Time Warner Cable notifies customers of internet modem fees hike

Screen shot of the notice provided to some customers in Central New York

Time Warner Cable customers are

receiving notice of an increase

in internet modem rates.

Many customers will now be charged $5.99 to lease an internet modem. This is up from $3.95, which Time Warner Cable began charging internet customers last November,

according to Reuters


"The modem lease fee is being adjusted as weâ??ve continued to deploy upgraded equipment and cycle out older modems as well as provide ongoing equipment maintenance and support to ensure optimal performance for our customers," Director of Public Relations Scott Pryzwansky told CNY Central. "Customers have a choice â?? they can opt out of the equipment charge if they prefer to purchase their own cable modem that is compatible with our Internet service. A list of approved modems is available on our website."

When asked why the rental fee, which was instituted less than a year ago, increased so soon, Pryzwansky said the increase "will allow us to continue providing equipment in excellent condition and make ongoing investments to ensure we can meet the growing demand of our Internet business."

The increase impacts internet customers who are not on a promotional plan. The increase may vary depending on the level of internet service. The average Syracuse customer has the $51.99/month plan.

Time Warner Cable confirmed last Thursday that customers may see about a $3 increase in their internet bills starting on August 9.

"The equipment charge remains competitive, and in many cases lower, than similar charges made by other providers," says Pryzwansky.

Reuters reports that the higher fees for the companyâ??s 12 million customers could produce $150 million in additional revenue for Time Warner Cable this year.

Customers can avoid the modem lease fee by purchasing a Time Warner Cable compatible modem. A list is available

on the companyâ??s website