Question 1

How much more are low-income customers actually paying for mobile data?

Accepted Answer

Prepaid users face a structural price gap of 27% to 44% per GB compared to the closest priced postpaid alternatives. This disparity is driven by bulk-buying discounts that favor higher-spend tiers, leaving the most vulnerable paying up to $1.57 per GB for essential connectivity.

Question 2

Which operators are most exposed to this pricing disparity?

Accepted Answer

Operator 1 currently shows the widest gap, with a 44% poverty premium reflected in a $1.50/GB prepaid rate versus $1.04/GB for postpaid. Across the 11 providers analyzed, unit costs consistently drop as total plan fees increase, penalizing those unable to commit to larger upfront costs.

Question 3

Are digital discounts solving or worsening the affordability gap?

Accepted Answer

New pricing models like auto-recharge discounts are creating additional barriers for customers with irregular income. While these systems lower costs for some, they reinforce a premium for those who cannot automate payments, contributing to a maximum observed unit cost of $1.57/GB for certain prepaid users.

Question 4

What is the scale of the data used to reach these conclusions?

Accepted Answer

The analysis is based on a comprehensive review of 64 distinct plans from 11 different providers as of June 2024. This dataset confirms that the lowest available data price is $0.98/GB for postpaid, a rate that remains inaccessible to the prepaid market.

The prepaid ‘poverty premium’

Abstract

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Abstract

Key Takeaways

Frequently Asked Questions

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