Monday, April 7, 2025

Most People Probably Pay Less for Home Broadband Than We Think

It always is difficult to ascertain what “most” consumers actually are paying for home broadband service, partly because people choose a range of plans (faster speeds cost more); partly because many buy service only in a bundle, so there is not actual discrete and identifiable cost. 


In the U.S.  market that is a pronounced issue, as an estimated 70 percent of home broadband services are purchased as part of a bundle. So most of the market arguably buys home broadband in a way that obscures the actual cost. Only about 30 percent of buyers choose a service with a clear recurring price. 


Platform

Typical Speeds

Data Allowance

Monthly Price Range

Common Characteristics

Satellite

~25–30 Mbps download

~3–5 Mbps upload

10–20 GB/month (with some unlimited options at higher prices)

~$75–$85

Mainly chosen in rural or remote areas; higher latency and data caps are common; plans often come with extra fees for overage.

Cable TV

~100 Mbps (often scalable to 200+ Mbps in some markets)

Unlimited data (with occasional fair-use policies)

~$55–$65

The most popular option in urban/suburban areas; offers a good balance of speed and cost; bundle options with TV/phone are common.

Telco (Fiber/DSL)

~100–200 Mbps (fiber often delivers symmetrical speeds)

Typically unlimited or very high data limits

~$60–$70

Fiber plans (e.g., Verizon Fios, AT&T Fiber) are prized for reliability and speed; DSL remains common where fiber isn’t available.

Independent ISP

~50–150 Mbps

Varies, but often unlimited or high caps

~$50–$60

Smaller regional providers often offer competitive pricing and personalized service; plan details can be more tailored.

Fixed Wireless

~25–50 Mbps

Often moderate data caps (e.g., 250 GB/month) or unlimited with speed throttling

~$50–$60

Frequently used in rural or underserved areas; installation can be simpler and faster; speeds may vary with weather and line-of-sight conditions.

Mobile Broadband

Varies (commonly 10–30 Mbps when used as a home hotspot)

Often included as part of an unlimited smartphone plan or separate data allotment

~$55–$65

Purchased as a hotspot or integrated into a mobile plan; flexibility for on-the-go usage, but performance depends on network congestion and coverage.


And estimates vary dramatically when bundled service costs are considered. Where the estimated cost of a cable TV stand-alone service might be between $55 and $65 a month for 100 Mbps service, that same service might “cost” only about $30 to $40 a month when purchased as part of a bundle. 


Platform

Estimated Broadband Cost Portion

Notes

Cable TV

~$30–$40/month

Cable bundles often offer broadband at a discounted rate compared to standalone options, as the service is cross-subsidized by TV/phone components.

Telco (Fiber/DSL)

~$35–$45/month

Fiber bundles tend to emphasize higher speeds and reliability; the broadband portion may carry a slight premium compared to cable but still remains competitively priced in a bundle.

Fixed Wireless

~$30–$40/month

Often offered in rural or underserved regions, these bundles provide broadband at rates similar to cable bundles, though speed and data policies can vary.

Mobile Broadband

~$30–$40/month

When integrated into smartphone or home hotspot bundles, the effective broadband cost is often reduced as part of multi-line or data-centric deals.


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