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Plans & Bills

Why your internet bill can jump after the introductory price ends

The number in the advertisement is the beginning of the calculation, not the end.

A home internet plan can look inexpensive for the first year and turn into an entirely different purchase afterward.

That does not necessarily mean the provider secretly increased its regular price. Sometimes the monthly bill rises because a temporary discount ends, a promotional credit disappears or another condition changes. From the customer’s perspective, the effect is the same: the amount leaving the bank account is higher than the number that won the sale.

The useful question is not simply “What does this plan cost per month?”

It is “What will I pay over the period I expect to keep it?”

The promotional price and the regular price are different numbers

Imagine two hypothetical internet offers:

Plan APlan B
First 12 months$45/month$60/month
After month 12$90/month$60/month
Total for 24 months$1,620$1,440
Average monthly cost$67.50$60

These are illustrative numbers, not current prices from any Canadian provider. They show why the lowest headline rate does not always win.

Plan A looks $15 cheaper every month in the advertisement. Over two years, however, it costs $180 more before considering taxes, equipment or installation.

To compare real offers, use the actual number of discounted months rather than assuming that the discount lasts one year.

Ask whether the discount is a permanent plan rate or a credit

A provider may describe a reduction as a special plan rate, promotional discount or recurring bill credit.

The distinction matters because you want to know what happens when the promotion ends and whether eligibility depends on keeping a certain bundle, payment method or service combination.

Before subscribing, write down:

  1. The standard monthly plan price.
  2. The introductory monthly price.
  3. The discount’s exact end date or duration.
  4. The price expected immediately after that date.
  5. Whether the discount can be removed earlier under the agreed terms.
  6. What happens if you cancel or switch.

For internet contracts covered by the CRTC Internet Code, the provider must give you key contract information, including the terms of the service and relevant charges. Check the simplified Internet Code and your own agreement rather than guessing from an advertisement.

Count the equipment and setup charges

A plan can have a reasonable monthly rate and a surprisingly expensive first bill.

Possible additional costs include:

  • activation or installation;
  • modem or router rental;
  • equipment purchase;
  • shipping or setup;
  • required service bundles;
  • charges for not returning equipment after cancellation.

Not every provider charges every fee. The point is to ask whether the advertised total is actually obtainable without additional unavoidable charges.

Canada’s Competition Bureau explains drip pricing: advertising a price consumers cannot obtain because of additional mandatory fixed fees, except qualifying government-imposed charges, raises concerns under the Competition Act. This is a consumer-protection rule, not permission to assume any higher bill is automatically illegal.

Calculate the cost before picking a plan

A simple comparison:

Total cost = discounted months × discounted rate + regular months × regular rate + upfront fees + required equipment charges − actual bill credits.

Use the same time horizon for every offer, whether 12, 24 or 36 months. Compare taxes separately where necessary and use consistent assumptions.

If you expect to move next summer, calculate a 12-month cost. If you rarely switch providers, use a longer horizon and be especially careful with temporary incentives.

Do not subtract a bonus until you know you qualify and can actually receive it.

What happens when the promotional period ends?

Mark the expiry date in your calendar before you sign up. When the discount ends, review the provider’s current plans and any other fees before accepting the new bill as permanent.

You may be able to negotiate a new plan, choose a lower-cost option, switch providers or simply stay if the total price still makes sense. Check service availability at your address and any contractual obligations before deciding.

The best internet deal is not necessarily the one with the smallest number in the first month. It is the one whose full cost, service and conditions work for the period you need it.

Sources & further reading

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