U.S. prices for mobile service and internet access have been dropping virtually continuously since 2000, something also a trend in the rest of the world. Since 2010 alone, U.S. fixed network internet access prices dropped 45 percent to the end of 2019, for example.
One analysis of the costs of fixed network internet access conducted by the International Telecommunications Union, using the purchasing power parity method, shows that by 2016, internet access prices--adjusted for differences in local prices--actually were quite consistent across nations.
In all countries, prices hovered around a $50 a month level, after PPP adjustments.
The point is that, even if nominal retail posted prices in the U.S. market seem higher than in Western Europe, Japan, South Korea or China, PPP prices in all countries are about the same.
Policymakers typically want their citizens to have quality broadband access at affordable prices, but have the luxury of setting policy without consequences. Internet service providers face very real consequences if they guess wrong about competitor supply and consumer demand.
As recently as 2016, for example, there were eight facilities-based mobile operators in India. In early 2020, there are just three, and many expect just two are expected to be in operation by 2021, as Vodafone Idea might simply go bankrupt. Sustainability therefore is a real ISP issue, and prices matter. But it is harder than one initially believes to determine what “price” is, in any market.
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