Save money on your Internet service – avoid the ISP up-sell
Recently a friend of mine moved and called up to get new internet service. As a Savings Beagle fan, she knew she was prepared to cut the cord and move to online services like Netflix to fill the void of high priced cable offerings. She calls up and the oh-so helpful Time Warner sales agent gave her the up-sell for higher speed.
The cost for 15MB/s was $35 a month, but Time Warner was running a special for 30MB/s at $50 (both plans good for 12 months), with 20 free basic TV channels. Oh yeah, a modem now costs $15 a month. If you have read any of our other articles on cutting the cord, hearing this news actually made my heart ache. Cable companies didn’t get where they are today or make us want to ditch them by playing nice.
My friend didn’t know what to do and trusted the sales agent. She got the special upgrade that came with local channels which she could already get with an antenna. She also paid for the modem rental, so after all of our conversations about saving money on her cable bill, she is now paying $30 more than she had to. Hopefully the convenience of the included local channels will help offset the higher price, but I am also trying to talk her into downgrading her speed and at least see if she has any issues with the 15BM/s.
Do you really need the higher bandwidth?
First, let’s look at the high speed requirements for my friend to be able to stream her Netflix. Netflix advertises you will need 5MB/s for their HD streaming. OK, well what if more than one person is watching HD. Just by looking at the numbers, you could have two or three household members sharing your connection streaming HD at the same time with little chance of any issues.
Below you will see what different ISPs actually stream Netflix to customers. You can see the average is around 3.5 Mbps.
Up-selling bandwidth is nothing new, but how many users out there fall for this when the rep tells them it is needed? My mother had a similar call with her local cable TV/Internet provider telling her she would notice great improvement. She noticed no difference whatsoever and she streams nothing as the rep could easily know if she looked at her monthly usage. How many reps have you talked to seem like they are bandwidth wizards?
Extra bandwidth is necessary if you plan on streaming 4K content from services like Netflix. In fact you will need 25MB/s if you plan to streak their 4K content. Also, If you have a full household of dedicated streamers you will also need to look more closely at an upgrade, but my complaint is that the sales reps will always tell you that you need more speed because they know customers don’t know their own real needs.
The best price
In addition to sales reps misrepresenting your needs to sell you bandwidth you don’t need, they also won’t tell you if there is a better deal to be had online. Please check the prices on the ISP’s Web site prior to calling. There are often Online-only promotions that you won’t get when you call the ISP directly. My friend could have saved $5 a month by signing up online instead of over the phone.
The modem
As for the cable modems, I had no idea Internet providers had jacked up the monthly rental fee. My modem was included in my price for the longest time and then I received a notice I was being charged $6 extra a month. I quickly researched the list Time Warner approved and purchased a modem that paid for itself after 10 months. My friend, after a very stern talking to, will purchase a $70 modem that will pay for itself in just 5 months. She has decided to go with an Arris SURFboard SB6141. It has over 23,000 reviews.
Here is a partial list of cable modems by ISP (make sure you check your cable company’s approved list first)
The moral of the story is to do your own research to find out what you need before you commit to a higher priced Internet plan. Cutting the cord and still getting tons of video options means you will need an Internet connection, but you can save $15 to $30 a month if you make the right choices.
