Australians are paying an average of $71 a month for broadband, and for many households, that number feels even higher—thanks to hidden fees buried in the fine print. A recent Guardian report found that nearly 70% of users are calling for concessions. So, how can you protect yourself? By understanding the costs you don’t see upfront.
Besides comparing internet plans to find the most affordable one, internet users should also be aware of the hidden costs associated with their internet plans. Knowing the hidden costs helps develop strategies to reduce the internet cost to some extent. The following section of this article is poised to provide a detailed insight into the hidden cost of broadband plans.
Hidden Fees of Broadband Plans
Most broadband plans, including the popular NBN plans, come with many hidden expenses. Let’s dive into those hidden costs and explore some effective ways to bypass them.
- Connection or Setup Fees
The connection or setup fee is a one-off fee that you need to pay when you get a new internet connection at home. This is not a typical hidden cost, though many internet service providers offer free installation or setup. So, whenever you choose a new internet connection plan, you must check the installation fee. A free-of-cost installation is the most desirable, though most providers charge installation costs up to $300.
- Modem or Router Cost
Some internet plans come with a free modem or router. However, it may come with certain terms and conditions. For example, you need to stay for a minimum of 24 months to avail of the free modem offer. In case you leave early, you should pay off the modem. Alternatively, some plans come with upfront modem costs, varying from $100 to $300.
- Early Termination Fee
A common hidden cost in your broadband plan is the Early Termination Fee (ETF). When a user discontinues the internet plan, breaching the contract of 12 or 24 months, they need to pay the early termination fee to the service provider. The early termination fee could be a flat fee. Alternatively, it could be calculated based on the months of contract left. The earlier you terminate, the higher fee you may need to pay.
- Technician’s Fee
Typically, the installation cost of your broadband plan includes a technician’s fee. However, some companies charge the technician’s fee separately. Therefore, in addition to the installation cost, you may have to pay a technician’s visit fee during the installation procedure. For fixed wireless or satellite NBN plans, the fee could range between $100 and $300.
- Speed Boost Fees
Typically, you get the internet speed according to the plan you select. At times, you may require a speed boost, which is possible with an additional fee. When you want to download multiple heavy files in a shorter time, speed boost can prove effective. Sometimes, you may also need a speed boost to stream movies or web series. Some common NBN speed boost plans are NBN 100, NBN 25, and NBN 50.
- Credit Card Payment Fee
Do you make your monthly bill payments using credit cards? Using a credit card is good, though you must keep the surcharge in mind. Typically, the credit card surcharge for paying broadband bills is around 0.5-2%. You can avoid this additional expense by switching to the direct debit method of payment.
- Change of Plan Pricing After Promo Period
Many internet service providers offer discounted tariffs for a particular period of time. For example, you may get discounted plan pricing for the first six months. The plan pricing will be regular after the discounted period. Therefore, service seekers must check the regular plan pricing before entering into a plan with discounted pricing for a fixed promo period.
- Relocation Fee
When getting a new internet connection, no one takes the relocation fee into account. However, life is uncertain, and you may need to move to another place. In such cases, you can move your existing internet plan to the new location, though a relocation fee will be applied.
- Static IP Fee
For gaming and work purposes, you may require a static IP. Typically, the internet service providers offer dynamic IPs. However, you can obtain a static IP upon placing a request with an additional fee. The fee could vary between $5 and $10 per month.
- Data Overuse Charge
There are two types of internet plans for users: unlimited data and non-unlimited data. For non-unlimited data plans, users have fixed data caps. You have to pay additionally when you overuse data beyond your data cap. This cost could be hefty, and choosing an unlimited plan is recommended for this reason.
Conclusion
So, these are hidden charges that people should know before choosing a broadband plan. Whether you choose NBN or other providers, picking the right plan ensures cost-effectiveness and convenience. Understanding these hidden costs will eventually help you pick a plan that exactly matches your requirements and monthly budget.
Still confused about choosing the right broadband plan for your home? Compare Your Broadband is the place where you can obtain insights into different broadband plans. You can compare multiple plans and pick the best-suited one with our expert’s advice.