Managing Internet and Mobile Phone Costs

Phone and internet service have become as essential as electricity and water. Homework, work-from-home days, telehealth visits, and keeping in touch with family all depend on them. Because the bills arrive automatically every month, though, they’re also easy to stop noticing.

A little attention once or twice a year can make a real difference. Here’s how to review what you pay and find a better fit for your household.

Start with a plan audit

Before you call anyone or switch anything, gather the facts. Pull up your most recent bills and your account dashboards, and note:

1. What you pay each month, including taxes, fees, and any add-ons.
2. What’s included: number of lines, data allowances, internet speed tier, streaming bundles, device insurance.
3. How much you actually use. Most phones show monthly data use in settings. Many internet providers show usage in their apps.
4. When promotions end. Introductory rates often jump after 12 or 24 months.
5. Whether you’re still paying off devices, and when those installments finish.

This audit often reveals easy wins. A household paying for unlimited data on every line might find that two of the four lines rarely use more than a few gigabytes. An internet plan advertised for heavy gaming might be far faster than a family that mostly streams and video-calls needs.

Right-size your internet plan

Internet speed tiers can be confusing, and it’s common to pay for more than you use. Think about how many people are online at once and what they’re doing. Streaming video, video calls, and large downloads need more bandwidth than email and browsing.

A few practical steps:

• Run a speed test at different times of day to see what you’re actually getting.
• Ask your provider about lower tiers, and try one for a month if there’s no penalty for changing back.
• Check for competing providers at your address. Even one alternative can be useful leverage when you call to ask about a better rate.
• Review bundled extras. Home phone lines, premium channels, or security add-ons you don’t use may be quietly adding to the bill.

Watch for equipment rental fees

Many internet providers charge a monthly fee to rent a modem or router. Over a couple of years, those fees can add up to more than the cost of buying compatible equipment outright.

If you’d like to try this route:

• Ask your provider for its list of approved or compatible modems.
• Compare the purchase price with what you’d pay in rental fees over two or three years.
• Return rented equipment promptly and get a receipt so the fee comes off your bill.

Not every provider allows customer-owned equipment for every service, so confirm before you buy.

Explore prepaid, smaller carriers, and family plans

Prepaid plans and smaller carriers. Many lower-cost carriers (sometimes called MVNOs, or mobile virtual network operators) don’t build their own towers. Instead, they lease capacity on the major national networks. That can mean similar coverage at a lower monthly price, though some plans may slow data during busy times or offer fewer perks. Before switching, check which network the carrier uses and look at its coverage map for your home, work, and school.

Family and multi-line plans. Adding lines to one account often lowers the per-line cost. If extended family members are on separate plans, combining them might help everyone. Just agree up front on how the bill will be split.

Bring your own phone. If your current phone is paid off and in good condition, keeping it and switching to a plan without device installments can lower your monthly cost.

Small habits that add up

• Enroll in autopay and paperless billing. Many carriers and internet providers offer a monthly discount for both. Make sure the payment comes from an account that reliably has the funds.
• Use Wi-Fi at home so mobile data stays low, which may let you choose a smaller data plan.
• Call before a promotion ends. Ask what current offers are available to existing customers.
• Skip device insurance if you’d rather set aside a small amount each month for repairs yourself. Our household budget guide explains how a sinking fund works.

Programs for income-eligible households

Lifeline. The FCC’s Lifeline program provides a monthly discount on phone service, internet service, or a bundle for eligible households, through participating providers. Eligibility is generally based on household income or participation in certain federal assistance programs, and the program allows one discount per household. Rules, benefit amounts, and participating providers vary and can change, so visit the FCC’s Lifeline page or LifelineSupport.org, run by the program administrator, for current details and to learn how to apply.

A note on the Affordable Connectivity Program. You may have heard of the Affordable Connectivity Program (ACP), which helped many households with internet bills. It stopped accepting new enrollments in early 2024 and, according to its administrator, ended on June 1, 2024 after its funding ran out. If you see an offer that mentions ACP today, treat it with caution and check official sources.

Provider low-cost plans. Some internet providers offer their own reduced-price plans for eligible customers. Ask your provider directly what’s available in your area. You can also dial 211 or visit 211.org for local resources, and browse our Household Resources section for more places to look.

Your plan review checklist

Use this list once or twice a year:

• Total monthly cost for phone and internet written down
• Data and speed use checked against what you pay for
• Promotion end dates noted on the calendar
• Equipment rental fees identified
• At least two alternative plans or carriers compared
• Autopay and paperless discounts confirmed
• Unused add-ons removed

Wrapping up

Phone and internet bills are rarely as fixed as they seem. A careful audit, an honest look at how much you use, and a willingness to call your provider or compare alternatives can bring the total down without giving up the connection your family relies on.

Pick one bill to review this week. Once you’ve seen what’s possible, the second one goes faster. For more ideas on trimming recurring costs, see ways to reduce your monthly utility expenses or visit our Smart Savings section.