Why is internet service in the US overpriced?

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It is a fact that internet prices in America are among the most expensive ones in the world. This is one of the reasons as to why Americans are usually not much happy with the costs and the internet services they receive. We often hear users complaining that their internet connection is either too slow, unreliable, or costly. The fact remains that the internet service is indeed overcharged for Americans. Though the well-reputed cable providers allow you to access better services at a more pocket-friendly price. For instance, you can enjoy reliable Spectrum as well as blazing fast Spectrum internet services at budget-friendly rates by availing their bundle offers. But generally speaking, the internet is expensive in America but why is that so? Let’s have a look at the reasons!

Lack of Competition

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One of the basic reasons for high internet prices in America is a limited number of providers available to cope with the massive demand. ISPs do not get enough pressure to lower their prices or improve services further because of less competition. Americans have to pay because they do not have another choice, knowing it is not possible to function without the internet these days.

Additional Charges on the Bill

The basic cost of your internet bill might not be very high but the additional charges imposed by the provider hikes up the monthly cost. These extra charges that inflate your bill include the equipment rental fee, installation fee, late payment fee, and the cancellation fee. Moreover, certain regional and federal taxes add to your monthly internet fee and increase the overall cost.

High Cost of Equipment and Installation

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The internet prices in America spike high because of the heavy cost of installation and equipment that comes along. Fiber optic cables are much expensive to be installed. Thus the fiber internet providers have to make huge initial investments to set up the infrastructures and as a result, they offer services at a higher rate to compensate for the cost of installing the new equipment. The same is the case with satellite internet providers-after all satellites are expensive. DSL internet which makes use of the phone lines for providing internet services is comparatively cheaper because of the lower investment required on the equipment and installation process.

Data Overages

Often we might end up choosing the wrong internet plan. It is usually when we fail to estimate our monthly data requirement and get a plan with a lower data limit. Consequently, we end up utilizing the entire data and unknowingly use extra data. Thus we have to pay an extra fee for exceeding the data cap. So if you are a lot into video streaming, it is better to opt for internet plans that offer either a no data cap policy or at least as much as 1TB of data.

How Can You Lower Down Your Internet Bill?

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In case you are stuck in a costly internet plan and finding it hard to manage your budget, you can follow these simple ways to cut down the cost:

Downgrading your Plan

You can try to lower down the internet speeds that you might not require right now. Downgrading to an internet plan that is comparatively slower and more budget-friendly can help in saving money. You can check if you have subscribed to premium content i.e. On-demand channels, and monthly rent charges or any additional charges that are not making sense. If you find anything that doesn’t make sense, call your customer service department and ask away. And try to unsubscribe from anything that you don’t use as well.

Switch to another Provider

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You can switch to another provider that offers a low-cost plan and more benefits. Many well-reputed providers offer exciting features like contract buy out plans or other incentives to help us save some bucks. There is always a cheaper version of anything you are looking for, we would however not recommend you to compromise on quality, requirements, and needs of your household for cutting the cost. Do your research, evaluate, compare, read reviews, and it’s absolutely fine not to sign up for the most expensive deals in the town. There are some less advertised better services in the market too that will fit your budget and needs both.

Use Personal Equipment

Using your equipment can be a good move when it comes to getting rid of the rental fees. A good router can also result in effective Wi-Fi coverage in the house. This will save you monthly charges for year(s) on your bill for a router or anything that you took on rent or installment. Use your old router, buy a slightly used equipment that functions well instead of getting some extra amount on your bill every month.

Keep a Check on Data Usage

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In case you subscribe to an internet plan with a data cap, you should keep a check on how much data you are using to avoid any data over-usage charges. This is especially true for satellite internet users as it usually has comparatively smaller data caps. Furthermore, if you have signed up for a bigger data plan than you spend on average, try downgrading it as well.


Negotiations can prove very fruitful and can result in a lower monthly bill. So make sure you give it a shot and request for discounts, with sound background knowledge on what other providers are offering in the market. This can strengthen your stance further.

Wrapping Up

You need to make a wise choice while selecting your internet service provider and the plan you want to subscribe to. Though the aforementioned discussion highlights the reasons why the internet is much expensive in the U.S but there are some tips you can follow to cut down your monthly bill cost to a considerable extent. We hope the tips are helpful for anyone who reads it as much as American. If there is any smarter way to cut down cash without compromising that we haven’t mentioned, do share your thoughts and suggestions in the comments section below.