Why do broadband costs vary so much?

In 2026, a stable internet connection is just as essential as water and electricity. However, there is one aspect of broadband that continues to amaze consumers: the huge price differences. Why does one resident pay €35 a month for a fast connection, while the neighbor pays €75 three doors away for a package that, at first glance, offers the same thing? In the 2026 Dutch market, the price of the Internet is not determined by a single factor, but by a complex interplay of technology, infrastructure, location and commercial strategies.

This article takes a look at the dynamics behind broadband prices in 2026 and explains which hidden factors are driving up the bill.

The technology basis: Fiber versus cable and DSL

The main reason for price differences is the underlying technique. In 2026, the Netherlands will be largely “glass-fiber”, but the old copper and cable networks still play a role.

• Fiber Optic (FTTH): Because fiber offers symmetrical speeds (upload is as fast as download) and is less susceptible to interference, it is often priced as a premium product. The construction costs of a new fiber network are gigantic; providers will recoup these investments over decades, which affects the base price.
• Cable (Coax): Ziggo and other cable companies upgraded their network to DOCSIS 4.0 in 2026, which makes very high speeds possible. Their pricing often depends on them managing their own, closed network, so they are not dependent on third-party rental rates.
• DSL (Copper): The old telephone line will be the cheapest option in 2026, but also the slowest. Prices are low because the infrastructure was depreciated decades ago, but bandwidth often falls short for modern applications

Location and the “Last mile” issue

Where you live in 2026 is perhaps the most decisive factor for price and freedom of choice.

In densely populated cities such as Amsterdam, Utrecht or Rotterdam, competition is fierce. Several providers have their own cables in the ground there, which drives prices down through constant promotions and discounts. In rural areas or new residential areas in the countryside, that's a different story. The costs of pulling a cable to a remote farm or a small-scale new construction project are much higher. If there is only one provider that has taken the trouble to install fiber there, the price pressure from competitors is missing, resulting in higher monthly costs for residents.

Wholesale pricing and network access

Not every provider that sells the internet actually owns the cables in the ground. In 2026, many “budget providers” will use the KPN (Glaspoort) or Open Dutch Fiber network.

They pay a so-called wholesale price to provide their services over these networks. The Consumer & Market Authority (ACM) supervises these rates to prevent network owners from excluding competition. However, if the wholesale price rises, for example due to increased energy costs for the data centers or higher labor costs for maintenance, the smaller providers must pass these costs directly on to consumers. This explains why price increases often occur at multiple providers at the same time.

Speed as a status symbol and revenue model

In 2026, the “gigabit war” is in full swing. Providers offer speeds of 1 Gbit/s, 4 Gbit/s or even 8 Gbit/s. Although 90% of households never fully utilize this speed in practice, they pay significantly more for it.

Providers use a pricing model where the margin at low speeds (e.g. 100 Mbit/s) is wafer-thin. The profit is made on the high-end packages. Consumers often pay a premium for the “security” of the fastest connection, even if their router or equipment can't even handle that speed indoors. This psychological effect ensures a broad spread in the market: you not only pay for the data, but also for the theoretical capacity.

Bundling and combination benefit

The price you see on your invoice is often the result of “tying” in 2026. Most of the major providers are also mobile providers.

• Combi advantage: If you purchase internet and mobile telephony from the same party, you often get a €5 to €7.50 discount per month. This distorts market forces: the loose internet price seems high, but the “net price” for loyal customers is low.
• Extra services: Packages are often extended to include TV apps, streaming services (such as HBO Max or Viaplay), and additional Wi-Fi amplifiers. The differences in these extras make a direct price comparison between providers extremely complex. What is a free bonus for one person costs €12.50 per month for the other.

Inflation adjustment and annual increases

A remarkable phenomenon in 2026 is the automatic inflation correction. Almost all major providers state in their terms and conditions that they may increase prices annually based on the CBS consumer price index.

In 2026, we will see price increases ranging from 2.5% to 4%. Because not every provider chooses the same time or index, the price differences between providers grow throughout the year. A customer who has been with the same provider for three years without revising their contract will often pay significantly more in 2026 than a new customer who benefits from an entry-level promotion.

The huge variation in broadband costs is therefore no coincidence, but the result of your address, the technology chosen and how smartly you make use of combination benefits. In a market that is constantly changing, the “loyalty tax” remains: those who do not compare periodically will indirectly contribute to tomorrow's infrastructure.