Aside from connection type and location, other features like data caps and download speeds can throw your bill for a loop too. That means you need to consider all of the following items when you buy an internet plan:
Connection type (DSL, cable, fiber, satellite, fixed wireless, or cellular) Your location Data caps Download speeds
Let’s take a look at how the pricing breaks down to see if you’re getting a good deal on your internet—and what to do if you’re not. If you don’t need the fastest service, you might be able to save some cash. We tallied up the average cost for internet plans with download speeds of 3–50 Mbps and found that slower plans will likely cost you about $55 a month. Going for a DSL or cable internet plan instead of fiber (or instead of satellite) can also save you some cash. Prices for cable and DSL internet didn’t change much over the past year and ring in at an average of $51 a month. Here’s what the average monthly cost looks like when you break it down by all internet connection types: If you prefer to skip the equipment rental fee, you can grab a Wi-Fi enabled modem or router for fairly cheap. These cost anywhere from $50–$200, depending on the features you’re looking for. So the average monthly Wi-Fi cost is your equipment rental fee or purchase price on top of your monthly subscription fee. That’s excluding any internet plans with speeds below 25 Mbps, since high-speed internet comes with 25 Mbps or more of download speed. And just to be clear, internet speeds of 25 Mbps are likely fine for one person, but if you have multiple people in your house all watching HD shows at the same time, you’ll need to double, triple, or even quadruple that speed. That said, don’t pay extra for speed you don’t need. You don’t have to pay for one of those lightning-fast gigabit plans if all you really do is browse Facebook. But if you have nine kids and they all want to watch Hulu at the same time, gigabit internet might be worth the cost versus listening to complaints 24/7. As DSL infrastructures age, we won’t be surprised to see DSL internet costs increase as providers (hopefully) upgrade their networks. Some of the biggest DSL providers in the US are AT&T, CenturyLink, Earthlink, Frontier, Windstream, and Verizon. Here’s how DSL internet prices range for each of those providers. That’s a tad-bit higher than the average bill for DSL internet, but cable’s speeds generally outpace DSL. So cable is likely the better value. There are also dozens more cable internet providers to choose from compared to DSL providers. These include the following: Here’s a look at some of the top US fiber internet providers’ price ranges: Still, we’re seeing more affordable gig and near-gig speeds across the board, which is great news as working and learning from home becomes more of the norm. Some of our favorite internet service providers that offer fast speeds at low prices include AT&T Fiber, CenturyLink, Astound Broadband, powered by RCN, and Xfinity. So before you go hog wild, get an idea of how many Mbps you really need. It’ll save you some money.
Installation fee Equipment rental fee Data overage fees Early termination fee Reconnection/reactivation fee Late payment fee
Installation fees are a one-time thing and they usually cost around $50–$100. If you can get a self-install kit from your provider, that’s typically free or a lower cost than professional installation. Some ISPs also offer free installation deals. Even if they don’t, you can ask them to waive the fee. No harm in trying, right? An equipment rental fee is the price you pay to lease equipment (like a modem, a router, or both) from your internet service provider. You can get around this fee if you buy your own equipment, which may also save you money in the long run. Data overage fees are what you might pay if you use more than your allotted data each month. Some internet plans have lower data caps but don’t make you pay fees for using too much data. For example, satellite internet providers often have soft data caps that range anywhere from 10 GB to 300 GB. If you use more data in a month, the ISP slows your download speeds—but you don’t have to pay any fees. An early termination fee (ETF) only applies if you subscribe to an internet plan with a contract, or term of service. Usually, contracts last one to two years, and if you cancel your subscription before that time is up, you’ll need to pay an ETF. ETFs range in cost from around $100 up to $500, depending on the provider and how much time is left on your contract. So be wary of canceling your service too early—or look into another provider that offers a contract buyout program, like Spectrum. Reconnection or reactivation fees are charged when your internet service is suspended, either by you or by the ISP. These fees normally cost between $30–$50. Late payment fees are fairly explanatory: If you’re late paying your bill, you’ll pay an additional fee on top of your normal bill. This usually amounts to $5–$10 per late payment, but be wary since that can add up quickly. Download speed: In general, the faster your download speed is, the more you’ll pay per month. Internet Connection type: We usually see higher internet prices for fiber internet and satellite plans—but this is due to the high maintenance costs of building, launching, and keeping those satellites in Earth’s orbit. That’s not to say you can’t find a great deal on satellite internet. When it comes for the best price for the fastest internet speeds, we recommend Viasat. But if you can make do with 25 Mbps speeds and not a lot of data, check out HughesNet‘s 15 GB and 30 GB plans. Promotional deals: Promotions, like limited-time offers, can drop your final bill like a hot potato. These typically offer a low starting price for your internet service that lasts for a short while—usually one year. On the other hand, once your promotional period is up, you can expect your final bill to shoot up like a pack of Mentos in a Coke bottle. After the promotional price, you’ll start paying what most ISPs call a “standard” price. How much the standard price differs from the promo price depends on the provider and the deal you got, but you can expect to pay anywhere from $10–$20 more per month. Where you live: Most ISPs that are available nationwide break their pricing down by region. For example, Xfinity offers different prices and plans for the northeastern, central, and western US. Astound Broadband, powered by RCN offers internet in a small part of the Northeast, but its prices change depending on whether you’re in DC, Lehigh Valley, Boston, or another city. Even if you can’t get service from a provider that breaks down prices by location, you’ll likely see different prices if you ever tried to compare with, say, a friend who lives on the other coast. ISPs have even been known to charge different prices on different sides of the same street, so be sure to do a thorough comparison of what’s available in your area.2 And hey, depending on how you use the internet, paying more than the national average might be A-okay. For example, let’s say your family does a lot of video streaming and gaming. That means you’re likely paying more for faster internet speeds than the elderly couple next door who just sends emails and checks their granddaughter’s photos on Facebook. Paying less? We’re jealous. Mind sharing your tips in the comments below? We took a look at plans and prices for 22 different well-known ISPs available across the US: AT&T, Buckeye Broadband, CenturyLink, Cox, EarthLink, Frontier, Google Fiber, Astound Broadband, powered by Grande Communications, HughesNet, Mediacom, MetroNet, Optimum, Astound Broadband, powered by RCN, Sparklight, Spectrum, Verizon Fios Home Internet, Viasat, Windstream, WOW! Internet, Comcast Xfinity, and Ziply Fiber. To get the overall average for broadband internet costs and each internet connection type, we added up the promotional internet prices for all plans and divided by the number of plans. If a provider also offered no-contract plans, we did not include that pricing data in our calculations. If you want a traditional TV service (or gasp a landline phone), then bundling with your internet service could save you some money. But don’t sign on for cable TV just to get the lower internet price. In the long term, bundling can cost you more than a single internet plan if you don’t actually want or need the services you’re bundling with.
