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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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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).




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