Increasing Broadband Internet Penetration
In the OIC Member Countries
59
help with resume creation and job searches. While owners choose their own pricing strategies,
LAN houses typically charge between US$ 0.40 and US$ 1.50 per hour. Some neighborhoods
have more than 100 LAN houses, many of which stand side by side.
The LAN houses came in part as a result of the federal government’s Computers for All
development project, which created credit lines allowing low-income families to purchase
computers in small monthly installments. In some instances, citizens would purchase a
computer and charge people to use it. As they accrued profits, they would purchase more
computers and broadband access. By 2008, the country held more than 90,000 LAN houses,
accounting for half of all Internet access in Brazil and 79% of all Internet access amongst the
two poorest classes. For many of these citizens, the LAN houses were their only means of
accessing the Internet. By 2010, an estimated 35 million citizens utilized LAN houses, a
number slightly below previous years due to increased mobile phone penetration. This trend
continued, as noted in a 2013 survey released by the Brazilian Internet Steering Committee.
That said, LAN houses still offered access to 68% of the population in the lowest income
brackets. The committee concluded that the access points remain critical for digital inclusion28.
Achieving broadband affordability in Uruguay and ChinaBeyond the competitive stimuli, the reduction of broadband service prices can be achieved
through a number of targeted public policy initiatives. These initiatives are generally
implemented with the objective of achieving universal broadband adoption. The underlying
rationale for these policies is that, beyond a competition model, government policies should be
implemented to further price reductions of broadband in order to make it accessible to
segments of the population affected by limited affordability.
One approach relies on state-owned telecommunications operators to offer, under their public
service imperative, a low-priced broadband service. Obviously, this option is only viable in
those countries that have not completely privatized their telecommunications industry. Under
this option, a state-owned broadband provider assumes responsibility, as a public service
entity, for providing a low-price broadband service. The advantage of this option is that, in
addition to fulfilling the objective of tackling the economic barrier, the offering can act as an
incentive for other private operators to launch their own more affordable service.
In May 2011, government-owned telco Antel in Uruguay launched its “Servicio Universal
Hogares” – or “Internet for All” - plan, aiming to bring Internet access to every home in
Uruguay. For a one-time payment of US$30 – the cost of a modem - all fixed line phone
customers qualified for free ADSL service. The package offered a basic connection of 256 Kbps
and targeted the low-income segment to which the price of broadband represented a barrier to
28 Sour t. 2009.
Web. .
Lemos logies &
Intern reedom
House. N.p., 2013. Web. .