An analysis of broadband pricing trends from 2015 to 2024
Why It Matters: Price of service is often cited as one of the key pillars that uphold America’s longstanding digital divide. Adoption rates vary widely across the country, and affordability has been thrust into the conversation more recently with the expiration of the Affordable Connectivity Program, the largest benefit plan for low-income Americans.
As part of our ongoing efforts to understand the forces that sustain the digital divide in the U.S., we’ve tracked broadband pricing across the country for more than a decade. This study represents an analysis of pricing trends across three key technologies (cable, DSL, and fiber) in order to gain insight into how market forces and infrastructure policies have influenced the affordability of broadband over time.
Key Findings
- Although inflationary forces have caused many goods and services to become more expensive in recent years, broadband prices have remained steady on average since 2015, hovering around $90 per month.
- The gold standard of technologies, fiber, has become more affordable. When adjusted for inflation, fiber has seen a 39% drop in average price, indicating that the premium technology has now matured and expanded into many existing markets.
- Despite broadband prices remaining stable relative to inflation, the average price of $90 is still well above our own threshold for affordable connectivity, which is $60 or less. This figure also does not account for so-called “junk fees” and additional charges that consumers may increasingly be subject to.
- DSL has remained the most affordable connectivity type historically. These legacy phone line connections are widely considered to be the lowest-performing terrestrial connection type.
Broadband Price Trends – All Technologies
When looking across all technology types we studied, the nominal prices of broadband plans have remained relatively stable over the period from 2015 to 2024:
Inflation-Adjusted
The real prices, adjusted for inflation to 2015 dollars, show a clear downward trend. This indicates that while the nominal price has not changed much, the value of money has decreased due to inflation, making the real cost of broadband plans lower over time.
These insights are crucial for understanding market dynamics, guiding policy decisions, and informing consumer choices in the broadband sector.
Price Drops Between Tech Types
The visual below showcases the comparative rate of price decreases across fiber, cable, and DSL internet on average.
Fiber Connectivity Price Trends
Fiber is often hailed as a “gold standard” for broadband connectivity. This is because the technology allows for faster speeds and more expandability than any other technology, making it a future-proof option (and a wise investment for national infrastructure spending led, right now, by the BEAD Program).
As the connection type has become more ubiquitous over the last decade, prices have fallen steadily. From 2015 to 2024, the average nominal price of a fiber connection fell 19 percent. But when adjusted for inflation, that change amounts to a 39% drop in price.
In the following chart, you can see the average price of fiber broadband expressed both in nominal value as well as in 2015 dollars, illustrating how prices have kept up with inflation since.
Declining Real Prices: The real price of fiber broadband plans has consistently decreased from 2015 to 2024. This suggests that, even though nominal prices have also been decreasing, the rate of inflation-adjusted price decline is significant, indicating improved affordability in real terms.
Inflation Impact: Inflation has a notable impact on the purchasing power of money. The CPI increased from 237 in 2015 to 314 in 2024, reflecting overall price level increases in the economy. However, broadband prices have not only kept pace with inflation but have actually decreased in real terms, highlighting a positive trend for consumers.
Policy Implications: For policymakers and consumer advocates, these findings could suggest that efforts to enhance broadband access and affordability are yielding positive results. Continued monitoring and support for such initiatives could further benefit consumers.
Economic Context: The broader economic context of inflation and how it affects different sectors can be understood better through such analyses. While some goods and services may become more expensive in real terms, others, like broadband in this case, become more affordable, highlighting differential impacts of inflation across sectors.
| Year | Average Nominal Plan Price | Average Inflation-Adjusted Price | Download Speed Range |
|---|---|---|---|
| 2015 | $ 125.83 | $166.79 | 200 Mbps – 5 Gbps |
| 2016 | $ 122.21 | $159.98 | 200 Mbps – 5 Gbps |
| 2017 | $ 120.47 | $154.41 | 200 Mbps – 5 Gbps |
| 2018 | $ 117.91 | $147.52 | 200 Mbps – 5 Gbps |
| 2019 | $ 115.44 | $141.86 | 200 Mbps – 5 Gbps |
| 2020 | $ 112.53 | $136.60 | 200 Mbps – 5 Gbps |
| 2021 | $ 111.08 | $128.79 | 200 Mbps – 5 Gbps |
| 2022 | $ 105.52 | $113.28 | 200 Mbps – 5 Gbps |
| 2023 | $ 103.19 | $106.40 | 200 Mbps – 5 Gbps |
| 2024 | $ 102.41 | $102.41 | 200 Mbps – 5 Gbps |
Cable Price Trends
Cable internet has been one of the most dominant mediums for connectivity (alongside DSL) for decades. Since 2015, the average price of a cable connection has fallen by 31% when adjusted for inflation.
| Year | Average Nominal Plan Price | Average Inflation-Adjusted Price | Download Speed Range |
|---|---|---|---|
| 2015 | $87.76 | $116.33 | 50 Mbps – 2 Gbps |
| 2016 | $80.56 | $105.45 | 50 Mbps – 2 Gbps |
| 2017 | $82.58 | $105.84 | 50 Mbps – 2 Gbps |
| 2018 | $79.32 | $99.24 | 50 Mbps – 2 Gbps |
| 2019 | $80.25 | $98.62 | 50 Mbps – 2 Gbps |
| 2020 | $79.48 | $96.48 | 50 Mbps – 2 Gbps |
| 2021 | $79.57 | $92.26 | 50 Mbps – 2 Gbps |
| 2022 | $79.77 | $85.64 | 50 Mbps – 2 Gbps |
| 2023 | $80.01 | $82.50 | 50 Mbps – 2 Gbps |
| 2024 | $79.80 | $79.80 | 50 Mbps – 2 Gbps |
DSL Price Trends
DSL prices have remained stagnant for the most part. This is likely due to the bulk of these connections being offered in areas where few alternatives are available. Since 2015, the average cost of DSL has dropped by 28%.
| Year | Average Plan Price | Average Inflation-Adjusted Price | Download Speed Range |
|---|---|---|---|
| 2015 | $74.46 | $98.70 | 5 Mbps – 400 Mbps |
| 2016 | $73.66 | $96.42 | 5 Mbps – 400 Mbps |
| 2017 | $72.93 | $93.48 | 5 Mbps – 400 Mbps |
| 2018 | $69.05 | $86.39 | 5 Mbps – 400 Mbps |
| 2019 | $68.84 | $84.60 | 5 Mbps – 400 Mbps |
| 2020 | $69.76 | $84.68 | 5 Mbps – 400 Mbps |
| 2021 | $70.08 | $81.25 | 5 Mbps – 400 Mbps |
| 2022 | $71.62 | $76.89 | 5 Mbps – 400 Mbps |
| 2023 | $71.35 | $73.57 | 5 Mbps – 400 Mbps |
| 2024 | $71.52 | $71.52 | 5 Mbps – 400 Mbps |
America’s Competition Problem
The relative lack of movement on price overall across the past decade is a symptom of one of the longest-standing issues in the broadband landscape – a stagnant competitive environment. In many cities across the country, one or two providers have de facto “control” over the market, leading to a lack of competition from smaller local providers. Fiber providers have acted as a competitive injection in many areas, installing new lines in these markets and driving prices down to compete with the entrenched, older technologies.
The Next Frontier: Bringing Nominal Costs Down
Although it is encouraging to see that prices have remained steady over time for broadband, itis fair to say that there is still plenty of room for improvement when it comes to the ability to afford a robust broadband connection in America today. Data from Pew Research indicates that up to 43% of adults with annual household incomes under $30,000 did not have a home broadband subscription.
At BroadbandNow, we generally refer to low-cost connectivity as a connection that meets the 100/20 Mbps threshold and costs less than $60 per month. The average price of $90 is a ways off from this milestone, but the rapid reduction in fiber price is a promising sign of what might be to come, provided current broadband affordability initiatives are continued or expanded upon at the federal level.
This includes re-funding or implementing a new version of the Affordable Connectivity Program, which ran out of funding earlier in2024 and is currently in limbo as lawmakers debate the merits of the program and the feasibility of a new iteration.
About The Data
At BroadbandNow, we’ve collected plan and pricing data on all 2,000+ providers in our database for more than a decade. This extensive dataset allows us to perform detailed analyses and provide insights into the broadband market’s evolution over time. Here are some key points about our data collection and its significance:
Provider Data: Our database includes information from over 2,000 broadband providers, ranging from major national carriers to smaller, regional ISPs. This ensures a broad and representative sample of the market.
Historical Depth: With more than 10 years of data, we can track long-term trends and changes in pricing, speeds, and availability. This historical depth is crucial for understanding how the market has evolved and for making informed predictions about future trends.