Though virtually any observer would have to agree that computing, storage and bandwidth costs have declined dramatically over the last 50 years, while performance increased, many of those same observers would also argue that home broadband prices are higher over that same period.
As often is the case with product and price comparisons over time, it is complicated. One has to contend with inflation, which means nearly all prices, for all products, are higher in 2023 than they were in 1983.
Beyond that, people are buying more-capable products sold at higher prices than “basic” products, often in product bundles that offer prices lower than the posted stand-alone product prices.
And though there are changes in product choices, consumer connectivity service spending as a percentage of income has not changed all that much since 1980.
As a 2023 smartphone is not the same device as a 1980s “voice” handset, so a 2023 home broadband service is not the same as a 1980s dial-up or T1 service.
The hedonically-adjusted monthly price is a measure of the real cost of broadband, taking into account changes in the price of other goods and services over time. Ignoring direct inflation adjustments, and using hedonic adjustment, the “real” monthly price of home broadband has fallen significantly since the 1980s.
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