When considering worldwide residential broadband Internet rates, the data showed that prices for standalone U.S. broadband packages are neither the most nor the least expensive—actually landing in the middle. However, U.S. triple play plans (voice, television, and data) are among the most expensive. Plans with bandwidth caps and plans with contracts tend to cost less than unlimited plans and plans without contracts.
The prices of standalone plans for residences with speeds faster than 25 Mbps have shown an increase of 25 percent. But subscribers for these plans only represent one percent of the total population of subscribers.
Another study by Akamai titled State of the Internet reveals that in terms of broadband speeds, the U.S. ranks 18th in the world, with an average connection speed of 3.9 Mbps. South Korea tops the list with a lightning-fast 14.6 Mbps.
As for business broadband, price changes vary for different speed tiers. Prices for most of the fastest broadband packages have decreased 15 to 25 percent between 2007-2009, while prices for the slow-speed ones remained largely unchanged.
"In the short run, consumers are better off when prices are low and falling," said economists Scott Wallsten and James Riso, the authors of the study, according to a Technology Policy Institute press release.
"Ultimately though, it is difficult to determine if prices are 'too high' or 'too low' and both have implications for future investment and innovation."
