New numbers from USTelecom on the broadband marketplace show that broadband pricing ran counter to significant overall inflation in the past year. According to the 2022 Broadband Pricing Index (BPI) Report, pricing for the most popular and highest-speed broadband internet services continues to decline while value continues to increase.
The report compares prices over two time periods: (1) the year-over-year price difference from 2021-2022; and (2) a longer-term view of price changes between 2015 and 2022.
Key findings include:
- Real broadband prices for the most popular speed tiers each year dropped by 14.7% from 2021-2022;
- Real broadband prices for the highest speed tiers each year dropped by 11.6% from 2021-2022; and
- In contrast, the cost of overall goods and services rose by over 8% in the same time frame.
From a historical perspective, pricing analysis shows real broadband prices have been cut in half from seven years ago:
- Prices for the most popular speed tiers each year dropped by 44.6% from 2015-2022; and
- Prices for the highest speed tiers dropped by 52.7% from 2015-2022.
The takeaway, according to USTelecom? The consumer value of broadband service has never been higher. Providers have increased the speeds of their broadband offerings, and when combined with the price drops for that service, the overall value to customers (measured on a dollars/megabit basis) shows a dramatic improvement over the past seven years. In fact, the real cost per megabit of the most popular and fastest service offerings has dropped by approximately 75% since 2015.
BroadbandNow also recently found that broadband prices at all speeds have decreased in the last five years.