You’re Probably Paying Too Much for Home Internet: Uncover Hidden Fees and Outsmart Your Home Internet Provider

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The internet is an integral part of our lives. And not just because we need it for work, school, bills and communication. We stream our favorite shows, watch TikToks and share memes using the internet. But internet service providers are often the bane of our existence.

In fact, ISPs are ranked even lower than airlines and the US postal service, according to the American Customer Satisfaction Index.

The biggest reason everyone is disillusioned by internet service providers? Hidden fees and confusing service agreements. We're often lured by dazzling promotional rates -- only $20 a month! -- and therefore assume our monthly bill will stay low. But inevitably, that $20-a-month rate becomes more like a $45 or even $55 monthly charge after fees.

Consumer Reports released a study late in 2022, noting the deep confusion and dissatisfaction among internet subscribers, and hidden fees made up a large chunk of that mixup. As the study put it, "unavoidable fees are especially problematic because consumers may believe they are government-imposed when, in fact, many are company-imposed and distinguished from the core service price."

So, what can you do to outsmart your internet provider? Your most important tool is knowledge. Just in April 2024, the FCC mandated that ISPs begin providing "broadband nutrition labels" to make monthly bills explicitly clear so you have a better idea of what you'll actually be paying every month. If you understand where these fees are coming from, you'll have a better chance of negotiating a better price with your ISP and potentially waiving those fees. Sometimes, you may even decide to ditch your internet provider in favor of one with more competitive (and transparent) rates. Let's take a look at what you can expect to find beyond those tantalizing promo rates. 

Be aware of one-time fees

Let's stick with the premise that an internet provider has presented you with a $20 promotional rate. On the surface, that seems like a great deal. And it could be. But you should note that most ISPs charge one or two additional fees at the very start of service. 

First, you'll encounter an installation fee, which covers the cost of having a technician visit your home. That can typically range from $45 to as much as $100. Fortunately, some providers allow you to self-install, which usually involves mailing out a kit or package to you (or, in some cases, you can pick it up at a store location). That is usually much cheaper, in the $15 to $35 range. In some cases, providers not only provide self-install for free, but they'll also waive the professional installation fee if you sign up online.

Finally, in addition to the installation fee, many providers will also tack on a one-time "activation fee," which can be anywhere from $10 to $80. It's basically a charge for setting up your account. Don't be shy about asking if this fee can be waived. 

Skip those additional monthly fees, if you can

OK, you've gotten past the opening fees and you're ready to settle into that nice $20 monthly rate. Not so fast. Many internet providers also charge additional monthly fees for using the provider's equipment -- usually a modem, router or gateway (a combination of both). You can expect to pay between $5 and $15 monthly for this equipment rental fee. While some providers may allow you to skip this charge by using your own equipment, some ISPs (particularly satellite internet providers) don't allow you to opt out. So, if you're not careful, your $20 rate could go up to $35 a month.

Thankfully, more providers are moving away from this additional charge. Both AT&T and Verizon Fios -- which previously charged $10 and $15 a month, respectively, on equipment -- changed course and removed those fees. Now, both providers include the equipment rental in the flat monthly cost. I suspect they may have been nudged by the aggressive, competitive approach of T-Mobile Home Internet, which took off by leaning into the idea of "internet freedom" with its all-inclusive price. It wasn't the first or only provider to include an equipment rental in the monthly price, but it certainly pumped up the volume on it. 

And if all else fails, you can skip this charge by buying your own router. 

Another tack-on item you need to evade, if possible, is the paper billing fee and automatic payment mode. Nearly every ISP includes these two elements as discounts. For example, with the $20 promotional rate, it's assumed that you'll nix paper billing and use the automatic payment mode (necessitating having a credit card on file). However, if you decline these (or fail to opt in), you'll be charged between $5 and $10 monthly. This is a fairly easy fee to avoid, but you still need to know it's lurking. Otherwise, your $20-a-month rate could jump up to $30 monthly.  

Avoid late payment fees and other penalties

Much like any other utility or service, you must pay your bills on time to avoid late payment fees. Those can add anywhere from $5 to $35 to your monthly bill. Depending on the type of internet service or plan you sign up for, you also need to be aware of other potentially stiff penalties.

For example, to secure that $20-a-month plan, let's say you had to sign a term agreement. If you decide to bail on your service before those 24 months are over, you'll face an early termination fee. Depending on the provider (and how many months remain in your contract), ETFs can run anywhere from $15 to a staggering $400. That's rough. Thankfully, many competing ISPs also offer contract buyouts, where they'll pay your ETF if you switch to their service. Still, if possible, it's easier to avoid signing such an agreement in the first place, despite the tempting promotional price.

Similarly, if the $20 monthly rate comes with a data cap, you must stay within the specified limit or you'll incur overage data charges. As you can imagine, the cost varies per provider, but generally, you'll see a ballpark charge of an additional $10 for every 50GB over your data limit. Most providers will limit the total monthly overage charge to $100, but be sure to read the fine print -- we've seen some that go up to $200.

Here's a peek at some fees from major internet providers

We've talked generally about some of the hidden fees in your internet bill. Let's look more specifically at the providers CNET has covered thus far.

Overview of internet providers

Source: CNET analysis of provider data.

Pay attention to provider-specific fees

There are over 2,000 different ISPs nationwide, so we're not about to provide an exhaustive list of every provider-specific fee. However, this list can serve as an example of just a few different "junk fees" that customers will encounter across the US and give you a good idea of some of the things you should look out for. 

Astound Broadband, which offers very competitive promo rates, has an additional monthly fee called a Network Access and Maintenance Fee. This $13 monthly charge "helps defray costs associated with building and maintaining our fiber-rich broadband network, as well as the costs of expanding network capacity to support the continued increase in customers' average broadband consumption. This fee is neither government-mandated nor a tax, fee or surcharge imposed by the government; it is a fee that Astound Broadband assesses and retains." Astound may be able to waive this fee for some customers, so make sure you call to find out.

AT&T has an additional monthly charge called a State Cost Recovery Charge that applies to Nevada, Ohio and Texas customers. The fee varies based on location-specific information and is "collected by AT&T from its customers to recover costs AT&T pays in taxes and required payments levied by state governments. These charges are not taxes or surcharges which the government requires AT&T to collect from its customers."

CenturyLink features an Internet Cost Recovery Fee (or Broadband Cost Recovery Fee, in some areas). This $4 monthly fee ($2 in Washington state) "helps defray costs associated with building and maintaining CenturyLink's High-Speed Internet broadband network, as well as the costs of expanding network capacity to support the continued increase in customers' average broadband consumption."

Metronet charges $13 a month on top of your regular rate for a Tech Assure Program Fee. "Tech Assure is a required fee that covers any service calls or repairs to all Metronet-owned equipment. If it's our equipment or our wiring, inside or outside your home, we'll fix it or replace it, and make sure it's working optimally at no additional cost to you."

Optimum has an additional monthly charge up to $6 for what it calls a Network Enhancement Fee.

Rise Broadband places a Carrier Cost Recovery Fee of $7 monthly on top of your regular monthly charge.

Sparklight also includes a $25 deposit fee, which must be paid before installation. You can get that fee credited to your account after six months of service with on-time payments. If you cancel before six months of service, you can get a refund after returning your equipment. Sparklight does not offer a waiver for the deposit fee.

What do we do next?

Now that you know what to look out for, make sure you carefully examine your internet plan for surprising fees or additional charges. All ISPs should have FCC-mandated broadband labels to break down plan costs so be sure to find one for your chosen plan. Ask your provider questions. Don't hesitate to try negotiating for a better deal or checking to see if your provider will waive a fee or two. Our broadband options are growing, albeit slowly, and with increased choices comes more consumer empowerment.