Beware the Broadband Booby Traps

If you’re just starting out on your home broadband search or looking to switch providers, one thing you should avoid is pricing traps. 

Let me set the scene for you. You recently moved into a new home and want to set up internet service. You tried signing up online, but for some reason, you are being asked to call the internet service provider’s customer service hotline instead. You hop on the call and want to sign up for the lowest speed tier, but the customer service representative recommends you go with a plan with more speed.

The rep tells you all about the added benefits of going with the faster plan. The monthly price is decent, especially for the speeds you’re getting. You’re hesitant but excited to try out the free streaming service promotion. You sign the contract. A little over a year passes, and you notice your monthly bill has tripled in price. Sound familiar? 

You think it must be some kind of mistake, so you call your internet provider. They explained that the price increase was due to the expiration of the promotional rates you were first offered. On top of the price increase in your monthly bill, the faster plan came with an HBO Max subscription, which you are now paying for in full. You’re frustrated and ask yourself, how did I get here? 

There are different pricing traps, some more obvious than others. The scenario above is just a small example. You don’t have to fall prey to these schemes. Read on for some tips you can use to avoid these broadband booby traps. 

What are pricing traps?

Pricing traps are essentially tactics businesses use to lure customers into paying more for a product or, in this case, a service in exchange for a “better or more refined service.” Many ISPs will try to present you with a plethora of promotions and offers when signing up, such as bundling your home internet with a mobile or TV package. More importantly, the most common price trap by your ISP is to try to bait you into signing up for its promotional rates. These promotional prices are reasonably cheap, but the kicker here is that you only get to keep that rate for a limited time. 

To help you avoid paying more than you need, we’ve gathered some of the most common price traps by ISPs: 

• Promotional pricing trap: This one is the most common. Your provider may lure you into signing up for service at an affordable rate. Promotional prices can range from $20 to $30 monthly, which seems like a good deal. For most ISPs, these promo rates are yours to keep for only a year or so until your price increases to the standard rates, which can double or triple your monthly bill. 
• Perks and freebies: I know what you’re thinking. Who doesn’t like free stuff? Many internet providers will offer incentives like gift cards, select discounts and even free items to get you to sign up for an internet plan you may not need. For instance, Verizon Fios is currently offering new customers the option of an Xbox Gaming bundle if they switch to its 1 gig and 2 gig plans. Do you really need this much speed? More on that later. 
• Year-over-year price increases: This one is harder to spot since it varies by ISP. Cable providers like Spectrum, Optimum and Sparklight raise their prices after a year. In some cases, providers may increase their prices whenever they decide. Besides its year-over-year price increase, Spectrum is notorious for increasing overall prices for all customers.
• Contract term agreements: If you decide to break your contract and cancel your internet service, you can get charged with some pretty jarring early termination fees of up to $500. To avoid this, you can look into contract buyout offers from providers like Spectrum, T-Mobile and Verizon Fios, but if this is not available, you can always look into a no-contract service. 
• Data caps and overage fees: Your internet provider may impose data caps with their plans. Once you’ve reached that threshold, you may be charged overage fees. To avoid this, you can look into providers like AT&T Fiber, Astound, CenturyLink, and Frontier, which offer no data caps. 
• Bundling home internet with a mobile or TV service: Most ISPs offer to bundle your home internet with a mobile or TV package with streaming add-ons (Netflix, HBO Max, YouTubeTV, Disney Plus and more). Ideally, these bundles could save you a lot of money initially, but you should always be aware of what’s in the fine print. Look for any mentions of price increases after a period. 

Home internet prices can get pretty steep

The median price for home internet in the US is $63 a month. Some households may pay upwards of $100 or more monthly, bringing the yearly total to roughly $1,200, but it doesn’t have to be this expensive. There are ways to maintain a solid home broadband connection without breaking your wallet. 

How do you avoid pricing traps from internet providers?

So now that you know the common price traps by internet providers, how do you actually avoid falling into one? Here are some tips to shield yourself from these broadband booby traps. 

Know your stuff: Broadband labels are your friends

Beginning this year, the Federal Communications Commission mandated that ISPs display their plans and pricing information through broadband labels. Don’t let all this information spook or intimidate you. First things first, look for the details at the top (plan type, pricing details, length of contract) and work your way down the label. The plan type will usually tell you the speeds offered and below that is where the gold is. Look for mentions of whether this price on the broadband label is the introductory rate (or the promotional price). If yes, then this should signal that you can expect a price increase down the line. These broadband labels will disclose when the promo rate expires and roughly how much you’ll pay after. 

Know what you need, let go of what you don’t

Besides the prices, these broadband labels often highlight the download and upload speeds offered for that specific plan. It will also indicate if these plans come with unlimited data or if there’s a monthly data cap you should be aware of.

Don’t take the bait, stick to your script

CNET’s broadband expert, Cierra Noffke, has had her fair share of experiences dealing with pricing traps from internet providers. When signing up for her current internet provider, AT&T Fiber, over the phone, she described the customer service representative as persuasive and persistent in getting her to sign up for a faster plan, but she and her partner determined they simply didn’t need that much speed.  

When signing up for the 300Mbps plan, the representative over the phone insisted she go with the 500Mbps or gigabit plan. 

“You really need to have your script and just write down everything that you’re gonna say and just be strong with that,” Noffke said. 

“As someone that reads about this stuff every day… she was making me second guess myself.” 

Noffke and her partner determined how much speed they needed based on their internet usage, which they rarely use for gaming or streaming. Before signing up for internet service, make sure to do your own research and see what works for you. hen in doubt, stick to your script. 

Don’t hesitate to call your ISP and negotiate your price

CNET money expert Danni Santana first signed up for Optimum in 2018. He slowly noticed his monthly bill increasing by $5 to $10 year over year, so he began calling Optimum every year to let them know he would be switching providers. 

“As a money editor, it’s always important to ensure they’re not chipping you. You should always check your recurring bills.” 

After calling Optimum year after year, he realized that “their goal is just to get to retention,” Santana said. 

Since they’re motivated to keep you as a customer, you can always try to negotiate with your internet provider to reach a price point you are happy with. In Santana’s case, he was able to downgrade his plan to the speed and price he wanted while still being able to keep his HBO Max subscription. 

Is too much internet speed a thing?

Yes. There is such a thing as too much speed. According to the latest data from OpenVault’s Q3 2024 report, the average American household uses download speeds of at least 564 megabits per second and 31Mbps in uploads. Before you sign that dotted line, keep in mind that your household may not even need the 1-gig or 2-gig plan. If multiple people are connected to your network — especially those that excessively game or stream — maybe you should opt for the faster plans. To learn more, read our guide on household internet speed needs. 

What’s the bottom line on broadband pricing traps?

The only thing to be scared of is paying for more than you should on home internet. Your best bet to avoid these broadband booby traps is to do your own research before signing up and to be vigilant when hearing these promotional offers from ISPs. Remember, a provider might offer enticing incentives, but they may not be necessary for your household and, in the long run, could end up costing you more than double what you should pay. 

Read more: How to save money on your home internet. 

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