Broadband Pricing in Emerging Markets: a Comparison of DSL, Wimax, and HSPA
Emerging market consumers are highly price sensitive, and our research suggests that they make careful purchasing and usage decisions on communications services based on price. This study examines the comparative prices and affordability of leading DSL, WiMAX, and HSPA services in 15 selected emerging markets. Overall, broadband services are expensive (especially in Africa and Asia), and this is one of the key reasons behind the low demand and slow take up.
Executive summary
In a nutshell
Ovum view
Key messages
Broadband is unaffordable for most emerging consumers
HSPA is the cheapest entry-level broadband alternative
WiMAX is the best value entry-level broadband alternative
DSL is the most expensive broadband option
There are massive price differences across markets
Scope and context
Scope
Pricing and affordability of big-screen broadband examined
Context
DSL, HSPA, and WiMAX as key broadband contenders
DSL pricing analysis
Entry-level services: relatively unaffordable
High-end services: skimming the market
WiMAX pricing analysis
Entry-level: less expensive, still relatively unaffordable
High-end services: aligned to DSL alternatives
HSPA pricing analysis
Entry-level services: most affordable broadband option
High-end: expensive, yet comparatively affordable
Usage limits: cost per MB comparison
Entry-level: WiMAX leads, followed by DSL
High-end: WiMAX leads, with lower variance
Implications and future outlook
Improved affordability will be key to broadband growth
Underlying cost drivers affecting future price trajectory
Appendix: country price comparison snapshots
Bahrain
Colombia
India
Jordan
Kenya
Malaysia
Mexico
Nigeria
Pakistan
Philippines
Poland
Russia
Saudi Arabia
South Africa
Venezuela
In a nutshell
Ovum view
Key messages
Broadband is unaffordable for most emerging consumers
HSPA is the cheapest entry-level broadband alternative
WiMAX is the best value entry-level broadband alternative
DSL is the most expensive broadband option
There are massive price differences across markets
Scope and context
Scope
Pricing and affordability of big-screen broadband examined
Context
DSL, HSPA, and WiMAX as key broadband contenders
DSL pricing analysis
Entry-level services: relatively unaffordable
High-end services: skimming the market
WiMAX pricing analysis
Entry-level: less expensive, still relatively unaffordable
High-end services: aligned to DSL alternatives
HSPA pricing analysis
Entry-level services: most affordable broadband option
High-end: expensive, yet comparatively affordable
Usage limits: cost per MB comparison
Entry-level: WiMAX leads, followed by DSL
High-end: WiMAX leads, with lower variance
Implications and future outlook
Improved affordability will be key to broadband growth
Underlying cost drivers affecting future price trajectory
Appendix: country price comparison snapshots
Bahrain
Colombia
India
Jordan
Kenya
Malaysia
Mexico
Nigeria
Pakistan
Philippines
Poland
Russia
Saudi Arabia
South Africa
Venezuela
LIST OF TABLES
Table 1: DSL entry-level service comparison
Table 2: DSL high-end service comparison
Table 3: WiMAX entry-level service comparison
Table 4: WiMAX high-end service comparison
Table 5: HSPA entry-level service comparison
Table 6: HSPA high-end service comparison
Table 7: Comparative cost per 100MB of data: entry-level services
Table 8: Comparative cost per 100MB of data: high-end services
Table 9: Affordability index of entry-level broadband
Table 10: Cost drivers across different technologies
Table 11: Bahrain broadband price comparison and analysis
Table 12: Colombia broadband price comparison and analysis
Table 13: India broadband price comparison and analysis
Table 14: Jordan broadband price comparison and analysis
Table 15: Kenya broadband price comparison and analysis
Table 16: Malaysia broadband price comparison and analysis
Table 17: Mexico broadband price comparison and analysis
Table 18: Nigeria broadband price comparison and analysis
Table 19: Pakistan broadband price comparison and analysis
Table 20: Philippines broadband price comparison and analysis
Table 21: Poland broadband price comparison and analysis
Table 22: Russia broadband price comparison and analysis
Table 23: Saudi Arabia broadband price comparison and analysis
Table 24: South Africa broadband price comparison and analysis
Table 25: Venezuela broadband price comparison and analysis
Table 1: DSL entry-level service comparison
Table 2: DSL high-end service comparison
Table 3: WiMAX entry-level service comparison
Table 4: WiMAX high-end service comparison
Table 5: HSPA entry-level service comparison
Table 6: HSPA high-end service comparison
Table 7: Comparative cost per 100MB of data: entry-level services
Table 8: Comparative cost per 100MB of data: high-end services
Table 9: Affordability index of entry-level broadband
Table 10: Cost drivers across different technologies
Table 11: Bahrain broadband price comparison and analysis
Table 12: Colombia broadband price comparison and analysis
Table 13: India broadband price comparison and analysis
Table 14: Jordan broadband price comparison and analysis
Table 15: Kenya broadband price comparison and analysis
Table 16: Malaysia broadband price comparison and analysis
Table 17: Mexico broadband price comparison and analysis
Table 18: Nigeria broadband price comparison and analysis
Table 19: Pakistan broadband price comparison and analysis
Table 20: Philippines broadband price comparison and analysis
Table 21: Poland broadband price comparison and analysis
Table 22: Russia broadband price comparison and analysis
Table 23: Saudi Arabia broadband price comparison and analysis
Table 24: South Africa broadband price comparison and analysis
Table 25: Venezuela broadband price comparison and analysis
