TechDirt – Joshua Stager: “How much do consumers pay for internet service in the United States? The question might seem relatively simple, but the answer has stymied the federal government for years—because no agency collects this data. Throughout 2020, my organization, New America’s Open Technology Institute, published the Cost of Connectivity series to crack open the black box of internet pricing. The collective takeaway of these studies is clear: the cost of internet service is alarmingly high, and there is substantial evidence of an affordability crisis in the United States. Our research found that U.S. consumers pay some of the highest broadband prices in the world, at an average $68.38 per month. Most of these plans advertise a temporary promotional rate, after which the monthly cost jumps an additional $22.25, on average. Of the 760 plans we surveyed across Europe, Asia, and North America, U.S. plans are the most expensive. Prices are particularly high in rural and Tribal communities. Unfortunately, these higher prices don’t appear to give U.S. consumers faster speeds than consumers abroad. Moreover, we found that internet pricing typically includes a byzantine maze of ancillary fees and hidden costs. The fees for equipment rentals, data overages, and contract terminations can be substantial. For example, modem rental fees can add an additional 75 percent to the total cost of monthly internet service in the United States, compared to just 30 percent abroad. Consumers struggle to navigate this maze and determine their total cost of service…”
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