Consumers can do nearly anything on the internet these days. Playing online games, buying things from Amazon, working from home or watching streaming services requires home internet, which typically involves paying an internet provider for a service.
But that doesn’t mean consumers approve of their practices, specifically fees, and alternatives like 5G fixed wireless access (FWA) are gaining traction.
A new survey from reviews.org found that 59% of Americans report feeling misled by pricing or terms of their internet plans from big corporate entities like T-Mobile, Xfinity, Cox and more.
Among those surveyed, 84% of Americans said they had an internet service price increase in 2024 along with reports of hidden fees, unclear advertising and unexpected price changes. On average, consumers experienced an internet price hike of $20.78.
Frustrating services
At a time when budget constraints are taxing Americans more than ever before, any surprise price increase or fees can be troubling. As a result, the reviews.org survey found that 75% of Americans cancelled, downgraded or thought about switching internet providers.
Some of the common frustrations regarding consumers’ home internet services include:
- Lack of price transparency
- Hidden fees
- Lack of taxes and regulatory fee transparency
- Price increases after a promotion
- Equipment rental fees
- Service fees with no explanation
- Slow speeds
- Poor customer service
The results suggest that many consumers want a stable monthly rate, and changing rates are frustrating especially when it is due to fees that aren’t well explained, the company said. Additionally, the current economic conditions are concerning to consumers because they fear prices will increase.
This is leading to about 25% of consumers planning purchases or upgrades now rather than wait for the price to go up.
Rising alternatives
Many consumers are cancelling or downgrading internet plans to save money with 30% downgrading services to a lower-tiered plan that lowers the cost. Among those surveyed:
- 46% canceled streaming services
- 38% canceled home internet
- 36% canceled cable or satellite TV
Another potential way consumers are saving money is shifting away from cable internet providers and to 5G wireless technology. So-called 5G fixed wireless access (FWA) uses a 5G cellular network to provide internet service that includes equipment rental and offers fees in one price.
“Although 5G home internet technically isn't faster than cable or fiber internet, it offers a lot of value,” said Peter Holslin, managing editor at Reviews.org. “5G internet packages are typically sold at fixed rates, with no extra fees for installation or equipment, and you often get other perks too like unlimited data and bundle discounts when you pair it with a cell phone plan from the same provider. Setup is easier because you don't need to run any cable or wiring through your house, and usually customers can get solid speeds to cover common needs like streaming TV, online gaming, and making video calls."
And the rise of satellite wireless communication (SATCOM) may bring even faster and easier internet connections in the future.
In the meantime, 5G home internet, aka FWA, is gaining traction among consumers.
“A 5G fixed wireless service is probably not for everyone, but more and more this technology has gained a reputation as a practical, useful, and cost-effective home internet option,” Holslin said.
