U.S. Households Face 5-Year High Internet Bills
Is the cost of the internet bleeding your wallet dry? FYI, you’re not alone because internet bills are at a 5-year high for U.S. households.
Surveys suggest that the annual cost of the internet has increased by approximately $200 from last year for most consumers. Additionally, Fox News claims that families are paying $121 on average for cable TV and home internet services per month, which is a lot.
High-speed broadband is an essential for every home today, so giving it up isn’t an option. However, understanding the causes of internet inflation can help us manage and control the situation.
Key Findings
- U.S. households spent a record $164 billion annually on cable and internet services – Broadband Breakfast
- The average household pays about $1,063 a year, or $121 per month on cable and internet – Live Now Fox
- The average monthly cost for unbundled wired internet was $83.35, and the average monthly cost for unbundled wireless internet was $71.53 through February 2025 – J.D. Power
Why Internet Bills Are Rising?
People are becoming more and more dependent on the internet over time. A fast and reliable internet connection is necessary for work, entertainment, powering smart homes, and even getting around town.
Internet services are improving and expanding to accommodate growing demands, and the increase in costs is a mere consequence.
Infrastructure & Equipment Cost Inflation
Many users are ditching conventional cable for fiber internet or 5G Home internet. While both internet technologies have undeniable benefits, they don’t come cheap. Building, operating, and maintaining infrastructures for these internet services on a large scale requires huge capital expenditures or Capex.
Moreover, each type of internet connection involves distinctive equipment at the consumer’s end, as well as component tariffs . When you add up the cost of infrastructure, equipment, and tariffs, the final price charged by your internet provider reflects inflation.
Promotional Price Ending/Rate Resets
Most internet providers offer great introductory rates to lure in new subscribers. Consumers eagerly sign up for the discount without paying attention to the actual price. When the promotional period ends, the rates are reset, and it seems like the internet has become too expensive overnight.
Truth is that the internet service wasn’t cheap to begin with; the low price was a bait to get you on board. Aside from the promotional period ending, there are annual price hikes, as with the majority of consumer goods.
Hidden Fees & Service Bundling
More often than not, people are unpleasantly surprised when they receive their first internet bill; it is far more than the advertised price of the chosen internet plan. It turns out that the displayed price was solely for the internet service – equipment rentals, installation fee, regulatory taxes, etc. are separate.
Truth be told, these so-called additional or hidden fees are the norm; you will find everything in the fine print or broadband labels. Furthermore, bundling your internet plan with other services such as cable TV and home phone will automatically raise your monthly bill.
Usage Patterns Driving Higher Plans
Entry-level internet plans cost less, which makes them feasible for households on a tight budget. On the other hand, higher-tier plans are pricier and offer faster internet. To be precise, cheaper internet translates to slower speeds, and that can be a problem.
Large households with 20+ smart devices and multiple heavy internet users cannot run on a basic broadband plan. A family of remote workers, 4K streamers, and hardcore gamers need more speed and bandwidth, so they have to pay a higher price.
Limited Competition in Many Markets
The cost of the internet may vary by location. If you live in a highly developed urban area that is served by numerous ISPs, you can enjoy competitive prices. In contrast, rural/remote areas have limited options, so the price difference can be staggering.
The digital divide has a significant impact on our internet bills. Underserved regions have to pay more for the same services because of a cut-throat market, geographical challenges, and lack of affordable technology; many rural residents only have access to satellite internet.
U.S. States & Cities with the Highest Cable and Internet Bills 2025
Top 5 States with the Most Expensive Cable & Internet Services:
- South Dakota – $1,315
- Delaware – $1,313
- Tennessee – $1,310
- Alaska – $1,211
- Rhode Island – $1,091
Top 5 Cities with the Most Expensive Cable & Internet Services:
- Milwaukee – $1,913
- Charlotte – $1,599
- Pittsburgh – $1,508
- Denver – $1,492
- Portland – $1,463
Note: Stated values represent the median of sample annual costs from different regions. Actual costs vary by household; customers with entry-level plans might be paying less, whereas customers subscribed to premium services likely pay more than the average.
Comparison of Average Monthly Costs for Wired vs. Wireless Internet (Bundle & Standalone Plans) in the 1st Quarter of 2025
Consumer Response to Internet Inflation
While a $10-$20 increase in a household’s monthly internet bill might not seem too much at first glance, it does add up to a significant amount by the end of the year. The inflation primarily affects low-income households that are already struggling to make ends meet.
Following the discontinuation of the ACP program, many low-income consumers have cut down broadband expenses by:
- Downgrading their internet plan/settling for slower speeds at a lower price
- Switching to another ISP offering lower rates
- Negotiating with the current provider
- Bill financing/installment plan
- Cancelling home internet services and relying on mobile data
Bonus Tips to Manage Rising Internet Costs
- Review your internet bill and take note of the promotional rate expiration date if applicable.
- Check additional/hidden fees and see where you can save money; for example, using your own modem & router instead of rentals.
- Compare ISPs using our free tool and determine who offers the best value deals in your area; switch services accordingly.
- Figure out your speed needs and run a speed test to see what you’re getting from your provider.
- Consider downgrading to a lower-tier plan if the speeds from your current plan are much more than you need.
- Unsubscribe from unnecessary add-ons.
- Ditch bundled services for a standalone plan, or look for more affordable bundling options.
Implications for ISPs & Policymakers
What ISPs can do to ease internet inflation:
- Showcase transparent pricing
- Introduce a low-income plan with specific criteria
- Balance investment in infrastructure with consumer affordability
What policymakers can do to ease internet inflation:
- Promote alternate internet solutions and foster competition in underserved areas
- Discourage unclear pricing
- Establish internet consumer protection laws
Many government and private organizations are already leading projects to eliminate the divide; these include broadband financial assistance programs and free public Wi-Fi facilities.
Similarly, several leading ISPs have introduced affordable internet plans for low-income households that are no longer receiving ACP benefits.
Find Budget-Friendly Internet Providers in Your Area and Sign Up Now!
Future Outlook
The price of utilities and other consumer items goes up every year – it’s just the way things are, and there’s no escaping that. However, we can expect a lower percentage increase in internet bills with respect to growing competition between longstanding and emerging ISPs.
Since wireless internet is comparatively affordable, the expansion of 5G networks can potentially reduce inflation in rural and underserved areas.
For now, consumers can benefit from signing up with ISPs that offer price guarantees. Another option is to enter a long-term contract to enjoy lower pricing for an extended period.
Frequently Asked Questions
What is the average internet bill in the U.S. in 2025?
The average cost of a standalone home internet service in the U.S. is around $77 per month.
Why are my internet bills going up even though my speed hasn’t changed?
The price of an internet plan usually goes up after the end of a promotional period, due to general inflation/annual price hike, or because of raised taxes/added fees.
How much should I pay for home internet?
You can lower your monthly internet bill by:
- Negotiating with the provider
- Buying your own equipment instead of leasing/renting
- Downgrading to a lower-tier plan
- Enrolling in a broadband financial assistance program
- Switching to a cheaper ISP
How can I lower my monthly internet bill?
In case Xfinity does not operate in your new area, you’ll have to cancel your service and return any leased equipment.
Are there hidden fees in my internet bill?
Your internet bill may contain multiple additional or hidden fees that are not included in the price of the plan. These fees can be mandatory or optional; they include but are not limited to equipment rental fees, service installation/activation charges, and regulatory taxes.
Table of content
- Key Findings
- Why Internet Bills Are Rising?
- Infrastructure & Equipment Cost Inflation
- Promotional Price Ending/Rate Resets
- Hidden Fees & Service Bundling
- Usage Patterns Driving Higher Plans
- Limited Competition in Many Markets
- U.S. States & Cities with the Highest...
- Comparison of Average Monthly Costs for...
- Consumer Response to Internet Inflation
- Bonus Tips to Manage Rising Internet Costs
- Implications for ISPs & Policymakers
- Future Outlook
- Frequently Asked Questions
