Are you a creature of habit when it comes to home internet?
Money expert Clark Howard says you may need to shake things up!
On a recent episode of The Clark Howard Podcast, Clark sounded the alarm on people in “set it and forget it” mode with one of the major home internet providers.
“Creatures of habit are getting crushed right now,” Clark said. “… There is a segment of the market that lets inertia rule. And if you are that person, I’m speaking to you right now.“If you’re just letting [your internet bill from] Comcast, Charter, AT&T, Verizon or whoever it is [go unchecked], understand that the cable monster know the game they’re playing. And it is steadily pushing you to higher and higher and higher and higher price points.”
Did you know today’s pricing models prey on complacent customers? And did you even know you were part of this pricing game?
In this article, we’ll dig deeper and discuss strategies for gaining solid footing in an ever-changing home internet market.
What Legacy Internet Service Providers Are Doing
The price-control party is almost over for legacy home internet service providers, and they know it.
For most Americans, there are more options for sufficient internet service than ever before. We’re no longer beholden to the phone company or cable service as the lone service providers in our area.
So, rather than treating you like a customer they want to keep long-term, many legacy providers use a familiar strategy to milk customers for as much money as possible for as long as they can.
“They’ll lure you in with something like an introductory deal,” Clark says. “It’s good for six months, maybe even a year, for your home internet. And then, when the six months or year is up, they raise the rates a lot. And then they keep raising them. Could be even twice a year. They push the rate up higher and higher and higher and higher, because they know that now there is more competition for home internet.”
Additionally, they may be selling you on higher internet speeds than your household actually needs.
Clark likens this practice to that of the phone companies back in the 1990s and 2000s, as the landline was on its way out and the legacy phone companies were barraging their remaining existing customers with bill increases to try to stay afloat in a diminishing marketplace.
Shifting Market Conditions Give You Leverage to Shop Your Service
If you’re a loyal customer being gauged by your internet provider, we have good news: You can now fight back for your wallet.
A few emerging service options offer a chance to get a cheaper monthly bill for your home internet needs without a long-term contract commitment.
Your mileage may vary based on your location, but those options could include:
Wireless carriers (such as T-Mobile and Verizon) offering home internet plans
Emerging fiber internet providers (Google Fiber, for example)
Starlink satellite internet (pricey, but great speed and connectivity for rural consumers)
Team Clark has a four-step process you can follow to determine the best internet deal in your market.
Clark really likes the wireless carrier option for most consumers. He says wireless customers of both Verizon and T-Mobile could be eligible for in-home internet for as little as $25 per month if they’re willing to bundle the service with their cell phone bill.
And he says that, with the exception of online gamers, most consumers will receive more than enough speed to stream their favorite shows and browse the internet on multiple devices.
Bottom Line
If you’ve been paying your legacy cable or phone company for high-speed internet via autopay for any length of time, there’s a good chance that you’re paying more money than you should for home internet.
Use the power of emerging consumer choice in this marketplace to your advantage.
Shop around for a better price via a competitor to see how much you could save on your monthly bill.
If you find a good alternative, we usually suggest giving it a “test drive” before canceling your current internet to make sure it meets your household’s needs.
You’ll likely be happy with the product if your primary home internet use is browsing and streaming.
But even if it doesn’t quite meet your needs, you can still use it as leverage to convince your existing provider to give you a better price.
What is your strategy for getting the best pricing on home internet? We’d love to hear your tips in the Clark.com community.
The post Why Clark Says You Need To Check Your Internet Bill Now appeared first on Clark Howard.