If you have also noticed that your internet bill is increasing every month then you are not alone. Broadband prices have never been stable or regulated, so Internet service providers can charge whatever they want for their services. There used to be a time when FCC would monitor prices under Title 2 authority. However, they just regulate the price, not focus on managing the bills. So if you are worried about Internet providers raising prices. The internet price hike is often in small numbers so most people don’t notice it
Recently internet cost increase has been significant, a lot of providers have raised their internet price in America. There are a lot of factors that include internet prices going up. Most of these factors are something that consumers have no control on! Suddenly, the broadband market has experienced a slowdown. Internet connection has become an everyday necessity instead of a luxury. So everyone has an internet connection at home. Broadband prices increase has caused a stir in the market. Internet providers are losing customers left and right because customers are leaving landline and cable TV connection for mobile plans and Streaming services.
The Special Fees are Increased as Well
Your internet bills include a lot of special fees. So the internet price hike includes a raise in special fees. Most people don’t even care about the long list of special fees and the reason is simple, they don’t know what these fees mean. So, internet price rising is also a result of rising special fees. Your Cable internet bill, for instance, may include a regional sports channel fee or your DSL internet bill may include a universal service fund fee. There are a lot of fees that are included in your monthly bills. So, before asking, why do internet prices go up? Look at your internet special fees.
All these fees can make a major difference in the final bill, these additional bills can add almost 20-40% on your basic internet price. That means whenever these prices will go up, Internet prices going up too. Keeping a track of these fees is very important, and it is very tough to keep up with all the changes. If you Wanna know the reason behind the internet increase fees, then you must stay on top of the hike in special fees.
Equipment Rental Price Hike
When internet Service providers offer consumers a modem and a router with their plans, they don’t do it for the customers. They do it for the rental fees. Almost all the internet service providers in the USA ask for a rental fee for equipment every month. While the fees vary from provider to provider, the average amount for a rental is between $5 – $10. If you want to save yourself from paying a certain amount, every month you can buy your own equipment, but the downfall is that you won’t get customer service on this equipment from your providers.
If you stick with the equipment offered by your ISP, prepare yourself for internet prices going up. Most providers are slowly raising their monthly rental, which will cause internet costs to increase. Internet price in America is unstable, so that gives internet providers freedom for a broadband price increase. Next time before asking yourself why internet price increase, check with your providers if they have increased their monthly rental, which will cause internet increase fees.
Installation Fee May get Costlier
When you sign up for a broadband package, Some providers will ask you for an installation charge! While the installation process is simple, you just have to install a few cables here and there but still, Internet providers ask for it. An ISP may add this charge on your first bill even when you opted to self install your internet services. Added installation charges will cause internet increase fees. If you are planning to get a new connection soon, then we have to warn you about the upcoming increase in installation charges. Increased installation charges will mean internet providers raising prices.
Brace Yourself For Tax Hike
If you are looking at this technology, then you shouldn’t have to worry about taxes on your internet bill. According to the Tax Freedom Act imposed in 2016, it prohibits internet providers from taxing internet and broadband services. Most consumers are unaware of this and they end up being bait to the internet providers. A sudden increase in taxes means broadband price increase. Your internet provider can charge sales tax on physical devices like modems and routers or any other equipment you buy or rent from them. So the next time your bill comes, make sure you know all about the taxes you are being charged for! If you have been paying unnecessary amounts, then probably it is time you have a talk with your internet provider about why internet price increase.
How To Brace From Internet Cost Increase?
It may shock you to know that only 1 in 5 people have multiple choice while choosing a broadband provider so if you are from the lucky bunch then you can save yourself from internet providers raising prices. While most American users are stuck with one provider, so they have to pay whatever the provider asks, but if you have more options, then you can switch to another internet provider that offers better prices. High competition often brings prices lower than ever. If you are ready to switch providers based on your bill, Call us @ +1(855) 352-5313 to compare internet providers and get the best plans.
33 Comments on “Why are Internet Providers Raising Prices for Internet Plans?”
I really like that you talked about the hidden fees that are going to be on the internet bill. My spouse and I are moving to a new area and we need to get the internet immediately. I’ll start looking around online for a provider in the area that offers a fair price.