Venture Insights - BRIEF: The prepaid ‘poverty premium’

BRIEF: The prepaid ‘poverty premium’

Abstract: Prepaid mobile services are often used as an example of a ‘poverty premium’. This brief explains the concept of the poverty premium and estimates the poverty premium and bulk buying discount for selected mobile plans. The poverty premium helps quantify the digital disadvantage faced by consumers experiencing poverty. It is therefore of interest to telcos, consumer advocates, and policy makers seeking to improve digital inclusion and the customer experience for people experiencing financial hardship.