A new study of broadband pricing in a major American city found different prices in different neighborhoods, skewing toward higher prices in lower-income areas.
The study was limited to two providers in Louisville, Kentucky, but its authors called for a central repository of broadband pricing information.
Requirements for broadband nutrition labels “represented a meaningful step forward by affording individuals the transparency they need to make informed decisions about their internet service,” according to the study, but “it does not enable broader pricing comparisons across households or neighborhoods.”
The study was published February 23 by Connected Nation, a Kentucky-based nonprofit that has assisted with broadband mapping, technology planning, and digital empowerment efforts in all 50 states and three U.S. territories.
It comes just months after the Federal Communications Commission (FCC) started studying broadband labels with the intent to change requirements. Requirements for the labels were unanimously approved in 2022 and instituted in 2024.
The proposed changes could include removing the labels from online customer portals and bundling optional fees rather than listing them one by one.
Regardless, the original requirements did not require broadband providers to maintain a database of these labels. Instead, they show up only after a customer has provided an exact address.
The Connected Nation study used exact addresses for its data, choosing a random sampling of 6,300. Researchers shopped for plans online for each address and compiled pricing data based on broadband labels.
The study compared prices per Mbps of download speed in different neighborhoods for a provider that offers fiber, DSL, and fixed wireless service. Poorer neighborhoods, which are more likely to be limited to DSL connectivity, were charged the highest rates per Mbps. However, their monthly bills were lower than in more affluent areas, which were more likely to have fiber internet infrastructure.
The other provider in the study offers cable internet, and researchers found its broadband pricing was higher than the average prices for fiber, but lower than for DSL.
Citywide, here’s how average prices broke down per connectivity type:
- DSL internet: $3.94 per Mbps
- Cable internet: $0.17 per Mbps
- Fiber internet: $0.11 per Mbps
Pricing for fixed wireless broadband service did not vary, the study found. Factors like population density, household size, and concentration of multi-family housing also did not account for pricing variance. However, researchers found the cable provider charged less per Mbps in higher-income areas — likely because those families chose faster plans.
