There is a good reason why spectrum policy has emerged as a key underpinning of efforts to eliminate the digital divide. Simply, connecting the unconnected will require infrastructure that costs far less.
A good example is the amount of money a household can afford to spend on communications, per month, as a function of household income. For the cohort including the first billion people, with annual income averaging $29,000 annually, a household can afford to spend $205 a month on communications, according to data developed by Richard Thanki, University of Southampton.
In contrast, for the cohort including the seventh billion, a household can afford to spend only about $2.25 per month. Those of you familiar with the mobile market in India will recognize the number. The average mobile account in India represents monthly spending of about $2.
Where the cohort including the second billion people has household income of about $12,700, they can afford to spend about $53 per month on communications.
The cohort including the third billion, with income is $5,500, can afford to $23 a month on communications..
The cohort including the fourth billion has $2990 annual income, and can afford to buy $12 a month of communications services.
The cohort including the fifth billion earns $1770 annually, and can afford to spend $7 a month.
The cohort including the sixth billion can afford to spend $4.40 per month on communications. The cohort including the fifth billion people can afford to spend $7 per month.
Average annual income for the cohort including the seventh billion people is $540 per year. Africa and India dominate the seventh billion cohort, many would note.
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