Print 36 comment(s) - last by BillyBatson.. on Aug 5 at 1:01 PM

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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

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?

"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home

Most Popular ArticlesTop 5 Smart Watches
July 21, 2016, 11:48 PM
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki