As a business owner, you want to save money and gain control over your in-office technology. One area where you have the potential to do both is with your internet. Before you sign up for internet service, you need to ask yourself, “Should I buy my own modem or rent it?” Consider these pros and cons so you can make the best choice for your company.
Tech Savvy or Tech Phobic?
If your company has an in-house IT department that is equipped to handle technology, then having your own modem makes sense. Your IT team will understand the features and settings of a modem, enabling your business to get more out of this piece of equipment.
On the other hand, if you are just starting out with your business or lack an IT department, you might struggle to handle the functionality of your internet hardware. If something goes wrong with the modem or router, you will need to pay someone to fix or potentially replace the equipment. This adds to your overall investment and can be a deal breaker for some business owners.
Cost to Buy My Own Modem
A major factor in the decision of whether you should buy a modem is the initial cost in comparison to the monthly payments of a rented modem. According to Business Insider, you could save $120 a year by making the purchase investment. If you are concerned about the lifespan of your modem, PC World states you should replace your equipment every four to five years, so to understand how much your modem will cost you annually, take the total cost of the modem and divide it by five. How many months of paying the rental price would it take you to reach the purchase price of the modem?
If you decide to rent your modem, ask your cable internet provider about the age of the equipment you receive. Modems older than five years old will most likely lead to slower connections. As a result, you will end up spending more per month on faster service packages, which should be factored into the overall cost of the equipment. It is in your best interest to request a newer model modem, both to extend the lifespan and to receive better internet connectivity.
Lease or Own Your Office?
If your business owns its office space, you may be in a better position to purchase a modem and router since you are likely to use the same internet provider for the life of your equipment. On the other hand, if you are renting a space for your business, you may be more likely to move at some point in the future. In this case, the router and modem you buy now might not be adaptable to your next service provider. Renting your modem and router allows you to return the equipment when you can no longer use it.
Making the Modem Decision
Ultimately, the reasons why businesses choose to buy a modem and router is to speed up internet service while saving money. For your company, calculate the amount it will cost to own your modem and router compared to renting it per month. Once you have conducted a cost analysis, take into consideration the age of your rented modem, if applicable, along with your ability to handle IT services in-house. This will help you answer that all-important question, ‘should I buy my modem?’