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The Cost of Connectivity 2020

The Cost of Connectivity 2020, a recent report from the Open Technology Institute (OTI) at New America, explores how much Americans pay for Internet access compared to those in other parts of the world.

After examining 760 broadband plans in 28 countries in North America, Europe, and Asia, the report's authors conclude that Americans pay higher fees for slower speeds, with communities of color and low-income households most affected. The report points to a lack of Internet service provider transparency and competition as reasons why costs are higher in the United States compared to other places. OTI found that municipal broadband networks, like the one in Ammon, Idaho, provide much better value to subscribers and offer some of the most affordable Internet plans in the country.

Some takeaways from The Cost of Connectivity 2020:

"[I]nternet service in the United States remains unaffordable for, and therefore inaccessible to, many low-income households . . . In April 2020, 43 percent of lower-income parents reported that their children will likely have to do homework on their cellphones, and 40 percent said that their children would likely have to use public Wi-Fi to finish schoolwork because they lack a reliable internet connection at home. The 'homework gap' also disproportionately affects students who belong to BIPOC communities."

"Just three U.S. cities rank in the top half of cities when sorted by average monthly costs. The most affordable U.S. city—Ammon, Idaho — ranks seventh."

"Data caps further increase the cost of internet service while limiting users’ data consumption . . . Furthermore, data caps can have anticompetitive effects on the wider ecosystem, especially if an Internet Service Provider (ISP) selectively applies data caps to preference its own content while deprioritizing competitors . . . Notably, most of the plans with data caps are in the United States. In Europe, all plans advertised no caps or did not specify. In Asia, only one city specified a cap."

Some takeaways from The Cost of Connectivity 2020:

"[I]nternet service in the United States remains unaffordable for, and therefore inaccessible to, many low-income households . . . In April 2020, 43 percent of lower-income parents reported that their children will likely have to do homework on their cellphones, and 40 percent said that their children would likely have to use public Wi-Fi to finish schoolwork because they lack a reliable internet connection at home. The 'homework gap' also disproportionately affects students who belong to BIPOC communities."

"Just three U.S. cities rank in the top half of cities when sorted by average monthly costs. The most affordable U.S. city—Ammon, Idaho — ranks seventh."

"Data caps further increase the cost of internet service while limiting users’ data consumption . . . Furthermore, data caps can have anticompetitive effects on the wider ecosystem, especially if an Internet Service Provider (ISP) selectively applies data caps to preference its own content while deprioritizing competitors . . . Notably, most of the plans with data caps are in the United States. In Europe, all plans advertised no caps or did not specify. In Asia, only one city specified a cap."

Staff

on Wed Aug 2, 2017

This is the transcript for episode 264 of the Community Broadband Bits podcast. Mason Carroll and Preston Rhea join Christopher Mitchell on the show to talk about their work at Monkeybrains, an urban wireless Internet Service Provider. Listen to the audio here.

Mason Carroll: Every single person needs to have their own Internet connection. This is not just like, "Oh, I can sort of get the building-wide Wi-Fi as I stand near my front door." No. You should have your own Internet connection that you can plug in, and watch TV, or set up a computer, or to do your work. That's really what digital quality is.

Lisa Gonzalez: This is episode 264 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Episode 264 takes us to San Francisco, home to the Golden Gate Bridge, cable cars, and Monkeybrains. Preston Rhea and Mason Carroll from the Internet service provider are here to tell us about the local company, the services they provide in the Bay Area, and the work they're doing to chip away at the digital divide. Learn more about the company at Monkeybrains.net. As a reminder, this conversation with Preston and Mason is commercial free, but our work at ILSR requires funding. Please take a moment to contribute at ILSR.org. If you have already contributed, thank you. Now, here's Christopher with Preston Rhea and Mason Carroll, from Monkeybrains.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell with the Institute for Local Self-Reliance. Joining me today is Preston Rhea, Senior Field Engineer for Monkeybrains, an ISP in California. Welcome to the show.