Broadband Pricing Strategy: The Evolution from Promo Pricing to Price Locks

For decades, the sales strategies of incumbent Internet Service Providers (ISPs) in the US relied on offering an attractive introductory price, followed by rate hikes once the promotional period ended. Customers, attracted by low intro rates, would be required to switch providers if they wished to avoid the rate hike.

This discount-then-hike model has shaped customers’ long-term perceptions. As bills rose, many grew frustrated with what felt like a lack of transparency, leading to lower satisfaction and, ultimately, switching to competitors offering better value.

Now, as broadband market growth slows, ISPs are increasingly turning their attention to churn reduction efforts. Many are rethinking pricing and sales strategies, inspired by the success of 5G fixed wireless services, which are frequently sold without promotional pricing. Instead of perpetuating the promo-based model, providers are shifting toward multi-year price guarantees designed to strengthen trust and improve retention.

The Introduction of Telecom Price Guarantees

Price guarantees, also known as price locks, are agreements in which a provider commits to a fixed service price for a set period of time. These guarantees are offered without requiring a contract, which helps build customer trust – the provider promises consistent pricing while giving customers the freedom to leave at any time if they are not satisfied.

In September 2024, Charter kicked off this movement by announcing its “Customer Commitment,” which provided simplified pricing and performance benefits to customers. In April 2025, Verizon and Comcast followed suit, offering their own multi-year guarantees to their customers.

Introduction of Price Locks by Major US ISPs