May 26, 2021
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USTelecom’s 2021 Broadband Pricing Index (BPI) shows the decreasing cost and increasing value of broadband service in the United States between 2020 and 2021. Using FCC and other public data, the 2021 BPI research examines recent trends in residential fixed broadband pricing.
This second installment of the BPI reveals continued and substantial price reductions for the most popular and highest-speed broadband internet services. These price declines coincide with an unprecedented increase in pandemic related broadband demand and an increase in the overall cost of consumer goods.
2021 Broadband Pricing Index key findings:
The analysis makes price comparisons on two fronts: the most popular speed tiers (BPI-Consumer Choice) and the highest speed tiers (BPI-Speed) and found substantial broadband price reductions have occurred in year-over-year (YOY) comparisons for the pandemic years of 2020 and 2021.
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- The price of the most popular tier of broadband service has declined by 7.5 percent year YOY; a one-year price decline of 9.3 percent when adjusted for inflation.
- The price for the highest speed broadband service offering declined by 2.3 percent YOY; a one-year price decline of 4.2 percent when adjusted for inflation.
- These broadband price declines (from 2020-2021) occurred at a time when the cost of overall goods and services increased by 1.9 percent.
UPDATE: In addition to the pricing trends of the highest speed and most popular tiers of broadband service, USTelecom has now analyzed entry-level broadband offerings. Check out what the data the shows.
[The 2021 BPI] continues a years-long story of declining prices, not to mention accelerating speeds that have unlocked a range of broadband-fueled innovations. The truth is: more Americans have cheaper and flat-out better broadband service choices than they did one year ago.” Jonathan Spalter