthly GNI per capita. With that target, Figure 1 shows the fastest Internet plan that can be secured for no more than 5% of the average person’s income.

Figure 1: Fastest Internet plan by download speed for no more than 5% of monthly income in select Caribbean countries in 2018 (Sources: ISP websites, ICT Pulse)

Although 18 countries were examined, five countries – Belize, Guyana, Jamaica, Saint Vincent and the Grenadines and Suriname – did not have plans that satisfied the specified threshold. The fastest plan was recorded in Barbados, where for around 4.25% of a resident’s monthly income, a plan with an advertised download speed of 240 Mbps can be secured. On the other hand, the slowest plans were recorded in Dominica and Saint Lucia, where a 2 Mbps plan would consume 4.25% and 4.83%, respectively.

Second, using the data presented in our recently published Internet speeds and pricing Snapshot, Figure 2 and Figure 3 show the portion of an individual’s monthly income would be consumed by the slowest and the fastest advertised download speed Internet plans, respectively.

Figure 2: Portion of an individual’s monthly income for the slowest advertised download speed Internet plan in select Caribbean countries in 2018 (Sources: ISP websites, ICT Pulse)

With regard to the slowest advertised download speed Internet plan, the least affordable plan was recorded for Guyana, where a 256 kbps plan could consume up to 7.5% of a resident’s monthly income. On the other hand, the most affordable plan, 0.9% of an individual’s monthly income, but only providing a maximum download speed of 0.512 kbps, was recorded for the Cayman Islands. However, the fastest plan was recorded for Aruba at 100 Mbps, which would consume less than 5% (4.2%) of the typical resident’s monthly income.

Figure 3: Portion of an individual’s monthly income for the fastest advertised download speed Internet plan in select Caribbean countries in 2018 (Sources: ISP websites, ICT Pulse)

With regard to the fastest advertised download speed Internet plan, the least affordable plan was recorded for Belize, where a 16 Mbps plan could consume up approximately 50.4% of the typical resident’s monthly income. On the other hand, the most affordable plan, 5.9% of an individual’s monthly income, was recorded for the Cayman Islands, for a plan with a maximum download speed of 300 Mbps. Further, the fastest plan available across the countries examined, 1 Gbps, was recorded for Barbados and Trinidad and Tobago, where those plans would consume 21.1% and 21.4%, respectively, of the average resident’s monthly income.

Some initial thoughts

Although we have updated our tests to examine the affordability of Internet service across the Caribbean region, the results indicate that in some countries, individuals may still be challenged to purchase a ‘reasonable speed plan’. Of particular note, are Belize, Guyana, Jamaica, Saint Vincent and the Grenadines and Suriname, for which there appeared to be no plan that could be purchased for under 5% of the typical resident’s monthly income.

The difficulty is again emphasised when the affordability of the slowest advertised download speed Internet plan was examined. In some of the countries, specifically Jamaica, Saint Vincent and the Grenadines and Suriname, the slowest plan would consume over 5% of a resident’s monthly income, for up to 3 Mbps in download speed.

With regard to the fastest plans, it was expected that their rates would far exceed the 5% of monthly income threshold, especially for download speeds faster than 20 Mbps. However, attention is drawn to the Aruba and the Cayman Islands, where for well under 10% of a resident’s monthly income, a 200 Mbps plan and a 300 Mbps plan, respectively can be secured.

 

Image credit:   nattanan23 (Pixabay)