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Transcript
- Lucas: So I was looking at our home internet bill this morning — and I had to read the summary three times before I trusted what I was seeing. Luna: That bad, huh? Lucas: It's sneaky. My plan didn't go up in price — but the 'regulatory recovery fee' line item jumped by about $2.50 a month since last year. And there was a new $3.99 'technology service fee' that I never opted into. That's roughly $78 more per year for literally nothing new. Luna: And that's the thing — people look at their total and think, 'Oh, it's only a few bucks.' But those few bucks add up, especially when they're happening across every bill. Lucas: Exactly. And the official numbers actually understate this. The CPI for internet services is up about 2.1 percent year-over-year as of May 2026. But that's the average — it masks what's happening with specific providers and specific fees. Luna: So where are the real increases hiding? Lucas: There are three big buckets. First, the base plan prices have drifted up — Comcast, Charter, AT&T all raised their advertised rates by about three to five percent over the past year. Second, the add-on fees — the 'network enhancement fee,' 'internet infrastructure surcharge' — those have grown faster than the base price. Third, the end of the Affordable Connectivity Program in 2024. That program used to give eligible households a $30 monthly discount. It expired, and millions of households saw their effective bill jump overnight. Luna: That's huge. The ACP was covering something like 23 million households at its peak, right? Lucas: Yeah, the FCC said over 23 million enrolled. When it ended, those households either had to absorb the full price or — in some cases — downgrade to a cheaper, slower plan. So the CPI data is capturing the average price paid, but it doesn't fully show the service-quality loss for people who had to step down. Luna: Right — if you're paying the same amount but getting slower speeds, that's effectively inflation too. You're getting less for the same dollar. Lucas: That's exactly what's happening. And it's not just the ACP thing. There's a broader trend: ISPs are pushing people onto unlimited data plans, which cost more, even if you don't need unlimited data. Or they're eliminating the cheaper legacy plans, forcing a migration. Luna: I've heard stories of people calling to cancel and magically getting offered a lower rate. Is that actually a thing, or just anecdotal? Lucas: It's real. Studies from Consumer Reports and the FCC show that customers who call to cancel — or even just threaten to switch — get retention offers averaging 10 to 15 percent off the standard rate. The problem is most people don't do it. They just pay the bill. Luna: So what should our listeners do? Is there a systematic way to check if you're overpaying? Lucas: Yeah, a few things. First, look at your bill line by line. Pull up the PDF and see if there's any fee that wasn't there six months ago. Second, check your speed tier — if you're paying for gigabit but your household only streams Netflix and browses, you can probably drop to a 300-megabit plan and save $20 to $30 a month. Third, see if your provider has a low-income plan — many do, even if you're not eligible for ACP. Luna: And call them. Just call. Lucas: Call them. Say you're considering switching to a competitor. Have a competitor's offer ready. It's awkward, but it works. My colleague saved $15 a month last month just by asking. Luna: And that's $180 a year. That's not nothing. Lucas: Right. And while we're on the topic of small amounts adding up — I want to mention something quick. You might have noticed this show has no ads. That's intentional. A handful of listeners chip in monthly at buy me a coffee dot com slash fexingo, and that's honestly what keeps us going. No corporate sponsors, no product placement — just people who find these conversations useful. Luna: Yeah, it means we can talk about exactly what we think matters, not what an advertiser wants us to say. And it keeps the episodes focused on what's actually helpful for your money. Lucas: Exactly. So if you've gotten something out of these episodes, consider it. Otherwise, back to the internet bill. One more fee that's been creeping up: the modem/router rental fee. That's often $10 to $15 a month. Buying your own modem pays for itself in under a year. Luna: Do most people know they can use their own equipment? Lucas: Surprisingly, no. A 2025 survey from the FCC found that about 40 percent of households still rent their modem from the provider. That's money down the drain. A decent modem costs $60 to $80. In seven months, you're in profit. Luna: So that's an immediate win. Any other hidden inflation points? Lucas: Early termination fees are coming back. Some providers waived them during the pandemic. Now they're back, often $10 to $15 per remaining month. So if you want to switch, you might face a penalty. But some states have laws limiting those fees, so check your state rules. Luna: And what about the bigger picture — is broadband inflation going to cool down? Lucas: Possibly. The infrastructure bill funded a lot of new fiber build-out, especially in rural areas. More competition should help. But in the near term, I think we'll keep seeing these incremental fee increases. They're less visible than a headline price hike, so providers lean on them. Luna: Alright, I'm going to check my bill tonight. And maybe buy that modem. Lucas: Do it. Your wallet will thank you in 2027.