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Save Money on Your Internet Service: Ditch the Rental Fees and Buy Your Own Modem and Router
While the monthly equipment fee from your internet service provider (ISP) might appear insignificant initially, these charges can accumulate to substantial amounts over time. Renting a modem and router from your ISP can cost you hundreds of dollars in the long run. This article explores the advantages of purchasing your own internet equipment to reduce your monthly internet bill and potentially improve your internet speed.
The Hidden Costs of ISP Equipment Rental
Most ISPs impose monthly equipment rental fees ranging from $10 to $15, as detailed on your ISP’s broadband nutrition label. In contrast, purchasing a modem and router outright typically costs under $200. Investing in your own equipment generally recoups its cost within the first year, offering significant long-term savings. However, be aware that managing your own equipment does involve some setup and maintenance.
For years, despite advising others to buy their own equipment, the author personally rented a router from Xfinity. While acknowledging the financial inefficiency, the convenience of a working rented setup was prioritized. However, a review of past bills revealed a startling figure: $873 spent on Xfinity equipment rental over six years.
This sum could have purchased top-of-the-line routers, doubled internet speeds, or even funded a trip abroad. This realization prompted a switch to owning modem and router equipment.
Choosing to own your equipment is almost always the more economical and beneficial choice compared to continuing to rent from your ISP. Beyond the financial savings, users often experience enhanced internet performance. In the author’s case, upload speeds dramatically increased after switching to personally owned equipment.
Considering that the average US internet bill is around $63 per month, before taxes and additional fees, minimizing avoidable costs like equipment rental fees becomes crucial for budget-conscious consumers.
While convenience might lead some to accept rental fees, those aiming for long-term savings and comfortable with managing their own gear will find purchasing a modem and router to be the superior financial decision. Low-income discounts on internet services might also be available in your area.
This guide outlines the process of transitioning from rented to owned internet equipment, making the switch as straightforward as possible.
Choosing the Right Modem and Router for Your Needs
Optimal internet service is seamless and unnoticeable. Prior to upgrading, the author’s rented Xfinity equipment, described by Xfinity as an “old Wireless Gateway with limited speeds and functionality” from 2017, provided a reliable connection for everyday use without frequent buffering or outages.
This highlights that equipment needs depend heavily on internet usage habits. For a smaller apartment and typical use like video calls and streaming, basic equipment may suffice. Larger homes or demanding activities like online gaming require more robust solutions. Gamers, for example, should prioritize routers optimized for minimal lag and instantaneous response times.
Wi-Fi router prices vary widely, from budget-friendly options around $30 to advanced mesh systems exceeding $1,500. Reputable tech publications conduct thorough router testing, evaluating download speed, upload speed, and latency across multiple rooms and under varying network conditions.
Selecting a Router: Budget-Friendly Options and Performance
Following expert recommendations for top wireless routers, a budget-friendly pick was chosen: the TP-Link Archer AX21. Praised for near-flawless performance in small to medium homes and easy setup, this router offered sufficient speed (700Mbps at close range) for the author’s 200Mbps Xfinity plan at an affordable price point (around $85 at purchase). It’s important to note that some security concerns have been raised regarding TP-Link.
Determining if a Separate Modem is Necessary
The necessity of purchasing a separate modem depends on your internet service type and ISP policies. Some ISPs might include a modem but charge extra for a router, or vice versa.
Modem compatibility with your ISP is paramount. Always consult your provider’s website for a list of approved modems. Consider DOCSIS 3.0 versus the newer DOCSIS 3.1 standard. DOCSIS 3.1 offers faster speeds but typically comes at a higher cost. Other modem specifications to consider include speed limits (ensure they meet or exceed your plan) and the number of Ethernet ports.
Since Xfinity doesn’t provide modems without rental fees, purchasing one was required alongside a Wi-Fi router. The Hitron CODA Modem, a DOCSIS 3.1 model, was selected as a cost-effective, Xfinity-compatible option (around $100 at the time). Despite supporting speeds beyond the current plan, it provided future-proofing and was a reasonable purchase.
Step-by-Step Guide to Setting Up Your New Modem and Router
While ordering new equipment is straightforward, the setup process can deter some users from switching. However, the procedure is similar whether establishing new service or replacing existing equipment. Here’s a setup guide:
1. Modem Activation with Your ISP
The modem establishes the internet connection to your home via a coaxial cable linked to the ISP network. Activation is necessary to link your specific modem to your account. For equipment replacement, the old modem will be deactivated during this process. ISPs typically identify modems via their MAC (media access control) address, found on the device’s underside.
Activation can usually be completed through your ISP’s mobile application, online chat, or customer service phone line.
2. Connecting the Coaxial Cable to Your Modem
After MAC address registration, connect the coaxial cable to the wall outlet and plug in the modem’s power adapter. Allow up to five minutes for initialization. Modem indicator lights will signal when an internet signal is received. Once online, router setup can begin.
3. Wi-Fi Router Configuration
Router setup varies by manufacturer. Consult the provided instructions for your specific model. For the TP-Link Archer AX21, the process involved powering down the modem, connecting it to the router’s WAN port via Ethernet cable, powering on the modem, and then the router. Network configuration is then managed through the TP-Link mobile application.
This is a simplified overview. Optimal router placement, parental controls, and security settings are additional considerations for a complete setup. However, for basic functionality testing, the described steps are sufficient to establish a connection.
Performance Evaluation: Comparing Old and New Equipment Speeds
To assess the impact of the new equipment, speed tests were conducted before and after the upgrade, measured at close range (desk) and in a distant location (bathroom).
The old rented equipment yielded speeds of 164/5Mbps at the desk and 143/5Mbps in the bathroom, reasonable performance for a 200/10Mbps plan. However, the new equipment showed remarkable improvement: 237/118Mbps at both locations. The upgrade not only saved money but also significantly boosted internet speeds.
The tenfold increase in upload speeds was unexpected. The Xfinity plan (Connect More) nominally provides 10Mbps uploads. While Xfinity announced upload speed increases to 100Mbps for certain plans in 2022, this was tied to their xFi Complete rental equipment. The speed boost observed with owned equipment suggests the DOCSIS 3.0 to 3.1 modem upgrade is the likely contributing factor.
Minimizing Setup Issues: Lessons Learned
Successful setup was achieved, but some initial missteps occurred. Here are recommendations to streamline the process:
- **Purchase equipment upfront:** Acquire your modem and router when initiating new internet service. While moving can be stressful, proactive equipment purchase is a worthwhile investment that saves significantly over time. Technician visits might be necessary for initial setup regardless, making it sensible to have owned equipment ready to avoid rental fees from day one.
- **Utilize ISP’s compatible modem list:** Routers are universally compatible, but modems must be certified by your ISP. Adhere strictly to your provider’s compatibility list. Avoid purchasing modems from unofficial sources claiming compatibility, as returns and troubleshooting can be time-consuming and frustrating.
- **Match equipment to your speed tier:** Avoid overspending on equipment exceeding your plan’s capabilities. For example, a high-end modem rated for gigabit speeds is unnecessary for a 200Mbps plan. Similarly, basic internet usage doesn’t require premium gaming routers.
Final Verdict: Is Buying Your Own Equipment Worth It?
Although modem and router setup might seem daunting, the benefits are undeniable. Improved internet speeds and reduced monthly costs make purchasing your own equipment highly worthwhile. The author’s monthly savings of $15 on equipment fees, combined with an unexpected plan price reduction, resulted in a bill decrease from $78.54 to $50. This substantial saving ensures the new equipment pays for itself within half a year. The only regret is not making the switch earlier.