Can the Poor Afford Mobile Telephony? Evidence from Latin America

Report

A June 2008 study by Roxana Barrantes (Instituto de Estudios Peruanos) and Hernan Galperin (Universidad de San Andres) that analyses the cost of a low-volume basket of mobile services across Latin American countries and compares it with income and poverty indicators. It finds that the poor generally pay a premium for prepaid subscriptions, that affordability is an important predictor of mobile penetration, and that current tariff structures inhibit consumption by the poor, so policy should prioritise lower tariffs and commercial innovation for low-income groups.