Americans Consumed 100 Trillion Megabytes Of Wireless Data Last Year (And Paid Too Much For It)
The wireless industry’s major trade association (CTIA) just released a new study indicating that Americans consumed more than 100 trillion megabytes of wireless data last year. CTIA’s 2024 Annual Wireless Industry Survey found last year saw the biggest single-year increase in wireless data usage ever recorded: 36% more data consumed than in 2022 — and almost double the volume of data used in 2021.
The survey also found that nearly 40% of all wireless devices had a 5G connection in 2023, a 34% increase over 2022. There’s now 558 million wireless connections in the U.S. alone, more than 1.6 cellular connections for every American (usually a phone, tablet, or watch). The industry trade and lobbying organization, as it tends to do, took a moment to give itself a hearty pat on the back:
“This year’s milestone is a testament to the wireless industry’s commitment to our customers, our country, and our track record of driving our economy forward. To continue to support this demand and make sure America continues to lead the world in wireless innovation, the wireless industry needs Congress to restore the FCC’s auction authority and create a pipeline of much-needed mid-band spectrum.”
As with most superficial analysis of the wireless industry, the CTIA forgets to mention a small issue: the cost of service. Studies routinely illustrate that due to consolidation and regulatory capture Americans (and Canadians) continue to pay some of the highest rates for mobile data in the developed world.
And that happens, generally, because the steady drumbeat of mindless consolidation — combined with generally feckless U.S. regulatory oversight — tends to mute any incentive to compete on price. Studies have shown that what little price competition the U.S. experienced due to T-Mobile’s ascent as a disruptive player was immediately put to an end by the Sprint T-Mobile merger.
All of the things deal critics warned about before the deal (layoffs, less competition, less innovation) were promptly ignored by captured regulators and quickly came true. The shift from four to three major players, as it does in every country where regulators allow it, not only put an end to most price competition, but it put an end to the kind of consumer-friendly perks T-Mobile was once known for (T-Mobile has since moved on to acquire U.S. Cellular).
And while 5G did result in better, faster, and more reliable networks (and useful home 5G service in areas without fiber), the CTIA also forgot to mention that, despite Americans paying a steep premium, U.S. 5G networks tend to be much slower — and more inconsistently available — than their overseas counterparts.
Most surveys of wireless users indicate that what American cellular customers want more than anything is a price cut. But when U.S. telecom policy generally centers on rewarding mindless consolidation and steadily defanging (see: recent Supreme Court rulings) meaningful corporate oversight and consumer protection, that’s simply not happening anytime soon.