Telecommunications Prices Decrease

There is good news for consumers of telecommunications; broadband and mobile prices continue to decrease worldwide (Whitney, 2010, p.1). The International Telecommunication Union reports that in 2009 the cost of broadband services decreased approximately 42%, on average, in 161 nations (Whitney, 2010, p.2). Broadband and mobile telecommunications were not the only ones to see their prices fall. The International Telecommunications Union also stated that there was a 20% decrease, overall, in the cost of landline telephone telecommunications (Whitney, 2010, p.2). Despite the worldwide decrease in price for broadband internet, the service still proves to be expensive to people in many poor nations (Whitney, 2010, p.2).

Sami Al Basheer Al Morshid, of the International Telecommunication Union, pointed out that worldwide internet and phone usage have grown despite poor economic times (Whitney, 2010, p.2). He attributes this, in part, to mobile cellular technology (Whitney, 2010, p.2).

I believe that the information provided by Lance Whitney, though encouraging for the industry, is not that surprising. Historically, as time progresses, various types of technology decrease in price as they become more readily available or as newer versions come out. It should be expected that broadband internet remains expensive to people living in poor nations (Whitney, 2010, p.2). There are not enough consumers in poor nations to stimulate the competition that is needed to bring down prices to levels where the majority of people in these poor nations can afford to purchase broadband internet.