The average monthly cost for internet in the U.S. is around $92.22, according to a review of over 250 plans from leading internet providers in the US. However, many people choose more affordable options. Consumer Reports found that the median monthly internet cost is $74.99, with about half of U.S. households paying between $60 and $90. According to U.S. News and World Report, the average monthly cost is about $89.
On average, U.S. households spend approximately $900 annually on internet service.
When considering internet speed, the typical plan in the U.S. offers around 480 Mbps download speed, while the actual average speed people receive is over 249 Mbps. A survey by Verizon showed that 51 million Americans do not know their exact monthly internet cost, with some overestimating their expenses by up to five times.
Internet Costs by Type
Different types of ‘internet services in my area’ come with varying costs. DSL is typically the cheapest but also provides slower speeds compared to cable or fiber optic connections. DSL and satellite services are more common in rural areas where cable and fiber are not available. Here are the average monthly costs by service type:
- Cable: $91.89
- Fiber: $92.75
- Satellite: $99.99
- Wireless: $62.00
For many internet providers in the US, the advertised speeds are much higher than what most users actually need, especially for cable and fiber options. For example, satellite providers like HughesNet and Viasat charge a high price per Mbps, at $2.80 and $2.57 respectively.
Price by Download Speed
Generally, the cost per Mbps decreases as download speeds increase. Interestingly, plans with speeds of 800 Mbps can start at around $63.33 per month, which is cheaper than some 25 Mbps plans that start at $79.16 per month. Lower speed plans, often provided by satellite or DSL services, tend to be more expensive because of limited competition. In contrast, fiber and cable options are more affordable ‘internet services in my area’ except for the highest speed tiers.
Contract Terms
The competitive internet market has led to fewer long-term contracts. Currently, only 24% of providers require contracts, and 13% of these are satellite providers. For most other providers, you can change your service at any time without paying early termination fees.
Deciding on Internet Costs
Determining how much you should spend on ‘ internet service in my area’ depends on your specific needs. Basic packages might cost around $60 or less per month, while high-speed plans (100 Mbps or higher) can range from $60 to over $100 per month.
Tips to Reduce Your Internet Bill
- Choose a plan that fits your usage and number of devices.
- Buy your own modem and router to avoid rental fees.
- Monitor your bill for hidden fees, such as charges for data overages.
- Negotiate with your provider or look for better deals.
- Switch providers if you find better promotions or discounts.
To get the best value, select one of the best internet plans that meets your speed requirements without exceeding your budget. Save money by using your own equipment, staying aware of data limits, and reassessing your plan periodically. For more tips on saving money and finding the best internet plans, consult with our internet experts.