Neil Krauch, a retired cybersecurity expert who lives in a city about 15 miles from Branson, Missouri, recently wrote to Consumer Reports with a fairly simple question: Why are internet bills so hard to understand?
Confusing bills are a problem that results family. When Consumer Reports looked at cable TV bills at 2019, we found many charges additional that consumers did not expect: $ 450 per year above the advertised price for the average person in our study. Following the release of our findings, Congress tightened the rules to make cable billing more transparent.
But many of the Businesses themselves don’t seem any better when it comes to internet bills. In a study conducted in 2020, entitled The cost of connectivity , The Open Technology Institute of New America (OTI), a non-profit organization, concluded that Internet customers face overly complicated pricing structures, poorly detailed fees, and a lack of transparency.
These are also the complaints of hundreds of Consumer Reports readers who have used our Member Story Platform to tell us that it is often difficult to discern their bills or what Internet speeds are paying.
Prices can be especially confusing in the case of TV and Internet packages.
“I only see the price of the package, no how much I pay for each service individually, ”says Krauch. “Prices have risen substantially in recent years and I cannot determine exactly what new services and charges apply only to Internet service.”
Furthermore, according to the OTI study, many providers do not even publish their normal Internet rates on their websites; you only see the lowest promotional rates that increase after the promotion expires.
How to reduce your bill
Although you can’t avoid some fees, like taxes and franchise fees, there are ways to save money on your internet bill.
For starters, Internet Service Providers (ISPs) charge an average of $ 70. 38 for the installation when the service is contracted for the first time , but AT&T, Charter (Spectrum), Comcast (Xfinity), and others offer self-install kits for an average of just $ 9. , according to the Open Technology Institute. Just keep in mind that if you have problems and need help, companies may charge you a fee for the self-installation service. AT&T, for example, charges $ 99 for “self-installation assistance” if you choose to do it yourself but then you need help.
Second, companies often impose an equipment rental fee, often between $ 10 and $ 12 per month, by modem and router. You can save in the long run if you buy the equipment on your own. First of all, you have to make sure that the modem is compatible with your ISP; This is information that you can often get from the ISP’s website. (Please note that your modem may stop working if you switch to another service.)
If you follow this path or cancel the service entirely, be sure to find out which equipment you need to return to the company for avoid being charged a fine. AT&T, for example, charges $ 150 for not returning your WiFi gateway if you cancel service and $ 38 for each WiFi extender.
Sometimes you can get a monthly discount for enrolling in the automatic and paperless payment programs. AT&T, for example, discounts you $ 5 a month for doing so, and Comcast offers a discount of $ 10 on eligible plans. Verizon’s discount is $ 5 or $ Automatic payment can also help you avoid late fees.
Try to avoid paying over the phone, because some companies charge you every time you do it. For example, AT&T has a “payment convenience fee” of $ 5 when you make a payment with the help of a retail agent, customer service, or collections representative. Charter / Spectrum also charges $ 5 when you pay over the phone with the help of customer service.
And remember that often it makes sense to negotiate if you are not satisfied with your service. In the results of our latest telecom survey, released last fall, about two-thirds of those who haggled over the cost of their bundled plan ended up getting one or more benefits, such as a cheaper price or a new promotional rate.
Internet nutrition labels
Advocacy groups, including Consumer Reports, have been pushing for years for information about internet pricing is easier to read and understand, so consumers can compare plans and providers, and know what to expect when their monthly bills come in.
“There is a total lack of transparency in prices or information in the invoices of services of the Internet, ”says Jonathan Schwantes, Senior Policy Adviser at Consumer Reports. “A combined service plan may not include a separate price for Internet service, and Internet-only bills often don’t let consumers know what download and upload speeds they are paying for. Imagine if the auto industry didn’t put the expected gas mileage and price on a new car window sticker. That’s the reality in the murky market for Internet services. ”
One option supported by Consumer Reports is a standardized broadband label, similar to the Food and Drug Administration’s nutrition label. , clearly explaining the monthly rate for each Internet plan, any additional fees and promised data speeds, and indicating when a promotional rate will expire. The above examples for both fixed broadband and cell phone plans were created by the Federal Communications Commission at 2016 and appeared to be on the verge of being adopted, but the push to improve labeling stalled the following year during the Trump administration. Now the concept is being reactivated.
As part of a large broadband project, CR is preparing to analyze Internet billing in more detail, calculating the figures of tens of thousands of Internet bills . Stay tuned for more details about the project and how you can join the effort later this summer.
Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2021, Consumer Reports, Inc.
Consumer Reports has no financial relationship with the advertisers on this site. Consumer Reports is an independent nonprofit organization that works with consumers to create a just, safe, and healthy world. CR does not endorse products or services and does not accept advertising. Copyright © 2021, Consumer Reports, Inc.