This is a 2012 update of the extent to which Internet broadband is affordable across the English-speaking Caribbean, and the changes that have occurred since May 2011.<\/em><\/p>\n
In our most recent Snapshot: Internet speeds and pricing update 2012<\/a><\/em><\/strong>, we looked at the variation of Internet download speeds and monthly pricing for select Internet plans across English-speaking countries in the Caribbean. Additionally, we:<\/p>\n
Table 1: Countries and ISPs surveyed (May 2012)<\/p><\/div>\n
Key results of that exercise were:<\/p>\n
Having examined pricing, this review focuses on the affordability of select Internet plans from across the same group of countries, i.e., those in the English-speaking Caribbean. The prices captured in the Internet spend exercise were compared against estimated monthly income, based on the per capita Gross Domestic Product (GDP) sourced from the United Nations as at 2010. The resulting ratios, which are expressed as percentages, indicate the proportion of a person\u2019s income that would be spent on the stated plan, which indicates the extent to which it might be affordable to the average consumer.<\/p>\n
In 2012, there is still a wide variation across the Caribbean region in the proportion of a person\u2019s monthly income that could be spent on Internet service. In Figure 1, which shows the percentage of monthly income that could be spent on a Internet service plan with an advertised download speed of 2 Mbps, the amounts vary from 1.62% in the Cayman Islands, to 12.26% in Saint Vincent and the Grenadines. The average proportion of monthly income among those 14 countries is 5.23%, with Dominica to Saint Vincent and the Grenadines falling outside that amount<\/p>\n
Figure 1: Portion of monthly income as a percentage consumed by a 2 Mbps Internet plan in select Caribbean countries as at May 2012 (Source: ICT Pulse)<\/p><\/div>\n
It is highlighted that although calculations were performed for Internet spend amounts for Belize and Guyana, they have not been included in Figure 1. In Belize, a 2\u00a0Mbps plan would consume approximately 68.46% of the average individual\u2019s monthly income, whilst in Guyana the monthly rate is over 2,760% (!) the typical monthly income. Hence, it is highly unlikely that the average residential customer in those two countries can afford a 2\u00a0Mbps plan \u2013 business customers might be more inclined to invest in such transmission speeds.<\/p>\n
Out of the 16 countries initially assessed, only 10 countries have Internet plans with advertised download speeds of 4 Mbps. Figure 2, shows the percentage of monthly income for nine countries. Again Belize and Guyana have been excluded from the graph, since both of their results far exceed the typical income in their respective countries. In Belize the monthly spend for 4 Mbps plan as percentage of monthly income, was approximately 116%, while in Guyana, it was in the region of 5,415%.<\/p>\n
For the countries included in Figure 2, a 4\u00a0Mbps plan would cost between 2.69% (in the Cayman Islands) and 41.07% (in Saint Vincent and the Grenadines) of a month\u2019s income. The average across that grouping is 10.97%, which Saint Lucia and Saint Vincent and the Grenadines still exceed.<\/p>\n
Figure 3 shows the percentage of monthly income spent on an 8\u00a0Mbps Internet plan. For this exercise, Belize and Guyana did not offer any plans at the speed, but other countries did.<\/p>\n
An 8\u00a0Mbps plan would consume from 3.05% of a monthly income in the Cayman Islands, to 16.29% in Dominica. However, the average for that grouping is 8.80%, which surprisingly, is less than what obtained when assessing a 4\u00a0Mbps plan. This perceived inconsistency may be attributed to the fact that some of the higher priced countries, e.g. in Saint Lucia and Saint Vincent and the Grenadines, did not offer 8 Mbps plans and so could not influence the ratios calculated.<\/p>\n
As indicated in our review of monthly spend on Internet service<\/a>, there have been some changes in the rates payable for a 2 Mbps plan between May 2011 and May 2012. In Table 2, rate changes for a 2\u00a0Mbps plans were reported for five countries: Anguilla, Barbados, Dominica, Guyana and Saint Lucia. In turn, these changes resulted in an increase in amounts spent in Barbados and Guyana, by between 2% and 9%, making those service offerings less affordable in 2012 than they were in 2011.<\/p>\n
On the other hand, in Anguilla, Dominica and Saint Lucia, there were substantial decreases in the price for a 2\u00a0Mbps plan over the past year. As a result, the proportion of monthly income spent on those services would have dropped by almost 40% in Anguilla, and by almost half in Dominica and Saint Lucia. Hence the average consumer in those countries should consider these plans more affordable in May 2012 than it was in May 2011.<\/p>\n
Similar to our discussion on the affordability of mobile service<\/a> earlier this week, in most countries assessed, and in the writer\u2019s opinion, prices for Internet broadband service is still too high across the region, relative to the average income of consumers. Again, while having an Internet plan of 2\u00a0Mbps consume 5% of a person\u2019s average income might not be considered unreasonable, the following ought to be considered:<\/p>\n
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