Time Warner Cable raises Internet modem fees for customers

Mon Jul 29, 2013 6:04pm EDT

The Time Warner Cable office is shown in Carlsbad, California November 5, 2012. REUTERS/Mike Blake

The Time Warner Cable office is shown in Carlsbad, California November 5, 2012.

Credit: Reuters/Mike Blake

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(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.

(Reporting by Liana B. Baker; Editing by Leslie Adler)

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Comments (4)
arbit3r wrote:
Yea head to store buy you own modem. save the 6$ a month it will pay for itself after just over a year

Jul 29, 2013 6:26pm EDT  --  Report as abuse
rossryan wrote:
Indeed. Just buy the damn thing…well, a better model, from an online retailer. One which doesn’t need constant resetting because you’re downloading too much too quickly, etc., which seemed to be an issue with some cable modems.

Jul 29, 2013 10:09pm EDT  --  Report as abuse
I’d love to know how much the Amerikan gov’t is paying TWC for allowing it to use their facilities to spy on its own citizens using the Citizens own tax money to do it. Now they need another $150 million for what again? Oh yeah to offset the increase bonuses of the Executives who secretly ok’d the deal with them.
Sweet their using our money to spy on us, now there’s a scam for you.
God help this country cause the people don’t seem to give a rip.

Jul 29, 2013 12:12am EDT  --  Report as abuse
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