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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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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.

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