Wondering How to Lower Your Internet Bill? Try These 6 Tricks

It often seems like internet costs keep climbing.

The typical American spends roughly $77 per month on internet service, though that amount can be considerably larger depending on where you live and the speed you get.

Internet and cable companies are famous for tempting customers with attractive introductory rates, then increasing charges with hidden fees and extra costs as time goes on.

The advocacy branch of Consumer Reports even launched an effort called Fight For Fair Internet, analyzing over 22,000 consumer broadband bills to reveal what people are actuallypaying — because the major ISPs don’t always share that information.

Looking to lower your monthly bill? Here are practical strategies to reduce your internet expenses.

6 Ways to Reduce Your Internet Expense

• Compare Providers and Switch
• Use Federal Assistance Programs
• Downgrade Your Internet Speed
• Purchase Your Own Modem and Router
• Negotiate Your Monthly Rate
• Adjust Your Mobile Data Plan

1. Compare Providers and Switch

If you’re fortunate to have multiple ISPs available, changing to a different company can free up extra cash.

Look for promotional deals aimed at new customers. If you own your modem and router, switching providers is usually straightforward.

Promotional pricing often appears around holidays. Some ISPs offer gift cards, free months, or even pay to buy out contracts around Black Friday, Cyber Monday, Christmas and New Year’s.

Sadly, many Americans don’t have a choice: a 2020 report from the Institute on Local Self-Reliance estimated about 83 million people have access to only one ISP in their area.

2. Use Federal Assistance Programs

The Affordable Connectivity Program (ACP) offers a $30 discount on home internet service for eligible households.

If someone in your household participates in certain federal benefit programs — or meets income thresholds — you may qualify for discounted internet.

You could be eligible for an ACP benefit if someone in your home is enrolled in:

• Medicaid
• Free and Reduced-Price School Lunch or School Breakfast Program
• Federal Pell Grant (current award year)
• Supplemental Nutrition Assistance Program (SNAP)
• Lifeline
• Women, Infants, and Children (WIC)
• Supplemental Security Income (SSI)
• Federal Public Housing Assistance (FPHA)
• Veterans Pension and Survivors Benefit
• Certain tribal assistance programs

You can also qualify if your income is up to 200% of the 2023 Federal Poverty Guidelines ($39,940 for a two-person household).

This is useful for retirees and others on limited incomes who don’t participate in the listed federal programs.

Fill out this application on GetInternet.gov to check if you’re eligible for $30 off your internet bill through the ACP.

The ACP can be applied to any broadband tier offered by participating ISPs.

Low-Income Internet Plans

Want deeper savings? Ask your provider about their discounted plans for low-income customers.

Many major ISPs offer special, lower-cost plans for people enrolled in qualifying assistance programs.

These plans used to offer modest speeds, but since the ACP’s rollout in 2022, several companies introduced faster tiers priced at $30.

Combining an ACP voucher with a qualifying low-income plan could reduce your monthly bill to $0 for high-speed service.

Here are examples of discounted plans from major providers:

The simplest way to learn if you qualify for discounted service is to contact your ISP directly.

Lifeline Program

Lifeline is another federal benefit that can cut your monthly internet cost.

The Lifeline program provides a $9.25 monthly reduction if your household income is at or below 135% of the federal poverty level, or if you participate in specific federal assistance programs.

3. Downgrade Your Internet Speed

ISPs charge more for faster connections.

If your internet use is light, switching to a slower plan could shave $20 or more off your monthly bill, depending on your provider.

But this won’t be practical for everyone.

Power users and families commonly need download speeds of at least 100 megabits per second (mbps) and upload speeds around 10 mbps.

Identify the minimum download speed that meets your needs, then shop for ISPs that provide plans in that range for less money.

How much internet speed do you require?

4. Buy Your Own Modem and Router

Renting your modem and router from your ISP is convenient, but the monthly rental charge adds up.

Typical equipment rental fees range from $5 to $20 per month.

That can amount to $120 or more each year simply for leased devices.

To save in the long run, consider purchasing your own modem and router for a wired connection.

You can often buy a reliable router and modem bundle for about $200. (Used or refurbished gear is cheaper.)

The upfront cost is higher, but owning your hardware may reduce your monthly expenses over time. Do the math to see if it fits your budget.

5. Negotiate Your Monthly Rate

If you don’t mind awkward phone conversations, try negotiating a lower fee with your ISP.

Negotiation tends to work better when your provider faces competition. If alternatives exist in your area, you have more bargaining power.

How to Negotiate an Internet Bill

Do your research before you dial your provider.

Gather price quotes from other ISPs in your region, especially their newcomer promotional rates. Note each plan’s download speed.

Also review the details of your current plan. Check how the monthly price has changed over time and confirm your plan’s speed.

You’ll be in the strongest position to negotiate if:

1. You have a record of on-time payments.
2. Your contract is nearing expiration.

When you call, tell the representative you found a better offer elsewhere and are prepared to cancel and switch.

Be ready to substantiate the competing offer — for instance, the same speed for $30 less per month — if asked.

Remain polite but assertive.

Companies frequently try to retain customers by matching or beating rival offers.

Assess any counteroffers carefully.

Ask yourself:

• Will this actually lower my bill, or are they bundling another charge?
• Is the offered speed slower, and if so, how much slower?
• How long will the reduced price remain in effect?

Try to call on a weekday when fewer people are seeking help; hold times are typically shorter and you’re more likely to reach higher-level agents.

Or Use an App to Negotiate for You

If haggling with your ISP sounds dreadful, apps can do the negotiating on your behalf.

Services like BillCutterz, Trim, Rocket Money (formerly TrueBill) and Hiatus will contact your provider and attempt to lower your rate.

If they successfully reduce your bill, the app takes a share of the savings. For example, if BillCutterz reduces your bill by $40, they may keep $20 and you receive $20.

Some of these services also charge a monthly or annual fee.

6. Adjust Your Mobile Data Plan

If you can’t lower your home internet bill, you might still trim total household expenses by changing your cell phone data plan.

Many people pay for unlimited talk, text and data even though they rarely use much data. Why pay for unused capacity?

Switching to a plan with 5 GB of data or less could reduce your phone bill by $20 or more. Then you can rely on home Wi-Fi for most online activity.

Make sure your phone is set to automatically join known Wi-Fi networks when you’re away from home (this option is available in your device settings).

Before downgrading, check how much data you actually use each month.

On the flip side, evaluate whether expanding your mobile data makes sense. If you can get an affordable unlimited data plan, you might not need home internet at all. Some unlimited plans begin around $30 per month.

Depending on your habits, you could use your phone as a hotspot and rely on cellular data alone, or combine it with a cheaper, slower home connection.

Jordan Ellis is a Certified Educator in Personal Finance and a senior writer for Savinly. Jordan covers retirement, investing, credit and life insurance.