Telecom
A4AI says Drop in Data Prices in Africa not Enough to Improve Access
The cost of mobile data for consumers in low and middle-income countries has fallen across all regions, driven by, among others, falling broadband prices, according to new research from the Alliance for Affordable Internet (A4AI), an initiative of the Web Foundation.
A4AI says low-income countries saw the most improvement, which is described as an historic reversal with progress of poorer countries previously lagging behind middle-income countries.
According to the research, falling broadband prices has driven affordability in certain African countries. The average cost for 1GB data as a percentage of average monthly income declined by 11%, from 5.8% of average monthly income in 2018 to 4.7% today.
In Sierra Leone, the relative cost of 1GB data tumbled from 25.9% to 9.9% after the introduction of a number of more affordable data plans by the largest operator. In Burkina Faso, reduced prices halved the cost of 1GB from 14.8% to 7.8% of monthly income. In countries such as Zimbabwe, a rise in incomes made broadband data more affordable, dropping relative cost from 19.8% to 10.1% of monthly income.
A4AI adds that declining costs meant seven new countries reached the international threshold of affordability for the first time in 2019, making internet affordable for most people, including those at below average income levels in Algeria, Bangladesh, Cabo Verde, Colombia, Ecuador, Namibia, and Paraguay.
A4AI developed the 1 for 2 affordability target – meaning 1GB of data should cost no more than 2% of average monthly income in order to be affordable for most people. To date, the target has been adopted by the UN Broadband Commission, the Economic Commission of West African States (ECOWAS), Nigeria, and Ghana.
Of the 100 countries included in this study, only 37 meet the 1 for 2 target. The total population of the remaining 63 countries tops 1 billion people, meaning over 1 billion people live in countries that do not meet the affordability target.
In Africa, currently only 9 countries meet this target: Egypt, Mauritius, Gabon, Tunisia, Botswana, Nigeria, Namibia, Algeria, and Sudan.
Because high costs keep people offline, the countries and regions with the least affordable data are also those with the fewest people connected to the internet, the A4AI claims. In Africa, where data is the least affordable at 7.1% of average monthly income, only 24% of the population is online, compared with 51% globally.
A4AI puts this in perspective and says 4 out of every 5 people living in countries with unaffordable data live somewhere in Africa.
“This demonstrates that affordability is a particularly deep challenge for the region in confronting the digital divide and requires African policymakers to step up and connect their countries into the global economy. The cost of data remains prohibitively high for many across Africa,” the organisation continues.
While progress has been made, the cost of broadband is prohibitively high.
A4AI says the average African earner must pay 7.1% of their monthly income for 1GB of data. Here average monthly income is based on GNI/capita/month for 2018. Translated to a US context, where the average earner earns US$62,850 (GNI per capita), 1GB of data would cost US$373 on average (7.1% of GNI per capita/12).
As more people, including more women, can afford to come online, national economies will grow. For every 1% increase in the number of people using mobile broadband, countries will see a 0.15% increase in GDP, according to the ITU.
Dhanaraj Thakur, Research Director of A4AI and Web Foundation, said: “Access to a meaningful internet connection means access to transformational and life-changing tools. This notable drop in costs, especially across Africa, will make it easier for millions around the world to benefit from internet access.
“While we welcome this progress, millions remain offline because they cannot afford the cost of data. Urgent action is required – failure to deliver affordable internet access will drive inequality as those offline are further pushed to the margins of society.”
The A4AI says while regions do differ and the range of policy decisions will affect the price of the internet, research shows that countries that prioritise a clear national broadband plan, invest heavily in universal and public access, and effectively and transparently allocate spectrum see the greatest gains in internet affordability.
“Governments must take urgent action to make internet access affordable for more people. By improving competition in telecommunications markets and investing in public access solutions in places like libraries, schools, and community centres, governments can lower the cost to connect and in turn bring more people online,” the organistion states.
Telecommunication companies have threatened to withdraw their Unstructured Supplementary Services Data (USSD), services from banks over what they called misinformation.
MTN Nigeria, Airtel, Globacom and 9Mobile- the telcos disclosed that the banks’ notice to their customers on the new billing system and airtime deductions for USSD services was misleading.
Also, Association of Licensed Telecom Operators of Nigeria (ALTON) also denied that the directive was from the Nigerian Communications Commission (NCC).
USSD is done via shortcodes on mobile phones and allows bank customers to make transactions in places with limited or no internet service.
Recall that banks earlier this week claimed that NCC has directed them to begin charging them from their airtime rather than from customers’ accounts.
The notice from the banks read in part: “In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.
“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model.
“Under this new billing structure, each USSD session will attract a charge of ?6.98 per 120 seconds, which will be billed by your mobile network operator.
“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service.
“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”
Reacting, ALTON, umbrella body of telecom operators in Nigeria, said the banks’ notice is a gross misinformation deliberately hatched to suit their selfish interests.
Hence they threatened to withdraw network support to the banks’ USSD services.
Engr Gbenga Adebayo, chairman of ALTON told Vanguard: ” I don’t understand why the banks are twisting agreements and distorting information just to favour their selfish interests. In the first place, the information wasn’t a directive from the NCC but a joint regulatory agreement between the NCC and the Central Bank of Nigeria, CBN witnessed by the telcos and the banks. The agreement was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos.
“The reason for that clause was because the telcos insisted that the process of migration is such that will not allow a customer to be billed twice; in other words, that a subscriber would not have his airtime deducted and also have his or her money deducted for same services from his or her bank account.
” As we speak, some of the banks have cleared their debts, but the majority are yet to do so. So, even if all the modalities of migrating to end-user billing have been perfectly carried out, the implementation cannot even begin because the banks are yet to clear the USSD debt owed to the telcos.
“Our position now is that if that is the way the banks want to treat the agreement, we may withdraw support for their USSD services. It is not a must-have. They can do without it. But, they should clear the debts as agreed,” he added.
MTN Nigeria has announced plans to embark on a massive capital expenditure (CAPEX) drive in 2025, committing nearly N900 billion to significantly enhance network service quality across Nigeria.
Dr. Karl Toriola, CEO, MTN Nigeria,
The substantial investment, more than double the combined CAPEX of approximately N440 billion spent in 2023 and 2024, underscored MTN’s aggressive strategy to address persistent service quality issues and meet growing customer and regulatory expectations.
Dr. Karl Toriola, CEO, MTN Nigeria, detailed this unprecedented financial commitment during a recent interview on Arise TV, emphasizing that improving service quality is the company’s paramount message for the year.
He highlighted a clear understanding and expectation from both the Nigerian Communications Commission (NCC) and security agencies for improved network quality.
A primary focus of this increased CAPEX will be on putting additional capacity in a city like Lagos, particularly in Abuja, where you have a lot of buildings coming up, you need additional sites because there are coverage issues.
Beyond these critical urban centers, the investment aims to bolster network resilience and ensure power stability for its infrastructure nationwide.
This includes proactively addressing site outages by ensuring timely payment for operational necessities such as diesel for generators, a persistent challenge in the Nigerian operating environment.
Toriola outlined a comprehensive upgrade process, which involves placing orders formally, opening letters of credit, and then the equipment gets shipped in and installed.
He added that MTN will be acquiring new sites and laying fiber to the base station to create better stability” where necessary.
While the immediate CAPEX is geared towards improving existing service quality and capacity, this investment aligns with MTN’s broader goals of enhancing financial inclusion in underserved rural areas, suggesting a long-term vision for network expansion and service improvement that extends beyond metropolitan areas.
Subscribers can anticipate tangible improvements in service quality, with a significant improvement in quality of service expected by the end of the second quarter or early in the third quarter of 2025, according to Toriola.
“This year is all going to be about capital expenditure on an aggressive basis to fix quality of service issues (and) meet both the regulators’ and the public’s expectations,” he affirmed, reiterating MTN’s steadfast focus on customer experience through substantial capital investment.
Telecom regulators and industry leaders from across the Middle East and Africa gathered in Cairo last week to chart a data-driven future for the region.
In a region where digital transformation is accelerating at unprecedented speed, connectivity intelligence firm, Ookla and Egypt’s National Telecom Regulatory Authority (NTRA) joined forces to organise the Telecommunications Regulatory Summit
Themed ‘Harnessing Data and Technology for Superior QoS’, the summit focused on how data, particularly crowdsourced insights, can transform regulatory strategies across the region.
The summit attracted stakeholders from over 30 countries, including delegates from the International Telecommunication Union (ITU) and World Broadband Association (WBBA), who engaged in high-level discussions on optimising network performance and accelerating digital inclusion.
Karim Yaici, lead industry analyst for the Middle East and Africa at Ookla, said the event set the tone for the growing value of data-driven decision-making.
“Access to and the use of crowdsourced data contribute to making more informed decisions, fostering transparency and ensuring that citizens in the MEA region benefit from high-quality, accessible and affordable connectivity,” he said.
The experts underlined that crowdsourced data is becoming a critical complement to traditional regulatory methods.
They agreed that it helps identify service gaps, prioritise infrastructure investments, and drive innovation.
With broadband speeds now closely tied to GDP growth and productivity, accurate performance data is seen as key to socio-economic advancement.
Dr. Hossam Abdel-Mawla, vice-president of technical affairs and quality of service at NTRA, stressed that the summit was pivotal in fostering regional collaboration.
“By actively sharing best practices and exploring innovative data-driven strategies, we are shaping a future where telecom regulations ensure digital inclusion and economic growth across the region,” he said.
In a key session, Ahmed Nabawy, director of client services at Ookla, presented findings on 5G performance in Egypt and Tunisia.
He demonstrated how Ookla’s unified data platform, powered by AI, enables operators to analyse 5G-capable device density and prioritise high-impact rollout areas.
The summit also explored the shift from conventional network quality metrics to more user-centric Quality of Experience models. These advanced analytics tools promise to enhance transparency, improve accountability, and ultimately deliver better connectivity experiences for all.
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