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How to avoid paying for common TV and Internet fees

Do you want to get out of paying the fees that are increasing your TV and Internet bills? Check out some strategies that could help you avoid such charges.

Avoid paying common TV fees (Photo: Thinkstock)

You don't always have to be a bean counter or math guru to recognize when something doesn't quite add up on your cable and Internet bill. Common fees and taxes that are tacked on to your normal charges can be quite noticeable - and aggravating.

Surprisingly, consumers who make a firm effort to get fees reduced or eliminated altogether have a fighting chance of getting their way, according to John Breyault, vice president of telecommunications and fraud policy for the National Consumers League, based in Washington, D.C.

"The question really is what fees are legitimate and what fees aren't?" says Breyault, whose agency serves as an advocacy group for consumer and worker rights. "When a company charges a fee, it's essentially to pass along the cost of what they are doing in their normal line of business to the consumer."

So, what fees can and can't you get out of? Here's a closer look at seven charges that could appear on your bill, and ways to possibly wipe them away.

#1 - Activation Fee

Potential Charge: $36*

Service providers typically charge extra to start cable, Internet, or phone service, but Breyault says it's unlikely the act of flipping an "on" switch actually costs what appears on your bill.

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"The activation fee, theoretically, is a one-time cost of setting up your service," Breyault says. "My suspicion is that it does not cost the carrier $35 to set up a new line."

What you should do: "Consumers should not be afraid to ask those fees to be waived," Breyault says. "Leverage those choices you have (with other companies) to get them waived. It's not unusual for a carrier to say they will waive an activation fee."

[Want to see if you can save on your TV and Internet costs? Click to get quotes from providers now.]

#2 - Installation Fee

Potential charge: $90-$125*

You could call the installation fee the activation fee's first cousin. The charge, according to Breyault, gets assessed when a provider's technician has to visit your home and install equipment, such as satellite dishes or cable boxes.

Is the fee justified?

"There is a cost to the company to send out a truck with a technician who might spend a significant amount of time setting up service," Breyault says. "The average cost to install a satellite at home for a company is thousands of dollars. To have an installation fee is understandable, but the question becomes is the cost of activating service baked into my monthly cost of service."

What you should do: "Certainly, the installation fee is probably set by providers less on what the cost of the service is and more on what the market will bear," Breyault says. "I think the consumer should never be afraid to ask for the installation fee to be waived."

#3 - DVR Fee

Potential charges: $30 activation; $17.95 monthly rental*

Having a digital video recorder (DVR) at your disposal to record favorite programs seems like it must be worth the extra bucks, right? Think again.

Breyault points out that numerous consumers are cutting their  cable services in favor of on-demand streaming services, thus eliminating the need for a DVR.

"People are now getting by with over-the-top video on Netflix and Hulu," he says. "There are more options for this stuff every day."

And when there are options, costs shouldn't be as high.

What you should do: Depending on the package you choose, many providers will waive the cost of DVR service for new customers for the term of their contract, or for a select period of time. For example, With Comcast Xfinity's triple play package of TV, Internet, and phone, new customers can get free HD DVR service for six months. You'll just have to shop packages, rates, and perks to see which providers are offering the best deal.

[Click to shop around and compare quotes from providers now.]

#4 - Service Call Fee

Potential charge: $95 per visit*

Should you have trouble with equipment or services that are not your fault, Breyault says a service call fee ranks high on the list of charges worth avoiding.

"Typically, if they come out to your house because something is not working the way it should, it seems overly egregious to me if they charge you for it," Breyault says. "A lot of it (the cost of service calls) is what [providers] think the market will bear."

What you should do: Should customers just grin and bear service calls fees? Absolutely not, Breyault contends. "People should dispute fees like that," he says. "They should work with customer service to waive that fee."

#5 - Leased Internet Modem Fee

Potential charge: $5.99 per month, per modem*

Customers are typically charged a lease modem from a provider to receive cable TV or Internet service, Breyault says.

Oftentimes, consumers believe that they have to lease the Internet modem, but that's rarely the case.

For example, Time Warner Cable (TWC) states on their website that customers can purchase their own modem from a list of compatible and approved modems. "If you choose to purchase your own modem, the monthly TWC/EarthLink Internet Modem Lease charge will be waived," the website adds.

What you should do: "For most consumers, it's going to make more sense to buy a box outright," Breyault says. "You might be able to buy one from the carrier or buy a cable modem on your own that will work with the network. It might be a higher cost up front, but in the long run, it might cost less."

[Want to see if you can save on your TV and Internet costs? Click to get quotes from providers now.]

Watch the video below on how to lower your cable bill to $7.99: