Home » Broadband Speed »Cable One »Competition »Consumer News »Data Caps »Online Video »Rural Broadband » Currently Reading:

Cable One: A Regime of High Prices and Data Caps

Cable One has the highest average revenue per customer of any publicly traded cable company in the United States, with the average customer paying Cable One $70.80 a month, mostly for internet access.

The company’s first quarter earnings growth of 5.5% reflect the company’s recent price increases and regime of low-allowance data caps, which have pushed 10 percent of its customers to pay an extra $40 a month to bring back unlimited access. Others are upgrading to costlier, faster tiers with more generous usage allowances.

“During the first quarter, we saw roughly 50% of our new customers choose our 200 Mbps or higher speed service and nearly 10% of our new customers opted to purchase our unlimited data plan,” said Julia Laulis, Cable One CEO.

Laulis

Cable One’s 200 Mbps plan (with a 600 GB data cap) costs $65 a month after promotions expire. A DOCSIS 3.0 modem lease fee of $10.50 applies. A $2.75 monthly internet service surcharge may apply. If a customer wants unlimited access to avoid overlimit fees, there is an additional charge of $40 a month (a 5 TB cap applies to the “unlimited plan”). Customers choosing a 200 Mbps broadband-only package with unlimited data will pay up to $118.25 a month.

Cable One’s broadband customers are concerned about staying within the data caps to avoid overlimit fees. While Comcast and Charter Spectrum customers consume over 300-400 GB of data per month (Comcast has a 1 TB cap, Spectrum only sells unlimited service), Cable One customers use an average of 290 GB, with usage growing at a 30-35% annual rate. Many Cable One customers have little choice either. Laulis noted that Cable One’s DSL competition is not very relevant when customers want to watch streaming video. Speeds are often so slow, customers do not have a good experience streaming HD video over DSL.

 

Cable One is also shedding its video customers in record numbers, with just 305,000 of its cable TV customers left. More than 29,000 departed year over year, and that number continues to rise as consumers rebel against the company’s high prices and unwillingness to negotiate.

MoffettNathanson warned that Cable One’s high pricing may eventually price itself out of broadband growth, as consumers elect to sign up with telephone companies instead. But many of its service areas are still served by low-speed DSL, and despite Cable One’s high cost, the company added 10,600 new internet customers in the last quarter.

In addition to raising prices, the company also plans to spend between $9-11 million to change its name from Cable One to Sparklight over the next two years.

0 0 vote
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
L. Nova
L. Nova
1 year ago

Unreal. Talk about arrogance, greed and monopoly abuses.

Search This Site:

Contributions:

Recent Comments:

  • txpatriot: The number portability fee was supposed to be limited to a five year cost recovery period. See 47 CFR 52.33: http://www.law.cornell.edu/cfr/text/47/...
  • Phillip Dampier: Will you be able to attend Monday's PSC meeting in Buffalo? We will be there and it would be fun to meet....
  • Rob: Actually, I just looked at the Chattanooga service website, and if I create a "custom bundle" with the top service for each sect, excluding premium ch...
  • Loons in June: Isn't that what a company is supposed to do?...
  • jr: AT&T nickle and dimes customers but can afford to have a 5% plus dividend yield on their stock...
  • Michael Elling (@Infostack): Hypocrisy feeds on hypocrisy. These taxes and fees (including auctions) are regressive and hurt the lower quintile of demand on a relative basis. ...
  • David Uhl: VIASAT/WILDBLUE SUCK!!! WHEN I CAN CANCEL MY MEMBERSHIP I WILL AND THEY'LL NEVER GET ANOTHER DIME OUT OF ME AGAIN! THEY MAKE ME SICK! STEALING PPLS...
  • JayS: Any head to head comparison rate tables, to share,with the monthly fee schedules for customers in existing Community Owned Systems providing broadb...
  • B: Thank you so much for the article. It was very helpful!...
  • Phillip Dampier: We certainly appreciated McCain's efforts, but his voting record on broadband issues is far less pro-consumer. In my experience, most of our readers ...
  • Limboaz: There is more than one way to skin a cat. My own senator (McCain) has tried to break up cable bundles and force a la carte options for consumers. IMO,...
  • Phillip Dampier: Bob Latta is an enemy of his own constituents' interests, but it's not surprising considering how much he takes from the industry he supports. Ohio co...

Your Account:

138
0
Would love your thoughts, please comment.x
()
x
Stop the Cap!