Time Warner’s “Because We Can” One-Time Charge applies to new customers signing up for certain promotions.

Time Warner Cable has increased the monthly rental fee for its leased cable modem from $3.95 a month to $4.99 a month and has introduced a “one-time charge” of $19.99 applicable to certain Internet service new customer promotions.

CEO Glenn Britt earlier commented that Time Warner Cable had room to grow its modem lease fee:

“It was received with a minimum of push-back and we’re still actually charging less than Comcast ($7/month), so I think there is room to charge more going forward. People can buy their own if they want and a small percentage of customers have chosen to do that which is fine with us.”

For now, the increase only applies to new customers, but Stop the Cap! expects it will also eventually apply to current customers as part of the next round of rate increases. The Internet Modem with Free Home Wi-Fi, available to customers ordering 30/5 or 50/5Mbps service costs $14.99 a month.

Time Warner Cable has pulled back on customer promotions since the beginning of the year and has begun shifting its pricing for its most profitable service — broadband, to capture price-sensitive customers who have been unable to previously afford Internet-only service from the company.

Time Warner has introduced a new “Lite” tier offering 1Mbps service for $20 a month and has made the 3Mbps “Basic” service the staple of many of its bundled promotions.

Stop the Cap! strongly encourages Time Warner Cable customers to buy their own cable modems and avoid the rental fees. Customers can also bypass the rental fee by signing up for Earthlink service through Time Warner Cable.

Our top modem choice remains the Motorola SB6141, which can be found at the “Buy It Now” price on eBay as low as $77.99 with free shipping and no upfront sales tax for most buyers. This model does not include Wi-Fi, but most people don’t need it — a router generally provides Wi-Fi connectivity on its own.

We highly recommend purchasing DOCSIS 3-ready modems to avoid obsolescence issues.

The most recent list of “acceptable” modems that can be activated with your Time Warner Cable broadband service are:

We saved the only good part.

The best part of Cablevision’s latest ridiculous advertising campaign is the 12-month introductory price new subscribers will pay for phone, broadband, and television service: $84.95 a month. Not bad. The same cannot be said to the advertising agency that created this mess and the executives who approved it.

Richard Greenfield from BTIG Research, which covers Cablevision for Wall Street, isn’t impressed with Cablevision’s ads either:

We believe it is time for Cablevision to find a new ad agency, bring in some new marketing executives internally and seriously rethink what their consumer proposition is – going back to pitching the triple-play at an ever lower (now $84.95 price point) is not particularly compelling. Cablevision already has very high level of bundling of video, data and voice services across its customer base.  Given that, Cablevision should be devising a marketing approach to upsell existing customers, especially higher speed, higher ARPU broadband services (given their high margin).

Consumers concerned about the high cost of cable may not agree with Greenfield’s assessment. Paying $85 a month for a triple play package is a great deal, at least until it expires.

But we suspect a lot of consumers will never get that far through the ad, particularly when most viewers don’t pay that much attention to advertising in the first place.

With promotions from Time Warner Cable no longer being what they used to be, customers are struggling to get as much savings as possible from discount pricing and a $200 gift card offer available to those switching from a competing provider.

But expecting a $200 debit card and actually getting it are two different things, as some customers are learning.

Stop the Cap! regularly gets reader complaints from customers who signed up for Time Warner Cable promotions but are rejected for the rebate, primarily because they did not follow all the rules or waited too long.

Typically, Time Warner’s complicated rebates are only available to customers switching from another provider. New customers who don’t have active, equivalent service with another company do not qualify. If you don’t have cable television and watch shows online from Netflix or only have a cell phone for telephone service, you won’t qualify.

Other important rules:

• Customers have to stay with Time Warner for 90 days after installation with no past due balances to qualify to apply for the rebate;
• You must register your rebate on a special website within 30 days of installation;
• You must also upload a copy of the bill from your previous service provider issued within the last 90 days showing the service(s) you are cancelling.  Customer’s name and/or address on previous provider’s bill must match name and/or address on Time Warner Cable installation order;
• You will need a “redemption code” found on a postcard and/or email sent to you after installation that includes your rebate registration instructions to apply for the rebate.

With requirements like that, customers can easily be tripped up along the way and get rejected for the rebate.

We recommend customers create a folder to keep Time Warner Cable documentation in one easy-to-remember place. If you can’t find a rebate redemption code, don’t search the house. Call Time Warner Cable at 1-888-892-2253 and request one over the phone.

We also suggest you use a calendar to make note of deadlines and track your rebate so you don’t forget. Some people only discover they were rejected when they called to ask about a missing rebate card.

The biggest obstacle is usually finding and uploading a final bill showing services disconnected with the other provider. By the time some providers send your last bill, the rebate may have slipped your mind or the submission deadline has passed.

If your rebate request was denied and you made a good faith effort to follow the rules, don’t give up and say goodbye to $200.

1. Start by calling Time Warner Cable and complaining.
2. If your documentation was sent and the company claims it was not received, ask them to accept a copy.
3. If you are still rejected or if the company points you to the rebate processor who points you back to the company, file a complaint with the Better Business Bureau against the Time Warner Cable division nearest you. In reviewing several cases about rebate eligibility, it is clear Time Warner usually settles these complaints by applying a credit for the rebate card amount to your Time Warner Cable bill.

If and when your rebate card does arrive, it comes with a booklet of terms and conditions as well. Our best advice is to spend the money quickly, because after six months, the issuing bank starts deducting service fees. If you lose the card, it will cost just under $6 to get a new one.

Some suggested uses include buying gift cards with fewer restrictions (Amazon.com is a common choice) if you are worried you won’t use the card fast enough.

One of the best local places to quickly use rebate cards are in supermarkets. Keep track of your balance and when just a few dollars are left, ask the cashier to process it for the exact amount of the remaining funds on the card. The cashier can then accept another credit card, cash or a check for any remaining balance due. Do not use your reward card at a gas station, rental car company, hotel, restaurant or for bill payments. These establishments often place a temporary hold on  card funds in excess of the transaction amount or first process a test authorization on the card for a few dollars to make sure the card is valid and has adequate funds available. It can take several days before holds on those funds are released.

Frontier Communications is considering adding redundant backup fiber service in certain areas to prevent major customer outages when fiber cables get severed by contractors or storm events.

In May, 26,000 customers in the Palouse, Idaho area and all of Benewah County lost phone and Internet service after a fiber cut. Communities also lost 911 access.

Martin Erkela, Frontier general manager in Moscow, told city councilors the company is considering adding backup connections available to route around fiber cuts.

Similar redundancy would have also helped customers in the Eastern Panhandle of West Virginia who lost service for more than 14 hours after a fiber cut occurred there.

This morning, a number of West Virginians are also experiencing weather-related outages in the Morgantown, Fairmont, Wheeling and Martinsburg areas.

Frontier has experienced a number of service outages related to cable cuts, most accidentally severed during storms or by independent contractors working for other utilities or doing road maintenance or construction.

Redundant backup connections can be used to restore service when a primary fiber link is broken. Providers often don’t invest in backup service for cost reasons, especially if those circuits go unused when primary service is working normally.

Werner

Cable operators are getting ready for competition from Google and other fiber providers with an upgrade to the cable broadband standard DOCSIS that will support up to 10/1Gbps service.

Comcast chief technology officer Tony Werner told attendees at the Washington, D.C. Cable Show that DOCSIS 3.1 will deliver about a 50% improvement in spectrum efficiency.

The new standard relies on orthogonal frequency-division multiplexing (OFDM), a standard already used by the wireless industry to get tighter performance from existing wireless spectrum.

The cable industry’s weakness remains its broadband upstream capacity. Standards originally developed for cable broadband assume users will download far more content than upload, so the focus has always been on download speeds. Upload speeds have been anemic in comparison. Until recently, cable technicians worried they would have to dedicate considerably more bandwidth for faster upstream speeds, but with improved standards, that may no longer be true.

Time Warner Cable’s chief technology officer Mike LaJoie is convinced his company will not have to widen upstream bandwidth. Time Warner has been among the stingiest providers of broadband speed upgrades,  still offering residential customers in most service areas a maximum of 50/5Mbps service, even as Comcast has upgraded to 305Mbps in certain markets, mostly in the northeast. This week Comcast demonstrated 3Gbps broadband, primarily to prove the cable broadband platform will be able to compete with fiber technology.

LaJoie

The first trials of the new broadband standard are anticipated in 2014, with modems for sale later that year or early 2015. Comcast is expected to begin buying and deploying DOCSIS 3.1-capable modems “when it makes financial sense.”

Major speed increases will require cable companies to accelerate the transition to all-digital video platforms to free up available cable spectrum. The faster the offered speeds, the more channels must be dedicated to providing broadband. Operators don’t see a space crunch anytime soon, especially if they move towards an all-IP platform that would support all services through a giant broadband pipe.

Cox Cable, for example, is planning to move more of its analog channels to digital to free up capacity for faster broadband speeds.

But exactly when consumers will be able to use the faster speeds possible from DOCSIS 3.1 is up to your provider.

Time Warner Cable is not convinced customers even need or want 100Mbps speed, so expect some cable companies to not even attempt gigabit broadband for years to come.

LaJoie dismissed triple digit megabit speeds as a novelty that is not “very deeply penetrated” in the marketplace — marketspeak for “not attracting many customers.”

“There has not been a demonstrated appetite for it,” LaJoie said.