ICT for Development

Incredible Internet Inequality

Lykke Andersen

By: Lykke E. Andersen & Fabián Soria*

According to the latest Bolivian Population Census (2012), only 9.6% of households have Internet access (either fixed or wireless). Considering that the Bolivian Constitution puts telecommunications (including Internet) on par with water, sanitation and electricity as a basic human right, this coverage is outrageously low.

The main reason for the low coverage is the high cost. Even after nationalizing the telecommunications sector (2008) and investing USD 300 million in our very own telecommunications satellite, Tupac Katari (2013), Internet services in Bolivia remain patchy, expensive and slow compared to other countries in the region. For most Bolivians, having Internet at home is simply unaffordable.

Figure 1 shows that, for an average person in Bolivia, one hour of work would buy less than 1 day of a lousy 1Mbps (Megabits per second) Internet connection, whereas the average person in “developed countries,” such as the Netherlands, South Korea, Denmark, and China could buy several years worth of such a service for just one hour of work.

Figure 1: Internet Purchasing Power (days of 1Mbps Internet service that can be bought for one hour of work), as well as average download speed and average cost per Mbps.

Internet1
Source: Authors’ elaboration based on a survey among Facebook friends (and friends’ friends) during February 2015 Notes: The calculations are rough and based on a very limited number of observations in each country (often just one). Effective download speed was measured by all participants using http://www.speedtest.net/. The average hourly salary is estimated from the Gross National Income per person. Most friends are located in main cities, which may not be representative of the whole country. In some places, free cable TV is included in the price.

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