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Happy New Year Rate Increase from Time Warner Cable: The $49.99 Service Call is Here

Phillip Dampier December 27, 2011 Consumer News, Internet Overcharging, Time Warner Cable No Comments

Time Warner Cable customers in southern California face substantial rate increases in 2012, including a budget-busting $49.99 service call fee to install increasingly expensive cable service.

The bad news is arriving in customer bills this month, with substantial price hikes for cable television —  including a 27.4% increase for the package that only includes local broadcast channels.  Time Warner Cable blames increasing programming costs for the rate increases, which are several times higher than the official rate of inflation — 3.5%.  Most customers with bundled television, telephone, and Internet service will see a smaller increase on the magnitude of a few dollars, but for those picking and choosing only a few items from Time Warner’s menu, the price tag for individual services will be higher.

The largest rate increase comes when the cable company sends a truck to a home or business.  Time Warner was charging $32.99, but will now charge $49.99 — a 51.5% increase.  The cable company has also been pushing its home networking Wi-Fi option, and will now charge $69.99 to install it, up from $49.99.

Time Warner Cable spokesman Jim Gordon tells the Los Angeles Times not everyone will pay those prices.  Certain promotions may lower those rates, or waive them altogether.  But the company offered little explanation to justify such a major price hike.

One of the cable company’s competitors, DirecTV, scoffed at Time Warner’s rate increase, noting the satellite company only raised prices an average of 4% earlier this year, and anticipates a similar increase in 2012.

The effect of the latest round of rate hikes is likely to drive even more customers to cancel or cut back on cable services.  An increasing number are dropping cable television service altogether, relying on broadband for video entertainment.  The cable industry’s response to cord-cutting has been a combination of increased online viewing options for cable-TV customers and usage caps and overlimit fees on broadband that either discourage online viewing or attempts to profit from it.  Time Warner Cable executives said as recently as December they plan to eventually introduce “usage based billing” of Internet service “the right way rather than quickly.”

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  • Len G: "We have always expected this issue to be decided by the Supreme Court, and we look forward to participating in that appeal,” In other words: "We a...
  • Len G: My god is that a complicated bill. I thought mine was bad. Leave it to AT&T to be THE sleaziest company since Comcast. I was watching C-Span to...
  • Len G: "AT&T's less costly solution, U-verse, relies on fiber to the neighborhood, with existing copper wiring remaining in place between the nearest fib...
  • Dan: OK, it's not a dongle, it is a wireless hot spot. But computer supply stores will usually carry standard wireless dongles that you can use with statio...
  • Dan: If this is a USB connected dongle, it can be connected to a non-mobile PC as well (at the end of a cable if necessary to raise it to a better physical...
  • cruzinforit: Here is the cable occurence screen, this is where we'd assign service to individual boxes, so DVD boxes have DVR service. Maybe you only want hustler ...
  • cruzinforit: To be fair, there is a 6 week training course when you are hired, and most of that is devoted to icoms training and practice, and you learn really qui...
  • Phillip Dampier: Thanks for sharing some enlightening information. I can imagine a new person being confounded by some of this. Turnover is the enemy of ICOMS I guess....
  • Phillip Dampier: Actually, a Comcast rep changed the name of one of their customers to "Asshole Brown" in the billing system after an unpleasant encounter with the cus...
  • Joe V.: AT&T is the worst. F**king crooks....
  • Timothy James: Excellent inquiry! This obvious bait and switch is sure to raise a few red flags. It just doesn't get more clear-cut....
  • Timothy James: Uhh. Is the dirty Comcast joke... intentional?...

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