A 2017 update of how affordable Internet broadband service is across the Caribbean.<\/em><\/p>\n

 <\/p>\n

Since May 2011, and following on from our most recent Snapshot of Internet speed and pricing, we have been regularly assessing the affordability of Internet broadband service across the Caribbean. Here, we update our findings on affordability, and discuss some of the changes that have occurred since the last exercise.<\/p>\n

Approach<\/h3>\n

In our most recent Snapshot: 2017 update of Internet speeds and pricing across the Caribbean<\/em><\/strong>, we examined the variation of fixed (wired and wireless) Internet download speeds and monthly pricing for select Internet plans across 19 Caribbean countries. Having examined monthly pricing, now we seek to determine the affordability of those Internet plans in the Caribbean using the following approach:<\/p>\n

\n
1. The prices captured in the Internet spend exercise 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.<\/li>\n
2. The resulting ratios are expressed as percentages, which indicate the proportion of a person\u2019s income that would be spent on the stated plans, and hence indicates the extent to which it might be affordable to the average consumer.<\/li>\n<\/ol>\n

   In this year\u2019s review, three exercises are conducted. We:<\/p>\n

   \n
   • determine the portion of an individual\u2019s monthly income as a percentage that could be spent on a 2 Mbps Internet plan<\/li>\n
   • determine the fastest Internet plan by download speed for no more than 5% of an individual\u2019s monthly income, and<\/li>\n
   • for 2016 and 2017, compare the of portion of an individual\u2019s monthly income as a percentage that could be spent on a 2 Mbps Internet plan<\/li>\n<\/ul>\n

     How affordable is Internet service in 2017?<\/h3>\n

     Although 19 Caribbean countries were examined, only nine still offered an Internet service plan with an advertised download speed of up to 2 Mbps, as shown in Figure 1. For the countries not shown, their ISPs did not specifically offer a 2 Mbps plan, though other plans were available.<\/p>\n

     

     Figure 1: Portion of monthly income as a percentage for a 2 Mbps Internet plan in select Caribbean countries as at June 2017 (Source: ICT Pulse)<\/p><\/div>\n

     For the countries presented, there is still a wide variation in the proportion of an individual\u2019s monthly income spent on Internet service, which ranged from 1.5% in Trinidad and Tobago, to 10.7% in Belize. Across the region, the proportion of a typical monthly income that could be expended on a 2\u00a0Mbps plan when averaged across the nine countries assessed was approximately 3.6%.<\/p>\n

     However, to provide a more inclusive examination, we have used as a benchmark, the global target set by the Broadband Commission for Digital Development\u2019s target that the cost of fixed-broadband services should be less than 5% of monthly GNI per capita. Using that target, we have sought to determine the fastest Internet plan that can be secured for no more than 5% of the average person\u2019s income, as shown in Figure 2.<\/p>\n

     

     Figure 2: Fastest Internet plan by download speed for no more than 5% on monthly income in select Caribbean countries as at June 2017 (ICT Pulse)<\/p><\/div>\n

     First, it is highlighted that only 17 countries satisfied the requirements for consideration. The exceptions were Guyana and Saint Vincent and the Grenadines, which offered no Internet plans that could be purchased for less than 5% of their typical citizens\u2019 monthly income.<\/p>\n

     For the all 17 countries examined, except Belize, 5% of an individual\u2019s monthly income would purchase an Internet plan of at least 1 Mbps. In Belize and for around 5% of a citizen\u2019s monthly income, the fastest plan would be 512\u00a0kbps.<\/p>\n

     Outside of Belize, the slowest Internet plan were recorded in:<\/p>\n

     \n
     • Jamaica \u2013 1\u00a0Mbps, but requiring 4.7% of monthly income<\/li>\n
     • Dominica \u2013 2 Mbps, but requiring 4.4% of monthly income<\/li>\n
     • Suriname \u2013 2 Mbps, but requiring 3.5% of monthly income, and<\/li>\n
     • Antigua and Barbuda \u2013 2\u00a0Mbps, but requiring 2.9% of monthly income<\/li>\n<\/ul>\n

       On the other hand, the best value for money was recorded in Barbados, where for 3.7% of monthly income, a 150\u00a0Mbps plan could be purchased. Thereafter Aruba (100 Mbps and requiring 4.2% of monthly income), the Cayman Islands (100 Mbps and requiring 4.7% of monthly income), and the Bahamas (75 Mbps and requiring 4.87% of monthly income), offered cost-effective plans.<\/p>\n

       Is broadband Internet service becoming more affordable in the Caribbean?<\/h3>\n

       Since 2014 and across most of the countries reviewed, the portion of monthly income a 2 Mbps Internet plan would consume has been decreasing. Between 2016 and 2017, and averaged across the countries sampled, the proportion monthly spend dropped by 1.7 percentage points, from 6.3% to 4.6%. Figure 3 highlights the changes over the past year.<\/p>\n

       

       Figure 3: Comparison of portion of monthly income as a percentage for a 2 Mbps Internet plan in select Caribbean countries in 2016 and 2017 (Source: ICT Pulse)<\/p><\/div>\n

       may be inadequate to support the data-rich demands for today\u2019s user and Internet environment, where there is considerable emphasis on video. Those low download speeds can result in considerable buffering, long download times, and poor quality real-time communication, all of which undermine the user\u2019s experience.<\/p>\n

       Having said this. The download speeds of broadband Internet plans offered across the Caribbean are becoming faster. However, the price floor \u2013 for the slowest plan \u2013 is also rising as speeds increase. It therefore suggests that fixed broadband Internet service in the Caribbean is not (yet) as more inclusive as we might have hoped.<\/p>\n

        <\/p>\n

       Image credit: \u00a0Pexels<\/a><\/em><\/p>\n

       __________<\/p>\n","protected":false},"excerpt":{"rendered":"

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