After power, water, and heat or air conditioning, internet service is one of most people’s first must-do tasks in setting up a new home. Unfortunately, when you’re setting up internet service, it’s common to see a bill that’s higher than you expected. You might find yourself asking: “What are ISP fees, anyway? Why do I need to rent a modem? Isn’t this a little higher than the average cost for internet service?”
To avoid that kind of shock, keep these potential hidden internet fees and costs in mind when setting up internet service for a new home. With a little preparation and problem-solving, they don’t have to be scary surprises.
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Common Costs Associated with Internet Setup
Any time you set up a new internet connection, expect to pay some fees from your internet service provider (ISP). The fees that we’ll talk about here are the ones that almost every homeowner should be ready to pay.
Installation Fees from Internet Service Providers
In many cases, your ISP will need to send a technician to your house to perform an installation, so you’ll pay an internet installation fee that covers the technician’s time and equipment. Some installations may cost more than others, especially if your installation requires drilling holes, laying underground cable, or working in an older home. (See below for more on this last one.)
Equipment Costs: Modem and Router
You’ll need a modem to connect to the internet, as well as a router to broadcast a WiFi signal in your home. In many cases, these two devices now come as a package deal, with both modem and router included in one convenient device.
Most people rent their modem and router from their ISP, a convenient option that saves you the up-front cost of buying your own equipment. It can also provide better service, since the ISP handles maintenance and upgrades, and you’re using equipment that the ISP has optimized for network compatibility.
Activation Fees and Setup Charges
Your ISP might also charge an activation fee for turning your connection on, even if there’s already a connection installed at your new home. Other typical setup fees could include fees for account setup or equipment delivery. These charges can vary, so it’s worth clarifying them with your ISP before committing to a plan.
Hidden Costs Buyers Might Not Anticipate
Now let’s look at some of the other costs that you might not be expecting when it’s time to set up your new internet connection.
Wiring and Infrastructure Upgrades in Older Homes
If you have an older home, especially a pre-World War II one, you might face additional costs for wiring and infrastructure upgrades. Many older homes weren’t built with modern internet needs in mind, meaning outdated or damaged wiring could limit your connection speed and reliability. Upgrading to meet current standards can require additional installation work that adds to your overall setup expenses.
Before choosing a plan, consider asking your ISP to assess your home’s infrastructure. While basic checks may be included, extensive upgrades can cost extra. Preparing for these expenses ensures your home is ready for fast, reliable internet.
Additional Fees for Fiber Access
Fiber-optic internet is a cutting-edge internet technology that offers incredibly fast and reliable internet service. However, fiber can be more expensive than other options and might include additional fees for access to fiber networks, use of an optical network terminal, or other circumstances that are unique to fiber internet service.
Additional Wired Connections
Some homeowners want wired Ethernet connections available in multiple areas of their homes, not just near the router. That’s especially common for gamers, people with creative workstations, or other people who need a strong, steady connection but don’t need it to be mobile.
If that sounds like you, remember that you might need your ISP technician to install more wired connections in your walls. Again, depending on the size and age of your house, this can raise the cost of your internet installation significantly.
Legacy Service Termination
If you’re terminating your old ISP service at your previous address, you might have to pay a termination fee. This depends entirely on the terms of your contract with your old ISP, so get in touch with their representatives or check their website to find out.
Tips to Minimize Internet Setup Costs
Shopping Around for the Best Deals
The ISP market is more competitive than ever, so it’s a great time to shop proactively for a better deal on internet service. You can usually find all of your local providers with a simple search for “high speed internet near me” or similar terms.
In addition, make sure to ask nearby friends and family which ISP they use and what they’re paying. You might even ask if you can run an internet speed test at their home to see what they’re getting for their money and determine if the offering can meet your needs.
Negotiating with Internet Service Providers
It can also be worth spending some time talking to your ISP representatives to see if they can offer you a better deal. Ask if they have any promotions available, or simply tell them about your needs and ask them if they have any packages available that suit what you’re looking for. Whether or not they have anything to offer, you have nothing to lose by asking!
Paying Online Via Auto-Draft
Many ISPs offer a discount for customers who use paperless billing and set up their payments to automatically draw from their bank accounts. These options save ISPs money on paper billing and helps avoid missed or late payments, so ISPs often incentivize them as a win-win for everybody. While the discounts usually aren’t huge, they can add up over time.
Using Your Own Modem or Router
Most ISPs offer the option to use your own modem and/or router instead of renting one from them. This can definitely save you some cash in the long run, but the up-front cost will likely be higher, since you’ll be purchasing the equipment outright. It all depends on which option fits your budget better.
The other potential downside is that your modem and/or router may not be optimized for compatibility with the ISP’s networks, and your tech support options may be limited if you’re not using an approved modem and/or router. If you’re considering going this route, try looking up the brands and models of equipment that your ISP uses and see if they’re available for purchase.
Understanding the hidden costs of internet setup can help you budget more effectively and stay ahead of surprises. By thinking carefully about fees for equipment, activation, and installation, you’ll be better prepared to choose the right plan for your new home and enjoy a smooth start to your internet service.
