Protect Yourself Against These Internet Pricing Traps and Save Big On Internet

It’s official: 2024 is in the rearview mirror, and 2025 is here. If you’re starting the year shopping for home internet, then I’ve got you covered. You might see an uptick in promotional offers from your internet provider, making it easy to fall into a web of broadband booby traps. So, whether you’re just starting your home broadband search or looking to switch providers, these tips can help you lower your monthly internet bill and save money in the long run.

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 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 around $20 to $40 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. For example, an entry-level plan from Xfinity at $20 a month jumps to $67 in the second year, adding nearly $47 to your internet 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 or a free year-long Netflix and Max subscription if they switch to its 1 gig and 2 gig plans. After a year, you will incur a $10 charge to your monthly bill. But 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 choose. 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 certain 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 price traps.

Know your stuff: Broadband labels are your friends

Beginning this year, the Federal Communications Commission requires 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 afterward. 

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 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 300 megabits per second 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. When 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 was paying around $45 a month for speeds of 300Mbps, however, 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. 

What are some low-cost internet options?

This might seem obvious, but one of the ways to lower your internet bill is to find ISPs that offer affordable home internet service. Overall, CNET’s top pick for the best cheap internet provider for January 2025 is Astound Broadband. It offers a $20-a-month plan for download speeds of 300Mbps and includes free equipment and no data overage fees. However, as with many internet providers, Astound is known to increase its prices after the promo period ends. You can expect to pay $30 a month for that plan after a year, which is still a decent deal, especially from a cable ISP. If you want to avoid the price increases altogether, ISPs like AT&T Fiber, Frontier Fiber and Quantum Fiber will not hike up your prices after a year. The downside is that availability is limited, which means that it will all boil down to the options available at your address. To learn more, read our top picks for cheap home internet.

Another way to save on your home internet is to seek out programs that offer discounts. Lifeline is a federal program that supports low-income households in the US, providing a $9.25 credit towards your home internet bill. Read our guide to learn if you qualify.

Is too much internet speed a thing?

Yes. There’s such a thing as too much speed if you’re paying more money for a plan that’s beyond your needs. According to the latest data from OpenVault’s Q3 2024 report, the average American household uses download speeds of approximately 564Mbps and 31Mbps in uploads. If you live alone or with a roommate (or even a small family), you probably won’t need that much. So before you sign that dotted line, keep in mind that your household may not have to splurge for the 1-gig or 2-gig plan. However, 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 how much speed your household needs. 

What’s the bottom line on broadband pricing traps?

Keep the holiday cheer rolling and avoid paying more than you should on home internet. Your best bet to avoid these broadband pricing traps is to do some 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

Broadband pricing trap FAQs