Offers, Tradeoffs, and Equipment
When you negotiate, your provider will present you with several options. Understanding the tradeoffs is key to choosing the best deal for your household, not just the one that sounds best on the phone. Here are the most common areas where you can make smart choices to save money.
First, let’s talk about internet speed. Providers often sell customers on gigabit plans that are far more powerful than what they actually need. For a typical household that streams video in HD or 4K, uses multiple devices, and has someone working from home, a plan with download speeds between 200 and 400 Mbps is usually more than sufficient. Unless you are regularly downloading massive files or have a house full of competitive online gamers, you likely do not need a 1,000 Mbps (1-gigabit) connection. Asking to downgrade your speed tier can be an instant source of savings, often $20 or more per month, with no noticeable change in your daily experience.
Another critical term to understand is the data cap. This is a limit on the amount of data you can use each month, typically around 1.2 terabytes. For most users, this is a non-issue. However, if your household streams 4K video constantly on multiple TVs, you could approach this limit. Ask the agent if the plan they are offering has a data cap and what the fee is for exceeding it. Some providers, particularly fiber internet companies, offer plans with no data caps at all, which is a significant perk.
The single most common way to lower your bill is to stop paying equipment rental fees. Renting a modem and router from your ISP typically costs between $14 and $18 per month. That’s up to $216 per year for equipment you could own outright. You can purchase a high-quality, compatible modem and router for $120 to $200. The device will pay for itself in about a year and will last for many years after. Before you buy, you *must* check your ISP’s website for their list of approved modems. Buying an incompatible model is a costly mistake. Once you have your own equipment, you can call your provider to activate it and arrange to return their devices, which will remove the rental fee from your bill.
Finally, watch out for the gotchas hidden in a new offer. The most common is the promotional price cliff. The great new price you just negotiated is almost always for a limited time, usually 12 months. Ask for the exact expiration date and set a calendar reminder for 11 months from now so you can renegotiate before the price skyrockets. Also, ask if there are any one-time “plan change fees” or “installation fees” if a technician is required. And always confirm that your autopay and paperless billing discounts, which can save you $5 to $10 per month, will carry over to the new plan.
