How to Avoid Hidden Fees on Your Internet Bill

Internet providers are now required to be more transparent about all of their internet fees.

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Last Updated: Jul 23, 2024
A graphic design image of a magnifying glass zooming in on the different hidden fees on an internet bill.
Whether it’s your contract or your monthly bill, read the fine print carefully to identify miscellaneous fees.
  • Switching to a month-to-month internet plan rather than signing a contract with an ISP is an easy way to avoid the early termination fee.
  • Most fees are avoidable, but some will come as a requirement from certain ISPs, such as professional installation fees and equipment fees.
  • The implementation of Broadband Consumer Labels allows consumers to see what an internet plan offers upfront, including hidden fees.

Nobody looks forward to paying internet bills each month and seeing extra charges attached to them. While most internet service providers (ISPs) offer straightforward pricing, you might be saddled with hidden fees in the fine print when signing a contract. Here are some of the costly internet fees and ways to avoid them when opening your next bill.

Different Hidden Internet Fees and How to Avoid Them

A graphic design image of various icons depicting the different hidden ISP fees.
Your internet bill doesn’t just include your monthly rate; it also includes other fees.

While some fees are specific to select ISPs, the following are the most common. Your provider should mention these fees upfront when you purchase your internet, but knowing what and how these fees can show up on your bill beforehand will save you time and money.

Early Termination Fees

Signing a contract with an ISP typically means you plan to stick with them in the long term. However, situations that might require you to cancel your service early can arise. Depending on your internet provider, breaking this agreement before your contract ends can result in a hefty early termination fee (ETF). This fee can be steep enough to negate anything you might save by switching providers.

How to Avoid These Fees: Wait until your contract ends before you cancel your agreement. ETFs vary based on how long you have left in your contract at the time of cancellation. Alternatively, sign up for an ISP that offers contract-free internet plans. You can terminate these month-to-month agreements at any time without facing cancellation fees, but they might cost more upfront.

Activation Fees

If you’re on a new internet plan, chances are your first bill might be higher than your plan’s advertised price. If that’s the case, you were probably charged an activation fee of upward of $100 or more. Although this is a one-time fee and won’t appear again on your consecutive bills, seeing it the first time around can be daunting, especially without notice.

How to Avoid These Fees: If possible, avoid them altogether, even if they’re relatively low. Compare your options and find a plan that offers the appropriate level of service and data but at an affordable rate — and without an unnecessary fee for new accounts.

Installation Fees

Just like activation fees, you’ll only get an installation fee once. This fee covers the cost of sending a dedicated technician out to install your indoor equipment. On average, the installation fee costs around $99, with some exceptions. Although having a professional install your internet is timesaving and convenient, it’s still a steep price that can add to your bill.

How to Avoid These Fees: Opt for a self-installation option, if available. Your provider will either offer it for free or provide a self-installation kit for a small cost. You’ll want to ensure that everything is plugged in properly before contacting the ISP for activation. Otherwise, they’ll send someone out to fix it, negating any savings you would’ve gotten from self-installation.

Equipment Fees

Your ISP will likely offer a modem with your internet plan, but you might be in charge of providing the rest of the equipment for your home, such as a router and a Wi-Fi extender. You can lease them through your ISP but at the cost of a monthly rental fee. Additionally, you’ll want to ensure that you return any equipment you rent once you’ve reached the end of your contract or if you plan to switch to another provider. If you’re not careful, you may end up with a no-return equipment fee on your next bill.

How to Avoid These Fees: Instead of paying extra each month for your equipment, consider buying it yourself. Providers typically have a list of products they recommend for compatibility, which makes choosing a good router simple and easy. You’ll be paying for your own repairs, but you won’t have to worry about a pesky return policy, and you’ll get to keep it for your next internet plan (provided it’s compatible).

Data Overage Fees

Most ISPs offer generous data caps per month with their services. However, if you go over your allotted amount each month, you could face slower service and overcharge fees, which can quickly add up if you go too far over your monthly cap. The typical charge is around $10 for every 50 GB of excess data. If you’re in a rural area, these caps might be even lower due to the nature of your internet service.

How to Avoid These Fees: The best way to avoid data overage fees is to be mindful of how much data you use per month across all your devices. If you find that you need more data, consider upgrading to an unlimited data plan. You might still be susceptible to data throttling, but at least you won’t have to worry about going over your data limit.

Late Payment Fees

Whether you have a contract or you’ve gotten an internet plan without one, paying your bills on time is important. If you’re not careful, you could end up with a late payment fee — in other words, you’d be paying more money for not paying your regular service fees. Some ISPs offer a flat rate for fees, while others may add interest over time. Either way, you’ll want to pay off those late fees as early as possible and prevent yourself from paying them again.

How to Avoid These Fees: If you struggle to remember which bills you’ve paid and which ones you haven’t, try setting up automatic payments with your provider. Most ISPs offer a discount when you set up autopay.

Other Uncommon Fees

The fees listed above represent charges you will likely find across most ISPs. However, there are other fees that people might not know exist.

  • Add-ons and Upgrades: In addition to standard rates, add-ons or upgrades, such as unlimited data or phone and TV service, can be charged to your bill. These charges can be one-time or monthly.
  • Universal Service Charge: ISPs may include this service charge in order to contribute to the universal service fund, which pays for broadband used in emergency services or government operations. It also funds libraries, schools, and other areas that use the internet.
  • Infrastructure Fees: Some providers add this as a surcharge to cover infrastructure costs. This fee covers a number of charges, such as network maintenance and technology service.

About Broadband Consumer Nutrition Labels

A broadband consumer label that outlines the prices, speeds, fees, and other important information about an internet plan.
By using a nutrition label format, these broadband consumer labels make it easier for consumers to find all the hidden fees on an internet plan.

Earlier this year, the Federal Communications Commission (FCC) implemented Broadband Consumer Nutrition Labels designed to provide comprehensive and clear information about different internet providers. Modeled after FDA nutrition labels, consumers can read through these labels to better understand an ISP’s internet service, including any fees it may charge its customers. Customers can also read about promotions and deals, internet speeds, and other information that might be necessary. These labels are a great way to learn about each ISP quickly and understand what to expect when choosing one for your household.

Frequently Asked Questions About Hidden Internet Fees

How much should I expect to pay for my internet bill?

You’ll know how much to pay upfront when you buy an internet plan from an ISP. In this case, you should expect to pay the price as advertised at the time of purchase. If you find that you’re paying more for your bill than you expected, check to see if you have any extra fees attached to your bill.

Can I dispute a false charge on my internet bill?

We recommend contacting your ISP’s customer support service if you find any false charges on your internet bill. In most cases, these fees can be waived, provided that you give proof of them being faulty bill charges.

What other information comes with Broadband Consumer Labels?

In addition to prices and fees, Broadband Consumer Nutrition Labels include information about contracts, download and upload speeds, ISP policies, and customer support contact information.