In an earlier post, we examined the amount spent on Internet service in the Caribbean. Now, in the last of our Snapshot series (for now), we look at the affordability of that service across the region.<\/em><\/p>\n
Access to and the availability of Internet service is becoming increasingly important as we transition to knowledge-based societies. However, it is important that the service is affordable to ensure that as many people as possible can comfortably bear the expense. This post aims to explore how affordable an Internet service plan with a common download speed is across the English-speaking Caribbean, and how the region might compare with more developed countries.<\/p>\n
In an earlier instalment of this series, Snapshot: Internet speeds and\u00a0prices in the Caribbean<\/a><\/strong><\/em><\/span>, we looked at the variation of Internet download speeds across the region, and compared pricing for an Internet service plan with an advertised download speed of 2 Mbps. The key results of that exercise were:<\/p>\n
This assessment now focuses on the affordability of Internet plans with an advertised download speed of 2 Mbps. Using the prices previously obtained, they were compared against the estimated monthly income per country based on per capita Gross Domestic Product (GDP). The resulting ratios, which have been expressed as percentages, indicate the portion of a person\u2019s income that would be spent a 2 Mbps Internet plan.<\/p>\n
Figure 1 shows a wide disparity in the affordability of a 2 Mbps Internet plan across the region. Attention is drawn to the fact that Guyana was excluded from the exercise, since the price of a 2 Mbps plan there far exceeded the average monthly income of its residents. Additionally, the price for a similar plan in Belize is approximately 72% of the average Belizean’s monthly income, which suggests that take up of that plan by the average consumer might not be realistic. As a result, it has also been excluded from the graph.<\/p>\n
Figure 1: Portion of monthly income as a percentage consumed by a 2 Mbps Internet plan (Sources: ISP websites, IMF, CIA)<\/p><\/div>\n
For the remaining countries, a 2 Mbps Internet plan could account for up to 14% of a subscriber\u2019s income in St. Vincent and the Grenadines, but in the Cayman Islands it could account for less than 1.8%. On average across the sample group, the plan would represent approximately 5.5% of a subscriber\u2019s monthly income.<\/p>\n
For the purpose of general comparison, and similar to what was done when examining Internet spend<\/a>, Figure 2 shows the percentage of a person’s monthly income that would be expended in select OECD countries for Internet plans with advertised download speeds of less than 2.5 Mbps. The average was approximately 1.5% of a person’s monthly income, as opposed to 5.5% as in the case of the English-speaking Caribbean (with Belize and Guyana excluded).<\/p>\n