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Free modem holdouts reverse course, add fees

Tue, 10/02/2012 - 1:45pm
Brian Santo

Time Warner Cable (TWC) and Bright House Networks have both recently announced that they will begin charging their customers rental fees for cable modems.

Many other large MSOs, notably Comcast, have long charged their customers such a fee.

TWC announced it will begin charging all of its customers a monthly fee of $3.95 for rentals and maintenance. The company has levied the fee on new customers who have signed up since January, according to Investors Business Daily

TWC customers can avoid the fee by purchasing and installing their own modems.

 It is too early to tell how many customers will do so, so estimates vary on how much revenue the fee might generate. One estimate tags it as high as $500 million annually.

Bright House notified its customers two weeks ago that it will begin to levy a $2 monthly fee, starting this month. The move was reported by the Tampa Bay TimesThe fee will not be assessed on those who purchase and install their own modems. 

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