The Cost of Connectivity

August 13, 2012

The Cost of Connectivity

Source: New America Foundation

In this study, we compare high-speed Internet offerings in 22 cities around the world by price, download and upload speed, and bundled services. We have included some of the most relevant findings from our research in the report that follows, as well as a discussion of policy recommendations for the U.S. The report includes:

  • A comparison of "triple play" offerings that bundle Internet, phone, and television services;
  • A survey of the best available Internet plan for approximately $35 USD in each city;
  • A comparison of the fastest Internet available in each city.

The results indicate that U.S. consumers in major cities tend to pay higher prices for slower speeds compared to consumers abroad. For example, when comparing triple play packages in the 22 cities surveyed, consumers in Paris can purchase a 100 Mbps bundle of television, telephone, and high-speed Internet service for the equivalent of approximately $35 (adjusted for PPP). By contrast, in Lafayette, LA, the top American city, the cheapest available package costs around $65 and includes just a 6 Mbps Internet connection. A comparison of Internet plans available for around $35 shows similar results. Residents of Hong Kong have access to Internet service with symmetrical download and upload speeds of 500 Mbps while residents of New York City and Washington, D.C. will pay the equivalent price for Internet service with maximum download speeds that are 20 times slower (up to 25 Mbps and upload speeds of up to 2 Mbps).

The results add weight to a growing body of evidence that suggests that the U.S. is lagging behind many of its international counterparts, most of whom have much higher levels of competition and, in turn, offer lower prices and faster Internet service. It suggests that policymakers need to re-evaluate our current policy approaches to increase competition and encourage more affordable high-speed Internet service in the U.S.

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Categories: consumer issues, media and entertainment, New America Foundation, technology and internet, telecommunications
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