July 26, 2022
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Broadband Prices Drop While Value Increases
Despite overall price inflation that has occurred in the U.S. marketplace over the past year, USTelecom’s latest Broadband Pricing Index (BPI) report reveals continued significant price reductions for both the most popular and highest-speed broadband internet service.
KEY FINDINGS:
Broadband Pricing Ran Counter to Significant Overall Inflation in the Past Year
- The price of providers’ most popular broadband speed tier (BPI-Consumer Choice) dropped by 14.7% from 2021-2022
- Providers’ fastest speed tier option (Real BPI-Speed) dropped in price by 11.6% from 2021-2022
- In contrast, the cost of overall goods and services rose by 8% from 2021-2022
Historical Analysis Shows Real Broadband Prices Have Been Cut in Half from Seven Years Ago
- Real BPI-Consumer Choice tier prices dropped by 44.6% from 2015-2022
- Real BPI-Speed tier prices dropped by 52.7% from 2015-2022
The Consumer Value of Broadband Service Has Never Been Higher
- Providers have increased the speeds of their broadband offerings and dropped prices for that service. Overall customer value shows a dramatic improvement over the past seven years.
- The real cost per megabit of both the most popular and fastest service offerings have dropped by around 75% since 2015.