Broadband Prices Decline as Speeds Surge, USTelecom Reports

WASHINGTON, Dec. 19, 2024 – Broadband prices have plummeted nearly 60% in real terms over the last decade, according to USTelecom’s latest report.

While adjusting for inflation, USTelecom’s 2024 Broadband Price Index highlighted significant long-term price declines in broadband services, with prices for popular speed tiers — between 100 Megabits per second (Mbps) and 940 Mbps — falling 59.9% in real terms since 2015, coupled with faster speeds and improved consumer value.

The USTelecom report, authored by founder of Telcodata and Business Planning Arthur Menko, analyzed pricing trends using data from the Federal Communications Commission. It found prices for those same plans dropped 9.4% year-over-year when adjusted for inflation. Meanwhile, Gigabit offerings saw a 3.9% real price decline in the same period.

These reductions have been accompanied by significant increases in performance, USTelecom reported, with download speeds more than doubled since 2015, while upload speeds have risen by 88.5%.

A recent study by BroadbandNow tracks with USTelecom’s findings, reporting a 39% drop in the inflation-adjusted price of fiber broadband since 2015. BroadbandNow noted that fiber has become more affordable, with nominal prices for fiber decreasing by 19% since 2015. However, the average broadband bill — hovering around $90 per month — remained well above BroadbandNow’s affordability threshold of $60 per month.

USTelecom credited private sector investment and expanded fiber deployments for these trends, emphasizing that consumer preferences were shifting toward faster, more competitive plans, with 55.4% of U.S. households subscribed to plans between 100 Mbps and 940 Mbps, while 25.1% opted for Gigabit speeds, as of December 2023.

A recent study by the Technology Policy Institute offered a more complex view, focusing on nominal prices — what consumers actually see on their bills — rather than inflation-adjusted figures. Between 2022 and 2024, TPI found that broadband prices for some speed tiers, including Gigabit and 50 Mbps plans, rose faster than general inflation.

For instance, while USTelecom points to steady Gigabit price declines in real terms, TPI observed that nominal prices for these plans have hovered between $105 and $110 per month since 2018, with minimal reductions in recent years. Moreover, TPI notes that broadband prices for certain tiers outpaced the Consumer Price Index increase of 6% between June 2022 and June 2024.

Either way, consumers report they have mostly not felt these savings. A recent survey by U.S. News & World Report of 2,500 adults across five populous states found that average internet bills climbed from $81 at sign-up to $98 today. Over half of respondents reported struggling to balance internet costs with rising grocery and utility bills, and 76% expressed support for government price caps on broadband services.

FCC Chairwoman Jessica Rosenworcel – who is departing next month – has noted affordability remains a critical issue, especially for households hit hardest by rising costs of living. 

USTelecom’s 2024 BPI report analyzed data from the FCC’s Urban Rate Survey, which collects pricing information provided by internet service providers for stand-alone residential broadband services, as well as by download/upload speed and by technology. The report relies mainly on data from the FCC’s 2015, 2017 and 2024 rate surveys.