Home Internet Plans Cost an Average of $77 Per Month: Report

The average cost of internet in the U.S. is $77 per month, according to a new report from HighSpeedInternet.com.
Cable internet is the cheapest technology type in cities and suburbs, the report found. Compared to the median income of $83,590 per year (according to figures from the U.S. Census), that price of $59 per month amounts to 0.84% of the family budget.
In comparison, families outside metro areas with traditional fixed wireless internet service have plan options that average $72 per month. Compared to median incomes of $62,520, that amounts to 1.38% of the family budget.
The most expensive internet plans are offered by satellite internet companies outside metro areas. The report found that the average cost of a satellite internet plan is $121 per month (not counting equipment or early termination fees) and accounts for 2.32% of the average family budget.
Meanwhile, the average price of fiber internet remains higher than that of cable, 5G, 4G LTE, traditional fixed wireless, or DSL internet. Within metro areas — where fiber internet is most widely available — the average cost of a fiber plan is $85 per month, amounting to 1.22% of family incomes in those regions.
The report is based on the cost of internet service plans before taxes, fees, add-ons, and bundling. It did not track post-promotional prices or estimate how many subscribers choose each plan, so the amount households actually pay for internet could be much lower than $77 per month.
The authors of the report recommend that families look for internet plans that cost about $50 with speeds of at least 100Mbps.
In addition to tracking advertised prices, the report surveyed real internet customers about their experiences. It found that one-third of Americans believe prices for home internet are not reasonable compared to the quality of service they receive. However, it also extrapolated that about 8.25 million people don’t know what they’re paying for internet service.
That makes sense, given the ubiquity of autopay discounts, paperless billing policies, and billing practices that make it difficult to differentiate service plan prices from optional and required fees.
Regardless of cost, the report found that not every household that could sign up for an internet plan decides it’s worth the money.
According to data from the U.S. Census, about one in five families that bring in less than $20,000 per year don’t have a home internet connection, while the same is true for about one in 10 people with incomes between $20,000 and $74,999. For households with incomes higher than $75,000 per year, 97% subscribe to some type of home internet service.
To create the internet cost report, the researchers used a proprietary database of internet plans, gathered via direct relationships with internet service providers and checked using addresses from around the country.