Technology

Why Is Internet Service In The Us Overpriced?

Why Is Internet Service In The Us Overpriced?

Internet connection has become the most crucial part of everyone’s life and has been officially stated as an essential during COVID-19. On the other hand, some regions in America still don’t have internet access because of high internet prices. From the first quarter of 2020, the entire world transformed digitally, where those who shifted to digital models survived and excelled. So, the areas that still don’t have high-speed internet might as well had a challenging time.

Let us find out what are the reasons internet service is overpriced in the US.

But considering the demand and supply rule, the areas where the accessibility of the internet is difficult usually have highly-priced internet service. If you have seen a disclaimer where it says that the aforementioned cable services, packages, and prices may vary based on your location, you know it already. Cable or fiber services being the high-speed internet types are not available everywhere, and this is because of the costly infrastructure that is required to deliver the services to users from one place to another.

Based on this situation, the prices increase and internet users are left with alternative options which are usually satellite. Thanks to the digital evolution, satellite services have improved significantly and offered the same or more download and upload speed of the internet today. As long as you have a roof where you can place the satellite facing the southern sky, you are good. Moreover, you can get in touch with the satellite provider to learn more about digital satellites and how you can qualify for them.

Speaking of affordable and ISP that is worth investment, we cannot overlook spectrum. With its no-contract services, you can check Spectrum Silver package where you can also get digital phone and cable alongside at cheaper prices than the market competitors. Spectrum is leading millions of households and businesses with its incredible services in the United States for decades. After acquiring BrightHouse Network and Time Warner Cable in 2016, its imprint grew to 40+ states and so did the customer base.

According to the counting method of the FCC(Federal Communication Council), it reports that 25 million is a much smaller number. Gigi Sohn, the director of the FCC, was invited for an interview with CBS’ Sunday Morning where he said: “If you are able to serve 1 person in census block, (that also means) you’re serving everyone in census block.”

There are thousands of people in the census blocks, making the counting principle ineffective. Gigi Sohn further said that many people of America don’t use the internet because they can’t afford it. Yes, the internet helps people progress in this modern age. But you have to understand your budget before deciding to connect to an internet connection. You’ll see that people living in rural areas lack in the long run of success which is because they can’t afford a stable internet connection. Distance learning, virtual jobs, and so many opportunities are compromised and during the pandemic, it could’ve become even worse for them.

Let’s compare the prices of the internet in the US and the other countries!

Final Verdict: The Average Cost of Internet in the US

There are no accurate stats to show the average cost of internet in the United States. If you search for the average internet cost of the internet in America, you’ll find it somewhere from $35 to $40. If a person pays $35/month, he’ll likely face stability issues with his internet connection. If you want to use faster internet, you have to spend an additional amount of money to upgrade it. Apart from the monthly subscription fee that you promise, the internet service costs you more when you pay rental fees for any equipment you have lent such as router or modem, taxes, on-demand or premium features, and any other fees imposed by the government. All these expenditures add up and make the total cost of the internet that you have to pay.

We went through the reports of the Organization for Economic Co-operation and Development (OECD), and we found that an American has to pay $61.07 as an average internet fee. To be honest, it is overpriced.

 

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