Sunday, July 14, 2024

Have Home Broadband Prices Gone Up, Down or Sideways since 2000?

It is hard to say, for certain, whether home broadband prices in the U.S. market have increased, decreased or stayed the same since about 2000, for several reasons. One can measure without adjusting for inflation. One can measure the “price most people pay,” which does not account for hedonic changes (better performance for the same price). Or one can measure any specific speed tier and its price over time. 


Without adjusting for inflation; consumer product choices or hedonic product changes, one might argue that prices have risen. Then there is the matter of whether survey respondents report the full price or only the advertised price before taxes and fees.  


Based on 2000 and 2023 typical prices, not adjusted for inflation, some might argue prices have stayed consistent, ranging between $30 and $75 a month for most of two decades. 


But there has been hedonic change, as downstream speeds have grown about two orders of magnitude, even if typical prices have remained roughly in the same ranges over time.  

 

Year

Average Download Speed (Mbps)

Typical Pricing Range

Sources

2000

0.5 - 3

$30 - $100+

AllConnect, NCTA

2005

3 - 6

$20 - $80+

AllConnect, NCTA

2010

10 - 25

$40 - $70+

AllConnect, NCTA

2015

25 - 50

$50 - $80+

AllConnect, NCTA

2020

50 - 100

$40 - $70+

AllConnect, NCTA

2023

100 - 200+

$30 - $100+

AllConnect, NCTA





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