Jonathan Spalter

New Data: Broadband Prices Continue to Drop While Value Increases

Today, USTelecom released our latest analysis of the broadband marketplace, the 2022 Broadband Pricing Index (BPI) Report. This third version reinforces the same good news for consumers as earlier reports: pricing for the most popular and highest-speed broadband internet services continues to decline while value continues to increase.

In the midst of an economy filled with inflationary pressures, this year’s findings are particularly striking. The new 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.

2022 BPI key findings include:

Broadband Pricing Ran Counter to Significant Overall Inflation in the Past Year

  • Real BPI-Consumer Choice [the most popular speed tiers each year] broadband prices dropped by 14.7% from 2021-2022;
  • Real BPI-Speed [the highest speed tiers each year] broadband prices 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.

Historical Broadband Pricing Analysis Shows Real Broadband Prices Have Been Cut in Half from Seven Years Ago

  • Real BPI-Consumer Choice tier prices dropped by 44.6% from 2015-2022; and
  • Real BPI-Speed tier prices dropped by 52.7% from 2015-2022.

The Consumer Value of Broadband Service Has Never Been Higher

  • Providers have increased the speeds of their broadband offerings. 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; and
  • The real cost per megabit of the most popular and fastest service offerings has dropped by approximately 75% since 2015.

These numbers track other similar findings including data from BroadbandNow’s study, Broadband Pricing Changes: 2016 to 2022, that found broadband prices at all speeds have decreased in the last five years.

All of this is great news for American broadband consumers.

Prior reports: 2020 Broadband Pricing Index Report, 2021 Broadband Pricing Index Report and Entry-level Broadband Pricing Index Report.