The State of Broadband in America, Q3 2019

The landscape and geography of access to high-speed internet continues to change rapidly due to economic and regulatory changes, private investments into new technology and policy proposals leading up to the 2020 presidential election. From Q2 to Q3 2019 we saw a shift towards higher speeds, but also higher prices. With respect to pricing, since our Q2 report there have been more than 700 pricing or plan updates by internet service providers. With respect to speed, this report shows that nearly every state experienced an increase in access to 500 mbps internet. This is predominantly due to the Federal Communications Commission updating its provider coverage data on Sept 10th. Some findings:

• Affordability: WV, NH, AR, LA, and OK had the largest increases in accessibility quarter-over-quarter to affordable wired internet priced $60 or less. Only two states experienced a decrease in access to affordable internet quarter-over-quarter, SD and ID.
• High-Speed Access: Compared to Q2, more consumers from 48 states and Washington (DC) saw had access to 500 Mbps or faster wired broadband internet. The states with the largest increases were VT and CT, up 63.6 and 54.5 basis points, respectively. This can largely be attributed by Q3’s new updated provider coverage from the latest FCC update that happened at the end of the quarter. Two states, DE and RI, had very small drops, less than one basis point, in access to high-speed.
  • In Q3 there was an overall increase in accessibility to ultra-fast internet, 500 Mbps or faster, including gigabit speeds. The US population with access to 500 Mbps and one gigabit and up speed was up a combined 20.5 basis points. The 500 Mbps and up category saw gains in the percentage of the population with access to residential plans in this category, up 17 basis points. Over 52 million more Americans are now able to reach these speeds, with the majority in CA.
• Low-Priced Wired Access: In general, Q3 had more price increases than decreases. Of plans priced under $60 in Q2 that increased in price in Q3, 62 percent increased to a price greater than $60/month. The largest drop was from accessibility of lowest priced stand-alone internet plans $40 and under. $40 and under plans are available to 2.7 million fewer Americans. More than half of the new plans added in Q3 were priced higher than $60, with 190 new plans added at price points greater than than $80 a month for stand-alone wired broadband.
• Our data findings illustrate that the industry saw an overall increase in gigabit plan offerings quarter-over-quarter, many of which are backed by fiber technology. As of Q3, 15 percent of Americans have access to gigabit level fiber. Partnerships like the one between Verizon and NY state are helping to build out robust connectivity to rural residents who typically do not have access to the same speeds and pricing available to those in major US cities.