The Hidden Fees That Make Your “Cheap” Broadband More Expensive

Activation & Setup Fees

You've found a great deal advertised at £25 / $30 a month, but on the checkout page, a wild "setup fee" appears! This one-time charge covers the provider's cost of getting you connected. It can be for activating the line, postage for the router, or the cost of an engineer visit if you need a new line installed.

These fees can range from a modest £10 / $15 for a simple activation to a more painful £60 / $75 or more if an engineer is required. Always look for "no setup fee" promotions, which are common online and can save you a chunk of change before you've even started.

Router & Equipment Costs

Most providers give you a "free" router, but is it really free? Increasingly, the answer is no. There are several hidden costs to watch out for:

• Postage & Packaging: A cheeky fee of around £5-£10 / $10-$15 just to mail you the equipment.
• Monthly Rental: Some providers, especially in the US, charge a mandatory monthly equipment fee, often £5 / $10-$15, which adds up significantly over a contract. A 24-month contract could see you paying an extra £120 / $360 just to borrow a router.
• Non-Return Fees: If you switch providers and forget to send back the old router, you could be hit with a hefty charge, sometimes over £100 / $120.

Consider if buying your own compatible router makes more sense. It's a higher upfront cost but can save you money in the long term.

Mid-Contract Price Hikes

This is the sneakiest fee of all. You sign up for a fixed-term contract, expecting the price to be, well, fixed. But buried in the terms and conditions is a clause allowing your provider to increase the price every year, usually in April.

The formula is often (CPI or RPI rate of inflation) + an extra 3.9%. For example, if inflation (CPI) is 4%, your bill will increase by 7.9%. On a £30 / $40 plan, that’s an extra £2.37 / $3.16 per month, or over £28 / $37 extra per year. It might not sound like much, but it means your "cheap" deal gets more expensive every single year of your contract.

Early Termination Fees (ETFs)

Life happens. Maybe you need to move, or you're just unhappy with the service and want to leave. If you're still within your minimum contract period, you'll face an Early Termination Fee (ETF). This isn't a small penalty; it's usually calculated as the full cost of the remaining months on your contract, sometimes with a small discount.

If you have 10 months left on a £40 / $50 per month plan, you could be looking at a bill for £400 / $500 to leave. Before signing, understand the ETF policy. And if you have persistent service issues, document them! You may be able to leave penalty-free if the provider isn't holding up their end of the bargain.

The Out-of-Contract Price Shock

The biggest financial trap is complacency. That amazing introductory offer you signed up for has an expiry date. The moment your minimum term ends, your provider will move you to a standard, rolling-contract price. This price is almost always significantly higher.

It's not uncommon for a deal of £25 / $30 per month to jump to £50 / $70 or more overnight. Providers count on you not noticing or not wanting the hassle of switching. This is where they make a huge amount of their profit. Being lazy can literally cost you hundreds per year.

The Bottom Line: How to Fight Back

Don't let the fine print defeat you. Arm yourself with knowledge and fight back against hidden fees:

• Read the T&Cs: Before you click "buy," skim the terms for mentions of setup fees, annual price rises, and equipment charges.
• Compare Total Cost: Don't just look at the monthly price. Calculate the total cost over the contract, including any setup fees. Use comparison sites that do this for you.
• Haggle: When your contract is ending, call your provider's retentions (or "cancellations") department. They have the best deals. Tell them you're planning to leave for a competitor's offer. More often than not, they'll match it or offer you a new, cheaper deal.
• Set a Reminder: The single most effective thing you can do is set a calendar reminder for one month before your contract ends. This gives you plenty of time to compare new deals and switch or renegotiate.