Fiber Broadband Affordability Improved in 2022

A February 21 article in FierceTelecom by Masha Abarinova highlights survey findings by research firm Cowen that fiber broadband is more affordable and accessible to U.S. residential users. According to article, "Cowen found the average income of a FTTH [fiber-to-the-home] subscriber was around $83,000, compared to approximately $85,000 for those not subscribed to fiber." In other words, for the first time, "income for FTTH subscribers is lower than income for non-FTTH subscribers." Thus, it seems that fiber broadband is becoming more broadly affordable for Americans. And as the article observed, the Cowen survey found that fiber speeds continue to rise: "The survey showed FTTH subscribers received an average speed of 579 Mbps, whereas non-fiber customers are getting an average 419 Mbps. Notably, the 579 Mbps average fiber broadband download speed figure for the fourth quarter 2022 is up from 429 Mbps for fiber in the fourth quarter of 2022.

The Cowen survey constitutes another positive data point regarding broadband affordability in the U.S. In a series of blog posts from 2022, Free State Foundation scholars called attention to broadband affordability figures provided by different outlets:

• Seth L. Cooper, "New Study Touts the Affordability of Mobile Broadband In America," FSF Blog (November 30, 2022).
• Seth L. Cooper, "In the Face of Inflation, Prices Fall for Internet and Wireless Services," FSF Blog (October 14, 2022). 
• Andrew Long, "2022 USTelecom Broadband Pricing Report: Further Proof that Competition is Benefitting Consumers," FSF Blog (June 30, 2022)
• Andrew Magloughlin, "Dropping Consumer Broadband Prices Indicate Lack of Market Power," FSF Blog (May 13, 2022). 
• Seth L. Cooper, "Study Indicates Broadband Internet Service Prices Have Fallen the Last Five Years," FSF Blog (February 11, 2022). 

Acknowledging the significant difficulties posed to new investment and consumer buying power by reckless federal government-induced inflation, ongoing fiber deployments are likely to markedly improve the fiber access and affordability in 2023. A February 24 article FierceTelecom article by Diana Goovaerts provides a round-up of expected fiber deployments by broadband providers for this year, including FierceTelecom's admittedly underinclusive minimumprojection of 6.5 million to 7 million new fiber passings in the U.S. for 2023.