A recent report by the ITU states that the price of high-speed Internet connections dropped by over 50% globally last year, with entry-level ICTs dropping 18%.  The drop was less extreme in developed countries at 35%, but very pronounced in developing nations at 52%, and particularly in Africa at 55%.

The positive headlines of the ITU’s report quickly fade away, however, as the reality of Broadband prices in developing countries sinks in.  “In 32 countries, the monthly price of an entry-level fixed broadband subscription corresponds to more than half average monthly income.  …And in a handful of developing countries the monthly price of a fast Internet connection is still more than ten times monthly average income.”

Though this report from the ITU demonstrates that the digital divide is narrowing, the stark differences in Broadband prices between the developed and less developed world appear still widely extreme.  The ITU’s report on the price drop ultimately highlights the expansive measure of the digital divide.

If governments are lining up to invest millions in constructing fiber optic cables, should they also set aside some money to subsidize bandwidth usage?  Are governments’ efforts to make broadband accessible futile without subsidies to reduce prices?  Arguably, a small investment in bandwidth subsidies is necessary in order to make the investments in Broadband infrastructure ultimately meaningful.

Kenya is the first African nation to provide bandwidth subsidies to business processing operators (BPO), allowing a 20 cent saving on all operational costs.  ICT board leader, Paul Kukubo, explained, “Increasing Kenya’s competitiveness in the global BPO sphere is vital for our country’s economic growth…and to put Kenya on the global outsourcing map.”  Though the effectiveness of the subsidies have been called into question, this is a step in the right direction.  Maximizing the benefits of Broadband connectivity may often require bandwidth subsidies as African nations struggle to breech the digital divide.