Friday, February 11, 2022

Study Indicates Broadband Internet Service Prices Have Fallen the Last Five Years

A study released on February 7 by BroadbandNow found across-the-board decreases in prices for broadband Internet service offerings over a five year period ending in the fourth quarter of 2021. The publication is called "Broadband Pricing Changes: 2016 to 2022." Among the BroadbandNow's findings, the average monthly price for broadband offerings with speeds in the range of 25Mbps to 99 Mbps fell by $8.80 or 14% over that span of time. And the average monthly price for 500+ Mbps offerings decreased by $59.22 or 42%. BroadbandNow's study provides evidence that effectively rebuts claims by proponents of rate regulation that prices for broadband have been increasing and made broadband supposedly unaffordable. 

For more on the topic of broadband pricing and affordability, see Free State Foundation Fellow Andrew Long's August 2021 Perspectives from FSF Scholars, "Evidence of Falling Broadband Prices Grows Despite Overall Spike in Inflation." Mr. Long's Perspectives analyzes sources that indicate that prices for broadband Internet service offerings decreased between 2020 and 2021, while putting those figures in the context of the strong capital investment in broadband networks that is benefiting U.S. consumers. Also check out his August 2021 blog post, "New BroadbandNow Report Further Demonstrates Affordability of Broadband."