The higher the competition, the lower the internet bill! Have you ever wondered why your internet bill differs from that of your friend living in another part of the country? Internet prices are not uniform for various reasons.
Your location, the type of connection available, and the number of providers in your area determine your monthly internet bill. So, what is the average internet cost per month? And is it going to be the same for you as well? Let’s break down the monthly cost of the internet based on different factors.
How Much Does the Internet Cost Per Month?
Based on the Broadband Pricing Index figures for 2023, the average cost of internet in the country is $41.31 per month, 10% less than the median cost in 2022. These numbers highlight how the average broadband prices are declining with time due to increasing competition and the introduction of faster speed tiers.
While some internet providers (ISPs) offer standard internet plans below this price, most options have higher starting rates. So, your monthly internet bill can go up to $70 due to additional costs, lack of competition, and more.
Internet Cost per Month by Connection Type
Internet technology has a huge impact on your online experience. Some people overlook this factor, but it determines your internet speed as well as reliability and monthly cost. You can find all types of internet connections in America, from the hyper-fast fiber-optic service connecting the urban population to the satellite internet service dominating the rural market.
Broadly, we can categorize these connections into wired and wireless internet types. You can find wired internet types mostly in highly competitive, densely populated areas. Hence, their average monthly costs are comparatively lower than wireless connections, especially satellite internet. According to Forbes, the average monthly cost of each internet type is as follows.
| Internet Type | Starting Price Range | Monthly Cost | Maximum Speed |
|---|---|---|---|
| Fiber | $20.00/mo. – $900.00/mo. | $81.00/mo. | Up to 50,000 Mbps |
| Cable | $20.00/mo. – $150.00/mo. | $69.00/mo. | Up to 2,000 Mbps |
| DSL | $39.99/mo. – $69.95/mo. | $54.00/mo. | Up to 140 Mbps |
| Satellite | $49.99/mo. – $199.99/mo. | $93.00/mo. | Up to 150 Mbps |
| 5G / Fixed Wireless | $25.00/mo. – $80.00/mo. | $51.00/mo. | Up to 1,000 Mbps |
Internet Cost per Month by Download Speed
We all use the internet for different things. Some people use it for entertainment, and others for learning. Hence, we all have different speed requirements. While a small family can get by with a 40Mbps internet speed, a home with multiple family members will need a faster option.
Your monthly internet cost also depends on the internet speed. Generally, a faster speed tier is always going to cost more. You can refer to the following table to understand the average internet cost per month based on different download speeds.
Keep in mind that these rates can vary with location, and the same speeds will cost more in areas with fewer internet providers.
| Download Speeds | Average Internet Cost Per Month |
|---|---|
| 25 Mbps | $35.00/mo. |
| 50 Mbps | $57.00/mo. |
| 100 Mbps | $62.00/mo. |
| 300 Mbps | $50.00/mo. |
| 500 Mbps | $62.76/mo. |
| 1,000 Mbps | $85.00/mo. |
Internet Cost per Month by Top Internet Providers
Only a few providers are highly accessible in the US due to their vast coverage area. After analyzing the country’s top 10 most widely available internet providers, we found that they all have different price ranges. However, it is clear that Xfinity has the lowest starting price, and AT&T has the highest.
| Internet Providers | Starting Price Range | Speed Range | Internet Type |
|---|---|---|---|
| AT&T | $55.00/mo. – $250.00/mo. | 300 Mbps – 5,000 Mbps | IPBB, Fiber |
| Xfinity | $20.00/mo. – $300.00/mo. | 75 Mbps – 10,000 Mbps | Cable, Fiber |
| Spectrum | $49.99/mo. – $79.99/mo. | 300 Mbps – 1,000 Mbps | Cable |
| Frontier Fiber | $44.99/mo. – $154.99/mo. | 500 Mbps – 5,000 Mbps | Fiber |
| Verizon Fios | $49.99/mo. – $109.99/mo. | 300 Mbps – 2,300 Mbps | Fiber |
| Kinetic by Windstream | $39.99/mo. – $299.99/mo. | 50 Mbps – 8,000 Mbps | DSL, Fiber |
| Optimum | $40.00/mo. – $280.00/mo. | 300 Mbps – 8,000 Mbps | Cable, Fiber |
| T-Mobile Home Internet | $50.00/mo. | 72 Mbps – 245 Mbps | 5G Internet |
| HughesNet | $49.99/mo. – $79.99/mo. | 50 Mbps – 100 Mbps | Satellite |
| Viasat | $49.99/mo. – $199.99/mo. | 12 Mbps – 150 Mbps | Satellite |
The average monthly cost of these top 10 internet providers is around $92.45, which is unaffordable for most internet users. However, you can easily stay within your budget by opting for slower internet speeds. Moreover, lower-income families can transfer their ACP benefits to one of these providers. For example, through AT&T’s ACP, you can enjoy faster speeds at a much cheaper price.
Factors Affecting Average Internet Costs
Every American spends a varying amount on their internet service based on their needs, such as internet speed and unlimited data, and other factors like market condition, location, and the internet type. It is important to analyze the internet costs based on these factors to understand the price variation across the country.
Internet Type
Fiber, cable, DSL, satellite, and fixed wireless are the most common internet technologies in the US. While fiber and cable internet providers are more reliable than other options, they are also cheaper than some wireless options as they operate in highly competitive markets.
However, their high-speed plans are pricey. Meanwhile, 5G home internet is the most reasonable connection type among wireless options.
Location
America has thousands of internet providers, but most households can only choose between two or at most three options. The reason? It is expensive for wired internet providers to roll out their networks in less populated areas.
Hence, the urban population can access more internet options at lower prices, whereas some rural areas can only rely on one internet provider with expensive internet plans.
Additional Charges
You cannot escape additional costs! The majority of internet providers charge extra for their equipment, installation, and other services. Hence, your monthly internet bill is often higher than the advertised price of your chosen plan.
Contracts
Term agreements can impact your monthly internet bill. Some internet providers, like Xfinity, offer plans at lower prices for more than a year when you sign a contract. However, the majority of internet providers, at least in the urban areas, now offer contract-free internet plans.
Internet Speed
All internet providers offer a variety of speeds, and faster options are always going to cost more. However, if multiple ISPs operate in your area, you can compare their plans to choose a cheaper option.
How to Lower Your Monthly Internet Cost?
Every household cannot arrange $70 to $90 a month for internet expenses. Fortunately, you don’t have to pay such a high amount if you follow these tips.
Compare Internet Providers
If you have access to more than one internet provider, compare their monthly rates and choose the cheaper option. While comparing their advertised rates, don’t forget to consider their additional costs, such as monthly equipment fees, installation charges, overage, and early cancellation fees (if they impose data caps and contracts). You can save significantly in a year by subscribing to an affordable internet provider.
Identify Your Internet Speed Requirements
Instead of paying more for a faster internet plan, choose an ideal internet speed to lower your monthly internet cost. You can identify a perfect internet speed by analyzing your online activities and adding them to your family members’ activities.
Search for Internet Deals
Many providers offer special internet deals with free equipment and installation and promotional offers like reward cards. Look for those providers and save up to $25 on your monthly internet bill.
Opt for Bundles
Many internet providers like Xfinity, AT&T, and Verizon lower their internet prices when you opt for their mobile and internet bundles. For instance, you can get Verizon’s 300Mbps plan for just $24.99 per month by bundling it with a qualifying 5G mobile package and save up to $300 on your internet service in a year.
Use Your Own Equipment
Although a monthly $15 to $20 equipment rental fee may not seem much in the beginning, it can add up to $360 to $480 if you plan to stay with your provider for 2 years. You can avoid this fee by buying your own router.
Final Words
We all pay a different price for using the internet. However, the Broadband Pricing Index observed a decline in the median broadband costs. According to the report, the average internet cost per month in 2023 was $4.66 lower than the previous year. This is a result of technological advancement, which has allowed many people to access a high-quality connection.
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