Time Warner Cable raises Internet modem fees for customers

July 29 Mon Jul 29, 2013 5:55pm EDT

July 29 (Reuters) - Time Warner Cable said on Monday it has started notifying customers that it is raising the monthly fees to rent modems from the cable company.

Subscribers on Time Warner's Cable's most popular Internet plan began paying $3.95 a month last November to lease a modem. The fee will rise to $5.99 a month starting in the next billing cycle for customers.

The higher rate could generate an additional $150 million in revenue this year, according to ISI analyst Vijay Jayant. Time Warner Cable has roughly 12 million customers.

A Time Warner Cable spokesman said the fee was raised because of the "cost associated with providing the modem." Customers who buy higher-end packages will not be affected by the change.

Time Warner Cable said customers can opt out by purchasing a modem that is compatible with the Time Warner system, it and provided a list of approved equipment.

Other cable companies such as No. 1 U.S. operator Comcast and Cox charge modem fees between $7 and $8 per month, Jayant said.

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Comments (25)
Scully wrote:
Lol Just last month I dropped my $80/month HD cable television. I watch maybe 10 hours of television per month. Seemed like a steep price for only a few shows. Now I’m gonna return my $6/month “rental” modem and purchase my own. Might cost me $50. lol TWC is making my life cheaper. Go ahead and raise my internet fee and watch how easy is it for me to jump to Windstream (the other local internet provider). TWC sucks!!!! I’m just gonna make that jump now. Screw it. They’ll just make the rest of you guys pay for it anyway.

Jul 29, 2013 7:03pm EDT  --  Report as abuse
pokerbud28 wrote:
Be sure that you keep a record of when you returned your modem. And the receipts from when you bought your own. I’ve read horror stories about them charging people for “failing to return” the modem they purchased for themselves.

Jul 29, 2013 7:26pm EDT  --  Report as abuse
snatchers wrote:
Time Warner…lol

If I Verizon serviced my area, I would fiber optics cable internet in a heartbeat. Not complaining about the speed of the internet, but it times out multiple times a day. I can tell especially when I’m streaming, and of course, the obvious lack of “send, receive” lighting.

The messed up thing is Time Warner is better than the other choice, Comcast.

Jul 29, 2013 8:13pm EDT  --  Report as abuse
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