Why Is Internet Service In The US Overpriced?

Internet Service

There has been significant progress in internet speeds, access, and availability in recent years but one area of interest for the customers that have not changed much is the cost. As much as we expect the expensive price tags to go down due to the growth of the telecom industry, it did not turn out so and the internet remains to be overpriced in the United States. We do see some of the top-notch providers stepping forward and offering more affordable plans and offers, like Xfinity internet, so users can enjoy better rates and services but generally the providers believe that they can charge ridiculously for providing internet services. So just like every other commodity seems to be spiking up, the internet can also be an addition to the pricey monthly bills and you have no choice but to pay it. Therefore, at one point or another, we all wonder why internet service is so pricey in the United States. Keep reading to know the reasons behind it:

Less Competitive Market

One thing is for sure,- you do not have as many choices as you might have in your area. Therefore, even if it seems that there are several providers, the fact is that you are likely to find not more than just one provider in your area. You might be lucky enough to find a second provider too, but that might be rare. Hence, the market is not very competitive at all. There is a need for more providers to offer services around the US, and that too, at prices that are more reasonable. There are usually more providers in other parts of the world.

With more providers, it gives you a chance to do price comparisons and even negotiate with the ISP for a better offer. Unfortunately, that is not the case for most parts of the US. Even if you do not take the internet plan, it is no big deal for the provider who knows that you will come back. The reason being that you do not have multiple options around. Therefore, the providers know that you are more dependent. 

Expensive Equipment

There are multiple types of equipment required to access the internet. You might always require a router, modem, cables, etc. The providers usually rent out the equipment, charging an additional fee. This altogether makes the monthly internet price better, making the internet service more expensive. 

Moreover, it is not just the equipment needed inside the house; it can also be the overall equipment. Therefore, the cost of the equipment, adds to the total internet expenses. The providers pass the cost to the end-users, making the internet bills costlier. 

Maintenance 

More maintenance is usually required on the existing lines. The infrastructure at times also needs up-gradation. This also requires technicians to carry out maintenance tasks. Oftentimes the maintenance is required at both the hardware and software levels. Therefore, the maintenance cost involves transport, labor, and equipment. A provider deals with these costs, which eventually reflects in higher monthly internet bill. 

Insufficient Infrastructure 

The internet has now become a requirement for every household in the United States. However, there are still certain rural areas without internet access. As much as one-fourth of the total population in rural areas is deprived of this facility, one main reason behind this is expensive infrastructure and rural areas usually lack infrastructure. Fiber optic cable is one of the fastest internet speed options while also the one with the least coverage across the United States. In general, broadband coverage is not efficient in many rural areas resulting in various uninformed outages and dragging speeds. 

Lack of Internet Regulations 

When it comes to the internet, there are not many regulations to discipline the providers. This means the providers have a lot of control over the amount they charge for rendering their services. 

Different Speeds

The faster speeds you will avail, the more you have to pay. Commonly offered internet speeds include 100 Mbps to 900 Mbps. In addition, there are different types of internet connections. The most innovative, speedy, and the most expensive being fiber internet. Consequently, your location also matters a lot in defining the internet speeds or prices that are offered to you.

Inaccessibility for Rural Areas

Rural areas are often the ones to receive the poorest internet coverage. They also lack the infrastructure and providers are reluctant to invest. Expensive satellite internet plans are usually the only option available to people living in remote areas. 

Wrapping Up, 

The aforementioned reasons explain well why the internet is overpriced across the US. Mainly the lack of competition, infrastructure, costly equipment, time-consuming installation process, and lack of adequate internet regulations are the main cause behind pricey monthly internet bills. Keep in mind the higher the internet speed, the more money you will be paying. 

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