One of the fastest-changing areas of technology is internet access with “5G” currently being implemented across the country. Not only are Speeds going up, usage is going up, and with the current pandemic, it has become a lifeline for many.
Interestingly, although speeds are continuously increasing, costs are not. Overall, the trend is towards the decline, allowing people to get more for their money. While you can try to determine the way things are moving forward, the equation is likely far more complex than this and is liable to change with infrastructure or political events. Please continue reading for more insights and in-depth examination of the issue:
Similar Prices, Increasing Speeds
The fast speeds of yesterday do not equal the fast speeds of today, at least where the United States is concerned. More precisely, the average speed was 5 Mbps in 2009. In 2020, that number has jumped to 96.25 Mbps, which would be more than enough to do most things online.
Taking this as the case, what $50 can get you today is far above what $50 could get you 20 or even 10 years ago in internet speed. In this regard, even though the cost of internet access has not changed drastically, there is a movement towards the faster, the better, the more consistent, and greater value for the dollar, even taking inflation into account. If people were simply paying per megabyte per second on the same scale as ten years ago, monthly internet bills would potentially reach four digits.
Expanded Access and Regional Differences
Another factor to take into account is the fact that speed and prices across the United States internet access have never been equal. Rural areas that previously would not be able to get access whatsoever now can have access and somewhat better speeds, but prices might still be high if you consider the cost per megabyte per second.
To reiterate and put in another light: just because the averages are looking better for the consumer does not mean that all is equal around the world or even around the United States. Look at prices in the United States for internet access, for example. Some types of internet such as fiber (which are objectively better) are simply unavailable (at least not available to the vast majority of people) in some states, and they have to pay more per Mbps per second to get access.
While we expect this trend to change over time, much like how dial-up internet used to be effectively the only option to reach a usage rate of .3 percent by 2017, the prices likely will not stabilize as a result of this for some time. Either some regions through the need to wait for technology to progress or expand so that it affects them, or internet speeds in cities and more developed areas will get even faster, maintaining the current disparity to at least some degree.
Yet why are things currently how they are? Simple economics. It apparently costs about $20,000 per mile to bring fiber infrastructure to an area, with additional costs on top of that. In rural areas, there is simply no way ISPs would be able to recoup costs. And while satellite internet might be an effective way around the problems of creating lines, it currently isn’t advanced enough to be an effective alternative due to its speeds and its cost to most people, not even considering the potential technical problems.
Outside Influences and Global Trends
While the market might decide the price point of most products, it is growing ever more likely the government entities will want a say in the cost of internet access for the average consumer. This could take the form of government subsidies, municipal internet which keeps costs down, or programs such as the Alternate Connect America Model (however effective such a program in practice would actually be), which would make regions that were previously economically unfeasible to build infrastructure in an option.
Geography matters as well. Consider the cost of internet per Mbps in South Korea, one of the most connected countries in the world. In terms of development and technological capabilities, there are few barriers to installing fiber-optic service and it has some of the fastest speeds in the world. And it is still less expensive on average than the United States. As stated, the current nature of how internet access works matters a great deal.
However, looking too closely at internet costs for countries outside of the United States might give the wrong impression, and as such major comparisons along points of pure monetary comparison might be difficult. Currency differences may mean that things aren’t what they seem on the surface (for example, technically Syria had the cheapest internet access in the world for some time due to their ongoing conflicts and their effect on the economy).
Conclusion
Ultimately, the price of internet, and the cost of internet access in terms of cost per Mbps, will be dependent on the emerging technologies and expanding infrastructure, how competitive markets are in your area, and whether faster speeds will be necessary to utilize modern apps and programs, increasing demand for better service.
Yet with all that is going on in the world, we can only watch and analyze the data as it comes in to better determine how our access to the internet and the service price will change in the coming years. In the meanwhile, enjoy the access you can get and keep watch using it for whatever trends and changes interest you.
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