How much does the Internet really cost? Between hidden fees, price increases, and confusing promotions, it’s a harder question to answer than you might think.
Despite recent efforts by the Federal Communications Commission to mandate labeling for home internet plans, the total amount you see on your internet bill never seems to be what you expected when you signed up.
To get a sense of the true cost of Internet in the United States, I checked CNET’s Internet Service Provider database, which is regularly updated by entering the national addresses of the 27 largest providers.
I found that the average price for internet in the US at all available speeds is $63 per month, with autopay discounts available. This price does not include equipment rental fees, which add an average of $15 to your monthly bill. That brings the total monthly cost of home internet to about $78, almost exactly the $75 Consumer Reports found when it analyzed 18,359 2022 internet bills.
There is a huge price range to choose from. Astound, Mediacom, Xfinity and Ziply Fiber all offer plans starting at $20 per month. Ziply also has the most expensive (and fastest) internet plan in the country: a 50Gbps plan for $900 per month.
For many people, $63 per month may sound like a good deal. If you’re paying much more than this, consider this a wake-up call. There are steps you can take to reduce costs, such as negotiating your bill, buying your own device, or downgrading to a cheaper plan. But your best option may be to switch providers entirely. Over the past few years, the federal government has made unprecedented investments in network infrastructure and new technologies such as 5G home networks. If you haven’t evaluated your options in a while, you might be surprised to discover some new internet providers.
Network costs by connection type
How much you pay for your network depends largely on the type of connection you use. The analysis confirms what many rural internet customers have known for years: Rural providers have the most expensive prices and the slowest connections.
DSL and satellite internet – often the only options in rural areas – are by far the slowest connections. DSL is especially slow, with a median download speed of just 40Mbps, which doesn’t meet the FCC’s minimum definition of a broadband network.
Satellite internet is prohibitively expensive than other connection types. The average price from satellite providers for 100Mbps download speeds is $110 per month.
Cable Internet prices tend to start out pretty low, but these providers are most likely to raise prices after a year or two (or both). Fiber optic internet is also more expensive, but plans don’t usually come with price increases. The median price for fiber optic internet is $75 per month in the first year and $83 per month in the third year, well below cable’s $28 increase from year one to year three.
Equipment costs
About half of the internet plans I looked at included a monthly fee for the equipment, but you always have the option of buying your own modem and router rather than renting one each month from an ISP. The median equipment cost is $15 per month. Spectrum has the lowest equipment costs at $7 per month, while Starlink has the highest equipment costs, with required pre-purchased equipment ranging from $599 to $2,500.
The following providers do not charge additional equipment fees:
Some providers raise prices after a year or two
Skyrocketing bills are one of the most frustrating parts of being an online customer, and this analysis reveals just how much your bill will grow in your second (or third) year.
While the median price is $63 per month in the first year, it rises to $76 in the second year and $80 in the third year. Vendors with the largest price increases include Mediacom ($50 in the second year), Spectrum ($37 in the second or third year) and Cox ($28 in the third year). Here are the average price increases associated with each provider:
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trash fee
These are additional charges added to your bill by your network provider for vague purposes like “network maintenance” or “technical services.” Thankfully, these are largely a thing of the past. Altice, the company behind Optimum and Suddenlink, was forced to pay $15 million in a 2023 class-action lawsuit over such allegations. I found that only five providers currently charge rubbish charges.
| provider | Fee name | monthly cost |
|---|---|---|
|
Shock |
Network access and maintenance fees | $12.97 |
|
21Vianet |
Internet charge recovery fee | $3.99 |
| United Communications Corporation | Broadband cost recovery fee | $2.97 |
|
metropolitan network |
Technical guarantee fee | $12.95 |
|
Verizon (New York only) |
New York Municipal Building Surcharge | different |
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That said, I wouldn’t be surprised to hear that online providers add fees that aren’t listed when you make purchases after you sign up. Consumer Reports’ analysis was conducted through 2022, but it found that 13 ISPs included junk fees in their bills.
How to lower your internet bills
If your internet bills are too high, there are several steps you can take to lower your monthly costs. You can do the following:
- Buy your own modem and router: This is low-hanging fruit for lowering internet bills. If your provider charges you for the equipment, buying your own modem and router will almost always pay for itself within the first year. I learned this the hard way myself when I spent nearly $1,000 renting equipment from Xfinity for six years. Both products can usually be purchased for a little over $100. CNET’s pick of the best Wi-Fi routers currently sells for $75, and you can buy a decent modem for about $50. Before you pull the trigger, make sure it’s compatible with your internet provider. As an added bonus, you may also see a significant increase in your internet speed.
- Negotiate with your current provider: Internet providers used to be willing to work with customers when prices got out of control, but that has changed somewhat in recent years. However, sometimes getting a better price is as simple as calling your ISP and asking for the price. Before you call, research the prices they offer for new customers and the plans offered by competitors in the area. If there is a store in your area, visit it in person. Many customers have better luck talking face-to-face than trying to talk to a real person on the phone.
- Reduce your plans: Many of us are probably paying for faster internet speeds than we really need. The median internet plan offers download speeds of 600Mbps, enough to stream 4K Netflix on 40 TVs simultaneously. Speeds advertised by providers are for wired connections, Wi-Fi will slow things down considerably, but you get the idea. If you have speeds over 500Mbps, I recommend evaluating whether you can get on a slower plan.
- Switch provider: If all else fails, the best way to get better internet prices is to switch ISPs entirely to take advantage of first-year pricing. By entering your address on the FCC Broadband Map, you can see exactly which providers are available to you. From there, you must enter your address on each provider’s website to find details about their plans and prices.
