![]() ![]() As noted above, the difference in prices between low-income developing countries and the other countries is even more pronounced when they are considered relative to average income levels.Įconomies of scale. The average nominal cost of a broadband package is still significantly higher in low-income developing countries even after adjusting for internet speed ( Figure 5.3). Nominal prices on broadband are positively correlated with internet quality measured by the download speed ( Figure 5.2). A more concentrated telecom market, rather than a more competitive one, allows broadband service providers to exploit their market power and charge higher prices ( Figure 5.1). Internet prices appear to be affected by the market structure, the quality of internet services, and the economies of scale. Additionally, self-testing allows researchers to gather data on internet speeds across a wider range of locations, devices, and times, permitting a more comprehensive understanding of internet performance. ![]() ![]() In contrast, self-administered tests, because they are based on actual user experiences, provide more accurate and reliable measurements of internet performance. 11 Advertised speeds can be misleading and do not always reflect the actual internet speeds that users experience. Ookla data, which rely on self-administered internet speed tests, offer several advantages over advertised speeds used in other data sets. 10 The improvement in internet speed probably reflects the fact that existing internet users started to upgrade their internet packages as most work- and household-related activities shifted online. 9 The average download/upload speed since the outbreak of COVID-19 accelerated considerably across all income groups ( Figure 3.3). Instead, the largest improvement in digitalization during the pandemic was the leap in internet speed among existing users. ![]()
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