Internet service in one form or
another is an absolute necessity for most Americans, especially in recent years
as more services are primarily operating online, and the need for people to
work from home and digitally communicate increases. Yet internet service can
get expensive, whether it comes packaged in a cable bundle or as a standalone
service. If you want quality service, then you will need to pay even more.
People might pay more than $100 per month in some areas, making it an important
line item in the family budget.
Yet how much should you be paying? What factors go into
the price you will be paying each month? How much does the price change
depending on the type of service you will be receiving?
Here is everything that you need to know:
Cost of Internet
by State
If you are interested in the cost of internet in your
state, please consult the following maps. We will measure the price using cost
per Megabyte per second, which, given the wide range of packages, bundles, and
services, will allow you to clearly see the options available to you and the
value you would potentially be getting in each state.
However, we will also be dividing the metrics by three different lines, based on service types (cable, DSL, and fiber optic). It can be difficult to even compare some types of service as even being in the same category, and for people comparing state to state, they should know about as many options and metrics as possible.
Where available in plans that would work for modern homes, DSL internet can range widely, but usually expensively. It is generally cheaper in the Great Lakes and Midwest regions. On the major coastal areas, we found it was not widespread enough to provide us with accurate data, perhaps showing that other internet service types were far more widespread and prevalent there
While not available across the country, as you can see,
fiber optic internet can be a very cost-effective option, with costs getting
extremely cheap in major population areas. This heat map may seem like there's
little rhyme or reason to the prices, but check to see if it is available in
your major metropolitan area.
Noticeable
Trends
While we will not go into full detail on every state, there are some trends that you should take note of, especially if you might be moving or are curious about the topic:
- States with a greater population density or some obvious major metropolitan hubs (New York, California, Texas) generally had a lower average internet cost, especially if you were looking at the statistics on fiber optic internet per Mbps.
- However, just because one type of internet is cheap in a state does not mean that the others necessarily are as well. For example, in Arkansas, DSL internet is expensive, despite having average prices for cable and fiber optic service.
- There were quite a few states that had similar average rates for the same type of service. Often in areas with similar demographics or areas in the same region, there might be little difference in the types of packages and services offered. Additionally, larger ISPs that span the country are more likely to have uniform pricing plans and offers, so this is to be expected.
- More rural states, in general, have higher internet costs per Mbps. This may be due to the lack of competition, the lack of infrastructure for more advanced and efficient service delivery methods, or because only slower plans are available. This means that each Mbps becomes more expensive (as a rule, the better the speed, the better the value).
- There are some exceptions to most of the things you might expect. For example, Oregon has one of the lowest fiber optic costs in the country.
- However, there are usually explanations in the form of the state having a major tech hub or pre-existing infrastructure, allowing for such low prices.
- Even though we are mostly focusing on larger providers and larger trends, this does not mean you should ignore a couple of ongoing developments that might heavily affect the industry in the near future.
- While programs such as Google Fiber might be relatively small in scope (especially considering the size of the tech giant) and not all of them will reach full fruition, there eventually will be a future breakthrough that entirely changes the internet landscape. Predicting it is a fool's errand for anyone outside of the tech sector, but it's worth keeping in mind.
- Quite a few smaller townships and cities are setting up municipal or locally based internet services, sometimes using fiber-optic wires already installed in the city as a base point.
We are certain there are additional observations to
make as well, depending on what you wish to focus on. The data doesn't lie, and
as more of it comes in, we can even more closely determine what internet prices
will look like in the coming decade, even in uncertain economic times.
Remember the Rural and Urban Divide
Sometimes the cost of internet is not determined by
state lines as much as it is whether your town is in a more urban/suburban area
or a rural setting. If you're in a major metropolitan area, then you should
have a decent selection of internet service options and a much better range of
services available to you than you might get if all your neighbors were farmers
or ranchers. For these reasons, you should take some of the statewide averages
with a grain of salt and do further research on your own.
This can be an important factor to consider if you are
moving and require fast internet, and ideally, you should not rely on just one
quote.
Information and
Trends by Service Type
The type of internet service you get will vary based on
the town you live in and the service providers operating in your area.
Therefore, maybe even before you consider the average price or what you are
willing to pay for internet, you should consider what type of internet service
you'd ideally want and what options you have in the first place.
Here is some more information on the main options:
Cable
Many people reading this right now are doing so using
cable internet service, likely in a bundle with a cable TV subscription. It's
one of the most common internet service options, highly
accessible across the country, and often included in bundles with other
services.
Cable can represent a "middle option" in
terms of value and total cost for most people. However, prospective cable
customers should know that they will almost certainly share bandwidth with
other users, especially at peak hours, and that they should keep this in mind.
Average Price of
Cable Internet in the United States: $0.83 per Mbps
DSL
DSL internet is, much like cable internet, commonly
available throughout the country, utilizing already existing phone lines to
provide service to nearly any type of community across the United States. And
while the technology was once state of the art, it has now been surpassed by
fiber optic internet and some cable plans.
DSL does remain affordable and accessible and can be an
excellent choice for households looking for basic internet.
Choosing DSL has an interesting balance when it comes
to price. It is by far the most expensive choice in terms of cost per Mbps, but
it will likely provide you with the lowest bill each month.
Average Price of
DSL Internet in the United States: $1.53 per Mbps
Fiber Optic
Fiber Optic internet is, in most cases, the best option
available for the average consumer, with a few exceptions in the form of the
absolute top-tier of cable service, which may still be less reliable.
The cost of fiber optic internet is, on average, the
cheapest by far. It can be an extremely cost-effective option for anyone hoping
for a fast connection for their household, and if you are willing to have a
higher bill to get the best, never worry about value.
However, this is only if you are looking at it in terms
of value (cost per Mbps). If you're looking to have the lowest internet bill
each month, other options might be better. You also will be more likely to pay
for it alone, so those factors will not apply.
Fiber Optic internet also tends to have some
substantial variances in price across the country, especially as some major
cities have initiatives that make it a much cheaper option.
Average Price of
Fiber Optic Internet in the United States: $0.48 per Mbps
Additional Options
Other internet options include dial-up and satellite
internet, and these do not generally follow the same rules as the rest in terms
of price. They generally stay the same across the country in terms of cost.
We do not recommend dial-up internet in 2020, nearly
any reason, and any option would be better.
Satellite internet is a different beast altogether. It
can be an interesting choice for those who don't feel as though they have a
better option available to them yet still want reliable access, perhaps people
who live out in rural areas who still want a reasonably strong connection.
Additional Factors to the Cost of Your Internet
When looking at an internet price, whether you plan to
move or just want to switch providers or get a better deal, there may be
outlying factors that may increase or lower the price for your home
specifically. Here are some of the main ones:
Bundling and Special Offers
Everyone loves a good deal, and ISPs are often all too
happy to offer them when attracting new customers for their cable and internet
packages. And they can be a great deal, with the first one or two years (and in
rare cases longer) being extremely competitive from a price point of view and
far better than the national average.
However, when it comes to your regular internet bill
after the deal expires, and including equipment fees, you should know that what
you wind up with will be rather different than what you started with or what
you were told. It will be your job to read the fine print. Plan for the day the
price rises, and think for the long-term. We recommend averaging the cost over
how long you intend to stay in the same place, especially if there are few
alternatives.
Fees and Equipment
Cable and internet bills are usually inflated each
month due to additional fees (hidden and well-known) and equipment rental
charges, things that aren't necessarily specified in the ads you'll see as you
shop for internet or mentioned in averages. This means that the actual cost
you'll pay for your internet or telecommunications services will be higher than
anticipated, especially if you haven't shopped for these services before.
These can vary, but some common names and numbers you
might see are:
Equipment Rental Fee: Often, you won't be buying
a cable box, modem, routers, or additional pieces of equipment outright, but
instead, you will rent them from your ISP. There is a fee associated with this,
although it might not kick in for a few months. Alternatively, you might pay
this fee once each year in a larger sum.
Service Fee: This could mean many things to many
different companies, and its difficult to argue against. However, many service
fees are just ways for companies to charge a higher overall total to the
customer while still advertising the "lowest" prices. Try searching
for a prospective ISP online to learn more about the service fees they
regularly charge.
Data Overage Fee: Most plans provided by ISPs
are unlimited, and you won't be charged extra for using the internet a great deal
(although soft data caps and throttling your connection are still things to
note). Just know, it might be possible you could sign up for a plan with these
types of fees, especially if you have satellite internet.
Late Payment Fees: While you won't see too many
of these if your finances are in order and there are no errors, you should at
least take note of potential late payment fees if an emergency were to pop up.
Additional Taxes and Government Service-Related
Fees: Depending on whether you have a bundle and which state you live in,
these may vary, but there will be little you can do about them. Inquire if you
are curious and budget for them as best you can when searching for a provider.
In our research, we did not find many differences
between states regarding how much fees cost the average user, so most
comparisons along these lines aren't necessary. Just don't ignore them, and
don't be afraid to ask questions about them.
Installation and Cancellation Costs
Wherever you set up your internet, there will be some
installation required, and sometimes that installation will have a cost
associated with it. This fact changes little from state to state and instead
will vary by provider.
If you're worried about the cost of this, you should
know that it has become very easy to install and set up your own modem and
service with the kit your ISP will provide, waiving the cost.
If you are switching internet providers, you may also
have to pay the cost to cancel your current contract, although that won't
affect your monthly rate. If you're lucky, you can get your new internet
provider to buy out the contract, but you shouldn't count on that until you can
find complete confirmation. Always double-check your options and any costs
before making such a switch.
Methodology Notes
We would like you to take note of the following and
keep it in mind:
·
The set of data we used only included internet
service plans with a download speed of 25 Mbps or higher, which we feel is
necessary to live an ordinary life online and what most households should look
for as an absolute minimum. Many plans at a lower cost would unrealistically
skew the data with options that weren't truly options.
- This
is why there are quite a few states with no data on DSL plans. There may be DSL
plans; there were just no truly viable ones.
·
You should note that plans change prices all the
time and that the numbers are liable to change in small ways. However, we do
not anticipate changes in the general trends barring significant
infrastructural efforts, legislation, or other large-scale events. State A will
likely continue to be cheaper than State B, no matter when you read this.
·
The data set we used generally focused on the
lower-cost options in each state, focusing on how you could get the most value.
We found that this fell into line with what the average person would be looking
for and showcase what the average cost truly was, not the average cost of
premium internet with extra service options.
·
What is true for the state might not necessarily
be true for your town, city, or county. While there are statewide operators,
there will be differences in your local area versus the general trend,
especially if there are not many competitors in your region. Just because there
is an average cost of fiber optic service in a state does not mean there is
statewide fiber optic internet (unfortunately).
