Your Costs Are Hiding In Plain Site

Back in the days before I started Lower Tech Bills, I would pretty much get my Cell, Internet and TV bill each month and pay it. Somewhere in the back of my mind, I knew that I was paying more than I had bargained-for, but I figured that’s just the way business is done in the tech world. Besides, what choices did I really have and who's got the time to find them?

Well, it turns out that there are many extra costs that I could have bargained-for and that’s exactly the way they do business in the tech world. But, since I am now retired from the Radio business, I have that time and found those choices. While many extra costs are not exactly hidden within your bill, they are not very easy to find. Plus, if you're thinking about changing services, a lot of those “hidden costs” really are actually hidden unless you ask about them. I know it’s hard to believe but somehow, all those TV commercials fail to mention those extras.

While some of the costs are simply the price of living in the good old USA, others can be pretty obnoxious. The good news is that I’ve done the research, found those costs and have searched for alternatives which just may help make a few of them go away.

Let's start with a note on taxes and admit that you can’t fight city hall. You are going to get charged federal and state taxes. So, while those fees are generally, but not always, conveniently forgotten when companies advertise their plans, you still have to pay them. The only thing you can do is to make sure that the rate you are quoted includes all taxes and fees.

Having said that, let’s talk fees and start with cellular services. Leading the pack in the obnoxious hidden cost category is the so-called “Activation Fee”. That’s the one-time charge that all three major wireless carriers (AT&T, T-Mobile and Verizon), known as MNOs (Mobile Network Operator), charge when they open your account. It’s generally around $35 per device. The fee is intended to compensate for a company's expenses associated with setting up your account and/or device. I’ve always found it astounding that if I change carriers, I have to pay them for the privilege. My thought is that if I switch from AT&T to Verizon, Verizon should pay me to make that switch. But I would be wrong. They're story is that’s the price you pay for the person in-store to do all that paperwork and to help you transfer your data, photos, music, etc. And they're sticking to it.

It used to be a lot easier to get activation fees waived, but it’s still worth a try. The first thing you might want to do is talk to the store manager. If they can’t help (which they likely can’t), ask the manager to give you the phone number of a person at the provider to whom you can plead your case. It might not work either, but it’s worth trying. While you’re doing that, make sure to ask if there are any perks which might be currently available. You'd be surprised at what you may have missed like a free smart watch or a free subscription to a streaming TV service.

Another way to get around an activation fee is to use one of the many MVNO (Mobile Virtual Network Operator) companies such as Mint, Visible or Consumer Cellular who don’t charge them. That’s because you have to do all that activating yourself. So, if you’re not tech-savvy, you'll want to do some research before you go that route. For more information on MNOs and MVNOs, I suggest that you read my blog called, “The Hell in Cell – MNOs vs. MVNOs.”

In the internet world, the biggest hidden fee is the monthly rental of the modem that you’ll need in order to connect your home to the internet. For example, in January of 2023, Comcast Xfinity raised their modem rental fees. This brings Xfinity’s xFi monthly rental cost to $15 or $180 per year. If you have the “xFi Complete” option, your cost is now $25 per month or $300 a year. The good news is that depending on where you live, there is growing competition in the ISP (internet service provider) space and some providers are no longer charging equipment rental fees. One other solution is to purchase your own modem at a place like Best Buy or Target. In 2020, Congress passed "The Television Viewer Protection Act" which prohibits an ISP from charging you a modem rental fee if you don't need one. However (and this is important), you need to make sure that the modem you own is compatible with the ISP that you are using. And remember, once you purchase a modem, you just married your ISP because it might not be compatible with another ISP that you may go with later. As with using an MVNO to save on cell phone activation fees, if you're not tech-savvy, you might want to think twice before you go down the modem purchase road.

In the TV world, hidden fees can range from all over your bill to none. It depends on who is providing your service. For the most part, it's the legacy cable and satellite companies who have the most fees. For example, before you even get started, if your home does not already have cable or you need in-home help with your service, Comcast charges as much as $100 for their tech to come a-callin'.

But that's just the start of your TV's pay-for-play. Not to pick on Comcast, but they do like their fees. In January of 2023, they raised their rates on a whole bunch of stuff. They're Xfinity Broadcast TV Fee (that’s what they charge for you to view local channels) is now $21.30 per month. In addition, there is a Regional Sports Network (RSN) fee for viewing Marquee Network (Cubs and Sky) and NBC Sports Chicago (Blackhawks, Bulls and White Sox). That fee is now $18.35 per month. That's $39.65 per month or $475.80 per year for just those local service fees. Mind you, those charges are mandatory even if you never watch local channels or local teams. And by the way, they are not just limited to Comcast. DirecTV satellite service charges $12.99 for local channels and $13.99 for RSNs and streamer Fubo charges a regional sports fee of $13.99 a month.

Then there are fees for renting cable boxes. Comcast just increased that rate to $10 a month per box. Let’s say you have three television sets in your home, each with a box. That means another $30 per month in box rental fees or $360 per year. Those boxes do come with a voice remote that allows you to "tell" it to change the channel from say, CNN to A&E, so there's that. Satellite services, DirecTV and DISH also charge monthly fees for boxes. There are potential options to purchase hardware to workaround box rentals and Lower Tech Bills can work with you on choosing the right one.

By the way, if you want to record programs and you use cable or satellite, you will need to rent at least one box unless you purchase your own third-party digital video recorder. If you don't own your own DVR, some companies say “get off my cloud” after a certain number of hours while others offer unlimited cloud DVR space for free. For example, Comcast gives you 20 hours of free DVR storage. After that, they charge you $10 per month for up to 150 hours. So, if you record a lot of programs, depending on your TV provider, be prepared to pay.

There are a couple of other costs that only cable TV charges. They are called "Franchise Fee" and "Regulatory Cost Recovery". Those are mandated by the local government as compensation for the cable company's use of its property in order to string-up all that cable and to comply with local regulations. Back when I had cable, those two fees were $8.77 a month which added another $105.24 annually.

At the end of the year (and every year), those extra fees could cost you over $1,000, depending on your household. If you’re not doing your research and keeping up with technology, those costs just keep rising. To reiterate, Comcast is not the only company that charges fees. I’m using them as an example because they are the 900-pound gorilla in the Chicago area and because they are regulated differently.

The bottom line is to know what you want/need and to understand your technical skills. Lower Tech Bills is here to help. I start with a “Client Assessment Questionnaire” which dives into your household's unique situation. After I go over it with you, we'll discuss a plan for what chances are, will be a more reasonable monthly cost than what you’re currently paying. The goal is not merely a one-time saving, but ongoing savings every month. Visit www.lowertechbills.com or email hmwellsradio@gmail.com for more information on how to put the freeze on your fees.