The Untold Costs of Internet "Promo Pricing": What to Watch Out For

Promotional Internet deals can look like an unbeatable bargain, especially when you’re setting up service in a new home, because who doesn’t want to save money? But when it comes to Internet Service providers’ promotional pricing, the old adage, “If it sounds too good to be true, it probably is,” should be at the front of your mind. Providers often advertise enticingly low monthly rates, but those discounts only last for a short time, and once the promotional period ends, you can expect your bill to skyrocket.

Keep reading as we break down how promotional pricing really works and what to watch out for before signing up. We’ll also show you how to find deals that are transparent, long-lasting, and work with your budget.

What Is Promotional Pricing?

Promotional pricing is designed to attract new customers. It typically offers a reduced monthly rate for the first six to 12 months of service, sometimes tied to package bundles or contract agreements that include TV or phone services. That reduced rate can make high-speed Internet plans look significantly cheaper during sign-up, appealing to anyone trying to save money during a move.

But these offers almost always include fine print that determines the true cost. Once the promotional period ends, your bill automatically switches to the ISP's standard rate, which can increase by 30-50%.

That doesn’t mean all promotional pricing is bad. Some deals can be worthwhile if they don’t include early termination fees (ETFs) or if you qualify for low-income assistance programs like the Lifeline Program. Still, it’s smart to consider what your total Internet bill will be over the long term, not just during the introductory period, especially when you’re budgeting carefully or planning for future moves.

The Catch: What Happens After the Promo Ends

One of the most common types of promo offers includes a low price on your monthly bill for six to 12 months. However, getting that price also requires you to sign up for a contract or bundle. What happens next? The price jumps after the introductory period, and getting out of the contract is too costly, leaving you stuck with overpriced Internet.

Here are some of the most common post-promo pitfalls to watch for:

• Significant price increases after the introductory period ends
• Contract lock-ins that keep you from switching providers or plans
• Early cancellation fees if you try to cancel before your contract term is up
• Equipment rental fees added once the promo period expires
• Professional installation charges, which can also show up on your bill as “installation fees” or “activation fees” after setup
• Regional surcharges or hidden fees that raise your bill unexpectedly
• Data caps that only begin after the promotional offer ends

How To Evaluate a Promotional Internet Offer

Promo pricing can sound like an unbeatable bargain you don’t want to miss, but not all offers deliver long-lasting value. No matter what type of Internet you’re looking for (e.g., DSL, satellite Internet, cable Internet, fiber Internet, 5G home Internet, etc.), take a closer look at what you’re agreeing to — you might find that the “deal” costs more over time than it first appears.

Look at the Regular Monthly Cost

Don’t get distracted by the promo Internet cost — you need to look at what your monthly Internet price will be after the promotional period ends. If that price isn’t clear or isn’t offered up front, contact your ISP and ask for the regular monthly price.

Internet companies that are offering a good high-speed Internet deal don’t have to trick people. Yes, they offer deals to compete for customers, but not showing the whole product and its price over time is definitely a red flag.

Ask About Length of Discounts and Contracts

The most common catch in promo pricing is to get you into a monthly price that’s higher than the promo price. Be sure to ask when the promotional price expires and how long the contract at the higher price point will last.

Do you get the promo price for the entire first year? Or is it just three months? How long is the contract on the other side of the discount?

If you value flexibility, opting for a different promo that includes a no-contract, month-to-month plan might save you money in the long run.

Watch for Fees Hidden in the Fine Print

Even when the monthly price looks great, additional fees can inflate your total cost. These can look like:

• A one-time fee for self-installation or using your own equipment
• Overage charges if you download more than a specific amount per month
• Wi-Fi equipment fees or Rental fees for modems and/or routers
• Activation fees
• Data overage fees if your plan includes a data cap
• Additional charge for not using paperless billing and/or autopay

In addition to reading the fine print, scan the provider’s FAQs and reviews to help you avoid any surprise charges.

Review What’s Actually Included In the Plan

Yes, you need a strong Internet connection for work, school, and your favorite streaming services, but the fine print matters. Ask your provider how much bandwidth you’ll receive both during and after the promo period. Will you experience throttling once you reach a data usage threshold? Are you getting unlimited data, or are there data caps that could trigger overage fees once the initial offer expires?

Also, take a close look at the actual download speeds and upload speeds. A 50 Mbps plan may seem like a bargain, but if you have multiple devices streaming, gaming, or on video calls simultaneously, that bandwidth might not be enough to keep up. Slower plans can quickly lead to buffering, lag, and frustration in busy households.

Whether you choose Xfinity, Optimum, Verizon Fios, AT&T Fiber, T-Mobile, or Astound, make sure the plan’s performance and included features truly meet your household’s needs. If what’s actually included doesn’t support your day-to-day, then it’s simply not the right plan for you — no matter how good the promo price looks.

How SmartMove Helps You Make an Informed Choice

While there are many perks that can come with a promotional price on your Internet, comparing base pricing and ongoing rates is essential when shopping for a plan. SmartMove makes it easy to compare real rates with our no-pressure plan exploration. You can also select filters to make sure all of your household’s needs will be met.

Transparent and budget-friendly Internet providers are out there, and SmartMove can help you find them.