Just as other household costs have increased, home internet costs have risen steadily. Promotional plans can offer attractive introductory pricing, but that often expires after 12 to 24 months.
The expansion of fiber and 5G home internet is increasing competition, and more internet providers are offering deals to attract and retain subscribers. However, many consumers keep their legacy plans without reviewing alternatives, meaning they could be overpaying for their internet.
Changing usage patterns, like working remotely, streaming or supporting smart home device connectivity needs could mean that you’re overbuying speed or lacking performance. Reevaluating your internet subscription and needs can help you find the best and most cost-effective option.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The main types of home internet and how they compare
There are five main types of home internet available today. Your location largely determines which options you can choose from. Each connection type uses different technology to deliver service to your home, which influences speed, reliability and monthly pricing.
The chart below breaks down how each type of home internet compares, including typical speeds, pricing and who each option works best for.
Internet Type | Typical Speeds | Average Monthly Price | Reliability | Best For |
Fiber | 300 Mbps – 5 Gbps | $50 – $120 | Very high | Remote workers, gamers, smart homes |
Cable | 100 Mbps – 1 Gbps | $50 – $100 | High | Most households |
5G Home Internet | 100 – 400 Mbps (location dependent) | $30 – $75 | Moderate to high | Budget-focused households, renters |
DSL | 5 – 75 Mbps | $40 – $75 | Moderate | Areas without cable or fiber |
Satellite | 25 – 250 Mbps | $50 – $150+ | Variable | Rural or remote areas |
Actual speeds and pricing vary based on location, provider infrastructure and promotional pricing.
Fiber internet: Fastest and most reliable option
Fiber internet uses fiber-optic cables to deliver some of the fastest and most reliable internet speeds available. It typically offers symmetrical upload and download speeds, meaning your upload speed (sending data, like video calls or file transfers) is just as fast as your download speed (streaming shows or browsing the web).
That balance can be especially helpful for households that work remotely, stream on multiple devices or regularly upload large files. Fiber plans can cost more than other options, but heavy internet users often find the improved performance worth the price. Availability is expanding, though fiber service is still limited in some areas.
Cable internet: Widely available and balanced performance
Cable internet is delivered through coaxial cable networks, the same infrastructure often used for cable television. It’s widely available in suburban and urban areas and is frequently bundled with TV services.
Cable offers reliable download speeds, but because neighborhoods share bandwidth, speeds can slow down during peak usage times. While cable remains one of the most common home internet options, it faces growing competition from fiber, which can offer faster and more consistent performance, often at a higher price.
5G home internet: Lower cost and easier setup
5G home internet services, including options from Mint, Verizon and T-Mobile, typically use cellular towers rather than wired infrastructure to deliver internet to your home. Most providers offer plug-and-play equipment, allowing for a quick setup that usually doesn’t require professional installation.
5G home internet is often a lower-cost, contract-free option, though performance can vary depending on signal strength, location and network congestion. Speeds may slow during peak usage periods, but its affordability and flexible setup make 5G a popular choice for renters, households that move frequently and casual internet users who mainly browse, stream or check email.
DSL and satellite internet: Still important in some areas
DSL internet uses traditional telephone lines to deliver service. Speeds tend to be slower than cable, fiber and 5G, but DSL remains a practical option in many rural communities where newer internet infrastructure isn’t available.
Satellite internet is sometimes the only option in remote or hard-to-reach areas. Equipment and installation costs are typically higher than other types of internet, and latency — the delay between sending and receiving data — can affect activities like gaming or video calls. However, newer satellite networks are improving both speeds and overall reliability.
How much internet speed do you actually need?
If you buy more speed than you actually need, you’ll overpay for your internet. But if you don’t buy enough speed, you could experience delays and frustrating streaming experiences. Consider how you use the internet most often to determine how much speed you need.
| Row 0 - Cell 0 | Household Activity | Recommended Speed |
| Row 1 - Cell 0 | Email, browsing, basic streaming | 25 – 100 Mbps |
| Row 2 - Cell 0 | Families streaming multiple devices | 100 – 400 Mbps |
| Row 3 - Cell 0 | Remote work, gaming, smart homes | 500 Mbps – 1 Gbps+ |
Hidden internet costs to watch for
Hidden fees can drive up your home internet cost. Look out for these pesky fees to ensure you’re getting the best deal on your internet:
- Equipment rental fees: Many internet providers charge rental fees for equipment like modems and routers, driving up your costs. If you’re confident you’ll stay with your internet provider long-term, it might be worth buying your equipment, rather than renting it.
- Installation charges: Professional internet installation might be free, or it could cost $150 or more. Verify the cost of installation before you sign a contract. If you’re tech-savvy, self-installation is sometimes an option.
- Early termination penalties: Before you sign a contract, verify any early termination policies. You might face a steep bill if you terminate your policy early, and some early termination fees can be as much as $500.
- Data caps or throttling policies: Many internet providers charge you extra fees if you exceed your monthly data allowance, or they may throttle your internet speed. Make sure you understand your home’s internet usage so you buy a plan that includes enough data.
- Prepaid billing structures: Prepaid, or pay-as-you-go internet billing structures, let you pay in advance for your services, which can make it easier to budget. But if you use more data than you initially paid for, you could face extra fees.
How to compare internet plans before you switch
To save on your home internet cost, make sure that you’re choosing the plan that meets your needs and offers the best value. The following steps can help you compare internet plans to determine which is best for your needs before you make the switch:
- Run a home speed test: Run a speed test to determine your current internet speeds. There are many free online speed tests available, including one by Google. If your current internet works well for you, you might want to look for a plan with a comparable speed. If your internet is coming up short, look for a plan with more speed.
- Review current bill and contract details: Evaluate your current bill and see what you’re paying, whether you have any data caps and if you’re paying any extra fees that are driving up your costs. Verify if you might face any early termination fees for cancelling your current contract.
- Compare provider coverage maps: As you explore potential providers, make sure that coverage is available in your area. Use their coverage maps to check available services at your home address.
- Evaluate reliability and customer service reviews: Do some research into each type of internet you’re considering. Read customer reviews about reliability, outage issues, technical issues and customer service.
- Ask about trial periods or guarantees: Contact each provider and ask about whether any trial periods are available. Some providers may offer guarantees, so get details on how the guarantee works.
Switching your home internet could help you save money, especially if you’ve been with your current provider for years and the introductory offer has run out. Before you sign up for a new service, though, make sure that it really meets your internet needs – otherwise, a seemingly good deal might not actually deliver the great value you think it does.
related content
