The Digital Divide, Internet Development and Pricing Session 2: Internet pricing and access Sam Paltridge, OECD

Internet access pricing since 1995

OECD Internet Pricing Comparisons Prices for Incumbent –practical (9400 ISPs at –market exit –quality of service –market share (35% share of subscribers in OECD, 40% share in Europe) –most interest/requests –national coverage (?) What is included: –Monthly line rental –20, 30 and 40 hours connection time at peak and off-peak times (including discount schemes) –US$ or US$ (PPP) –ISP charge –Peak and Off-peak comparisons –Tax

Urban-Rural Digital Divide: The difference a POP can make to pricing in Australia

40 Hours US$ PPP (off-peak), September /

Internet subscribers and pricing

Internet Development and Pricing

The Digital Divide in the OECD

Online Time and Pricing: Average usage in markets with unmetered tariffs is 2 to 4 times higher than those with metered tariffs. Changes in pricing structure impact on usage.

E-commerce, Access and Usage

At the beginning of 2000 five countries had unmetered access. At the close of 2000 there will be 12. ‘Traditional’: –Australia, Canada, NZ, Mexico, US. Introduced in 2000: –24/7: Germany, Portugal, UK. –Off-peak: Finland, Hungary, Korea, Spain. Close Call: –Japan (NTT for ISDN and late night) Unmetered but not from incumbent: –France, Netherlands, Ireland, Italy, Poland, Switzerland, Sweden.

More Information OECD - Communications Outlook 2001 OECD Website - Internet Hosts - Netsizer ( Secure Servers - Netcraft (