Part B1 · Growth, Income and Spending

Affordability: Price Against Income

Affordability compares price with income. The '1 for 2' target says 1 GB should cost no more than 2% of average monthly income.

Affordability: Price Against Income · Illustrated by Hendra Saputra with AI assistanceSelect the illustration to explore it at a larger size.

The idea

Compare pack price with the income and cash-flow pattern of the segment buying it. National average income can conceal affordability problems for lower-income customers. A monthly benchmark can also miss the cash constraint of a customer paid daily. Use dated income estimates, state the working-day assumption where relevant, and investigate changes in small-pack purchases before assigning a cause.

Use it thoughtfully

  • Calculate price as a share of income for each segment.
  • Protect entry packs when the share rises.
  • Recheck every quarter as wages and prices move.

An example

ILLUSTRATIVE EXAMPLE: A team finds 1 GB now costs 2.4% of a low-income segment's monthly income and adds a smaller weekly pack for that segment.

A question to try

What share of monthly income does 1 GB cost for your lowest-income segment?

A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.

Connect the ideas

Illustration

Use + and − to zoom, scroll to explore, or Escape to close. Please seek permission before reusing an illustration.