Cities with More Internet Service Provider Options Have Lower Prices




Image of a internet cable being cut.

Cutting access to the networtk Internet, cable to the routerBroadband competition is something that cord cutters have dreamed about. Now we are finally seeing it as a host of new Internet service providers—from Google to a long list of other companies—start to roll out Internet services.

In what is probably no shock to our readers, the more competition there is the lower the price. This comes from a new study from the Fiber to the Home Council.

Their study shows that more competitors in a market offer better results. The report showed the standard monthly price for gigabit Internet declines between 34 and 37 percent ($57 to $62) when there’s more than one gigabit ISP. This has been abundantly clear in AT&T’s markets, which also have Google Fiber as an option. AT&T’s gigabit broadband service has been anywhere up to $50 less per month than in non-Google Fiber markets.

“We find that each additional competitor offering broadband in a higher speed category will increase the probability that other broadband providers in the market will offer broadband at those higher speeds by 4 to 17 percent on an annual basis,” the study shows.

Cord Cutters News reached out to Ting a fiber ISP that has been taking on some of the biggest ISPs in America about this story. Anytime you get competition in Internet service, people win. In the case of true gigabit fiber Internet, they win because new and better Internet infrastructure is being built to meet the needs of the future. In cases where old copper is the only game in town, they win because ISPs have no choice but to compete on price.”said Andrew Moore-Crispin, Director of Content for Ting.

This does not stop at fiber speeds as the report found that the presence of gigabit service in a market resulted in a $27 per month decrease in the average monthly price of broadband service at speeds between 100 Mbps and 1 Gbps. Even the slowest of speeds saw a price drop as the study predicts a price reduction between $13 and $18 per month for plans starting at 25 Mbps or a 14 to 19% reduction in the cost of service.

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