Why is the Internet expensive and bad in the US?

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The average internet speed is increasing globally. It is worth mentioning, however, that the countries contributing the most to this development are those in wealthy countries, which have previously established infrastructure and can thus deploy the most cutting-edge technologies. Despite the US having reliable satellite internet such as Hughesnet internet that provides quality internet connection to its users with wide spread coverage, unfortunately, it still did not cut in the top 10 countries ranking in the average internet speeds. 

The internet can be an expensive monthly fee depending on where you live and what providers are available. There’s often no way around it. You have no choice but to pay for the internet in your home if you want it. 

Let’s discuss the reason why the internet in the United States is so expensive and still has low quality in some areas.

The Lack Of Competition In The Market

When you try to obtain the internet, one of the first things you’ll notice is that there aren’t many options. In some cases, there may be only one service in your area. You might get lucky and find a second provider, but this is unlikely. Because the marketplaces aren’t competitive, providers aren’t obligated to give excellent service or low costs. They’re well aware that they’ve got you exactly where they want you. Because they know you don’t have a choice, they can charge you whatever they want. There are various providers in other parts of the world.

When there are more options available in the market it leads to competition and the providers want to obtain as many customers as possible with their quality services. They do competitive pricing. Due to the lack of this competition in most of the areas in the US, the users simply take what they get. If you don’t, the service provider does not mind because they know you’ll eventually change your mind. Until then, there will be plenty of other consumers willing to pay their bills because everyone has become so reliant on having access to the internet.

Expensive Equipment 

To use the internet, you’ll need several types of equipment. A gateway, a hub, a bridge, a switch, or a router may be required depending on the type of network you’re connecting to. The most frequent method of connecting to the internet from your house is through a router. You can rent one from your internet provider or buy one from any electrical store. The majority of consumers opt to purchase their router from their service provider out of pure convenience. This has the extra benefit of the provider is responsible for repairing it if it breaks or becomes damaged over time. The provider will be responsible for upgrading new technology when it becomes available. The cost of the internet is not just due to the technology you have in your home. It’s all the extra equipment required to provide internet service to you and the rest of your community. Cables will be buried or carried on polls and will eventually reach a central office. There will be large pieces of technology in this office that will provide connectivity. All these devices will be rental for you and you must be paying a hefty amount for this in your billing as well. 

Mediocre Infrastructure 

For many families and organizations, having access to the internet is a must. However, many rural regions still lack access to the internet. According to the FCC, about a quarter of the population in rural areas does not have access to the internet.

Infrastructure is costly, which is one of the reasons it isn’t available everywhere in the United States. There are also other regions where infrastructure is badly insufficient. Fiber optic cable is the best alternative, although it is only available in a few cities. Because of the state of the infrastructure, many users are experiencing poor and intermittent internet service.

Lack Of Regulations

There are not many rules in place for inter net service providers. The issue is that they have far too much power over the kind of service they give and the prices they may charge.

In essence, inter net service companies are permitted to form monopolies. As the single provider, they may run an entire city. They have the power to charge anything they want since they are allowed to do so, and they have decided to charge a lot.

Internet service providers are classified as telecommunications that give them space to play along the lines of various loopholes. 

There were whispers of introducing “net neutrality” which unfortunately could not have been brought to implementation. Due to the lack of regulations specifically for the internet services providers, they will remain uncontrolled until a plan is agreed upon by both the government and the providers.

High Demand

High demand is a major factor in the high cost of internet bills. Inter net service providers are aware of the rising demand. After all, people expect to be able to stream content from popular TV apps like Prime Video and Netflix over the internet. They urge people to check their social media sites on the internet. They will, of course, require access to the internet to work from home.

The demand is only expected to grow, especially as many businesses have discovered that teleworking allows employees to be more productive. When there is a high demand, internet providers become avaricious. They know you require their services, so they are free to charge whatever they want. Therefore, regardless of the pricing people will always find a way to pay these high prices as there is no other option. 

Conclusion

As the internet becomes more widely available, it will be considered a necessity rather than a luxury. When it’s been around for a long time, the cost may be reduced or eliminated. However, we haven’t reached that position yet.

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