2024 Broadband Price Index: Lower Prices, Higher Speeds

Key findings Real prices for more popular broadband services are down 9.4% year over year and down 60% since 2015 Download speed from the most popular broadband service offerings has increased by 113.5%, and upload speed has increased by 88.5% Broadband prices continue to lag inflation Gigabit broadband prices declined 21.4% from 2017 to 2024 The last couple of years have brought monumental change to the broadband industry.From billions in funding allocations to unserved and underserved areas to a federal increase in the broadband speed standard, these changes have also meant that internet customers now have more access and choices than ever before.While there is still work to be done from a broadband accessibility standpoint, USTelecom’s 2024 Broadband Pricing Index illustrates declining prices, rising speed tiers and more consumer purchasing power throughout 2024, painting a bright future for internet consumers in a highly competitive broadband marketplace.Methodology USTelecom uses two metrics to track broadband pricing trends: BPI-Speed and BPI-Gigabit.

BPI-Speed – Pricing trends for services chosen by the majority of U.S.consumers.Speeds between 100 Mbps and 940 Mbps BPI-Gigabit – Pricing trends for providers’ faster speed offerings.

Speeds between 940 Mbps and 1 Gbps Broadband prices decline Real prices (adjusted for inflation) for the BPI-Speed category (most popular services between 100 and 940 Mbps) dropped by 9.4% from 2023 to 2024.Pricing in the BPI-Gigabit category (speeds from 940 to 1,000 Mbps) declined by 3.9% over the same period.The decline is even more pronounced when comparing broadband prices since 2015 and 2017: Prices in the BPI-Speed category dropped by nearly 60% since 2015 Prices in the BPI-Gigabit category declined by 43% since 2017 Speeds increase We all love to hear about declining prices, no matter the industry.

With broadband, declining prices have also been mirrored by increasing speed tiers.Sounds too good to be true, right? Well, according to USTelecom’s BPI, upload and download speeds for the most popular services between 100 and 940 Mbps have “dramatically accelerated” since 2015.Download speeds for these services increased by 113.5% (141 Mbps in 2015 to 301 Mbps in 2024) Upload speeds for these services increased by 88.5% (51 Mbps in 2015 to 96 Mbps in 2024) This isn’t all that surprising considering the constantly evolving state of broadband technology.

The expansion of fiber optic internet alone could be responsible for these rising speeds, not to mention upgrades of other internet technologies such as cable, 5G and even satellite.Broadband prices lag behind inflation Consumers are no strangers to high inflation rates or their impact on everyday life.While inflation rates have decreased since a 20-year peak of 9.1% in June 2022, many still struggle with high prices of goods and services.

USTelecom’s BPI illustrates broadband pricing trends’ contrast to inflation in recent years when it comes to other essential goods and services such as car insurance, rent, college tuition and fees, as well as food and beverages.From 2015 to 2024, the cost of consumer goods and services rose by 32.2%, according to the Consumer Price Index for All Urban Consumers (CPI-U) while BPI-Speed prices declined by 41% This echoes the trends outlined in USTelecom’s 2023 BPI report, which we previously broke down.What does this mean for you? Essentially, consumers are getting more bang for their buck.

According to USTelecom, the combination of rising broadband speeds and declining prices has reduced the real price per megabit for both BPI-Speed and BPI-Gigabit offerings.BPI-Speed price per Mbps was $0.87 in 2015 and $0.16 in 2024 BPI-Gigabit price per Mbps was $0.13 in 2017 and $0.07 in 2024 This increases consumer purchasing power across both categories, allowing consumers to “take advantage of more bandwidth-intensive activities” with their internet connections.Looking to switch internet providers? Explore cheap and high-speed internet providers in your area.

See Allconnect’s News hub for more broadband guides and information.Written by: Camryn Smith Camryn Smith started writing for Allconnect in July 2022 and has developed broadband expertise across the landscape, including home internet providers, plans, pricing and equipment, as well as internet technolog… Read more Edited by: Anine Sus Editor I Read bio What to read next Read more Featured Amid high inflation trends, broadband prices have declined over the years Camryn Smith — 4 min read Featured Price pushes people to switch internet providers Camryn Smith — 4 min read Featured Allconnect’s 2024 broadband customer satisfaction report  Camryn Smith — 8 min read Latest Thursday, December 19, 2024 Lower prices and higher speeds: USTelecom’s 2024 Broadband Price Index Camryn Smith — 3 min read Wednesday, December 18, 2024 Americans are getting over 262 Mbps in download speed, but are you? Robin Layton — 7 min read Tuesday, December 17, 2024 How do I know if I need to upgrade my internet? Camryn Smith — 3 min read