These kinds of testimonials help fuel our fight on behalf of consumers for better (and cheaper) broadband:

Hi Guys,

I don’t usually take the time to write thank you’s, but I found your site the other day and managed to save over $20 on my cable bill by switching to ”Earthlink” which I had no idea was possible. When I signed up with Bright House I was promised the $45 a month price for standard Internet, but I signed up a day before their prices jumped to $50. I managed to fight to get my price down for $45, but all of a sudden that stopped and they were refusing to give me the price I signed up for, for the remainder of the year. Due to that, I switched to the Earthlink promo prices and got Bright House to switch me over. They tried to lie to me on the phone to make me think I couldn’t get the Earthlink promo pricing, but I won the argument and am now very happy.

In six months, I’ll try to switch back to Road Runner and get their promo prices.

This is such a hidden unknown gem and has saved my family lots of money. Thank you!

— Scott

Thanks Scott.  Time Warner Cable and Bright House Networks have Earthlink as a hidden little secret most customers know nothing about.  It’s an arrangement that started way back in 2001 with the now-long-forgotten (and broken up) merger between AOL and Time Warner.  A voluntary agreement to allow third party ISPs to sell broadband service over Time Warner Cable has been ongoing ever since, even though customers would routinely find Earthlink’s regular prices not so exciting, if they found them at all.

The Earthlink savings are best realized for broadband-only customers who do not want to get tied down with a double or triple-play package from their cable company.  Both Time Warner Cable and Bright House charge considerably higher prices for standalone broadband service.  It’s part of a marketing tactic to convince you better savings are possible with a bundled service package.  But if you don’t care about the phone line or cable TV, why pay for either?

For every third-party ISP we’ve encountered reselling service on Time Warner Cable or Bright House, it seems mostly an exercise in branding.  For example, Earthlink’s standard and “turbo” products are totally identical to Road Runner offered by both cable companies, with two important distinctions:

• You do not get the benefit of SpeedBoost, a temporary speed increase during the first few seconds of a file transfer;
• You are assigned an Earthlink e-mail address, not one from Bright House or Time Warner Cable.

In fact, Earthlink as a company seems to be running mostly on auto-pilot these days.  We found their website woefully outdated, still selling speeds upgraded several years ago. If Bright House locally sells 10/1Mbps standard Road Runner service and Earthlink offers 7Mbps with a 384kbps upload speed, you will actually get 10/1Mbps from Earthlink as well.  The only difference is the name of the service as it appears on your monthly Time Warner Cable or Bright House bill.  Both cable companies literally just select Earthlink from a drop-down menu on the customer service computer screen.  All service calls and billing are handled by the cable companies.  If you need technical support, however, it will come from an overseas call center or online “chat” platform Earthlink runs.  But Earthlink includes something Time Warner Cable and Bright House customers lost several years ago — up to 20 hours a month of free dial-up usage when away from home.

After the Six Month Promotion….

Earthlink charges $29.99 a month for speeds that are identical to Time Warner Cable or Bright House’s Road Runner Standard service.  In most areas this is or will soon be 10/1Mbps.  Turbo, which usually increases speeds to 15/1Mbps, costs another $10 a month.  These promotional prices are good for six months.

When the six months are up, you are then qualified to participate in whatever New Customer Promotions Time Warner and Bright House are running for their broadband service.  We are commonly seeing offers of $29.99 a month for a year of standard Road Runner service in upstate New York, with occasional offers of a year of free Road Runner Turbo service thrown in.  Assuming those prices remain in effect, you should be able to secure at least 1.5 years of broadband service for $30 a month.  Remember, if your cable company charges you a modem rental fee, consider investing in your own to save that additional charge.  They are priced well under $100.

When your six months of Earthlink and a year of Time Warner/Bright House promotional pricing is up, simply threaten to take your business elsewhere, and you will usually find them willing to extend the promotion for an additional year.  If not, schedule a cancellation date two weeks out and wait for an inevitable phone call from the customer retentions department with a special “winback” offer.

Also remember you can always start new service under the name of a spouse or family member.  Third party resellers (Google “Time Warner Cable “and pay attention to the online ads) may even throw in a prepaid rebate card for signing up for service through them, so shop around when the promotions expire.

These shopping tips may apply to other cable broadband providers as well.  Remember, if your local phone company is now providing more than traditional DSL, most cable companies will go out of their way to hang on to a customer threatening to walk to AT&T U-verse or Verizon FiOS.  Let them fight to keep you as a customer, and you keep the savings.

With Time Warner Cable’s broadband now running as high as $50 a month for standard, stand-alone service, getting the best deal possible can save you as much as $20 a month off those prices.  Time Warner Cable has been repricing their services to deliver the most value to customers who bundle all of the company’s products into a single package.  But if you don’t want television or telephone service from the cable company, you are going to pay a lot more than your service-bundled-neighbors for Road Runner High Speed Internet.

Stop the Cap! presents our strategy to help broadband-only customers get the best possible prices from Time Warner Cable:

Choose Earthlink

Customers paying Time Warner Cable’s regular prices for broadband service are paying too much.  Time Warner currently charges just short of $50 a month for Standard 10/1Mbps service (speeds are slower in some areas).  That’s up from years of charging $40 a month, slightly higher if you were a broadband-only customer.  But with the help of Earthlink, you can cut that broadband bill to $29.99 a month for the first six months.  Earthlink co-exists with Road Runner, Time Warner Cable’s own broadband service.  With just a few mouse clicks and a quick phone call, Time Warner can switch your regular price Road Runner to Earthlink without any equipment changes.  Billing and service will continue to be provided by Time Warner and the change literally takes less than five minutes by phone.

Earthlink’s broadband service is indistinguishable from Road Runner — same speeds, same level of service, with two exceptions:

• Earthlink does not benefit from PowerBoost, which delivers temporary speed increases during file downloads
• You will forfeit your rr.com e-mail address

We recommend you avoid using ISP-provided e-mail addresses when possible, because they help tie you down to an existing provider.  Instead, sign up for a free e-mail account from Google’s Gmail, or Yahoo! Mail, or any of the dozens of other web-based e-mail providers.  Or, purchase your own domain name from GoDaddy or 1and1, which includes e-mail, and either read it on those sites or forward it to a web-based e-mail provider.  Domain names can be had for under $10 a year and deliver maximum flexibility for those who want the freedom to change Internet providers.

After Six Months, Switch Back to Road Runner

When your Earthlink promotion expires at the end of six months, your price will increase to $41.95 per month.  Just before that happens, switch back to Time Warner Cable’s Road Runner service.  You qualify for new customer pricing promotions.  As of this week, Time Warner Cable in western New York is offering one year at $29.99 per month for 10/1Mbps service.  Other areas may have different pricing promotions.

After the year is up, you can start all over again, heading back to Earthlink for another six month promotional term.  Earthlink has offered its promotional plan for more than two years, and it shows no signs of ending anytime soon.

Promotional Half-Truths

Promotions come and go from Time Warner Cable, so it is wise to check with them often if the $29.99 deal is not currently running in your area.  Start by checking Time Warner Cable’s website, and remember if you are using Earthlink, you will want to select pricing for new customers.  If you find a good price on the website, you may be able to complete your order online.  Otherwise, call your local office and ask about currently running promotions.  Some common ones:

• Road Runner Turbo at 50% off for the first year;
• Road Runner Turbo free for six months;
• Road Runner with wireless router/modem free for six months to one year;
• Road Runner with free installation (especially useful if you want Road Runner Extreme/Wideband service, which carries a pricey installation fee);
• Road Runner for $29.99 for six months;
• Bundled promotions — $99 for all three services, $79 for broadband/cable or broadband/phone

Not every promotion delivers the best deal for customers, and some have been slightly deceptive, such as this speed comparison we found on the cable company’s website this morning:

Our View:

1. Time Warner Cable has been spanked before for their claims about running a “fiber network.”  In fact, their “Fiber Rich Network” is a marketing stretch.  All modern cable systems use fiber optics to help distribute their service into various communities, but coaxial copper cable delivers the signal through neighborhoods to your individual home.  Cable companies still cannot match the broadband speeds available on an all-fiber network.
2. “Powertasking” is a meaningless marketing claim.  Any high speed network will allow the entire family to effectively share a broadband connection.
3. We’re glad to know Time Warner Cable has “massive bandwidth” — more than enough to go around.  We’ll remember that if and when the company ever entertains bringing back their experimental Internet Overcharging scheme they claimed was necessary to pay for equipment upgrades to cope with broadband traffic growth.
4. It would be simpler to install Time Warner’s DOCSIS 3 upgrade if we could do it ourselves, but the cable company currently requires a mandatory service call ($67.98 fee) to install it.
5. Time Warner is being cute comparing their broadband speed with Verizon FiOS.  In fact, FiOS is faster because of what isn’t mentioned here — upstream speeds.  Time Warner tops out at 5Mbps, Verizon offers 20Mbps for uploads.  But Time Warner’s pricing is better at that download speed.  Verizon is more aggressively priced when they bundle services together.  For example, Time Warner’s $99 triple play bundle only offers 10/1Mbps service.  Verizon offers up to 25/25Mbps service for the same price.  Both include phone and television service.

Time Warner Cable customers in North Carolina are getting rate hike letters from the cable company that foreshadows what other Time Warner Cable customers around the country can expect in the coming months.

For residents in Charlotte and the Triad region, Time Warner is boosting prices for unbundled customers an average of six percent, which will impact customers not on promotional plans or who are not locked into a “price protection agreement.”

The rate increases particularly target standalone service customers.  Those with the fewest services will pay the biggest increases.  Those who subscribe to cable, phone, and broadband service from the company will suffer the least.

A Time Warner Cable spokesman claimed the company is just passing on the cost of programming.

WXII-TV in Greensboro reported that for many customers already struggling with their bills, they don’t want to hear anything about a price hike.

“I think it’s ridiculous at this time with the economy — it’s hard to make it as it is,” one customer told the station.

“I wish there was a better option out there, but it’s about the only thing you can get,” said another viewer.

Time Warner has been developing pricing models that increasingly push customers towards bundled packages of services.  Standalone broadband service saw dramatic price increases in many areas in 2010, and the company’s most aggressive new customer promotions encourage customers to take all three of its services.

But broadband customers need not expose themselves to inflated broadband prices for standalone service.  Most Time Warner Cable franchises offer Earthlink broadband at comparable speeds at prices as low as $29.95 per month for the first six months.  When the promotion expires, customers can switch back to Road Runner at Time Warner’s promotional price.

Time Warner does face competition in some areas of North Carolina from AT&T U-verse, which offers attractive promotional pricing for new customers.  But the phone company’s broadband speeds come up short after Time Warner boosted speeds across much of the state.  The cable company now delivers Road Runner at speeds of up to 50/5Mbps.  AT&T tops out at 24Mbps, and not in every area.

When a competitor can’t deliver the fastest speeds, they inevitably claim consumers don’t want or care about super-fast broadband.

“We are focused on offering the broadband speeds that our customers need, at a price that they can afford,” said AT&T spokeswoman Gretchen Schultz.

Greenlight promotes its local connection to Wilson residents

Some North Carolina consumers are watching AT&T’s slower speeds and Time Warner’s price hikes from the sidelines, because they are signed up with municipal competitors.

Residents in Wilson with Greenlight service from the city don’t have to sign a contract to get the best prices and obtain service run and maintained by Wilson-area employees. The provider has embarked on a campaign to remind residents that money spent on the city-owned provider stays in the city.

In Salisbury, Fibrant is making headway against incumbent Time Warner as it works through a waiting list for customers anxious to cut Time Warner’s cable for good.  Fibrant customers are assured they’ll always get the fastest possible service in town on a network capable of delivering up to 1Gbps to businesses -and- residents.

MI-Connection, the rebuilt former Adelphia cable system now owned by a group of local municipalities is managing to keep up with Time Warner with its own top broadband speeds of 20/2Mbps.  The system is comparable to a traditional cable operator and does not provide fiber to the home service.  Its 15,000 customers in Mooresville, Cornelius and Davidson are likely to stay with the system, but it is vulnerable to Time Warner’s bragging rights made possible from DOCSIS 3 upgrades.  Since Time Warner does not provide service in most of MI-Connection’s service area, city officials don’t face an exodus of departing customers.

But that could eventually change.  Some MI-Connection customers have reported to Stop the Cap! they have begun to receive promotional literature from Time Warner Cable for the first time, and there are growing questions whether the cable company may plan to invade some of MI-Connection’s more affluent service areas.  Cable companies generally refuse to compete with each other, but all bets are off when that cable company is owned by a local municipality.

For most North Carolina residents, AT&T will likely be the first wired competitor, with its U-verse system.  To date, U-verse has drawn mixed reviews from North Carolina consumers.  Many appreciate AT&T’s broadband network is currently less congested than Road Runner, and speeds promised are closer to reality on U-verse compared with Road Runner during the early evening.  But some AT&T customers are not thrilled being nickle-and-dimed for HD channels Time Warner bundles with its digital cable service at no additional charge.  And for households with a lot of users, AT&T can run short on bandwidth.

“We have five kids — three now teenagers, and between my husband’s Internet usage and me recording a whole bunch of shows to watch later, we have run into messages on U-verse telling us we are trying to do too much and certain TV sets won’t work until we reduce our usage,” writes Angela.  “AT&T doesn’t tell you that you all share a preset amount of bandwidth which gets divided up and if you use it up, services stop working.”

Angela says when she called AT&T, the company gave her a $15 credit for her inconvenience, and the company claims it is working on ways to eliminate these limits in particularly active households.  For now, the family is sticking with U-verse because the broadband works better in the evenings and she loves the DVR which records more shows at once than Time Warner offers.  Their U-verse new customer promotional offer saves them $35 a month over Time Warner, at least until it expires.

“From reading about Fibrant and Greenlight on your site, my husband still wishes we lived in Salisbury or Wilson because nothing beats fiber, but at least what we have is better than what we used to have,” she adds.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WXII Greensboro TWC Raising Rates 11-16-10.flv[/flv]

WXII-TV in Greensboro reports of Time-Warner Cable’s rate hikes for the Piedmont Triad region of North Carolina.  (2 minutes)

Another rate increase letter from Time Warner Cable (click to enlarge)

For the second time in a year, Time Warner Cable is jacking up the rates on its Road Runner broadband service for residents in western New York.

Stop the Cap! reader Patrick in Rochester sent word and a screen image of a letter he received notifying him Time Warner Cable was raising the price on standalone Road Runner service to $54.95 a month, effective September 1st.  Patrick, and other customers who are only interested in getting broadband service from the cable company, were paying just under $45 a month for Road Runner standalone service in early 2009.  Today, standalone service runs $49.99 a month, but the cable company is back looking for another $5 a month starting this fall.

July 30, 2010

Dear Road Runner Customer,

We are writing to inform you that effective September 1, 2010, we will be increasing the price of our Road Runner High-Speed Internet product from $49.99 to $54.95 per month for all Road Runner Standard only customers.

If you are currently receiving Road Runner High-Speed Internet products at a discounted rate, your current discounted rate will continue until the term of your promotion is complete.  Your rate will increase to the new retail rate noted above or the effective retail rates at that time.

This rate will also apply as of September 1, 2010 for those customers with two separate Time Warner Cable accounts at the same address.  Please contact us if you’d like to combine these accounts.

Keep in mind there are many packages available allowing you to bundle our video and phone products together with your Road Runner High-Speed Internet for substantial savings….

Time Warner Cable, like many cable providers, wants to discourage customers from taking only one of its products, so it gradually increases prices to drive customers to its “better value” bundled services.  As for broadband, Time Warner Cable executives have made it clear they can raise prices whenever they want.

Landel Hobbs, Chief Operating Officer for Time Warner Cable, told investors this past February consumers love their Road Runner service.

“Consumers like it so much that we have the ability to increase pricing around high-speed data,” Hobbs said.

At $55 a month, standalone Road Runner becomes increasingly difficult to justify for many consumers, but for residents in cities like Rochester, the only alternative is far slower DSL service from Frontier Communications, complete with its 5GB monthly usage allowance.

However, you can leap off the Time Warner Rate Increase Railroad by switching to Earthlink, which is running a promotion for six months of 10Mbps service for $29.95 per month.  Earthlink service is indistinguishable from Road Runner, except Earthlink speeds do not benefit from “Powerboost” — Time Warner Cable’s very temporary speed boost during the start of large file transfers.  Most customers will prefer the boost they receive from keeping the $25 difference in price in their wallets — $150 over the life of the promotion.  At the end of six months, you can hop back to Time Warner Cable’s Road Runner service on a new customer promotion at a significant discount.  No modem exchange is required — the switch to and from Earthlink can be done over the phone.  Billing is done by Time Warner Cable for both services.  Just be aware your Road Runner e-mail account will be closed when you change providers.

You can escape Time Warner Cable's Road Runner rate hike by switching to Earthlink service at a substantial discount.

Earthlink, which depends on phone and cable companies to deliver its broadband service, has imposed a monthly usage limit of 250 gigabytes on its customers obtaining service from Comcast.

Customers began receiving postcards in May notifying them about the change in service terms which took effect July 1st.  Earthlink blamed the usage limits solely on Comcast, noting they were dependent on other companies to provide the infrastructure necessary to reach customers:

Comcast and other cable providers provide portions of the network that EarthLink High Speed Cable service uses to deliver broadband Internet access. EarthLink provides the other portions of the network and services like Webmail and the myEarthLink Start Page®.  EarthLink works with its business partners, like Comcast, to manage the network infrastructure.  […]Because Comcast is EarthLink’s business partner in providing the EarthLink Powered by Comcast Service, EarthLink is working closely with Comcast in implementing this Usage Cap.

Internet providers routinely sell the benefits of their broadband accounts to better accomplish data-heavy activities like online video using their service, even though in some cases all of that "heavy use" is being used as an excuse to implement usage limits on customers.

In reality, Earthlink offers little more than a handful of its own services to customers.  Most of its network connectivity, billing, and other services are handled by the providing cable or phone company.  Customer support with many technical issues is handled by Earthlink’s own off-shore technical support staff.

Still, Earthlink had offered an alternative to those threatened with Internet Overcharging schemes by Time Warner Cable and Comcast because the company had not adopted those usage limits until Comcast insisted they follow suit.  Presumably with this precedent in place, any other Overcharging schemes imposed by these providers would also impact their respective Earthlink customers.

For those violating the usage limits, enforcement won’t come from Earthlink.  Instead, the provider warns, Comcast will be the entity that comes down on your head.

For now, Earthlink customers will have to call the company (888-327-8454) to determine how much data they’ve used during the month as the Comcast data usage meter is apparently only for Comcast customers.