My Internet Price – Too High? Or Just Right?

Hello everyone!  Lanny here and I wanted to talk about my internet price for the speeds that I receive and the provider I use here in the suburb of Cleveland, Ohio.  I would love to gauge what the readers are paying, see their take at what I pay, see what speeds you are receiving and then this will allow me to either move forward with trying to negotiate again on the price or to succumb potentially to the big provider I have.  Here is the analysis of my internet.

internet

Internet Price Background

Over the last 12 months or so, my internet pricing has been spot on, with no rounding, at $37.00 per month with, you guessed it – AT&T (T).  I pay $37.00 per month or $444.00 per year on internet.  It’s a necessity in my house – especially with Netflix, blogging on our website, stock research, work, etc..  It is very necessary and willing to pay for fast & reliable service.

Now, the last 12 months I haven’t had too many “hiccups” aka – spotty internet service, parts of the year where my internet wouldn’t flat out work, etc.. – as I have prevoiusly experienced that in the past, to which I know there are more than quite a few of you that go through “spots” of bad services throughout your tenure with your internet provider.  To not beat around the bush though, however, I believe before this most recent 12 month period, my internet bill was $25.00 per month, or $12 less than it is now, or $144 in annual savings – which, as I stated in my goals blog, would be very beneficial to have to cover trading costs or to have in savings for other emergencies.  Also, on a % basis $12 on $37 is 32% OR you could think of it as them increasing my bill last year by 48% from the $25 per month.  All in all – I used to pay less for my internet service, but fell into the trap of negotiating and “accepting” a $37.00 per month rate with them.  I don’t like to settle, which brings us to here.

the internet pricing debate!

Okay, here it is now.  I want to save money, bottomline.  I’m frugal and if I’ve paid a cheaper internet before, am I crazy thinking for wanting the same?  Did inflation occur at a 48% rate?  I don’t really think so.  However, I wanted to ask everyone – am I wild thinking this?   I receive a “very moderate” 6 mb on my download speed, which to me – does what I need to do here at my house, but I have heard of others potentially receiving faster speeds for less than what I am paying.  Why the heck do I love battling the cable & internet companies?

Therefore, I am here wanting to chat with everyone to see if I am out of line, first off, and secondly – what your speeds to pricing is at your house (if I may ask)?  I do not use cable, therefore, my “package” is a single service of internet through AT&T (T), ugh, why am I so loyal to this foundation stock for a dividend portfolio?  We all know about Bert’s debates with this as well in the past.  I am pumped up to hear your responses to this article – I am hoping that it will help clear answers, if I should go in and for what price points individuals have been paying for their internet, pending speed.  I am all for spending $40 if it’s for faster speed, but to me $37 for a 6 mb download speed, just isn’t cutting it, that’s my gut talking and my frugal mind working.

Goal and Request I am asking

Okay readers – please, please share your insight below, comment away, and let’s let the internet and pricing debate begin.  I would love to bounce ideas off of each other, drum up experiences and see what you are doing to keep your bill low or hey – this may help more readers in understanding that we can fight for lower cost for the same service.  Can we come together on this?!  LET’S GO!!!  I would love to save a few dollars here and there, wouldn’t you?  Thank you again for helping and coming to this article, I am hoping it helps clear some air on this topic!  Appreciate all of the information, tips and assistance across the board – looking forward to hearing what everyone has to say.

-Lanny

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16 thoughts on “My Internet Price – Too High? Or Just Right?

  1. Hey guys,

    Great topic. Your monthly costs seem about right for AT&T. Do you use their DSL or UVerse service? My brother and I were splitting 12Mbps for around $45/month in Milwaukee (non-introductory rate) on UVerse. If you don’t mind the hassle, switching back and forth between UVerse and cable, if available, would be an option to save money by getting the intro rates.

    For a couple of years I switched between TimeWarner and EarthLink cable Internet. The crazy thing was that I was able to actually keep the same box and everything since EarthLink used all the same equipment and lines. But, because I was a new customer I got their introductory rate. A single and about an hour later I was on “EarthLink.”

    I’m moving to a little north of Minneapolis to a town with about 75,000 people. The amazing thing there is that I can get 40 Mbps down and 20 up for only $34.95/month. 20/10 costs $19.95/month. And the insane thing is that one of the newer apartments offers 1Gbps (1000Mbps) down and up for $130/month.

    It’s crazy how Internet prices and speeds vary so much across the US. Probably has to do with limited competition in most areas.

    Scott

    • WHOA!

      First, awesome. But Secondly, your internet speeds and the price you’re going to be paying are hilarious. Knowing me, I’d probably do the 20/10 for $19.95 per month, simply because the biggest thing I do is stream Netflix.

      Let us know what you end up doing, will be great to hear and find out!

      -Lanny

  2. We currently have a “deal” with our neighbours, we are allowed to use their wireless for a small fee of €10 per month (say about $11 at the moment). No idea what speed they have, but the two of us (Mr. and Mrs. CF) can both watch Netflixat the same time and there are no internet connectivitiy issues either with us or at the neighbours.
    How is the relationship with your neighbours (hint hint)?

    • Team CF,

      Damn! The Ultimate move here!!! That is brilliant. However – how close in physical proximity is your house to your neighbors? Do they have an internet extender??

      $11 month is ridiculously cheap and obviously is fast enough. I DIG IT!!!!

      But what you may be saying is – I can go cheaper, maybe? maybe? haha

      -Lanny

      • Hey Lanny,
        We currently live in a converted farmhouse. We live in the front section, our neighbours live in the barn section (so the buildings are connected). We actually borrowed a range extender form the in laws to boost reception throughout the house. Works like charm.

        If there is a larger distance with your neighbours, consider pulling a network cable through the yard for a stable and reliable connection. You’re probably still way cheaper that way.

        Good luck!

  3. That’s still a lot cheaper than what we pay for our internet service. With a negotiated discount we’re paying about $60 per month for 30Mbps. If the service is good & reliable and the speed is OK for you, then paying for $37 per month can be justified.

    On a related note, thank you for contributing to my AT&T dividend income. 😉

    • Tawcan,

      Thanks for the post. I agree- the $37 isn’t too bad, BUT if I could get down to potentially $20-$25/month would be amazing. Thoughts?

      And of course — contributing to the dividend income across all of us as shareholders – YOU ARE WELCOME! haha.

      -Lanny

      • I think you need to look at the tradeoffs for getting cheaper internet. I assume you’d get a slower package? If so, would you be OK with the slower speed? 🙂

  4. There are 3 internet/TV providers in my area. Most of these providers offer 1 year contracts with a ~50% price discount for new signups. After the 1 year is up, the price returns to “normal.” When my 1 year contract is up, I call customer service to cancel my service, sometimes they will let me keep my 50% discount price for another 6 months/1 year, sometimes not. If they do not let me keep my discount, I just cancel my service and move to another provider with a discount.

    I have been doing this for ~6-7 years now and so far I have been re-eligible for the “new signup” discount with providers I cancelled with several years prior.

    I estimate this saves me $400 a year, so I’ve saved ~$2500 total. I’ve probably added ~$125-150 to my yearly income investing this ~$2500 and reinvesting the dividends.

  5. Hey Lanny,

    I’m not sure on our speeds, it does the job so that doesn’t matter so much. What I do know is that we pay $60 a month for 200GB, which is sadly one of the smallest deals you can get in Australia. Very expensive. It has been extremely reliable though, we’ve been with iiNet for 2 & 1/2 years and it hasn’t dropped out once.

    Tristan

  6. Wow… I wish I’d live in the States!
    We pay about $70/month in Canada for unlimited usage (considering netflix, the only TV we watch, that’s a must!). I’ve done some research for my road trip and I found I can buy a hotspot providing me some good coverage on the road for less than $50/month… that’s very impressive!
    Cheers,
    Mike

    • DivGuy,

      Thank you and whoa – $70 eh?? Are you going with the hot spot? And would the hot spot go through your wireless provider as an add-on and/or would the $50/month give you unlimited somehow??

      -Lanny

  7. Hey Lanny,

    That is a pretty good price for internet. I would look into whether smaller local or regional providers could offer something a bit more competitive. If not, you could always call AT&T and tell them you’re planning on switching to see what they’ll offer. Good luck!

    • Dividend Niche,

      Thank you so much for coming by. I think I agree with you, I’ll call WOW! telecom and see what their best deal is. I’ll jot it down, call AT&T and see if they can match if not – gbye. How do you like it?

      -Lanny

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