Introductory Pricing (Promo Rate)

What It Means

Introductory pricing (also called "promo rate," "intro rate," or "new customer pricing") is a time-limited discount offered to new subscribers for the first 12 to 24 months of service, after which the monthly bill increases to the regular "standard" rate, typically $20 to $50 per month higher. A plan advertised at $49.99 per month may roll to $79.99 per month after the 12-month promo ends, a 60% increase. Introductory pricing is the dominant customer acquisition tool across cable, DSL, and fiber, AT&T, Verizon, Comcast, Charter, Cox, and Optimum all use it aggressively, while T-Mobile Home Internet, Starlink, and Google Fiber notably do not (they publish a single flat rate with no promo). The FCC Broadband Nutrition Label (required since April 2024 for large ISPs, October 2024 for small ISPs) now requires that every plan disclose both the introductory rate, the duration of the intro period, and the full post-promotional monthly price at the point of sale. Before the label requirement, many consumers were surprised by bill increases they did not understand, driving "churn" (switching ISPs) at promo expiration. A robust consumer strategy is to call the ISP at promo expiration and request a retention discount, most ISPs have retention departments authorized to extend promotional pricing for another 6 to 12 months to prevent churn. If the current ISP refuses, switching to a competitor for new customer pricing can be effective in competitive markets, though it requires repeat switching every 12 to 24 months. When comparing ISPs on the Broadband Grade, always review the FCC Label post-promo price, not the headline promo rate.

Frequently Asked Questions