Monthly Internet prices seem to be going up. Last month, my Internet Service Provider (ISP) raised prices about ten percent.
If you are wondering what other Americans pay monthly for Internet access, it's alot. I reviewed the "Cost of Connectivity 2013" report by the New America Foundation (NAF). The NAF analyzed prices in 24 cities worldwide and found:
"... in comparison to their international peers, Americans in major cities such as New York, Los Angeles, and Washington, DC are paying higher prices for slower Internet service. While the plans and prices have been updated in the intervening year, the 2013 data shows little progress, reflecting remarkably similar trends to what we observed in 2012."
The U.S. cities in the report: Bristol (Virginia), Chattanooga (Tennessee), Kansas City (Kansas), Kansas City (Missouri), Lafayette (Louisiana), Los Angeles (California), New York (New York), San Francisco (California), and Washington, DC.
I hope that Boston makes the 2014 report. Other cities in the 2013 report: Amsterdam (Netherlands), Berlin (Germany), Bucharest (Romania), Copenhagen (Denmark), Dublin (Ireland), Hong Kong (China), London (United Kingdom), Mexico City (Mexico), Paris (France), Prague (Czech Republic), Riga (Latvia), Seoul (South Korea), Tokyo (Japan), Toronto (Canada), and Zurich (Switzerland).
While Chattanooga (Tennessee), Seoul (South Korea), Lafayette (Louisiana), Kansas City (Kansas), and Kansas City (Missouri) offer the fastest connection speeds, residents in the USA pay more and get slower speeds compared to other countries. Some more comparisons in the report:
"... the best deal for a 150 Mbps home broadband connection from cable and phone companies is $130/month, offered by Verizon FiOS. By contrast, the international cities we surveyed offer comparable speeds for less than $80/month, with most coming in at about $50/month.... In July 2013 Verizon announced a new 500 Mbps service (with 100 Mbps upload speeds) available in selected areas of its FiOS service. However, this new 500 Mbps service costs around $300 a month. In Amsterdam, a symmetrical 500 Mbps broadband plan (with 500 Mbps download and upload speeds) costs just over $86."
$300 per month? That's equivalent to an auto loan. Would you pay that? Can you afford to pay that? The comparisons aren't any better for mobile broadband:
"... the cheapest price for around 2 GB of data in the U.S. ($30/month from T-Mobile) is twice as much as what users in London pay ($15/month from T-Mobile). It costs more to purchase 2 GB of data in a U.S. city than it does in any of the cities surveyed in Europe."
So much for claims of American exceptionalism. I wrote in prior blog posts about how local laws already exist in 20 states to prevent broadband competition by stopping cities and towns from building their own (low-cost to users) fiber Internet services. This keeps monthly prices by your Internet Service Provider (ISP) high. This limits the freedom of consumers to build broadband alternatives through their cities and towns. Bad for you; good for the corporate ISPs., Again, from the NAF report:
"In cities with municipal broadband networks, pricing generally remained the same. The notable exception was Chattanooga, TN, where the local municipal provider EPB dramatically lowered the costs of a symmetrical 1 Gbps connection, from $349/month to $70/month. By contrast, in American cities without local fiber competitors, the highest speed available for $70/month is around 50 Mbps. EPB also raised the speed of their their slowest broadband plan from 30 Mbps to 100 Mbps, while keeping the monthly price the same at $57.99."
$349 to $70 monthly! If this is what it takes to lower monthly Internet prices, I am all for municipal broadband.
Yet, instead of foghting for lower Internet prices, during the past few months U.S. residents have had to fight to keep a fair and open Internet (a/k/a Net Neutrality). The first dealine to submit comments to the FCC was July 18 (moved from July 15 due to heavy volume). 1.1 million comments were submitted, and the electronic version of the comments data is available online.
The next deadline to submit Net Neutrality comments to the FCC is September 15, 2014 (moved from Sept. 10). If you believe prices are too high, tell your ISP, the FCC, and tell your elected officials.
Has your ISP lowered or raised prices recently? If so, how much? Do you think that Americans should pay more for Internet compared to residents of other countries? Do you think monthly Internet prices in the USA are okay as is or too high? Share your reasons.