Broadband Prices Didn’t Really ‘Increase’ for Consumers in 2025

Benton’s Headline Misses the Mark

A recent Benton Institute post declared “Broadband Prices Increased in 2025.” But the data discussed in the piece tell a more nuanced and far less alarming story for consumers.

According to the FCC Urban Rate Survey (URS) data cited by Benton, price declines were widespread across the plans most households actually use:

“Prices for mid-tier plans … declined 8.5% in real terms between 2024 and 2025,” and “lower tier plans also witnessed price declines” of 13.4 percent.

Fixed wireless prices fell even more sharply:

“Fixed wireless service saw price declines of 20.0% from 2024 to 2025.”

The reason the average advertised broadband price appears to rise is clearly acknowledged:

The increase is driven by the growing availability and adoption of “expensive high-speed plans … driving up average broadband prices.”

This could suggest a voluntary shift by a subset of consumers toward ultra-high-speed premium offerings, not an across-the-board increase in the cost of internet service. And even this apparent phenomenon is by no means definitive: looking at FCC data from 2024 and 2025, the actual average rates paid for some ultra-high-speed plans (e.g., 500/50 Mbps, 2000/1000 Mbps) have decreased, not increased.

Benton’s analysis omits other important context regarding the sample of prices provided by the Urban Rate Survey. For example, regarding “lower-tier plans,” Benton claims:

“…there are fewer of them on offer, at least as represented in the URS.”

The last part of that statement – “…at least as represented in the URS” – is key. The URS contains only a “random sampling” of service offerings submitted to the FCC by ISPs. It is not exhaustive and can be incredibly misleading if major ISP offerings are omitted. For example, the latest URS does not include low-income offerings from at least two large ISPs: Charter (e.g., Spectrum Internet Assist) and Cox (e.g., Connect2Compete).

In addition, according to data collected by the National Digital Inclusion Alliance (NDIA), mid-size and larger ISPs tend to offer a variety of low-income packages to qualifying customers for $30 or less. These offerings are typically available across much of an ISP’s footprint. This means most Americans likely have access to at least one broadband plan for $30 or less per month, contingent on income or other qualifications.

Consequently, Benton’s conclusion that low-income households have fewer options for low-cost Internet is simply misleading.

Prices in Context

Placing broadband prices in a broader inflation context further undermines the idea of growing consumer affordability issues. Our own analysis of data from the BLS shows that internet prices have increased far more slowly than prices overall and much more slowly than other essential services:

• From 2016 to 2025, household internet prices rose by roughly 11 percent.
  
• Over the same period, overall consumer prices increased by about 37 percent.
  
• Electricity, natural gas, and water/sewer prices rose by 46, 61, and 45 percent respectively.

Taken together, the evidence points to a consistent pattern over time, as flagged in Benton’s piece:

An “overall pattern of steady prices,” with real declines for many commonly purchased broadband services.

Benton’s headline claim that “prices increased” relies on averages distorted by consumer upgrades to premium plans. For most households, broadband has become cheaper in real terms and has grown more affordable relative to other essential goods and services.