The 2020 Broadband Pricing Index reports…
Using Federal Communications Commission and other public data sources, this report assesses recent trends in residential fixed broadband pricing between 2015 and 2020 in the United States. The key findings:
- The most popular tier of broadband service in 2015 (BPI-Consumer Choice) is now priced 20.2% lower and offers 15.7% faster speeds in 2020 on an average-subscriber-weighted basis.
- The highest speed offerings in 2015 (BPI-Speed) are now priced 37.7% lower and offer 27.7% faster speeds in 2020 on an averaged subscriber-weighted basis.
- Further, these price reductions run counter to inflation, which has increased consumer costs for overall goods and services by 9.3% over the same five-year period analyzed in this report. When inflation is considered, the real price of the most popular tier of broadband service has dropped by 28.1% since 2015; and the real price of the highest speed broadband service has dropped by 43.9%.
- This combination of declining prices and rising speeds delivers even greater value to consumers—as shown by a declining cost per megabit of connection speed (Mbps) of 37.9% for the most popular service and 56.1% for the highest speed service.
This data shows that broadband is becoming more affordable—thereby reducing, but certainly not eliminating, an obstacle to adoption. For instance, we know that 30% of K-12 students do not have access to high-speed internet and/or the devices needed to learn from home. More work, understanding, and concrete data is needed around the vital issue of affordability and this report seeks to contribute to that discourse.