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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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  • Long Johnson: Didn't work for me. My promotion expired and the rate nearly doubled. All the rep offered was $30 more than my previous promotion with a 1 year commi...
  • Kauerine Langston / John Williams: I agree with everyone. We pay for WI-FI already. This is a service they should be responsible for. I also have dead spots in my house. I noticed on my...
  • Toby: A Comcast guy going around my neighborhood knocking on doors offered me the preferred plus Triple Play with 105 Mbps for $89.99/month. After addition...
  • Carmine: Hi, My contract is up Oct 10th. AT&T wants to increase my Uverse and I-net (6MPS) by 34%. Today I just used your strategy and called the 800-288...
  • Tony: As frustrating as it is, I can tell you from our experience it is the cable company For us the tuning adapter's firmware was not up to date. Cur...
  • Vikki Karan: Count me in!! I'm willing to take this cause on as well! Willing to take it all the way to DC and/or file a class action suit. Here is my story: ...
  • RG: I see the V52 on occasion with Cox in San Diego. Sometimes it's a SDV box decode error, other times it's a channel that I'm not subscribed to or doesn...
  • Vikki Karan: Major TWC issues with TiVo here in Los Angeles. We keep getting V52 errors. TWC says it is an issue with the TiVo Roamio. That there are open tickets ...
  • Scott: GCI just raised Cable TV rates and fees across the board an additional $30/mo for all customers this last month, so most that were paying $135 for a t...
  • Jim Livermore: After all of the detail in the above article, your sole comment is a critique of my first sentence? Thank you, Anonymous Coward....
  • MadBomber: >While extortion might be a little strong... What do you call forcing a payment without proof of guilt then?...
  • Phillip Dampier: Hi, I was unable to get permission to share the report, but in response to your inquiry, I can share their reply that they are using "cash flow margin...

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