Understanding US Internet Costs and How to Save Money

If you’ve noticed your internet bill creeping up year after year, you’re not alone. Recent data shows that 63% of adults are paying an average of $195 more than last year. High costs are the top reason many avoid having home internet altogether.

An analysis of over 150 plans from major US providers reveals the median internet price is $63 per month, excluding equipment rental. Adding the average $15 monthly equipment fee brings the real total to about $78 monthly. This is slightly lower than the $89 average found in a 2024 US News survey.

Interestingly, despite rising bills, broadband prices have increased more slowly than overall inflation. The FCC reports a 19% decline in inflation-adjusted internet prices from 2009 to 2023.

Wide Price Range Across Providers

Using CNET’s ISP database, prices vary dramatically. Some providers like Astound, Mediacom, Xfinity, and Ziply Fiber offer plans starting as low as $15 to $20 monthly. On the other end, Ziply Fiber offers a staggering 50Gbps plan for $900 per month.

If you’re paying significantly more than $78, it’s time for a wake-up call. Options to reduce costs include negotiating your bill, buying your own equipment, downgrading your plan, or switching providers. Emerging technologies like 5G home internet also offer competitive pricing with equipment included.

Connection Type Impacts Cost and Speed

Rural customers often pay more for slower connections. DSL and satellite internet, common in rural areas, deliver the slowest speeds—DSL averages 40Mbps, below the FCC’s broadband standard. Satellite internet is expensive, with median prices around $110 per month for 100Mbps speeds.

Cable internet starts with lower prices but often sees significant price hikes after the first year. Fiber internet tends to be pricier initially but has more stable pricing over time.

Cheapest and Most Expensive ISPs

The lowest starting costs are often for the slowest plans. Frontier and Starry tie for the cheapest at around $30 monthly, excluding equipment fees. However, many providers increase prices by $10 to $15 after the first year, with some like Kinetic and Consolidated Communications hiking by $20 to $25.

Satellite providers like Starlink have the highest starting costs, with upfront equipment fees reaching up to $2,500 and monthly costs exceeding $80. Fixed wireless rural providers like Nomad also come with steep upfront and monthly fees.

Equipment Fees and How to Avoid Them

About half of internet plans charge a monthly equipment rental fee, averaging $15. Providers like Rise Broadband and Spectrum charge as low as $10, while Starlink requires costly upfront equipment purchases. Many providers, including AT&T, Google Fiber, and Verizon Fios, do not charge extra for equipment.

Beware of Price Hikes and Junk Fees

Price increases after the first year are common and can be steep. Mediacom customers face $45 monthly hikes after two years, while Spectrum and Sparklight see $20 to $31 increases within a year. Junk fees for vague charges like 'network maintenance' are mostly fading but still exist with some providers.

Practical Ways to Lower Your Internet Bill

Here are actionable steps to reduce your internet expenses:

Buy your own modem and router to avoid rental fees. This investment often pays for itself within a year and can improve speeds.

Negotiate with your current ISP by comparing competitor prices and visiting local stores for better deals.

Downgrade your plan if you’re paying for speeds you don’t need; many households can function well below 600Mbps.

Switch providers to take advantage of promotional pricing and better service options, especially if your current ISP’s prices are rising.

Evaluating your internet options regularly can uncover new providers and technologies like 5G home internet that may offer better value.

In summary, while internet costs can feel overwhelming, understanding pricing structures and actively managing your service can lead to significant savings and better service quality.