Grocery stores put “price per ounce/serving” labels on product shelves. It has changed how I shop. Do I always buy the cheapest? No. Not all cookies are the same. But am I better informed? Yes. The National Broadband Plan promised similar tools with their Broadband Speed and Performance Digital Labels but those were based on performance – not cost.
The Minnesota Broadband Coalition has been working on a comparison of broadband pricing based on speed (bit) and data usage (byte). The Coalition is hoping that this information can help people — both consumers and policymakers –make more informed choices.
What does this mean?
There are some extreme differences – especially with satellite. You can see that the satellite service is more expensive for both bandwidth (speed) and data usage. The satellite price for data usage, at $5 or $6 per GB (gigabyte) compares unfavorably to the dimes and nickels charged by landline providers. For all providers except satellite, the lower bandwidth services have the highest price per Mbps (megabit per second). In other words, the more you use, the less you pay per unit. There are two providers have no data cap for their Gigabit service.
Sources now put monthly average household data use at 190 GB (gigabyte) and that number is constantly growing. For rural residents that use data for school, business, health care or other data-heavy activities, it is clear that satellite is an expensive or very limiting broadband option. It is, however, available everywhere, for those who can afford it.
The Coalition has created a broadband cost analysis spreadsheet that you can use to help calculate the unit cost of your broadband.
Mini-Lesson: Reminder on bits (speed) versus bytes (data usage)
- Mbps is a measure of speed – megabits per second.) Speed provides the capacity to interact online. The FCC has a guide to help track speed requirements by online activity. For example, streaming an HD video requires 4 Mbps connection (download). To figure out your household’s speed requirement, you’ll have to consider all the users of broadband – every laptop, smartphone, ipad and the Internet of things for each member of your household or office. Think about it – your family is probably using more than one device at the same time.
- GB is a measure of how much data you’re using – gigabytes. For example, an HD movie may be 3-5 GB. It’s like a cup that gets filled. Depending on your provider, you may pay more if you overfill your cup, your connection maybe slowed down if your cup gets filled or your provider may not have data caps (aka data allowances) so you can interact online (download or upload) without limitations. Many people have experience with usage on mobile contracts – but cellular providers aren’t the only ones that track and charge by usage.
Need more? I wrote a longer piece on bits/bytes and average household use in December.