Modem fees have become cash cows in recent years for big internet providers like Time Warner, Comcast and Verizon. As customers simply get used to paying for extra fees and charges on their bills, these companies rake in hundreds of millions in additional revenue each year. So lets look at what you pay for that FIOS internet modem, and consider whether you should lease or buy in 2016.
First off, this article mainly applies if you are a FIOS internet customer only, and do not have their TV service. If you do have FIOS TV, you have to shop carefully to get the right equipment that will deliver both the internet and TV signal to your home. Click here to learn more.
The going rate to lease a Verion FIOS internet modem or router is $10 a month. No price increase news has come out for 2016 on that, so we will assume you will pay $120 per year. Or more than $600 for that modem over the next five years, assuming pricing goes up at some point which it certainly will.
Its easy to see now why you need to buy your router instead of leasing. But if you need further evidence, check out this article at MyMoneyBlog if you need further convincing.
So your next step is to do a little shopping. Compatible FIOS modems can be found just about everywhere, local electronic stores and online. Pricing ranges from around $70 to up to $150 depending on the features you want. But even at the high end you will recoup your investment in just over a year compared to paying the monthly FIOS modem fee. The only thing to be sure of is that the modem you buy is definitely FIOS compatible, which can be verified by calling Verizon or reading some of the company hosted forum threads.