News
The latest installment of US Telecom’s annual report, the 2023 Broadband Pricing Index, reported an 18 percent drop year-over-year in the price of providers’ most popular broadband speed tier and a 6.5 percent drop year-over-year in the price of providers’ fastest speed tier, according to an Oct. 11 statement from US Telecom, also known as the Broadband Association.
According to US Telecom’s report, the overall cost of goods and services has risen 5 percent during the same period without accounting for inflation.
USTelecom President and CEO Jonathan Spalter said the data demonstrated that the U.S. broadband market is working.
“Broadband competition is continuing to drive unprecedented value for U.S. consumers who are connecting at faster speeds and lower prices,” he said in a statement provided by US Telecom. “As the cost of housing, groceries, transportation, and other expenses continue to climb, broadband has emerged as one of the most cost-effective consumer services.”
Key findings from the report include further confirmation of trends that have occurred over the past eight years, according to US Telecom. Since 2015, when accounting for inflation, prices for the most popular and fastest-speed tiers of broadband have dropped 55 percent. During that same time period, download speeds for the most popular service offerings increased 140 percent and download speeds for the fastest services went up 117 percent, according to the report.
“The combination of faster speeds and lower prices has translated into an approximately 80 percent reduction over the past eight years in the real price per megabit for the most popular and fastest service offerings – allowing many consumers to do far more with their broadband service than ever before,” a summary of the report stated.
An online version of the report from US Telecom is available here, at US Telecom’s website.
