U.S. News and World Report published the results of a new broadband survey in April that concentrated on what people are paying for broadband. The survey was administered to 2,500 people nationwide and asked about prices paid for broadband, service reliability, and overall satisfaction with their ISP.
The survey had some interesting findings:
- The survey found that 95% of U.S. adults say they use the Internet.
- The survey showed that the number one concern of U.S. Internet customers is price – and the survey was taken before the end of the ACP low-income subsidy.
- Respondents in the survey had initially paid an average price of $77 for Internet service. However, their current bills had climbed to an average of $89 per month through price increases or from the lapse of promotional pricing.
- New Jersey has the highest broadband rates, with an average monthly bill of $126. Folks in New Jersey have also seen the biggest bill increase, with the average price increasing by $28 since they first purchased broadband.
- The lowest Internet bills are in Montana, where the monthly average bill is $70.
- Folks in North Dakota have seen their average broadband bills drop by an average of $4 since they first signed up for service.
- One-third of respondents said that cost is an issue, and they have to trim other expenses to be able to pay for broadband.
- 54% of respondents are still bunding broadband with another service. This is way down from surveys I remember from a decade ago where 75% or more of households were buying a bundle.
- 38% of respondents don’t know the speed they are paying for.
- Older consumers are subscribing to slower speeds, with the most common package for those over 54 years old being between 25 Mbps and 100 Mbps. The age group of 45 to 54 had the fastest average speeds, with most subscribing to speeds between 300 Mbps and 1 Gbps.
- 75% said their Internet connection is reliable, which the survey saw as good news. I guess I’m a pessimist and see that 25% of people don’t have a reliable connection.
- Subscribers in the South were the most satisfied with reliability.
- 73% of all subscribers were satisfied with their Internet service.
Overall, this survey showed the same trends that I’ve seen in other surveys, including the ones done by my consulting firm. Prices paid for broadband are definitely higher year after year – regardless of the claims of the big ISPs that broadband prices are dropping.
The bundle is growing less popular as millions of homes continue to drop traditional cable TV each year.
The majority of people are happy with the reliability of networks, but that means that 25% of homes are unhappy. About the same percentage (73%) are happy in general with their broadband connection.
The question I wished the survey would have asked is if people felt they have a choice of ISPs. The surveys we’ve been conducting show that a large percentage of homes, including many who are happy with their ISP, wish for a competitive alternative.