Internet bills are a thing of mystery. If you see your bill rise bit by bit every month, then you are not the only one! Most internet users face the same problem as they are forced to pay a little more amount on their bills every time. What is the reason behind this Internet Service price hike every month? Or you may be going over your data limit every month.
In reality, Broadband prices have never been regulated. This allows internet service providers to increase or decrease the Internet pricing as per their will. There was a time when there was talk of regulating the price of the Internet service under the authority of the FCC (Federal Communications Commission). Usually, the increased prices are just a few dollars that most of the users don’t even notice.
What’s The Reason Behind The Price Hike?
Since early 2019, consumers have seen multiple price hike from top Internet service providers. Not just internet but TV & Phone services have seen a price hike too. Most of the time, the price change is nominal, $1-5. Eventually, you notice that you are paying too much for the amount of services you are getting.
There can be many reasons behind the price hike, few of the experts have said the internet price hike is inevitable. Even with more options available today in the market like Cable Fiber & DSL, it still won’t change the fact that the prices will go up no matter what. The reasons for the rising price are:
- Wall Street: Big investors are aiding internet service providers to boost profits. It is difficult to do so in an industry like Cable TV & Internet. The demand for cable TV is decreasing, and broadband internet services are increasing, allowing internet services providers to raise their prices as they see fit.
- Cord-cutting: Cable companies are having trouble as most of the people are leaving traditional TV services. To make up for the loss, prices of broadband are raised regularly. That’s why Service providers are changing the way of working.
- Monopolies: In most parts of the USA, only one internet service provider is available. Eventually, it creates a monopoly. The need for the Internet is inevitable, so it allows internet service providers to increase the rates whenever they wish to do so.
- Hyping up the Prices: Most telecom service providers try to trick consumers by selling them costlier prices. Causing an increase in price.
Consumers shifting away from traditional methods of TV Bundle is also a reason for the rising cost of the Internet. To make up for losing a huge source of income cable TV service providers have no option other than raising the prices of broadband services.
The Effects of Constant Price Hike
You can’t drive a car when there are only three tires, to function properly there has to be 4. In the same way, customers leaving TV services for streaming and other options have caused the price hike of internet services. To gain more customers amid this battle, most of the service providers are searching for alternate modes of entertainment to offer to their customers. AT&T has DIRECTV and Verizon is also all set to launch its own streaming service. Comcast will also launch a streaming platform named Peacock.
The strategy seems very simple, today more and more customers choose Live TV streaming platforms over traditional cable TV, so all the service providers are launching their own services to maintain the balance.
How Internet Service Price Hike Will Affect Consumers?
Well, with the rise of more streaming platforms, inevitably, traditional cable TV will vanish. However, the average consumers will have to stay put with the Internet plans. As there is no other option for now! To save a little bit of money, you can threaten to leave your internet service provider, which may help you in saving a little money on your internet service plan. Let us know in the comment box how you plan to fight against the Internet service price hike.