How Much Does DSL Cost?
In a recent article I wrote about my "Penny Pinching Customer" that thought they were getting a great deal by saving six or seven dollars per month on their high speed internet access bill. (For the purpose of this article I'll refer to all high speed internet access as DSL.) I continue to be amazed at how many people give themselves a raw deal when it comes to choosing their DSL provider. They grab the service that has the lowest introductory pricing and believe that this is the cheapest service. When taking a closer look, we find that the lowest "come-on" prices do not mean the best DSL pricing. Let's take another look at the cost of DSL service.
When calculating the real cost of your DSL service, you need to be aware that, almost without exception, DSL providers require a one year commitment. Some will not require a "signed" commitment, but if you read the fine print, you will see that there are usually significant penalties if you terminate service in less than a year. So, one year of total charges is what you should look when buying DSL service. I would not want to change service providers every year, so I tend to look even farther - 2 to 3 years.
Start by adding all of the costs for the first year. Check to see what the DSL providers regular monthly rate is and multiply this by 12. Add in the cost of the DSL modem or router. Add the cost of installation or the installation kit. Don't forget to include the shipping charges if you purchase a self installation kit. Add the activation charges. Total these numbers, then we can subtract.
Subtract the available rebates. Many providers will rebate the cost of installation and equipment after a given time period, when they have recovered their costs. Next, figure the difference between the regular monthly rate and the introductory price. Multiply that by the number of months that the "come-on" period lasts. For example, the providers regular rate is $42.95 per month, and the "come-on" rate is $19.95 per month for 3 months; subtract $19.95 from $42.95, then times this by 3 to get the introductory savings. Subtract the introductory savings from the total. Subtract any additional rebates from the sales agency, such as the $50 rebate that we currently provide on top of the DSL providers rebates. This will give you your first year total cost.
It's a good bet that the second and following years savings will exceed the first year savings. It is also a good bet that if you divide the annual rate by 12, the monthly cost for the best rates will fall between $25 and $35 per month.
Now that you know what to look for when calculating your DSL service cost, you can see what is available in your area and get prices by using the Residential Price Quote Generator in the right hand column.





