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Fee hike will generate an extra $150 million for Time Warner

Time Warner Cable announced yesterday that it had begun notifying customers of an increase on the rent paid each month for cable modems (subscribers to the company's base cable internet plan have been paying $3.95 per month to lease a modem since last November).

Time Warner Cable is now increasing the monthly rate for leasing the modem to $5.99 per month starting with the next billing cycle. A few dollars doesn't sound like huge hike, but the additional fee will reportedly generate an extra $150 million in revenue this year alone for the cable giant.

Apparently, only customers on the company's most popular plan will pay the extra fee for modem rental. Customers who are on more expensive and higher-end cable internet packages won't be affected by the change in rental rate.
 
Time Warner Cable says that the fee hike stems from costs associated with providing the modem.

Despite the fact that the lease amount has increased to $5.99, Time Warner Cable’s fee is still lower than competitors such as Comcast, which charge between seven dollars and eight dollars per month.
 
Of course, one way to avoid the fee altogether is to purchase your own modem from Time Warner Cable’s approved list. By going this route, the modem would “pay for itself” within a year or less.

Source: Reuters



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Buy your own modem NOW.
By SAN-Man on 7/30/2013 9:44:26 AM , Rating: 3
Seriously.

After twelve months of paying a rental feed you have purchased the modem twice, maybe more.




RE: Buy your own modem NOW.
By Flunk on 7/30/2013 10:11:37 AM , Rating: 1
Most cable modems are around $100, assuming they're not buying a sub-standard off-brand product and neglecting bulk discounts. At $5.99/month that's payback in 17 months.

If you're going to be somewhere for more than a year it's more economical to buy a modem, if they don't allow you to buy the modem (like a lot of cable companies) they're ripping you off after the first 17 months.


RE: Buy your own modem NOW.
By rwei on 7/30/2013 10:21:12 AM , Rating: 2
$70, ~12m:
http://www.amazon.com/ARRIS-Motorola-SB6121-SURFbo...

This is not the cheapest model from Motorola, either. Have it, works great. Haven't dropped a connection yet.


RE: Buy your own modem NOW.
By Mitch101 on 7/30/2013 10:49:44 AM , Rating: 2
Go to the following link and type in SB6121
http://www.interiorliving.com/deals.php
Will list all the deals from all the various deal sites. Great for finding a specific model or finding out if it had a better price at some point.

The SB6121 was $55.00 not long ago on NewEgg.

Advanced search allows you to add a second keyword its the box that shows up under Item Title.


RE: Buy your own modem NOW.
By Souka on 7/30/2013 12:59:20 PM , Rating: 2
so point being... buying is cheaper over the long term.

However...not everyone is good with computers.
Renting a modem gives the benifit of having full suport from the provider. Using your own modem often causes a breakdown is quality support.

That being said... my 8.1yr old DOCIS 2.0 modem died last summer (8.1 because the warranty was 8yrs...*sigh*). Paid $55, vs $5/month rental. Now have new Motoroloa DOCIS 3.0 modem....

Renting... worth it for me.

:)


RE: Buy your own modem NOW.
By Omega215D on 7/31/2013 12:33:13 AM , Rating: 2
Problem being, even after using Time Warner's modems I've received little support when their pieces of crap failed or were failing on me. They gave me a massive run-around and then a long waiting period for a service personnel to come out and test the connection and replace the modem. ended up going to a TW center 40 min. out at got a swap though they tried insisting that I get an upgrade so that I can receive better service, quality and speeds.

So much for them backing their garbage. I bought a Surfboard modem DOCSIS 3.0 off craigslist for $40 and haven't had an issue since and it was easy to configure despite TW scare tactics.

Right now I'm in the process of switching to FiOS and passing the modem to a friend.


RE: Buy your own modem NOW.
By crimson117 on 7/31/2013 10:14:31 AM , Rating: 2
Wait how is renting worth it for your... you paid $55 instead of $6 * 8 * 12 = $576...

So even though buying and running it into the ground saved you $500+, you start renting now for some reason?


RE: Buy your own modem NOW.
By dgingerich on 7/30/2013 2:05:32 PM , Rating: 2
After my experiences, I advise avoiding Motorola. I've had major problems with getting them to replace bad modems. I've had three, all three went bad after 6-8 months, and they wouldn't replace any of them. I wound up buying new ones, at least until I found Zoom.

http://www.amazon.com/Zoom-DOCSIS-Cable-Modem-5341...

This is my current modem. 5 year warranty, much easier support to work with, and physically smaller than any of the Motorola modems I had.

I wonder why it is I've had nothing but problems with every single piece of Motorola equipment I've had.


RE: Buy your own modem NOW.
By crimson117 on 7/31/2013 10:11:29 AM , Rating: 2
I've had very good experiences with my Motorola surfboard modem.


RE: Buy your own modem NOW.
By Mr Perfect on 7/30/2013 5:52:51 PM , Rating: 2
I'd go with the SB6141 at this point. The SB6121 only does 4 channels down, 4 up, the newer SB6141 does 8 down and 4 up. If you have a higher tier speed package, 8 channels downstream might be compulsory.


RE: Buy your own modem NOW.
By Samus on 7/31/2013 12:49:06 AM , Rating: 3
Not many ISP's use 8 channels, and if they do, they're on very high speed tiers. Even Comcast's 105mbps service is 4 channel, all it requires is DOCSIS 3.0 specification.

For now, save your money and get a SB6120 for <$50 or SB6121 for $60. I've seen DOCSIS 3 modems on craigslist for $25 bucks. ISP's usually have an online tool to check the MAC for activation, or you can make a 5-minute call to a usually automated system and check on the spot before you hand over the money.

EITHER WAY, you are all right. Buy your modem, don't rent it.


RE: Buy your own modem NOW.
By Mr Perfect on 8/1/2013 12:52:31 PM , Rating: 2
Hmm, must be area dependent. I've got a moderate Comcast 50/10 package, and I'm picking up 8 channels down and 3 up.


RE: Buy your own modem NOW.
By gwem557 on 7/31/2013 4:08:28 PM , Rating: 2
Same one I have, also excellent results.


RE: Buy your own modem NOW.
By BillyBatson on 7/30/2013 1:41:32 PM , Rating: 2
2 years ago my household made the switch to AT&T Uverse from Time Warner Cable. We were with TWC (well and whoever they were first, @home, Adelphia, etc) for 20 years and we had enough of all their bull, high prices, poor customer service, not he creates quality picture, and the worst hardware/software in the industry.
I have moved in and out of the house so my mom had been in charge of the bill for many years, when we went to cancel not only did they give us a hard time and were rude but we found out that they had been charging us for not one but TWO cable modems every month for 5 years... That's 60 months of consecutive payments for 2 modems while only having 1. After 2 months of investigation turns out they claim our old giant cable modem was never returned after they swapped it to one of the newest smaller versions.
We never kept anything the TWC guys came upgraded the router and took the old one back but it was never checked in and for some reason TWC decided we kept it so for 5 years they charged us monthly for it and then once we cancelled they tried charging us for the entire router ($79?) a sum that had been paid off by the monthly rental fee 4 years earlier. They refused to admit their mistake, and they refused to remove the charge from our final bill. This went on for 6 months with my mom receiving phone calls threatening to take the charge to a creditor to get onto her credit report. We highered a lawyer and that's when TWC Finally backed down.
Did we win? No. We didn't have to pay for the modem purchase fee but none of the rental payments for the 5 years we didn't have the modem were ever returned.

We are much happier with Uverse in every single way and we will never go with TWC or ever recommend them to anyone else. Now with the modem piece home they can continue to take even more money from the customers they have left that they should be trying to hold on to.


RE: Buy your own modem NOW.
By Jeffk464 on 7/31/2013 10:31:29 AM , Rating: 2
I bought a great modem on amazon for $50 why would anyone rent?


RE: Buy your own modem NOW.
By Jeffk464 on 7/31/2013 10:34:28 AM , Rating: 2
Its made by ubee and has great customer reviews including my own.


BS
By Denigrate on 7/30/2013 9:24:54 AM , Rating: 2
Nevermind that they already paid for the modem they provide a couple times over with the fees.




RE: BS
By ShaolinSoccer on 7/30/2013 10:22:55 AM , Rating: 2
Time Warner is a joke. Just like AT&T.


RE: BS
By BillyBatson on 7/30/2013 1:48:53 PM , Rating: 2
TWC was the devil. I absolutely love my Uverse.


RE: BS
By dgingerich on 7/30/2013 2:10:00 PM , Rating: 3
When a person goes from being beaten every few hours to being beaten once per week, they usually feel that way. It still doesn't make being beaten once per week OK.


RE: BS
By BillyBatson on 7/30/2013 2:37:47 PM , Rating: 2
I really don't get beaten at all. My service is amazing, the picture quality is great, the software running on their hardware is more responsive and visually more appealing, we are paying Uverse LESS than we did TWC but have a much better channel package, where is the part where I am being beaten up? Verizon FIOS is the only service in the US (excluding google fiber) that is superior to my Uverse experience but it also comes with a higher price tag and not available in my area.
Nopes I am not being beaten at all. Until the law changes and we can pick and choose what individual channels we buy this is the closest to happy with my cable provider I can get.


RE: BS
By Jeffk464 on 7/31/2013 10:39:53 AM , Rating: 2
I get zero beatings, I have cable internet from cox for $30 a month. I pay $8 a month to netflix, put an antenna on the roof, and have a HTPC to function as a DVR. I'm happy as a can be.


RE: BS
By BillyBatson on 8/5/2013 1:01:37 PM , Rating: 2
Glad that works for you but doesn't work for my household. The bare minimum $30 a month for TV doesn't suit us we have everything but the sport and international packages we have everything else including all the premium channels like HBO. We have Netflix but hardly ever use it since there isn't much content in their streaming service and we have already watched literally everything worth watching and only keep the subscription trying out new shows they have been adding, and everything else I watch for free on Vodly formerly known as 1channel.
I used to have an htpc but I was the only one who knew how to use it, not everyone is as tech savvy.


Possibly the deal of the century
By flyingpants1 on 7/30/2013 6:12:09 PM , Rating: 2
Only $5.95/mo and I get ABSOLUTELY NOTHING AT ALL? Awesome! I'm ditching Netflix immediately and getting thsi instead. Just show me the dotted line!




RE: Possibly the deal of the century
By CZroe on 7/31/2013 9:20:36 AM , Rating: 2
My brother works for a local cable co and he says that they get fried in thunderstorms so often that it can actually be a good thing that you don't own it.


RE: Possibly the deal of the century
By CZroe on 7/31/2013 9:23:05 AM , Rating: 2
Of course, not at Time Warner's new price. :/


WOW!
By climber07 on 7/30/2013 12:33:20 PM , Rating: 3
I had the choice of TWC or Verizon FiOS. Needless to say, I never again have to deal with TWC's constant disconnections, poor speeds, rude and ignorant technicians, overpriced substandard packages, or super aggressive phone salesmen. Verizon Fios has no equipment rental fees (even with their all-in-one modem/wireless router), they have the best speeds (I have 50Mb/s download and 25Mb/s upload). Their TV packages are great too. Plus you can add phone and home security. They have one of the best systems for renting and purchasing movies (forever) of anyone.

If you have the option, jump now and don't look back!




RE: WOW!
By Jeffk464 on 7/31/2013 10:41:23 AM , Rating: 2
Well yeah, nothing beats fiber optic.


The competition
By name99 on 7/30/2013 11:42:45 AM , Rating: 2
I'd say go with Charter if you can. They don't nickel-and-dime you (on equipment or anything else), and their delivered performance is better than what you're nominally paying for.

I'd say avoid switching to ATT in retaliation. ATT are the world masters of nickel-and-diming AND you can't buy your own box to replace their crappy U-verse box (which runs hot and has truly lousy WiFi built into it).




RE: The competition
By BillyBatson on 7/30/2013 1:57:36 PM , Rating: 1
You need to apparently do some more research... I switch from TWC to Uverse and extremely happy with it! No we haven't been nickle and for anything. We have the top tier plan which only charges ua for 2 of our 5 boxes, 1 complete home HD DVR, 2 normal HD DVR receivers, and 2 wireless HD DVR receivers. It is true that we can't buy our own box but in 20 years of TWC we never took that option anyway their equipment fees are almost a non-issue. As for your "lousy" wifi performance claim... Why would you even use the built in Uverse wifi????? LOL. I think TWC doesn't offer wifi in their hardware package but that isn't a concern for you but a built in one by Uverse you can turn off is? The wifi in a Uverse box is only 802.11g so that is crappy yes however the antenna is more powerful than most off the shelf routers today especially for just g wireless, AND you can turn if off like I did and use your own wifi router of your choosing.
Very happy with my Uverse.


All around smart move
By CaedenV on 7/30/2013 10:22:52 AM , Rating: 2
When they introduced the $4 rental fee earlier this year in my area I was very quick to purchase my own cable modem, and now I am very happy that I did.
The big issue is that (at least in my area) they are requiring a docsis 3 device if you are going to purchase your own, and those are not very cheap. Ironically the device I replaced was docsis 2, so obviously it will technically work on the network, but they will deny activation because (according to the customer service rep I talked to) docsis 2 devices "will not be compatible with the network in the near future".
But the thing is that the only people who really care are the power users who suck down the most usage anyways... they don't exactly care if they loose my business because I am not very profitable. Plus there is the issue that the only direct competition in my area is Cincy Bell who has similarly outrageous rental fees and only offers DSL on my street which is a no-go. However, I did see some people working on the lines yesterday, and I think they were installing a fiber line for my street, so maybe I will soon be able to pit the two companies against each other and try and get a better deal once that is up and running.

Anywho, $80 takes almost 2 years to pay off at $4/mo, but at nearly $6 the payoff comes much faster, and the modem I bought is of much better quality than anything they would ever provide.




dont complain
By Shadowmaster625 on 7/30/2013 11:18:56 AM , Rating: 2
These idiots are subsidizing everyone else's cable bill. It says in the article that the people are on the most expensive plan anyway, so that already makes them idiots bordering on frickin zombies. Let them throw their money away.




By climber07 on 7/30/2013 12:13:44 PM , Rating: 2
The very same model cable modem that TWC uses is available all day long at Amazon.com. You can even call them with your new MAC address (printed on the modem) and they will provision it for you and viola! No more monthly rental!!!!!

Don't let them try to give you a cock and bull story about the MAC address not being valid or able to provision it. It is illegal for them not to let you use your own equipment (so long as it is compatible with their system).




Suddenlink
By Odysseus145 on 7/30/2013 12:50:02 PM , Rating: 2
I never even considered renting the modem. If it weren't for their lack of two-way communication I'd outright buy the cable boxes for TV as well.




$5? Comcast charges $7.
By Mr Perfect on 7/30/2013 5:49:31 PM , Rating: 2
UP to $5 and it's news? How terrible. Comcast charges $7, plus tax and fees it ends up around $7.90. Needless to say, I bought my own.




Which is it?
By CZroe on 7/31/2013 9:22:29 AM , Rating: 2
"Time Warner Cable Raises Cable Modem Rental Rate to $5.95/Month...Time Warner Cable is now increasing the monthly rate for leasing the modem to $5.99 per month"
Sooooo- which is it? $5.95 or $5.99?




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