Contracts and hidden fees can be a significant point of frustration. Imagine agreeing to a year's worth of terms with an internet service provider without knowing what could happen next month. Maybe a new ISP announces it's coming to your area, you land a new job in a different town or your internet needs change and you decide to switch plans. Breaking the agreement you locked yourself into can be costly and tedious. Even worse are the unexpected fees that show up on your monthly bill.
I dove into 13 ISPs that CNET readers rated highly through our People's Picks survey. All of the ISPs listed below seem to understand the frustrations that contracts can cause and avoid them. Others make navigating fees a bit trickier. Whether you're charged one-time fees or choose month-to-month billing, there are some caveats to watch out for. Otherwise, you may be surprised and disappointed by what you find hidden in the fine print.
CNET's People's Picks: Internet service providers
What to know about the no-contract ISP frenzy
All 13 People's Picks ISPs have contract-free service plans, which give you more control and flexibility with your internet service.
Contracts have generally become a thing of the past among 5G home internet providers such as T-Mobile and Verizon. As those services have become widely available in a relatively short period of time, competitors have been forced to do away with some of their more irritating features, including contracts and data caps, according to CNET principal writer Joe Supan
However, month-to-month service doesn't mean it's cheaper or that there aren't other service requirements.
A credit check and advanced payment may be required. Before signing up for month-to-month service, most providers, including Spectrum, AT&T and Xfinity, require a credit check to determine whether you qualify or need to pay a deposit. And you'll likely need to pay for your first month upfront to kick-start a pay-as-you-go plan, rather than paying after the fact as you would with a contract.
The cost per Mbps may be higher for month-to-month service. If you're deciding between service plans or providers, it's best to compare prices between no-contract ISPs and those that require a contract. We recommend factoring the cost per Mbps, which is the internet speed compared to the plan price. For example, GFiber has an excellent cost per Mbps and doesn't require a contract. If you prefer the best deal over flexibility, you may opt for a contract for a lower monthly payment. Whereas you may be OK with paying more if you want the freedom to cancel whenever without termination fees.
Many contract-free ISPs still have plenty of fees
Among the 13 People's Picks providers that scored highly, Electric Power Board, Quantum, Sonic, Ting and Ziply were the only providers that didn't receive complaints from CNET readers about price hikes and hidden fees. Readers who have Ting reported that their bill has stayed the same over the past year, and most Sonic users reported the same. Only a small percentage noted a price increase, and only because a promotional period ended.
Hidden fees, or "junk fees," typically include charges for data cap coverages. Some ISPs are even charging subscriptions for internet service and network maintenance. And other fees also add up, such as charges for equipment rental, installation and activation. It's not uncommon to sign up for a service expecting one price, only to get a higher bill because of unexpected fees such as activation or installation.
"Activation and equipment fees are still pretty common, and I wouldn't consider them a red flag necessarily. What I would look out for is if a provider will waive the fee if you use your own equipment. You should be able to buy your own modem and router without being forced to use your ISP's," Supan said.
Watch this: How to Get Fiber-Optic Speeds Without the Fiber
You could be overlooking the broadband facts label, which lists your plan's speeds and price.Supan said broadband labels are useful for anyone shopping for internet service. "All the fees are laid out clearly, including one called 'early termination fee.' This will tell you how much you'll be on the hook for if you leave your contract before it's over," he explained.
Before signing up with a service provider, look for any charges that may not be advertised, such as data cap overage charges or credit card processing fees. It's also worth asking if any fees can be waived or if there's a discount available. For example, Xfinity charges less for self-installation compared to professional set-up. And you may be able to skip equipment rental charges by getting your own router.
"This is one of the best ways to save money on your internet bill. You can get a quality router for $100, while most ISPs charge around $10 a month," said Supan. "In most cases, buying your own equipment will pay for itself within a year."
You may be comfortable with some fees, which is OK. But it's most important to know what you're signing up for beforehand.
