Wireless service prices in the United States have declined over the past decade, even as consumers use more data than ever before. According to the Bureau of Labor Statistics’ Consumer Price Index, the price of wireless phone service has fallen nearly 30% since 2010—an indication that consumers are getting more value from a rapidly evolving marketplace.
At the same time, average household spending on wireless service has increased, though at a much slower rate in recent years. These trends are not contradictory. Consumers are often choosing plans with more data and more lines, even as the price, as measured by the Consumer Price Index, continues to fall.
These shifts reflect a more competitive environment, where new entrants and new technologies are reshaping how mobile services are delivered and priced.
A changing marketplace is slowing price growth
The wireless market today looks very different than it did a decade ago. As new providers have entered the space with alternative lower-priced offerings, pricing trends across the industry have shifted.
Data from the Bureau of Labor Statistics’ Consumer Expenditure Survey highlights how overall household spending has changed over time, even as the price of service itself has declined:
- From 2010 to 2017, average monthly wireless spending increased from $100.55 to $125.30, growing at an annual rate of about 3.2%.
- From 2017 to 2024, spending increased more slowly, from $125.30 to $137.01, or about 1.3% annually.
The slowdown in wireless spending growth beginning around 2017 coincides with the period when cable providers began offering mobile services at scale, introducing new, lower-priced options into the market.
Growing competition is driving $20–$80 in monthly wireless savings
The impact of competition extends beyond those who switch providers. While consumers who move to cable mobile offerings can see substantial savings, the broader effect is felt across the entire marketplace.
If earlier trends had continued, average monthly wireless spending would be closer to $156 today. Instead, it is roughly $20 per month lower, suggesting that increased competition has helped limit price growth across the market.
At the same time, consumers who choose cable mobile providers can unlock even greater savings, with average monthly bills more than $80 lower.
This dual effect reflects a more competitive and dynamic market—one where providers are continuously working to deliver better value.
Innovation is helping keep costs down
In addition to new entrants, innovation in how networks operate is also playing a role in making mobile service more affordable.
Providers leverage extensive Wi-Fi networks to carry a large share of mobile data traffic. Today, nearly 90% of mobile data traffic runs over Wi-Fi, reducing reliance on traditional cellular infrastructure and lowering the cost of delivering service.
These efficiencies help enable competitively priced plans while maintaining high-quality, reliable connectivity for consumers.
What the data suggests
The trends in pricing and spending point in a clear direction. A more competitive wireless marketplace is delivering tangible benefits for consumers. Lower price growth, new lower-cost options, and continued innovation are giving consumers more control over what they pay and what they receive
Taken together, these trends show how increased competition is helping make mobile service more affordable while continuing to raise the bar on performance.
