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The extra fees on internet bills

The price in the advertisement is the base price. The figure that leaves your account is the base price plus equipment, plus administration…

Money online2 min read

ethernet — illustration for “The extra fees on internet bills”
Photo: Network connector (14017157970) — Yuri Samoilov, CC BY 2.0 (Wikimedia Commons)
On this page
  1. What the extra lines are
  2. The label that makes it comparable
  3. What is worth a phone call

The price in the advertisement is the base price. The figure that leaves your account is the base price plus equipment, plus administration, plus whatever the state adds, and in most countries none of that has to appear in the headline.

What the extra lines are

Four categories cover almost every bill. Equipment rental for the router, and sometimes separately for a television box or a mesh node. Service charges: activation, an engineer visit, a paper invoice, occasionally technical support itself. Taxes and regulatory levies passed through from the state. And usage charges, where the plan carries a data allowance and you went past it.

Each is individually small. Together they routinely add a fifth to a third to the advertised price, which is why two plans with the same headline number can differ substantially over a year.

The label that makes it comparable

In the United States, providers must publish a standardised broadband label at the point of sale: base price, contract term, each monthly fee, each one-time charge, the data allowance, the typical speeds and the early termination fee, in a fixed layout. The European Union requires a contract summary covering much the same ground, and several other regulators have followed.

That label is the only honest basis for comparing offers, because it forces both providers to state the same things in the same order. The two lines to read first are the total monthly cost after the promotional period and the early termination fee, since those decide what the deal costs if you stay and what it costs if you leave.

What is worth a phone call

Router rental is the item most often removable: on many plans you may supply your own compatible device and stop paying for theirs, and the hardware pays for itself within a year or two. Ask what the equipment fee covers and whether the provider supports a customer-owned router before you buy one.

The end of a promotional period is the other moment worth a call. Prices step up automatically, and the step is usually negotiable at exactly the point when you are free to leave: a competitor's new-customer offer is the only leverage that reliably works. Note the renewal date when the contract starts and put it in a calendar, because nobody will remind you.

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