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WOW! Prices Up $8/Month As Operator Adds Broadcast TV ‘Surcharge’

Phillip Dampier January 31, 2013 Competition, Consumer News, WideOpenWest No Comments
Experiencing a higher bill.

Experiencing a higher bill.

WOW!, formerly WideOpenWest, is informing many of its customers it is raising rates $8-9 a month — $5 for bundled customers and a new $3-4 a month “Broadcast TV Surcharge” the company claims covers the increasing amount of fees charged by local broadcasters in return for permission to carry their signals on the cable system. The amount of the surcharge varies depending on costs in a particular market.

The excuse for the increase: increased programming costs.

WOW! equipment fees have also increased. The HD-DVR box that used to cost $9.99 will now be priced at $13 a month. A standard HD set top box is only increasing a penny — $4.99 to $5.

Customers complain WOW!’s prices are now approaching parity with competitors including Time Warner Cable and AT&T U-verse. Both competing providers have increased promotional mailings in areas where WOW! is increasing prices.

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3 Owners in 3 Years And Lawrence, Kansas Still Stuck With Harshly-Capped Cable Broadband

Top-rated WOW! only delivers service in a handful of cities in the midwest, but is getting larger after acquiring Knology.

Lawrence, Kansas can’t catch a break. While their neighbors in Kansas City are preparing for Google’s unlimited-use gigabit broadband, the three different owners of the area’s cable operation in the last three years have stuck local residents with usage caps as low as 5GB per month.

What began as Sunflower Broadband, formerly owned by the The World Company, which publishes the daily Lawrence Journal-World, has now been sold to a new owner that plans to leave the current caps in place.

Knology of Kansas Inc., a division of West Point, Ga.-based Knology acquired the Sunflower operation for $165 million in 2010. This week, WideOpenWest (WOW) announced it had completed a system-wide acquisition of Knology, including the former Sunflower system for $1.5 billion.

Consumers in Lawrence hoping for something better from one the nation’s top-consumer-rated cable operators will apparently have to wait. The company announced it was planning no immediate changes to its services or rates, said Rod Kutemeier, who currently remains general manager of the operation.

“Which means while Kansas City becomes a gigabit broadband city with unlimited-use broadband ranging in price from free to $70 a month, we’re stuck with this lousy cable operation that wants $53 a month for 18/2Mbps service with a nasty 50GB data cap and up to $1/GB overlimit fee,” says former Knology customer Sam. “I switched to U-verse, which is only mildly less criminal with their 250GB cap.”

Sam’s price represents standalone broadband service and includes Knology’s $5 monthly modem rental fee. If he purchased video service from the company, his broadband rate would be $10 lower.

Sunflower Broadband introduced one of the country’s first broadband Internet Overcharging schemes, limiting customers on the company’s lowest speed tier to 5GB of usage per month. The company later introduced devotees of unlimited, flat rate access to a reduced priority unlimited option for just shy of $60 a month, with no quoted speed or promise of performance.

Lawrence cable subscribers were hopeful the new owners would adopt pricing and service similar to what WOW offers elsewhere. WOW tells its other customers it does not impose usage limits or consumption-based billing of any kind. But that doesn’t hold true in Lawrence.

“They need to get rid of the current management which continues this ripoff scheme and bring in the same WOW mindset that gave them top ratings in magazines like Consumer Reports,” shares Stop the Cap! reader Sam.

WOW currently offers most customers broadband speeds of 2/1, 15/1, 30/3, and 50/5Mbps. Knology of Kansas offers service at speeds of 5/1, 18/2, and 50/5Mbps — all usage capped.

Pricing and packages for Lawrence, Kansas’ local cable company will remain the same… for now.

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New Product Lets Broadband Providers Notify Customers When They ‘Use Too Much’ Internet

Are you using too much Internet service?  If your service provider thinks you are, it can alert you by barging in on your web-browsing sessions with forced notification messages warning you are about to be the latest victim of Internet Overcharging.

PerfTech, a maker of browser messaging systems has teamed up with Active Broadband Networks to deliver providers a way to notify up to two million subscribers about their broadband usage from just a single rack-based system.

“Feedback from ISPs who have deployed usage-based Internet tiers has confirmed that two factors are key to success: accurate usage measurement and quick, proactive notifications,” PerfTech vice president of sales Jane Christ said in a statement.

Most browser message injection systems are used to warn customers when they are approaching monthly usage limits or excessive use charges.  Some can even redirect web users to a single ISP-administered website to alert them their service has been suspended or request payment for additional usage with a credit card.

So far, only smaller U.S. providers are using PerfTech’s system, including WideOpenWest, BendBroadband in Oregon, and Buckeye Cable in Ohio.

  • WideOpenWest doesn’t appear to limit usage except for newsgroups.  According to their FAQ, users may download up to 5GB per month of newsgroup content;
  • Bend Broadband has a 100GB monthly limit on all but its highest speed Internet plan, which carries a 150GB monthly limit.  The overlimit fee is $1.50 per gigabyte.
  • Buckeye Cable favors “network management” techniques, which can slow down customers deemed to be using too much, at its discretion.  But the company does have a 3GB strict usage cap on newsgroup access.  Exceeding it is very costly.  The overlimit fee is a whopping $45 per gigabyte.
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