Renting vs. Buying Your Router From an ISP: What to Consider

Renting is the simple route. The cost appears on the internet bill, avoiding the upfront charge of buying equipment, and the ISP may send a technician to connect the gateway and confirm it works before leaving. Many providers also upgrade the gateway to the latest version every few years. Renting avoids having to choose a modem that works with the service and connect it yourself; some ISPs publish a list of compatible modems, but if yours does not, finding a suitable one can be difficult. An all-in-one device can also be convenient for people short on space.

The ongoing cost is the obvious drawback. The $10 to $20 monthly fee continues as long as the customer subscribes, and the ISP can raise the rate at any point. If the customer switches providers, there is no box to bring along. ISP equipment also tends to be one-size-fits-all. It may be sufficient for basic use, but it will not necessarily support the latest Wi-Fi standards, offer the best range or include advanced features. Customers must use the software that comes with it and likely cannot change it.

Buying can make sense when the ISP only offers its own modem-router combo and does not support bringing your own equipment. A gateway might cost $200, which is a lot for a device that is necessary but not exciting. A $200 modem rented for $20 a month breaks even after 10 months; since most ISP promotions last at least a year, Engadget says buying is almost always the better option.

The calculation becomes more complicated when customers can choose both their own modem and router. Quality models can easily reach $200 each, meaning it takes longer to break even on the rental fee. Even so, owning the equipment brings other benefits. Customers can pick exactly what they need, from a basic model to one with updated Wi-Fi specifications, full management tools and parental controls. If one router is not enough, a mesh network can cover a whole home. If the customer later switches providers, the existing equipment can come along if it is compatible, and an old router can be reused in other ways.

Owners can also upgrade the modem or router whenever they want, rather than waiting for the ISP to say they are eligible for a new model. They have full control over router security and performance options, and can install custom router firmware to go beyond stock capabilities, which is generally not possible on an ISP-provided model.

Owning network devices can provide greater privacy. A company-provided gateway is configured so technicians can remotely access it, change settings and identify devices connected to the network. With many models, customers cannot adjust DNS settings away from ISP-provided servers or use a VPN at the router level. Providers like Xfinity broadcast a network called "xfinitywifi" that any customer can connect to by logging in to their account. The company says this does not affect bandwidth and is secure, but Engadget notes it is still jarring to have equipment in the home used by other people.

Some customers may not have to decide. Many providers have started including gateways in the plan cost. Engadget checked a nearby neighborhood offering Verizon Fios, and the checkout marked the router as "included" at an $18 monthly "discount" that did not mention a limited-time promotion. The unit must be returned if service is canceled, but the customer pays nothing unless it is damaged. Verizon has a page for a Wi-Fi 6E router that costs $400, but buying it is pointless when "renting" is free. The article adds that Xfinity is the same, with its gateway included.