You know the scenario already. You open the cable or phone bill to see the long list of fees and whatever surprise price increase that may or may not have been tacked on this month.
Despite reading the ways you can save money by leaving your cable company in the dust, maybe you don’t have the bandwidth to figure out the cost-benefit analysis and subscribe to multiple streaming services.
Modems provide similar and different functions than routers, which is why most consumers purchase both. Most cable companies and internet providers provide connections from their networks to your home through a modem.
For example, if you're paying for internet through a cable company, you are connecting the cable directly to a modem and then connecting your devices such as computers and laptops via ethernet cables to the modem.
Routers are usually sold separately because they aren't absolutely necessary for getting internet. You, however, do need to connect the modem to a router to utilize more ports than a modem might allow, and more importantly, routers enable Wi-Fi technology.
The router connects to the modem via ethernet, and you can then connect your Wi-Fi devices such as mobile phones and tablets to the internet without having to connect them to the modem via ethernet cable.
There is a more in-depth exploration of the pros and cons of having combination modem-routers below.
A simple, often overlooked way to reduce your internet bill can be as easy as buying your own equipment. According to New America’s (a think tank) analysis, most Americans in 2020 were paying an average of up to $10 or more to rent a modem from their internet provider.
While not all providers will allow you to purchase and use your own equipment, some do. Buying your own modem and WIFI router can not only help you save money in the long run and also benefit you in multiple of ways.
Clearly, it is easier to have the cable provider technician show up to your home with all the equipment to get you online. Taking the extra step to find out if you can buy and use your own might just be worth the effort. Not only can you save money, below are some additional-hidden benefits of buying your own equipment:
You’ve checked with your Internet Service Provider and you know that you are allowed to purchase and use your own equipment with their service. Now the question: What to buy?
Depending on the type of service you are purchasing you will likely need to buy two pieces of equipment: a modem and likely a Wi-Fi router.
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The modem is crucial for your internet service. It is what brings internet connection from your internet service provider to your home.
I was renting a DOCSIS 2.0 modem from my cable company when I realized that paying for my own DOCSIS 3.0 modem, while more expensive upfront, would save me from monthly recurring charges and taxes. Even better, is that my new owned modem will help me maximize the speed of internet I was paying for.
For a list of my Top 6 Picks for Modems click here.
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