Denver residents are discovering that when Comcast says they’re getting a “free speed upgrade,” what they really mean is that upgrade is going to cost you an additional $2 more per month.

Comcast recently increased broadband speeds in Denver “for free,” but now Mile-High City residents are discovering free comes at a price with Comcast.

The price of renting your cable modem is increasing by $2 a month, which means the majority of Comcast customers locally will now spend $5 per month just for the modem.

Denver, Colorado (Courtesy: Yassie)

Comcast blamed the increase on costs associated with upgrading their network facilities to support DOCSIS 3, the latest cable modem standard which supports vastly faster Internet speeds.

Comcast spokeswoman Cindy Parsons said in a statement that the company continually invests in providing customers with next-generation equipment and technology that delivers advanced Internet services with enhanced capabilities.

“Our costs for this new equipment will increase by 167 percent over the next two years,” Parsons said.

Comcast has been increasing the modem rental price on a city-by-city basis across the country, often after speed upgrades like that completed in Denver which doubled speeds from 6 to 12Mbps late last year.

If just two-thirds of Comcast customers nationwide continue to simply pay the monthly rental fee, the company will earn more than $250 million in annual revenue just on the two dollar rate hike.  Is that enough to pay for service upgrades so we can dispense with talk about Internet Overcharging schemes like usage caps and consumption billing?

Stop the Cap! reminds readers Comcast subscribers can purchase their own cable modem from electronics retailers, often for $100 or less, and never pay a rental fee again.

At $60 a year, customers will more than pay for their modem purchase after less than two years.