What You Should Know Before
Buying Broadband Service
 

With all the advertising for broadband Internet service, it can be hard to tell what is or is not a good deal.  On the surface the advertised price for broadband service seems like a great deal, but with a little examination, you'll find you may not get what you expect.  Below is a list of questions you should always get the answers to before signing up for any high-speed, broadband Internet Service.
  1. What is actually required to get the advertised rate?

It's not uncommon for advertised rates to require some minimum contract term, most currently require a minimum of a one year contract.  But that may not be the only catch.  In fact, major telephone and cable companies like SBC and Time Warner Cable may require you to purchase telephone or cable TV services, in what is known as a bundled package, to get the advertised rate.

  1. Are there any hidden taxes or fees and if so, how much are they?

Major telephone and cable companies like SBC and Time Warner Cable rarely if ever disclose the additional taxes and fees they will cram on your bill.  It is important before buying any broadband Internet service that you find out what these extra taxes and fees will cost you as they could add up to an additional $19 per month on top of what you are expecting to pay.  One common fee is the Universal Service Fee which reportedly is used to offset regulatory costs.  However, "both [SBC and BellSouth]  acknowledge that the [Universal Service Fee] is not a tax or government-required charge."[1]

You can find more information about the hidden costs some Internet service providers charge by visiting the following sites:

  1. Will the promotional price continue after your initial contract term is up?

Normally high-speed Internet service requires an initial one year contract then reverts to a standard month-to-month service.  But with the deals being advertised by the large, incumbent telephone and cable companies, you will need to renew your contract on a yearly basis or risk seeing your rates increase two to three times the current promotional price.  By continually being locked into long term contracts you miss the opportunity to take advantage of changes in price brought on by market conditions or the chance to take advantage of any new technologies that may come along.

  1. Are there any startup and/or equipment costs, if so how much are they?

Most independent Internet service providers, like KCnet, charge a fee for setup and/or equipment, but often times these fees can be rebated back to you during special promotions.  Some larger companies may provide equipment and installation for no cost or a small fee consisting of an activation fee, shipping charges, and sales taxes.

Even though some companies' services require bundling, include various hidden taxes and fees, and require continual long term contracts, they still may look attractive to you because these bundles can save you money over what you are currently paying.  The most common bundle is to include broadband Internet service and unlimited local and long distance calling in the U.S.   But again, with a little effort you will find you can save even more by not bundling these services.
 
KCnet offers open-Access DSL, which is a new kind of DSL service that is "stand-alone."  This means it is DSL service that does not require you to maintain costly local phone service with the local incumbent phone company, which is SBC in the Kansas City area.   With taxes and fees, this local telephone service usually exceeds $30 per month.  By scrapping your SBC phone service, you can right away start saving money.
 
But you need phone service, right?  By combining KCnet's open-Access DSL service with VoIP (Voice-over-IP) telephone service, you can not only take advantage of KCnet's fast, reliable DSL service, you can also get unlimited local and long distance calling within the U.S. and Canada.  In addition, VoIP offers a whole host of features such as Call Waiting, Caller ID, Voicemail, and much more for a fraction of what similar services would cost you from the larger telephone and cable companies.  Best of all, you can keep your local phone number.

At KCnet, our stand-alone, open-Access DSL costs just $49.95 per month with no hidden taxes or fees.  Many companies, such as Vonage, Lingo, Sunrocket and Packet8 provide VoIP service for a low monthly fee, anywhere from $17 to $30 per month and these prices generally include all applicable taxes.

Using the method outlined above, you can get both broadband Internet service and local and long distance telephone service for around $65 per month including all applicable taxes.  With the large, incumbent telephone and cable companies, the cost for comparable services can, in many cases, exceed $85 per month once the hidden taxes and fees are included.  Even with the equipment and setup costs of open-Access DSL, you can expect to save anywhere from $100-$200 in your first year versus the costs of comparable offerings from SBC and Time Warner.
 
In recent SBC television advertisements they ask you to "do the math," we sincerely hope you will.  The following chart displays the differences in cost you can expect to find.
 
Save up to 25%!
 MONTHLY RECURRING CHARGES
 
 

SBC*

Time Warner*

KCnet
High-Speed Internet Access

$19.95

$44.95

$49.95
Unlimited Local & LD Calling

$48.95

$39.95

$16.58 - $24.95*
Federal Line Charge

$5.21

n/a

None
Other Taxes and Fees

up to $14.13

$5.00

None
Total

$85.74

$89.90

$66.53 - $74.90
Total Yearly Savings    

$180.00 - 280.44

* Prices based on currently advertised rates and estimates of taxes and fees as provided by representatives of the respective companies and are current as of 12/7/04.  KCnet does not provide VoIP service and is neither endorsed, nor sponsored by, nor affiliated with Vonage, Lingo, Packet8, or SunRocket.  KCnet is a registered trademark of KCnet, Inc.  All other names and trademarks mentioned above are held by their respective owners and are hereby respectively acknowledged.  Please contact the individual company for complete pricing information for their services. 

For more information about business accounts, dedicated connectivity, or other services offered by KCnet, please contact our sales and support staff at 816-221-4658 from within the Kansas City area, or toll free at 1-800-447-9817. The sales staff can also be contacted via email at info@kcnet.com.

 

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