Understanding Internet Installation Fees – What You Should Know

I recently switched to a new internet service and everything was going great until I received my first bill at the end of the month. FYI, when you sign up for an internet plan, the provider may send a technician to set it up at your place. Guess what? This arrangement comes at a cost too.

All I can say is that before you commit to a new provider, inquire about internet installation fees and other hidden charges. Being aware of these “miscellaneous expenses” prevents unpleasant surprises in the aftermath.

Breakdown of Installation Fees and Hidden Charges

What does internet installation entail and why do I have to pay for it? I was thinking something along those lines after one good look at my first internet bill. However, after a few hasty calls to customer support and a dozen search engine queries, I got my answers and made peace with the whole situation.

So, here’s a breakdown of how installation and miscellaneous internet charges work:

Standard or Professional Installation

Standard internet installation may involve running a wire down your wall to establish the connection between you and the internet service provider (ISP), setting up the modem + router/gateway, and enabling Wi-Fi. Turns out, the internet installation fee primarily covers the cost of:

• Travel (to and fro your address)
• The technician’s time and labor
• Tools and equipment (cables, wall fixtures, tape, etc.) used in the process

Professional Internet Installation costs about $100 on average.

Professional Installation vs. Self-Installation

In case the professional installation charges still seem like overkill, you can go with self-installation and save your money. Bear in mind that every ISP does not offer the self-installation route. Furthermore, it may not be a feasible option under certain circumstances.

Let’s compare both approaches to give you a better idea:

Professional Installation

• No expertise is needed, as the technician handles everything
• Saves your time and effort
• Nil/minimum chance of error
• Lacks personalization

Self-Installation

• Some technical knowledge/experience is required for the DIY route
• Saves money
• High probability for mistakes/re-dos
• Allows plenty of customization

Self-installation kits provided by ISPs are often subject to a small fee.

I must add that several ISPs charge nothing if you choose to self-install your internet, and some even offer free professional installation as part of promotional campaigns. You just have to be on the lookout for sweet deals and grab them at the right time.

Additional Charges That Might Appear on Your Bill

Seeing a list of unexpected charges on the bill can give one a mini heart attack, so let me prepare you for the worst. To be fair, you and I can partially blame ourselves for ignoring the .

Here’s a list of supplementary fees your ISP may demand from you without prior notice.

Activation Fee

Apparently, installation is not all it takes to gain internet access; some ISPs will ask for a one-time activation fee to allow you the privilege of using their services. The standard internet activation fee normally ranges between $10 - $50.

Equipment Rental Fee

The modem & router or gateway used to create your home network are material things that come at a price. It is standard practice to rent out this equipment from the ISP, so the rental fee is either included in the cost of the internet plan or charged separately. You may avoid this monthly expense by using your own compatible equipment.

Data Overage Fee

You don’t have to worry about the data overage fee if you’ve signed up for an internet plan without a data cap. Overage fees apply when a user exceeds their monthly data limit; you may have to pay about $10 for an extra 50 GB or so.

Late Payment Fee

All bills come with a due date, and when you don’t pay your dues in time, a penalty awaits. ISPs may allow a few extra days (grace period) to accommodate unusual situations, but that’s about it. You may incur charges as much as $25 for late payment; keep up with the tardiness, and the service will be canceled.

Service Restoration Fee

In case your internet service was canceled due to non-payment or temporarily suspended on your request, you may have to pay a service restoration fee. The main purpose of this fee is to compel customers to pay their bills on time.

Early Termination Fee

Early termination fees may apply if you’ve entered an annual/long-term contract with an ISP. These charges are usually imposed if you cancel your service within the first few months. The payable amount depends on the duration of the contract and the ISP’s policies – it could be as high as a few hundred dollars.

Service Call Fee

In case you had an issue with your internet service and requested your provider to send in a technician to take a look, a service call fee applies. The service call fee covers the cost of labor, travel, and equipment; it may range between $50 - $200.

Annual Price Increase

The rate of most utilities goes up every year to compensate for inflation, upgrades, and increased demand. Therefore, the monthly cost of your internet plan will be subject to a slight raise, unless you enter a contract that gives a long-term price guarantee.

Universal Service Charge

ISPs often include this fee to donate to the universal service fund that helps make telecommunication services affordable in rural areas. It may also be used to pay for emergency/government operations and support public institutions like schools and libraries.

Surcharge

Did you notice a small fee ($10 or less) on your bill labeled as “surcharge”? The revenue collected through this charge goes towards sustaining, repairing, or upgrading the local internet infrastructure.

Comparing the Installation Fees of Top ISPs

Several ISPs offer self-install completely free of charge, whereas few charge a small amount for the self-installation kit. In the case of satellite internet, you are unlikely to get the self-installation option.

Moreover, if you’re switching to a different kind of internet connection, such as cable to fiber, self-installation is not practicable. Laying down a new internet infrastructure requires quite a lot of work and technical expertise, thus calling in a professional is recommended.

Factors Affecting Installation Fees

• Installation of cable internet is usually cheaper, as it utilizes the conventional copper cable used for TV.
• Installation of fiber internet is slightly expensive, as fiber-optic cables are costlier and old houses require a change of internet infrastructure.
• Satellite internet is an expensive technology, which contributes to the high installation costs.
• Installation costs vary by location and tend to be higher in rural/remote areas.

Ways to Avoid or Reduce Installation Fees

You can avoid or reduce internet installation costs by:

• Going the DIY route, which is free or relatively cheaper.
• Availing seasonal deals and discounts – many ISPs offer rebates or freebies on special occasions like Cyber Monday and Black Friday.
• Bundling – purchasing multiple services from the same vendor may lower overall costs.
• Reach out to customer support to ask about possible concessions or negotiate the price.

P.S: If you don’t want to pay the entire cost of internet installation in the beginning, you may request your ISP to allow payment in multiple installments.

Bottomline

Internet installation is a one-time cost that typically appears on the first internet bill. You must look into the professional internet cost and self-installation options before signing up with a new internet provider.

Conducting your research in advance may help you save installation costs or even avoid them altogether. However, do not give up on a promising ISP just because their installation fee is a bit higher.

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