Among the oft-repeated claims one hears is that U.S. internet access is too expensive. So some object to the $10 per month price increase Verizon charges for its 5G plans, compared to 4G plans with equivalent usage allowances.
We can debate whether the better 5G service merits a price differential. We can debate the longevity of any such price differences. But it is not actually true that U.S. internet access prices are “too expensive,” though that claim often is made.
Such claims usually rely on posted retail prices, and then compare those prices to posted retail prices elsewhere in the world.
Alert observers will note that income and prices differ from country to country; in developed and developing countries. Adjust prices to reflect those differences and one finds prices are not too high in developed nations, and while more expensive in developing nations, prices are dropping rapidly.
And then there is the additional problem of “what” we are comparing. Available service plans are one thing. Consumer behavior is another matter. And most service providers run promotions of various types, so it never is clear how many customers are buying which plans.
And many service providers will drop price to keep an account that is about to churn away.
Also, in some markets, where bundled services are common, it might not be possible to determine actual price, except to say that bundle prices involve discounts.
So comparing posted retail prices across countries is an inherently problematic exercise. Aside from normalizing prices to reflect purchasing power, one way of looking at prices is to compare them to income, and state price as a percentage of household income.
Do so, and you find that developed market internet access is not expensive, even in the United States.
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