Broadband can save users $8,400 a year, study says

The service allows users to compare prices and save money on gasoline, an advocacy group says

U.S. residents can save nearly US$8,400 a year in entertainment, clothing, food and other expenses by subscribing to broadband, according to a study released Friday.

Before factoring in the cost of a broadband subscription, broadband users can save $8,870 a year, compared to a savings of $7,695 last year, according to the new study by the Internet Innovation Alliance(IIA).

The savings difference between this year and last is due to a rising cost of products and services offline and an increase in comparison shopping services on the Web, said Bruce Mehlman, the IIA's co-chairman. "Consumers are spending more, and there are more opportunities for differential pricing" between offline and online products as the U.S. economy improves, he said.

One of the largest savings came in the area of entertainment, where broadband customers could save nearly $2,500, or 48 percent, of their yearly expenses, according to the study, by Nicholas Delgado, principal at financial planning firm Dignitas. Broadband customers could save nearly $1,660, or 20 percent, of their travel expenses, and nearly $1,050, or 60 percent, of their clothing expenses.

The IIA study also saw an 85 percent savings in a household's newspaper subscription costs, a 33 percent savings in nonprescription drug expenses, and a 26 percent savings in food expenses. The savings are based on a household income of about $63,700.

Broadband users could save a smaller percentage of their newspaper budget this year than last, with more publications charging for Web content and rising online subscription costs, the study said. In the other categories in the study, the percentage of savings increased or remained steady.

Access to the Internet allows shoppers to compare prices on a wide variety of items and gives them access to a larger inventory of products, IIA said. Shoppers can also find Web-only discounts and coupons, and they can save gasoline costs by shopping online, the advocacy group said.

Mehlman called the Internet a "game changer" for people who like to compare prices.

Not all broadband users will save the entire $8,400, but broadband subscribers who comparison shop can find significant savings, Mehlman said.

"This is the counterintuitive case where you have to spend more [by subscribing to broadband] to save money," he said. "It takes bandwidth, it takes time and it takes work, but if you're committed, the savings are there, and you'll far more than pay for the cost of the broadband."

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is grant_gross@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags broadbandinternettelecommunicatione-commerceDignitasBruce MehlmanInternet Innovation AllianceNicholas Delgado

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?