Broadband sets the foundation for businesses to run smoothly from keeping remote teams in touch to managing online payments. Since almost every activity requires Internet connectivity in some form, it’s almost impossible to run a business without it.
So as a business owner, one of the first things to tick off your list is choosing your business broadband plan. You may find one that suits your budget and team needs but this is where things get tricky.
It may appear that you are paying a flat monthly fee based on what has been advertised. But once you’re signed up, the bill you get may be much higher than what you anticipated.
This is because business broadband often comes with a host of hidden fees and you won’t be aware of these additional expenses until you’re locked into a contract. And if you haven’t budgeted for these, they can become a financial burden very quickly.
What Are The Hidden Costs That Come With Business Broadband?
Nobody wants to pay out more than what is absolutely necessary and this is especially true for startups. In most cases, businesses who are just starting out are on tight budgets and overspending just isn’t an option.
Before you sign on the dotted line for a broadband contract, here are the most common hidden costs to watch out for.
Installation And Setup Fees
While a lot of providers advertise free installation as part of their service, it often applies to the basic setup. Depending on your business, you may need to connect multiple devices or wire multiple floors. This all goes beyond the basic setup so you would be charged extra.
Keep in mind that if your office doesn’t already have the correct type of line needed, it will be on you to pay for one to be installed. And anything that doesn’t fall under the standard plug-and-play setup can result in call-out charges.
Price Hikes After The Contract Is Signed
As part of their advertising, some providers may lure you in with highly competitive prices. But once the introductory period ends, usually after 12 or 24 months, the prices can drastically increase.
To avoid this, make a note of when your contract period is ending so you can confirm price changes before you are committed for another contract duration.
Fees For Equipment And Leasing
Another advertising tactic is to throw in something “free” in your package, usually a router or other hardware. The reality is, these are usually not free at all. They are actually supplied on a rental basis which means you are paying for it every month.
When you add it up over a few years, you could actually be paying much more than the retail price of that device which you were under the impression was free. Things like Voice over Internet Protocol (VoIP) phones and Wi-Fi extenders also come at an additional cost.
Before you lease from your provider, double check whether or not its cheaper to actually buy your own hardware.
Upgrades To Service Level Agreements
Most business broadband contracts have a basic Service Level Agreement (SLA) which will determine how quickly any issues will be fixed. Most standards SLAs will say that the waiting period is a couple of working days.
If you want problems to be resolved faster, which is usually the case as a business who can’t afford downtime, you will have to fork out more for same-day or next-day service.
Extra Security Measures
Companies need to prioritise their cybersecurity but some providers only offer the basic protection. If you want advanced security systems like firewalls or DDoS protection, they are considered add-ons which you need to pay for.
Before you decide on a provider, see what security measures are covered in the standard package.
Early Termination Fees
A lot of the business broadband contracts have a longer duration than residential plans, often for two to three years. During this time, if your business grows or moves locations, you will be liable to pay the cancellation fees. And these are often quite pricey.
Before you sign your contact, check to see how flexible it is and, should you cancel, if you will be required to pay out the remainder of the period in full.
Charges For Excess Data Usage
If a provider is advertising unlimited data usage, it doesn’t always mean what you think. They will often have fair usage policies or hidden thresholds. If you exceed this, it can lead to speed throttling or extra charges for high usage.
If your business needs to use cloud computing or video conferencing that requires a lot of data, make sure your plan can support this.
How Can You Avoid These Costs?
To avoid any unexpected bills at the end of the month, you need to take a proactive approach to your business broadband.
It’s so important to read the fine print of your contract and plans to fully understand the fees and increases. You can also compare the total cost of installation, equipment and cancellation charges beforehand to see what you’re in for.
Lastly, always check your contract before it comes up for renewal to see if there will be any price hikes that you weren’t aware of.
