Free modem holdouts reverse course, add fees From CED Magazine
Free modem holdouts reverse course, add fees
Tue, 10/02/2012 - 1:45pm Brian Santo
Time Warner Cable (TWC) and Bright House Networks have both recently announced that they will begin charging their customers rental fees for cable modems.
Many other large MSOs, notably Comcast, have long charged their customers such a fee.
TWC announced it will begin charging all of its customers a monthly fee of $3.95 for rentals and maintenance. The company has levied the fee on new customers who have signed up since January, according to Investors Business Daily.
TWC customers can avoid the fee by purchasing and installing their own modems.
It is too early to tell how many customers will do so, so estimates vary on how much revenue the fee might generate. One estimate tags it as high as $500 million annually.
Bright House notified its customers two weeks ago that it will begin to levy a $2 monthly fee, starting this month. The move was reported by the Tampa Bay Times. The fee will not be assessed on those who purchase and install their own modems.