Do You Really Know the Cost of High-speed Internet?

Once considered a luxury, high-speed internet service has become a necessity. It is crucial in homes, including power or water. So you can look forward to fitting the internet somewhere in your budget every month, but just how much should you be allotting for it? 

What added fees are charged by internet providers?

As with a number of services, the initial price you see for the internet service is not exactly what you expect to pay. However, fees will differ by the internet service provider (ISP), but some of the extra costs that could gain access to your bill comprise of the following:

• Equipment rental: Rentals for modem and router can easily add tens of dollars to the internet bill. There are some providers that may comprise equipment at no extra charge. This is usually the case with high-tiered plans. Other providers may let you use your own equipment – modem or router – so you avoid paying the equipment rental fee.

• Installation/activation fees: It is good to know that Installation costs are one-time fees. However, they can save hundreds of dollars on the internet initial cost. In fact, several ISPs waive the installation fee for new customers. Or, they offer self-installation at a low cost. An activation fee may also apply, aside from the installation fee.

• Late payment fee: Penalties for late payments differ from state to state. However, you could be charged a percent of your bill. If the service provider disconnects the internet service due to non-payment, you may have to pay an additional fee to restore the service. 

• Cancellation fee: If you choose to terminate the service before your contract ends, it can attract high cancellation fees. The majority of internet service providers prorated early termination fees. But it depends on the number of months left in your contract and may charge you hundreds of dollars to opt-out of the service. Some providers, like Spectrum, don’t require annual service agreements. So there is nothing you will have to worry about early termination fees.

It is important to know that regional and federal taxes will add to your internet costs every month even if your service provider doesn’t charge added one-time or monthly fees. 

Why does the internet cost a lot?

Internet service providers (ISPs) do not charge high simply because they can. Around 95% of households in the United States have access to at least two internet service providers, which is why pricing remains equally competitive. But there are a couple of reasons why internet service can get expensive.

Well, one of the primary reasons for internet services to get pricey is the equipment and installation cost in new service areas. Fiber-optic cables are costly, so fiber-optic internet service providers may have higher costs to recover the prices for the installation of new lines. The same is the case with satellite internet – those satellites do not come cheap. That is the reason why DSL internet – using existing phone lines to deliver service – is one of the common one low-priced internet options.

The plan you pick has a lot to do with how much you are likely to pay for the internet. The faster a plan is, the more it is likely to cost you. If you are looking for high-speed internet choices, you can choose from cable and fiber-optic internet. If you choose faster speeds, these two types will have some of the high-priced plans.

How can you reduce your internet bill?

Stuck in a plan? Or, like the plan, you already are on but are looking for ways to save on your bill? No matter the reason, there are some unique ways that can help you lower your internet costs every month.

• Switch internet providers: Look for the best internet plan from another service provider. However, there are several providers that offer an introductory price or other incentives, including contract buyouts for helping you save.

• Keep an Eye on Your Data Usage: Does your plan have a data cap? If so, make sure you watch how much data you have used throughout the month. This is especially appropriate for satellite internet users, who often have lower data caps compared to other types of connections available.

• Negotiate with your internet service provider: If you are looking to get a lower rate, make sure you call your internet service provider. It won’t you get a low price, but it pays to ask. 

• Downgrade your plan: Are you able to lower your internet speeds without having to sacrifice your most preferred online activities? If you could, downgrading your internet plan to a low-cost and cheaper plan would be your best bet. You need to ensure that you are not in a contract before trying to change your service.

Choose the right plan that helps meet your needs and purpose. Then reduce costs by using your own equipment. Do watch your data usage.

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