Cut Your Internet Bill by Over $600

Update: Prices updated to reflect the drop in internet price by Teksavvy. It also seems like Bell has dropped their lower speed packages. I cannot seem to find how much it would cost to get the required bandwidth.

I remember the day when my family got the internet. It was such a weird world where you would lose your ability to make and receive calls when you were on the internet. Now we’re talking about internet on cell phones… boy, have times changed.

What hasn’t changed since those days are the big Telecom companies who the vast majority of households are getting their internet from. However, I’m here to show you that it might be time for you to move away from the dinosaurs and move towards what’s possible while saving almost $50/month.

In this post, I will be covering why smaller internet service providers (ISP for short) are the way to go for your needs. In particular, why Teksavvy is what you should be using instead of Bell (or Rogers, or Telus).

But before we break into the numbers, let’s talk about what you and your family actually needs. Let’s assume that as a family, you watch 3hrs of Netflix each day in high definition (the $10/month plan). Let’s also assume that as a family, you watch another 2hrs of Youtube each day, and that someone spends 2hrs on online games each day. According to Netflix, each hour of HD video takes about 3GB of data. Youtube uses about 800MB an hour (at 720p) and the most intense online games use 200MB an hour. This brings your daily usage to 11GB plus other activities such as social media. In one month, you would then use about 341GB each month. Adding in social media (and general browsing), we’re looking at another 7GB per person per month, so a family of 5 would use another 35GB, taking us to 376GB / month (assuming a 31days). This means that we will need a plan that is over 376GB.

The next piece of the puzzle is how fast of an internet we will need (as in how fast do we need to be able to download in order for us to watch our movies or videos). Once again, according to Netflix, we will need about a 5Mbs to watch a movie in HD. According to Google, you need about 2.5Mbs to play a 720p video. For gaming, we don’t need much more (many sources say 1-2Mbs). If everyone was doing one of those things all at the same time, we’re looking at a total speed of 9.5Mbs.

So if you and your family watches on average 3hrs of Netflix HD, 2hrs of youtube at 720p and 2hrs of online games, then keep on reading. If you use more than that, also keep reading as I will cover it in the suggestions.

Now that we’ve taken care of what you actually need, let’s look at what’s being offered by starting with Teksavvy (the ISP that I use). Teksavvy is based out of Chatham Ontario. They have many different options for internet, but the one that will fit the needs that we’ve laid out is their High Speed DSL 15/10 plan (I suggest that so that you can upload much faster for $2. This is most beneficial if you upload a lot of pictures onto facebook or for gaming) At 15Mbs download, it will have more than enough speed to make sure your movies and games all work well (technically the 10Mbs could do it, but it doesn’t leave much room for error). The plan comes with 150GB of data, but we know that we want 400, so we’d be paying an additional $5. Also, if you do not have a home phone, you will need to pay another $5 / month for them to get the internet through your phone lines, bringing the total each month is $40.95 + tax ($46.27 after tax).

Bell has a somewhat similar plan – they too have a 15Mb download speed and a 10Mb upload speed. However, this comes with a 75GB data limit. The plan as it stands would cost you $65/month + tax. In order to get to 400GB, you would need to pay an additional $30 (which would give you unlimited data). This bring the total cost to $107.35 / month after tax. A difference of $61.08 each month, or $732.92 / year… To makes matters worse, you need to sign a two year contract with Bell, whereas you can go month by month with Teksavvy, so the savings over the two years is about $1465.84.

So for those who feel like they need the unlimited, Teksavvy can give you unlimited for an additional $5 so your total would be closer to $51.92, which makes the difference in savings of about $55.43 / month, $665.16 / year or $1330.32 for the two year contract.

Now that you have all the real information, what are you planning to do?

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