One of the biggest thorns in the side of those who champion free-market competition and technological advancement has long been the landscape of internet service providers (ISPs). For years, some Americans had only one choice of ISP, take it or leave it.
Over the past decade, however, the numbers have steadily improved. By 2013, nearly 85% of U.S. households had access to at least two wireline broadband providers. By 2021, that number had increased to 87%. Moreover, 60.7% of households had access to three or more providers, and more than half had access to multiple providers offering broadband speeds well above the standard benchmark. The Information Technology and Innovation Foundation’s 2022 study provides a detailed breakdown of these improvements. (While it is true that some federal and state broadband deployment programs have contributed, the totality of investment from the private sector is roughly ten times the total spending from government expansion and subsidy programs).
Beyond the expansion of traditional broadband, alternative technologies such as 5G, satellite-based services like Starlink, and new high-speed fiber rollouts have dramatically increased consumer choice in internet connectivity. The marketplace today offers more options than ever before.
As any proponent of free-market economics would predict, the proliferation of options since 2015 has had a stabilizing effect on pricing. Average plan prices have remained flat, and when adjusted for inflation, prices have dramatically decreased. At the same time, speeds, access, and service quality have markedly improved. This inflation-adjusted price drop has occurred alongside a six-fold increase in average speeds largely in the absence of net neutrality regulations. In fact, the brief period during which net neutrality was enforced coincided with the only modern period of stagnation in investment and expansion, which resumed once those rules were rolled back. When government refrains from tipping the scales and allows the market to function, everyone benefits.
Even so-called "anti-consumer practices" like data caps* are being addressed by market forces rather than regulatory intervention. While some advocates pushed the FCC to ban data caps on home internet plans, Comcast's Xfinity brand (one of the largest ISPs in the U.S.) has recently announced a pricing overhaul that abolishes data caps entirely. This change was not the result of a federal mandate, but rather of competitive pressure as Comcast lost customers to more attractive offerings. The market compelled the company to simplify pricing and reinstate unlimited data, providing a direct benefit to consumers and strengthening Comcast’s competitive position.
Market correction may feel slow to those experiencing it in real time, but history consistently shows that, when freed from heavy-handed government regulation, markets do correct themselves. In contrast, government interventions such as banning practices, choosing winners and losers, or planning economic outcomes, tend to result in higher prices and more complexity.
The ISP market, once monopolistic and unresponsive, is now increasingly competitive and consumer-friendly, all without government control.
Regarding “anti-consumer practices”: The term is placed in quotation marks because research is mixed on the impact of data caps. Some argue that exceeding artificial caps incurs no additional cost, while others assert that caps help regulate network usage during peak times, preventing congestion and preserving speed for all users. Moreover, imposing caps can create a sense of digital scarcity, encouraging more responsible data use and further enhancing network efficiency.
