Policy

Weak competition could hike your broadband bill by $96 a year

A new consumer survey says that those with the most choice in broadband providers are paying the least and reveals opinions about municipal broadband, internet access, affordability and more.

Hands reach out for Apple laptop

Broadband affordability has become an urgent issue during the pandemic.

Photo: John Schnobrich/Unsplash

American homes that have lots of choice in broadband providers can expect to pay around $8 less per month for internet than those who are locked into a single company, according to a new survey from Consumer Reports.

The median monthly bill for people with four or more broadband providers in their area was $67. It was $75 for those with only one choice, according to the survey of nearly 2,600 US residents. In a sign that consumers are thirsty for increased broadband access, the survey also suggested wide approval for municipal broadband programs run by local governments.

The results come a month after the veteran consumer group launched a separate push to obtain thousands of homes' broadband bills to learn how much users are paying, figure out where competition is scarce for internet service and help build the case for treating broadband more like an essential utility. The first results for that initiative are expected in the fall.

While competition generally drives down prices for consumers in all industries, the broadband industry is notoriously opaque. It's still unclear exactly how much Americans actually pay and how much competition is available to them. The trade group USTelecom, for instance, says the most popular choice for consumers costs less than $50 each month. But in the Consumer Reports survey, the median bill for those with access to broadband was $70 monthly, including taxes and fees. Roughly a quarter of those who have broadband said they had no choice in providers.

Proponents of expanding broadband access often point to municipal networks, established by local governments, as a possible solution to the problem of limited competition. The Consumer Reports survey found widespread support for such networks. Three-quarters of people who responded said that municipal broadband should be allowed "because it would ensure that broadband access is treated like other vital infrastructure such as highways, bridges, water systems, and electrical grids, allowing all Americans to have equal access to it." That figure included more than 60% of Republicans and a full 85% of Democrats.

The telecom industry has cast municipal broadband as an unnecessary expense for taxpayers and a way for governments to put their thumb on the scale of free markets. State-level action also faces an uphill battle, with nearly two dozen states having outright bans or other significant roadblocks in place regarding municipal networks.

The issue of internet affordability has only become more urgent during the pandemic. In the survey, 43% of respondents said they are using the internet more than they were before COVID-19 hit. "The pandemic illuminated how much people need access to an affordable, reliable internet connection," said Jonathan Schwantes, senior policy counsel at Consumer Reports, in a statement. The group reported separately that, as of February, 76% of people say the internet is "as important as other basic necessities," up from 61% when Consumer Reports began looking into the issue in 2017.

And yet, the most recent survey found that 15% of respondents have been relying exclusively on a wireless smartphone data plan. Another 5% are still using DSL or dial-up, and 3% completely lack internet access at all. For those who don't have broadband, a quarter said it wasn't available where they live, and nearly a third said it cost too much.

These issues of access are particularly pronounced in communities of color. More than one in five Black respondents said they rely on a wireless connection for their home, and nearly a third of those from the same group who do have broadband called it somewhat or very difficult to afford. Nearly one third of people without a high school diploma also said they had to rely on wireless access.

During the pandemic, the federal government has struggled to get broadband benefits to people who have trouble affording internet access. The survey comes as a bipartisan group of lawmakers and the White House seek to advance an infrastructure bill. According to the administration, the plan would allocate $65 billion so that "every American has access to reliable high-speed internet." It also includes measures to allow people to comparison shop between broadband plans more easily and "help more low-income households access the internet."

Workplace

Should your salary depend on meeting DEI goals?

Diversio just raised $6.5 million to use AI to fix DEI.

Laura McGee has spent her entire career thinking about diversity and business. At one point, she helped lead the Trump-Trudeau Council for Advancement of Women, working with the prime minister and president to build a plan to grow the North American economy through diversity. During that time, she kept hearing from CEOs that they cared about diversity and wanted to improve, but that they had “no data and no metrics.”

That was when she decided to build Diversio: a platform that makes data collection, as well as acting on it, “super simple.”

Keep Reading Show less
Michelle Ma

Michelle Ma (@himichellema) is a reporter at Protocol, where she writes about management, leadership and workplace issues in tech. Previously, she was a news editor of live journalism and special coverage for The Wall Street Journal. Prior to that, she worked as a staff writer at Wirecutter. She can be reached at mma@protocol.com.

Sponsored Content

A CCO’s viewpoint on top enterprise priorities in 2022

The 2022 non-predictions guide to what your enterprise is working on starting this week

As Honeywell’s global chief commercial officer, I am privileged to have the vantage point of seeing the demands, challenges and dynamics that customers across the many sectors we cater to are experiencing and sharing.

This past year has brought upon all businesses and enterprises an unparalleled change and challenge. This was the case at Honeywell, for example, a company with a legacy in innovation and technology for over a century. When I joined the company just months before the pandemic hit we were already in the midst of an intense transformation under the leadership of CEO Darius Adamczyk. This transformation spanned our portfolio and business units. We were already actively working on products and solutions in advanced phases of rollouts that the world has shown a need and demand for pre-pandemic. Those included solutions in edge intelligence, remote operations, quantum computing, warehouse automation, building technologies, safety and health monitoring and of course ESG and climate tech which was based on our exceptional success over the previous decade.

Keep Reading Show less
Jeff Kimbell
Jeff Kimbell is Senior Vice President and Chief Commercial Officer at Honeywell. In this role, he has broad responsibilities to drive organic growth by enhancing global sales and marketing capabilities. Jeff has nearly three decades of leadership experience. Prior to joining Honeywell in 2019, Jeff served as a Partner in the Transformation Practice at McKinsey & Company, where he worked with companies facing operational and financial challenges and undergoing “good to great” transformations. Before that, he was an Operating Partner at Silver Lake Partners, a global leader in technology and held a similar position at Cerberus Capital LP. Jeff started his career as a Manufacturing Team Manager and Engineering Project Manager at Procter & Gamble before becoming a strategy consultant at Bain & Company and holding executive roles at Dell EMC and Transamerica Corporation. Jeff earned a B.S. in electrical engineering at Kansas State University and an M.B.A. at Dartmouth College.
Enterprise

Why low-code and no-code AI tools pose new risks

The low-code trend has come to AI, but skeptics worry that gifting amateurs with Easy-Bake Ovens for machine-learning models is a recipe for disaster.

The same things that make low- and no-code AI so appealing can pose problems.

Image: Boris SV/Moment/Getty Images

“No code. No joke.”

This is the promise made by enterprise AI company C3 AI in splashy web ads for its Ex Machina software. Its competitor Dataiku says its own low-code and no-code software “elevates” business experts to use AI. DataRobot calls customers using its no-code software to make AI-based apps “AI heroes.”

Keep Reading Show less
Kate Kaye

Kate Kaye is an award-winning multimedia reporter digging deep and telling print, digital and audio stories. She covers AI and data for Protocol. Her reporting on AI and tech ethics issues has been published in OneZero, Fast Company, MIT Technology Review, CityLab, Ad Age and Digiday and heard on NPR. Kate is the creator of RedTailMedia.org and is the author of "Campaign '08: A Turning Point for Digital Media," a book about how the 2008 presidential campaigns used digital media and data.

Boost 2

Can Matt Mullenweg save the internet?

He's turning Automattic into a different kind of tech giant. But can he take on the trillion-dollar walled gardens and give the internet back to the people?

Matt Mullenweg, CEO of Automattic and founder of WordPress, poses for Protocol at his home in Houston, Texas.
Photo: Arturo Olmos for Protocol

In the early days of the pandemic, Matt Mullenweg didn't move to a compound in Hawaii, bug out to a bunker in New Zealand or head to Miami and start shilling for crypto. No, in the early days of the pandemic, Mullenweg bought an RV. He drove it all over the country, bouncing between Houston and San Francisco and Jackson Hole with plenty of stops in national parks. In between, he started doing some tinkering.

The tinkering is a part-time gig: Most of Mullenweg’s time is spent as CEO of Automattic, one of the web’s largest platforms. It’s best known as the company that runs WordPress.com, the hosted version of the blogging platform that powers about 43% of the websites on the internet. Since WordPress is open-source software, no company technically owns it, but Automattic provides tools and services and oversees most of the WordPress-powered internet. It’s also the owner of the booming ecommerce platform WooCommerce, Day One, the analytics tool Parse.ly and the podcast app Pocket Casts. Oh, and Tumblr. And Simplenote. And many others. That makes Mullenweg one of the most powerful CEOs in tech, and one of the most important voices in the debate over the future of the internet.

Keep Reading Show less
David Pierce

David Pierce ( @pierce) is Protocol's editorial director. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

Workplace

How 'Dan from HR' became TikTok’s favorite career coach

You can get a lot of advice about corporate America on TikTok. ‘Dan from HR’ wants to make sure you’re getting the right instruction.

'Dan from HR' has posted hundreds of videos on his TikTok account about everything from cover letters to compensation.

Image: Dan Space

Daniel Space downloaded TikTok for the same reason most of us did. He was bored.

At the beginning of the COVID-19 pandemic, Space wanted to connect with his younger cousin, who uses TikTok, so he thought he’d get on the platform and try it out (although he refused to do any of the dances). Eventually, the algorithm figured out that Space is a longtime HR professional and fed him a post with resume tips — the only issue was that the advice was “really horrible,” he said.

Keep Reading Show less
Sarah Roach

Sarah Roach is a reporter and producer at Protocol (@sarahroach_) where she contributes to Source Code, Protocol's daily newsletter. She is a recent graduate of George Washington University, where she studied journalism and mass communication and criminal justice. She previously worked for two years as editor in chief of her school's independent newspaper, The GW Hatchet.

Podcasts

1Password's CEO is ready for a password-free future

Fresh off a $620 million raise, 1Password CEO Jeff Shiner talks about the future of passwords.

1Password is a password manager, but it has plans to be even more.

Business is booming for 1Password. The company just announced it has raised $620 million, at a valuation of $6.8 billion, from a roster of A-list celebrities and well-known venture capitalists.

But what does a password manager need with $620 million? Jeff Shiner, 1Password’s CEO, has some plans. He’s building the team fast — 1Password has tripled in size in the last two years, up to 500 employees, and plans to double again this year — while also expanding the vision of what a password manager can do. 1Password has long been a consumer-first product, but the biggest opportunity lies in bringing the company’s knowhow, its user experience, and its security chops into the business world. 1Password already has more than 100,000 business customers, and it plans to expand fast.

Keep Reading Show less
David Pierce

David Pierce ( @pierce) is Protocol's editorial director. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

Latest Stories
Bulletins