Tuesday, August 29, 2017

U.S. Internet Access Prices are Not as High as Some Believe

Though it remains common to hear complaints about “how slow” internet access is in the U.S. market, or how “far behind” U.S. internet access is, compared to other nations, what always seems missed is how inexpensive internet access is, on a “cost per gigabyte consumed” basis.

But some new studies also suggest that absolute retail cost in the United States is not as high as originally was said to be the case.

Also, on a “purchasing power parity” basis, U.S. internet access cost is among the lowest in the world.

Prices not adjusted for purchasing power parity suggest one set of cost rankings, globally.  On that score, U.S. prices per megabit of speed are high, compared to many other nations.

Source: Boston Consulting Group

Adjusting for purchasing power parity or general levels of income are key. For example, measured as a percent of gross national income per person, the monthly cost of owning a mobile phone in the U.S. market is less than one percent. In developing countries the cost can represent double digits percent of GNI per person. 

Image result for US internet access cost percent of GNI
source: Statista

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