Cahill

A New York assemblyman is telling his upstate constituents to stop wasting money on Time Warner Cable’s monthly broadband modem equipment fee and buy your own device.

“I want consumers to know that they do not have to waste their hard-earned money on a product which was considered free for years,” said Assemblyman Kevin Cahill (D-Kingston) in a statement to members of his district. “Over the course of a year or two, depending on the model, the purchase of a new modem will pay for itself. Additionally, the models for purchase have more features than leased modems, like faster speeds and the capability to handle unlimited wireless devices.”

Time Warner expects less than three percent of its customers will take Cahill’s advice and avoid the $3.95 monthly fee, which opens a new, lucrative revenue stream for a cable operator that already enjoys up to 95 percent gross margin on its broadband service.

Cahill complained the 1996 U.S. Telecom Act prohibits the state’s Public Service Commission from intervening, but reminded customers there is a joint New York-New Jersey class action lawsuit against the cable operator over how the modem fee was implemented.

As of Jan. 14, Time Warner Cable has approved the following modems-for-purchase that can be activated for use with its broadband service, with our recommendations in red:

Other stories of interest:

1. Time Warner Cable Expands Approved Cable Modems for Purchase List
2. Northeastern Time Warner Cable Internet Customers Will Pay $3.95/Month Modem Fee Nov. 1
3. Time Warner Cable Adds $2.50 Monthly Modem Rental Fee for New Customers; Buy Your Own
4. Judge Dismisses Hidden Cable Modem Fee Lawsuit Against Comcast
5. Update #2: Time Warner Cable Will Begin Charging Virtually All Customers $3.95 Cable Modem Rental Fee