By Jonah Kotee

Photo on Flickr by aranarth

In developing countries cheap Internet access depends on a complex chain of on-the-ground realities: strong connections to international Internet, domestic connections and service providers, and a sound regulatory system that encourages fair competition and innovative business models. This article will explain how each of those factors influences Internet access costs and how to improve them.

Internet accessibility in developing countries depend on a multifaceted sequence including:

1. Domestic connections and service providers: many domestic connection or service providers do not have enough funds, human resources, or infrastructure to breach the digital divide and to make internet cheaper. Internet access in developing countries is more about boosting the economy of the national government as a result of license fees for operation, which are very expensive and which are extended to the internet users thereby increasing the fees. Another factor is the lack of stable electricity: electricity plays a key role in domestic connection; lack of stable electricity threatens the cheapness of the internet in developing countries; many domestic service providers in developing countries are forced to use private generators which are even more expensive.
2. Sound regulatory system: a sound regulatory frame work is the key to breaching the digital divide and influencing the cost of the internet. The following measure would help developing countries have cheap internet services:
   1. Reduction in the licenses fees for service providers operating in the countries.
   2. Joining a regional telecommunication body to share ideas and common and best practices when it comes to reduction in the cost of the internet.

1. 1. Government giving subsidy to small service providers willing to invest in rural regions or having a huge investment package and granting tax holidays to service providers. Granting of tax holidays would indirectly influence the price of the end users or subscribers.
   2. Stability/security: stability and security are chief factors that influence the cost of connection in developing countries. Some developing countries are unstable in terms of civil disturbances; as a result international companies coming to these countries pay high insurance fees for the security of their companies thereby indirectly extending the insurance fees to their customers through connection costs and networking.
   3. De-monopolization of the IT market to allow competition for all investors. An open market system is vital to the growth and cheapness of internet accessibility in developing countries. Other service providers will be strategically forced to reduce prices to attract subscribers.

1. Satellite-based infrastructure will bring Internet access to countries in Asia, Africa, Latin America and the Middle East.   Traditional communication satellites orbit the Earth at an altitude of around 22,000 miles, which can limit signal strength and bandwidth. O3b will use cheaper medium earth orbit (MEO) satellites with an altitude of around 6,000 miles, which will provide a stronger signal. High-speed Internet access will bring a series of advantages to developing countries, including locally generated content, widespread e-learning, telemedicine and other enablers of social and economic growth.
2. International providers have no incentive to enter shared-cost peering agreements with developing countries small service providers. Thus, developing countries have to pay the full cost of an Internet link from developed countries. The high cost of international bandwidth for Internet access is a tall hurdle for developing countries. Developing countries necessitate enormous outlay in the establishment of international fiber optic links to carry voice and data traffic cost-effectively.  For example Kenya just installed a fiber optic cable to increase the speed of the internet as well the price; if countries around East Africa sign a regional partnership or convention it would influence the connection cost in those regions.

Finally and on the aggregate, domestic connections are greatly hampered by corruption emanating from people who seek their personal interest, rather than the interest of the state and its people.  In developing countries nowadays, companies provide substandard connections to clients, because they have what is referred to as the “invisible or Big hands” protecting their (their Company’s) interest against the people. In such scenarios, the justice system is most often weak and government officials tend to enrich themselves at the detriment of the masses.   Also in most cases, the companies may have the capacity, but would refuse to give that which is paid for by the clients simply because of the lack of a regulatory system.