Should you buy your own router or modem, or rent it from your ISP (internet service provider)? When setting up internet for your home or business, if a modem isn’t provided by your location or provider, you may need to buy or rent one from your internet service provider (ISP). While the rental fee may seem small at first, it can quickly add up over time to a substantial and unavoidable expense.
A modem is the device that connects your home to the internet. It receives the internet service connection from your ISP and provides it to your home or business, usually through its ports. A router is what takes that internet connection and shares it with all your devices, like your computer, smartphone, and smart TV with extended wireless network capabilities, otherwise known as Wi-Fi. Many times, these devices come in a 2-in-1 combo, combining both features for a single, compact device.
ISPs typically charge between $10 and $15 per month for equipment rentals (check your ISP’s pricing page for specifics). In comparison, investing in your own modem and router usually costs under $200, so you are already recovering your investment within the first year.
And over the course of several years, the fees for renting a modem and router can amount to hundreds of dollars, which you could have spent on purchasing your own. Investing in your own gear can also lead to additional features and better performance enhancing your internet speed and reliability, as your able to pick a device that best fits your need.
Switch Comes with Some Costs and Operational Challenges
When it comes to equipment, the average internet bill in the U.S. is between $50-$70 monthly, excluding additional taxes and fees or applicable discounts. While some charges like the data plan are straightforward, equipment rental fees can be avoided, making it worth considering a purchase instead. This is especially true if you don’t plan on moving or changing internet providers anytime soon.
If you’re comfortable handling your own equipment, buying a modem and router is the cost-effective option to go with in the long run.
Do You Need to Buy a Modem?
If you’re using cable internet, you will most likely need to purchase a modem along with your router for wireless connectivity (sometimes combined in a single device) unless your ISP includes the modem at no extra charge. When selecting a modem, focus on compatibility with your ISP’s specifications. There are different standards, like DOCSIS 3.0 and 3.1, with the latter typically offering faster speeds; however, DOCSIS 3.1 modems are often pricier.
Choosing the Right Modem and Router
The type of equipment you require largely depends on your internet usage. For those in smaller living spaces—like an apartment—basic routers may suffice for activities such as video conferencing and streaming.
Remote professionals may opt for a portable or compact router with mobile service provider connection options.
Larger homes or business offices, on the other hand, may require multiple devices which a more robust or multi-connectivity router can be best fit for, ensuring optimal performance without the interruptions.
Options for Wi-Fi routers range widely, from basic models costing around $30 to high-end mesh systems with multiple access points that can cost few hundred to thousands depending on your setup. Selecting equipment known for reliability and compatibility with your ISP is also important. Most ISPs provide lists of certified modems and routers on their websites. If available, verify your new equipment aligns with these recommendations or contact your provider directly to verify compatibility to avoid headaches down the road.
These are some well known routers, though it is best to do research to get one that suits your internet needs, since it isn’t a regular purchase.
Portable and Home Routers:
- Google Nest WiFi
- Netgear
- D-Link
- TP-Link
Business Routers:
- Ubiquiti Routers
- Cisco
- MikroTik
Setting Up Your New Equipment
Setting up a new modem and router can be daunting, but breaking it down into manageable steps helps streamline the process. Generally, the following sequence is common:
- Power Up Your Modem: Connect your router to the AC power adapter and turn on, if needed.
- Connect the Coax Cable: Connect it to your ISP’s network usually through a coaxial cable. Wait for the indicator lights to confirm it’s receiving a connection. For a full You may need to contact your ISP directly to link your device’s MAC address and/or serial number for a connection. After activation, link your modem to the wall outlet and plug it into a power source. Wait for the indicator lights to confirm it’s receiving a connection.
- Set Up Your Router (If separate): Combine your modem and router using an Ethernet cable, following the specific setup instructions provided with your router. Then after setup, access the administrator portal with credentials from setup instructions to customize your network settings and set up security methods and other features as needed.
While it may seem inconvenient to set up your own modem and router, it can lead to significant long-term savings and improved internet performance. Avoiding the monthly rental fees adds up, ultimately lowering your overall internet costs. Many users find that their new equipment not only enhances speed but also allows them to avoid inflated rental charges. Making the switch to owning your modem and router is a smart move that can provide both financial and performance advantages.
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