The Staggering Cost of US Internet and Cable

For many American households, the monthly internet and cable bill has become less a convenience and more a digital tithe, an unavoidable cost that seems to climb with each passing year.

A new report from doxoINSIGHTS confirms this nagging suspicion, revealing that U.S. households collectively funnel a staggering $164 billion annually into these essential services.

The average home shells out over $1,000 each year.

If your wallet feels lighter after that recurring payment, you are certainly not alone; it’s a shared burden borne by an estimated 73% of American households.

The days when internet connectivity was a luxury are long gone.

In an era defined by remote work, ubiquitous streaming, and the ever-expanding universe of smart home technology, high-speed internet has transitioned from an amenity to a core utility, as vital as electricity or running water.

Yet, unlike those established utilities, the cost of staying connected seems to operate in a deregulated wild west, with prices varying wildly across the nation and often lacking transparent justification.

The doxoINSIGHTS 2025 Cable & Internet Market Size and Household Spend Report, meticulously compiled from anonymized consumer payment data spanning 97% of U.S. ZIP codes, paints a vivid, if sometimes jarring, picture of this digital landscape.

The national median monthly bill hovers around $121, translating to an average annual outlay of $1,063.

But averages, as always, mask significant disparities.

The report highlights sharp regional differences, exposing a patchwork of pricing that can feel arbitrary and unfair.

Some states bear a disproportionately heavy load.

South Dakota, for instance, leads the pack with an average annual spend of $1,315, closely followed by Tennessee ($1,310) and Delaware ($1,313).

Even Alaska ($1,211) and Rhode Island ($1,091) find themselves among the top five most expensive states, defying common assumptions about cost of living.

Drill down to the city level, and the price spikes become even more pronounced, nearing what some might consider extortionate levels.

Milwaukee residents grapple with an eye-watering average of $1,913 per year for their cable and internet.

Charlotte isn’t far behind at $1,599, with Pittsburgh ($1,508), Denver ($1,492), and Portland ($1,463) rounding out the top five costliest urban centers.

These figures, it’s important to note, represent only the median for those paying the bill; households opting for premium services or comprehensive bundled plans are undoubtedly paying significantly more, further widening the gap between basic access and digital luxury.

Steve Shivers, co-founder and CEO of doxo, succinctly captured the essence of the dilemma in a press release: “High-speed connectivity is more essential than ever.”

His words underscore the paradox: a service deemed indispensable is simultaneously becoming increasingly expensive.

Shivers further warned of potential pricing increases due to tariffs on broadband equipment, a looming threat that could exacerbate the financial squeeze on consumers.

However, a glimmer of hope exists on the horizon.

Shivers also pointed to rising competition from wireless broadband options as a potential source of relief.

Indeed, the digital landscape is not static.

As the market evolves, new players and technologies are emerging, promising alternatives to the entrenched giants.

Even the Trump Organization recently launched “Trump Mobile”, a self-branded wireless network aiming to court conservative consumers with a service positioned as an alternative to major telecom providers.

While its specific market impact remains to be seen, such ventures, along with the growth of 5G home internet and satellite broadband, signal a broader trend: a fragmented market seeking to offer choice, potentially driving down prices through increased competition.

Yet, for many, the immediate concern remains the escalating cost.

The rising price of connectivity disproportionately impacts lower-income families, threatening to widen the digital divide and exclude those who can least afford it from essential services and opportunities.

This isn’t merely about entertainment; it’s about access to education, telehealth, remote work opportunities, and vital social connections.

The report implicitly calls for greater transparency in billing practices, a perennial consumer complaint.

Hidden fees, promotional rate expirations, and complex bundles often obscure the true cost of service, leaving consumers feeling trapped and exploited.

Broader access to wireless alternatives and a more competitive marketplace are crucial steps toward managing these spiraling costs in the long term.

As we navigate an increasingly digital world, the question isn’t just about how much we spend, but whether the value proposition aligns with the necessity.

The $164 billion spent annually isn’t just a statistic; it’s a testament to a foundational shift in how we live, work, and connect.

Ensuring equitable and affordable access to this modern utility is not merely a matter of market dynamics, but a pressing societal imperative.

The doxoINSIGHTS report serves as a timely reminder that while the future is undoubtedly digital, its accessibility must not be dictated solely by the depth of one’s pockets.