In the last two years, broadband prices have increased due to inflation and keep increasing almost every month. At the same time, the prices of cable services like TV also increase annually. So what is the reason for this big surge in broadband prices in recent years?
As the demand and use of a product increase, so does its price. Now that businesses and industries are shifting towards the internet and streaming is increasing daily, broadband companies are shooting up their prices.
But what exactly is causing your bill to shoot up? Here are some reasons why your broadband bill is higher than usual.
1) Broadband Speed Is High
Most people do not realize that they need less internet speed than they currently use. For instance, you only need 5 to 25 megabits per second of speed to watch a movie on your favorite streaming platform.
If you are using a broadband package that offers higher internet speed, then it is likely causing your bill to shoot up every month. The easy solution is to check your minimum required internet speed and monthly data usage. For better offers, you can make broadband compare online.
Once you know that, you can easily customize your internet package if your internet service provider allows that. Or you can buy a package that provides your required internet speed at a lower price.
2) Limited Choices of Broadband Companies
Most internet service companies are the sole internet provider in the service areas. It means there is no other broadband provider or competitor in the area. Other sources like mobile data are limited and not as reliable as broadband, so most people will buy broadband packages.
This becomes the main reason for the increase in prices, and as a result, your monthly bill shoots up. Even in larger cities with more than one internet provider option, apartment buildings often make agreements with one broadband company.
This reduces customer choice to only one company, and they have to pay higher prices. You can spend some time researching and try finding cheap broadband that caters to your needs and does not cost very much.
3) Sending Attach Files To Email Addresses
This seems like a reason that is easily overlooked but affects your broadband bill anyway. If you send texts or emails with attachments like document files, it will be treated as a video or picture message.
This will increase internet usage and eventually the price. It may not make a big difference, but if it is done frequently, it will increase the bill.
4) Increased Video Streaming
The increase in video streaming each day is causing a great reduction in cable networks like TV. It means that it is increasing the traffic burden on broadband networks as a result. Internet service providers ISPs must invest in better equipment to work with the increased data flow.
This is why prices are shooting up because it helps the companies make more revenue. This profit will be used to compensate for the cost of infrastructure, maintenance, and other developmental activities.
5) High Renting Fee of Modem
Another reason why your broadband bill is higher than usual is that your internet provider might be charging you for rental fee. This fee covers the rent of the modem or router. It is included in the monthly bill and can cost up to $132 annually.
The best way to steer clear of such fees is by buying your equipment, and you will end up saving a lot of money. Moreover, you will see its benefit in the long run. Router and modem packages cost lower than those bought separately.
Even if you have to rent out a modem and router, go for their combined bundles because the separate rental fee is relatively high. And this might be the reason why your broadband bill is getting higher.
6) Internet Outage
In some areas, internet providers cut internet services for maintenance and other reasons. Check the internet for connection downtime and overview of internet problems to stay up to date. It will also help you understand if you are charged a broadband bill for the days when the internet was down.
You can claim such charges to your broadband company and get discounts.
Understand The Reasons
Due to the increased usage of broadband services, its prices are surging every month. By understanding all the reasons why your broadband bill is higher than usual, you might be able to reduce it somewhat.
It is also essential to stay up to date with your broadband bill so that you are not charged any extra fee.
You need to look out for certain things to figure out the surge in your broadband bill. Such as high internet speed, unexpected internet outages, modem rental fees, sending emails with attached files, and other hidden charges in your bill.