Tired of paying monthly equipment rental to your internet service provider? Are you planning to get rid of it by purchasing your own modem or modem/router combo? But don't know what's better renting or buying, then you've come to the right place.
I calculated the equipment rental for different internet service providers and also calculated the cost of purchasing your own equipment, based on my calculations, I can confidently say that purchasing your own modem/router is more better than renting mediocre equipment.
But cost is just one factor, there are other factors to consider. For instance, when you rent an equipment — you get technical support, free hardware upgrades, replacement when you switch to a faster plan, etc. Below, I'll be discussing all the factors to help you decide what's better for you.
Buying vs Renting a Modem/Router
Most internet providers charge around $8-15/month for internet equipment. But that doesn't stop there. Despite paying such rentals, you get an outdated gateway/bad modem or a device that's not enough for your plan/needs.
While researching I found out that 52% of the users couldn't use their internet at the fullest possible speed according to their plan because of an outdated modem. For instance, If you have a 100 Mbps connection, your rented modem/router may only support speeds up to 70-80 Mbps.
Buying a modem/router can help you save $8-15/month rental, which is around $100-300/year. You can get the best modem or a reliable 2-in-1 modem router combo for 10-12 months of your rental fee.
Everything kept in mind, buying a modem or modem/router combo is a better option than renting. Not only are they cheaper than renting, but you also get reliable devices that help you make the best out of the subscribed internet plan.
If you've decided to buy check out: Compatible Modems | Compatible Routers & Mesh
Advantages & Disadvantages of Renting
Pros
- Better technical support (If there are outages in the internet or issues with the modem/router) you shall contact customer support, and you'll get better service than the ones who've bought their own equipment.
- Great for short term (If you don't spend more than 2 months at a place, you shall consider getting equipment for rental, as you don't have to carry it when you move.)
- You don't have to spend $50-150 at once to buy the equipment. (However, you'll spend double the amount if you continue for a year, and even after that, you'll have outdated equipment and not own it.)
- You can get a DOCSIS 3.1 modem that can handle the best internet service plans (gigabit) even for the yearly equipment rental you'll pay for a mediocre modem.
Cons
- Outdated equipment that's not capable of handling fast internet plans.
- Rental is high, you can buy a cheap modem/router combo for 3 months rental and a good quality model by paying 6 months of rental fee at once.
- Despite paying a high rental for the lease, you don't get the promised speeds according to your plan because of capability issues.
- Even after paying rent for more than a year, you don't own the equipment, so you'll continue paying rent till you use the services (According to research, subscriber sticks to the ISP for 6-7 years.) So basically, you shall spend almost $120/year ($840 for 7 years.)
- The equipment you get for the rental is a standard device, so there is a chance that it might not be enough for providing coverage across your large house, in that case you'll have to buy wireless extenders.
Advantages & Disadvantages of Buying
Pros
- The average ROI for a good quality modem or modem/router combo is 10-12 months. (In 10-12 months of rental for the lease, you'll be able to own it.)
- Don't have to pay monthly equipment rental.
- You get high-quality equipment that allows you to use the internet at its fullest possible speed (according to your plan.)
- No more slow speed or internet issues unless there's an internet outage.
- Since you're buying equipment, you can choose the equipment that's suitable for the number of devices at your place, coverage area, etc. This way, nothing goes to waste, all your devices get connected and have seamless connectivity.
Cons
- No technical support from your internet providers.
- You'll have to spend 12 months of rental at once.
- Need to check compatibility with other ISP if you're relocating or shifting to different provider, if not compatible, it'll be a waste.
Separate Modem + WiFi Router vs Combo: Which One To Get?
If the sole purpose of buying the networking equipment is to JUST get rid of the equipment rental, then it's a better idea to get a modem/router combo as per your internet plan. However, if you're a performance enthusiast, then you shall consider getting as standalone modem + separate router.
Learn more: https://www.homeowner.com/connectivity/modem-router-combo-vs-separate
Conclusion
In my honest opinion, be it performance-wise or ROI, buying your own modem or modem/router combo is always better than renting it. However, you should know what device is perfect for your needs, has the features you need, etc.
I surveyed 2713 users in various parts of the US and found out that 73% never shifted to a different provider. Because they were unable to decide on the right modem, and the ISP tech support wouldn't help them choose the right one.
After doing research & considering all the advantages of buying & renting both, I found buying internet equipment provides a better return on investment. You can get futureproof modems and routers for 10-12 months of the rental amount and won't have to pay rent for the coming 5-6 years.
