U.S. News and World Report published the results of a broadband survey in April 2024 that looked at what people pay for broadband. Respondents to the survey said they had originally paid an average price of $77 for Internet service but that current bills had climbed to an average of $89 per month through price increases or from the lapse of promotional pricing.
They recently updated the survey in the five most populous states – California, Texas, Florida, New York, and Pennsylvania, and surveyed 500 people in each state. The survey asked about the initial price of broadband when people first subscribed and the price today. They asked about issues like data caps that affect prices. They asked if people understood their broadband speeds. And they asked how respondents felt about the end of the Affordable Connectivity Program.
Following are some of the key findings from the latest survey:
- Overall, the survey found higher prices than the earlier survey. The average initial price paid by all respondents in this survey was $81, compared to $77 in the previous survey. They found that the average current monthly bill is $98, which is considerably higher than $89 found in the previous survey.
- Between 12% and 17% in various states had run into a data cap issue.
- 53% of respondents said they had some level of challenge paying their broadband bill. 14% of respondents said they often found it difficult to pay their broadband bill, while 39% said they occasionally had a challenge.
- 76% of respondents said they would like the government to put a cap on the monthly cost for broadband.
- 87% of respondents were in favor of revamping the Affordable Connectivity Plan that gave a $30 discount for low income households. I have to think they surveyor had to explain ACP to most people – it’s hard to imagine that a huge percentage of people know what that is.
By state, the average original price and current average price for broadband is:
- California – $78 and $95
- Texas – $81 and $92
- Florida – $79 and $91
- New York – $85 and $99
- Pennsylvania – $83 and $110.
Since overall prices are higher than the previous survey, I wonder if broadband is more expensive in big states? My consulting firm does broadband surveys, and we’ve never gotten a response with an average rates as high as $98.
These survey results tell a very different story than is told every year by USTelecom, the trade association for the largest ISPs. In last year’s fourth annual Broadband Pricing Index, USTelecom made the claim that overall broadband prices dropped over 18% between 2022 and 2023.They make this claim by looking at broadband as a cost per subscribed megabit of speed – which has no relevance to the way that people use broadband.
I wish surveys like this one would ask one more question. I’d like them to ask if respondents feel they have a choice of ISPs. My gut tells me that customers who are served by the only fast broadband ISP likely pay a higher price than people who can choose between multiple fast ISPs.