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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

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:

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
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.

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.

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