Tarifica's latest Data Dive reveals shifting consumer expectations and provider strategies in the U.S. broadband market.
NEW YORK, May 12, 2025 /PRNewswire-PRWeb/ -- Tarifica, a leading provider of telecom pricing intelligence and market analysis, today announced the release of its latest Data Dive: US Broadband Study: Weak Pricing Power Below 1Gbps, Big Premiums at the Top. The report analyzes broadband pricing trends among 21 providers across four major U.S. cities – Boston, Kansas City, Minneapolis, and Seattle – and sheds light on the evolving dynamics of consumer broadband pricing and provider capabilities.
The study focused on understanding the expected cost of home broadband service across a range of user profiles and examined how those costs vary by speed tier and by region. Using data collected through Tarifica's Telecom Pricing Intelligence Platform (TPIP), the analysis compared five distinct consumer profiles based on required download speeds: 100+ Mbps, 250+ Mbps, 500+ Mbps, 1000+ Mbps, and 2000+ Mbps.
One of the most notable findings is that 500 Mbps has largely replaced 100 Mbps as the new entry-level standard in the U.S. broadband market. While 100 Mbps plans were once the benchmark, the average monthly cost for a 500 Mbps plan was just $8.55 more than a 100 Mbps plan ($57.66 vs. $49.11) suggesting that providers are no longer able to command a meaningful price premium for mid-tier plans.
According to Will Watts, Tarifica's Vice President of Product, "The pricing gap between 100 Mbps and 500 Mbps has effectively disappeared, which tells us that consumers now view 500 Mbps as the baseline for modern broadband. This shift reflects both consumer demand and provider repositioning of their entry-level tiers."
While pricing is relatively flat below 1 Gbps, providers regain significant pricing power as speeds increase. The study found that moving from 500 Mbps to 1000 Mbps resulted in a 35% jump in average monthly cost. The premium for 2000 Mbps service was even more pronounced, nearly doubling the price of a 500 Mbps plan.
"This is where providers regain control," Watts noted. "Consumers are willing to pay for higher speeds to support work-from-home needs, streaming, and simultaneous device usage. At the same time, only a limited number of providers have the infrastructure to deliver 1 Gbps or 2 Gbps plans, so those that do can command a premium."
Just 47% of the 21 providers studied offered plans with download speeds of at least 1000 Mbps, and only 33% supported 2000 Mbps. In most cities, only one or two providers had these ultra-high-speed plans available.
Despite variations in providers across cities, the study found similar pricing dynamics in each market. Boston, Minneapolis, and Seattle had near-identical pricing profiles, with only a $2.76 difference between the highest and lowest average costs among those three cities.
Kansas City stood out as the most expensive market overall, particularly at lower speed tiers. However, as bandwidth requirements increased, prices in Kansas City scaled at nearly identical rates to those in the other cities, suggesting that pricing structures and strategies are consistent nationwide, even if base rates vary.
Tarifica's analysis relied on its TPIP system's benchmarking functionality and included all home broadband providers, both wired and fixed wireless, offering at least 100 Mbps download speeds in the selected cities. Plans were evaluated using five consumer profiles differentiated by download speed requirements. All profiles required unlimited data. Prices were calculated based on average cost over a two-year period, including amortized start-up fees.
To read the full study and explore detailed charts and data, please visit Tarifica's website.
About the Telecom Pricing Intelligence Platform
This latest Data Dive analysis was based on data from Tarifica's Telecom Pricing Intelligence Platform (TPIP), which offers comprehensive data on plans from major operators around the world, empowering users to create customized profiles for in-depth comparisons and analyses. Subscribers can explore trends and visualize data with ease using intuitive tools and multiple filters for a granular view. Say goodbye to Excel-based limitations and embrace modern features like screenshot captures, alerts, and historical offers. TPIP is adaptable to client needs, allowing customization of data structure, geographical scope, and frequency.
About Tarifica
Tarifica is an industry leader in providing telecom data and software solutions to the global telecommunications sector. Specializing in telecommunications plan and pricing information, Tarifica delivers critical insights and analytics to help telecom companies and regulators make data-driven decisions. The company's clients include national regulators, mobile and fixed line operators, internet service providers, consultancies, and financial institutions worldwide. In addition to its flagship SaaS products, Tarifica offers tailored consulting services to address specific client needs. The company's commitment to innovation and excellence has established it as a trusted partner in the rapidly evolving telecom industry.
Media Contact
Penny Wiesman, Tarifica, 1 917-419-2187, [email protected], www.tarifica.com
SOURCE Tarifica
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