USTelecom Broadband Pricing Index (BPI): substantial price reductions for broadband access
While U.S. inflation in 2022 has soared to a 40+ year high (at 8.6% YoY), the price of broadband internet access is still falling and consumers are getting even more for less.
USTelecom’s latest analysis of the broadband marketplace: 2022 Broadband Pricing Index (BPI). This year’s report finds pricing for the most popular and highest-speed broadband internet services continues to decline while value continues to increase. The research compares prices over two time periods: the year-over-year price difference from 2021-2022; and a longer-term view of price changes between 2015 and 2022.
The third installment of the USTelecom Broadband Pricing Index (BPI) reveals continued substantial price reductions for both the most popular and highest-speed broadband internet services.
As in previous years, the BPI uses FCC and other public data sources to assess recent trends in residential fixed broadband pricing in the United States. The 2022 edition of the BPI compares prices over two time intervals:
- The price difference from 2021-2022
- A longer-term view in price changes between 2015 and 2022
In both cases, as in the past, the BPI creates an index that allows comparisons between the most popular speed tiers in each year (BPI-Consumer Choice) and the highest speed tiers in each year (BPI-Speed).
Key Findings of the Report:
Broadband Pricing Ran Counter to Significant Overall Inflation in the Past Year
- Real BPI-Consumer Choice broadband prices dropped by 14.7% from 2021-2022
- Real BPI-Speed broadband prices dropped by 11.6% from 2021-2022
- In contrast, the cost of overall goods and services rose by 8% from 2021-2022
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
- 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.
- The real cost per megabit of both the most popular and fastest service offerings have dropped by around 75% since 2015. This gives the consumers a boost in their wallet and in their daily online performance.
References:
https://ustelecom.org/wp-content/uploads/2022/06/USTelecom-Broadband-Pricing-Report2022.pdf