Tyler Cooper

In 2020, we manually checked availability of more than 11,000 addresses using Federal Communications Commission (FCC) Form 477 data as the “source of truth.” Based on the results, we estimated that as many as 42 million Americans did not have the ability to purchase broadband internet at the time. Since then, quite a bit has changed.

Tracking fiber penetration across the U.S. broadband market provides valuable insights into technological adoption and accessibility. This study is our attempt to solve this issue. Key Findings:

For decades, municipal broadband operations have been subject to a minefield of restrictions and barriers designed to make the prospect of establishing or maintaining a community broadband network costly, difficult, and unsustainable. There are currently 17 states in total that have restrictive legislation against municipal broadband networks in the US. Although no states have managed to remove their restrictions in 2022, 2023 could be the year that things begin to change for states that have historically been opposed to allowing for a public option.

For decades, municipal broadband operations have been subject to a minefield of restrictions and barriers designed to make the prospect of establishing or maintaining a community broadband network costly, difficult, and unsustainable. There are currently 17 states in total that have restrictive legislation against municipal broadband networks in the US.

Examining pricing data from fifty national and regional providers, we’ve found that prices have decreased across all major download speeds (25Mbps up to 1Gbps+) and technologies (cable, fiber, DSL and fixed wireless). This study utilizes average pricing of broadband internet plans for 50 providers since 2016. Prices have fallen since 2016, with the highest speed plans falling the most. When looking at the average price for internet in each speed bucket starting in the first quarter of 2016 compared to the fourth quarter of 2021:

The federal government launched the Emergency Broadband Benefit in February 2021 to provide low-income households with a $50 monthly discount on their internet bill as part of a multi-pronged approach to reduce the digital divide, which is a function of both access to a wired high-speed internet service provider and the affordability of service. According to the Universal Service Administrative Company, enrollment in the Emergency Broadband Benefit reached 7.1 million households in November 2021 (up from 6.1 million in October).

In 2020, we manually checked availability of more than 11,000 addresses using Federal Communications Commission Form 477 data as the “source of truth.” Based on the results, we estimated that 42 million Americans do not have the ability to purchase broadband internet. In 2021, we expanded our study, manually checking availability of terrestrial broadband internet (wired or fixed wireless) for more than 58,000 addresses. In all, we checked more than 110,000 address-provider combinations using the FCC Form 477 data as the “source of truth”.

Access to low-priced broadband internet has increased significantly over the last year.  For the first time, more than 3 of 4 of Americans (77%) have access to low-priced wired broadband plans compared to 50% in 2020 Q1.  A low-priced broadband plan costs $60 per month or less (excluding promotional pricing), and has minimum speeds of 25 Mbps download / 3 Mbps upload. Low-priced plans are not as common at higher speeds.

Municipal broadband has been obstructed in many states over the years. There are currently 18 states in total that have restrictive legislation against municipal broadband networks in the US. 

In the fourth quarter of 2020, many broadband internet service providers introduced or expanded low-priced broadband plans, which the authors define as $60 or less per month, resulting in 70% of Americans having access to low-priced internet at speeds of 25 mbps download / 3 mbps upload and 30% at the higher threshold of 100 mbps download / 25 upload. Ninety-four ISPs added low-priced plans that were not available in Q3. National providers, such as CenturyLink and Xfinity were among them. Just 52% of Americans had access to low-priced plans in the fourth quarter of 2019.