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Comments on news posted 2012-10-09 12:36:49: An insider at Charter Communications tells Broadband Reports that the company will soon start charging a $200 "activation fee" for the company's 100 Mbps tier. ..


88615298
Premium
join:2004-07-28
West Tenness

If you can afford the 100 Mbps tier

you can afford the $200 activation fee.

I wouldn't pay $110 a month for 100 Mbps if you gave me free activation and no cap.
Bhruic

join:2002-11-27
Toronto, ON
kudos:2

Re: If you can afford the 100 Mbps tier

Is "you can afford to pay it" the metric that we are now using to determine if something is priced fairly?

88615298
Premium
join:2004-07-28
West Tenness

Re: If you can afford the 100 Mbps tier

said by Bhruic:

Is "you can afford to pay it" the metric that we are now using to determine if something is priced fairly?

Yes it is and always has been. Is $250K a "fair price" for a Lamborghini? It's a car. I takes you from point A to point B like a $15,000 Kia.
Bhruic

join:2002-11-27
Toronto, ON
kudos:2
Reviews:
·TekSavvy DSL

Re: If you can afford the 100 Mbps tier

You've rather missed the point. If all the people paying $110/mth now could afford to pay $1000/mth, would that justify Charter in making the price increase? The issue isn't what people can afford to pay, it's what people are willing to pay.

88615298
Premium
join:2004-07-28
West Tenness

1 recommendation

Re: If you can afford the 100 Mbps tier

said by Bhruic:

You've rather missed the point. If all the people paying $110/mth now could afford to pay $1000/mth, would that justify Charter in making the price increase? The issue isn't what people can afford to pay, it's what people are willing to pay.

No YOU miss the point.

A) Things are priced based on what people are willing to pay.

B) Charter doesn't have to justify it's costs. Not to you or anyone else. Charter could charge $1000 for installation. Guess what, no one would get that tier then and then Charter will adjust pricing accordingly.
Bhruic

join:2002-11-27
Toronto, ON
kudos:2
Reviews:
·TekSavvy DSL

Re: If you can afford the 100 Mbps tier

You really need to work on reading better, because when I say "it's what people are willing to pay", you can't really come back with "No, it's what people are willing to pay!". Well, I guess you can, but you look silly.

Similarily, I wasn't asking them to justify their costs. I was refuting your point that this is a perfectly acceptable charge for no other reason than the fact that people can afford to pay it. Being able to afford to pay something doesn't automatically mean that it's an acceptable charge.
rradina

join:2000-08-08
Chesterfield, MO
Well, kind of if after you buy the 250K Lamborghini it costs you $100K/month to maintain it.

88615298
Premium
join:2004-07-28
West Tenness

Re: If you can afford the 100 Mbps tier

So someone paying $1320 a year for 100 Mbps internet can surely afford a ONE TIME $200 fee.
mj3431

join:2003-04-21
STL, MO
Reviews:
·Charter

Re: If you can afford the 100 Mbps tier

You're assuming that everyone is getting the service at the standard rate. I'm currently getting 100M for $60/mo as part of my bundle. When the promotion ends I'll surely go back to 30 instead of paying nearly double just to keep this package.

This way they'll be able to charge the $200 "activation fee" to discourage people like me from taking advantage of great pricing in the future. Funny thing is Charter called me and offered me this spectacular deal, which I verified here on the direct forum before proceeding back in March.

88615298
Premium
join:2004-07-28
West Tenness

Re: If you can afford the 100 Mbps tier

said by mj3431:

You're assuming that everyone is getting the service at the standard rate. I'm currently getting 100M for $60/mo as part of my bundle. When the promotion ends I'll surely go back to 30 instead of paying nearly double just to keep this package.

This way they'll be able to charge the $200 "activation fee" to discourage people like me from taking advantage of great pricing in the future. Funny thing is Charter called me and offered me this spectacular deal, which I verified here on the direct forum before proceeding back in March.

if you're getting it at a promo rate you already have it and thus won't be charged the $200. This is only going to affect NEW 100 Mbps customers and they won't have a promo rate.
mj3431

join:2003-04-21
STL, MO
Reviews:
·Charter

Re: If you can afford the 100 Mbps tier

I understand that it only applies to NEW 100m activations. My point was that when they bring promotions back (and they will at some point) this will discourage customers from purchasing the higher rate tier. This is simply a move to slow uptake on this tier since it costs them much more to upgrade the network, split nodes etc. to support it.
rradina

join:2000-08-08
Chesterfield, MO
I agree they can afford it but usually the more "luxury" the item, the more free perks. I believe BMW offers lifetime free routine maintenance (whatever that means). It sure sounds better than paying $200 to install Charter's elite package.

If you ask me, the $200 install fee is to discourage folks from getting it because, perhaps, just perhaps, too many folks are signing up for it and they are having trouble supporting it. Either that or folks who get it bench the performance and when they don't get what they believe they deserve, Charter has to "tweak" their install (run a new drop, split the node) until the are satisfied.

88615298
Premium
join:2004-07-28
West Tenness

Re: If you can afford the 100 Mbps tier

said by rradina:

If you ask me, the $200 install fee is to discourage folks from getting it

I though that's what the price increase from $88 to $110 was for.

perhaps, just perhaps, too many folks are signing up for it and they are having trouble supporting it.

I doubt that "too many" people are signing up to pay $110 a month for internet.

elios

join:2005-11-15
Springfield, MO

Re: If you can afford the 100 Mbps tier

thought that was how supply and demand worked
ether every one is getting it there for price goes up or they are just trying to keep keep people from getting it

its one or the other you cant have it both ways
rradina

join:2000-08-08
Chesterfield, MO
If few sign up, then their statement doesn't make sense. There's not enough revenue made to fund those incremental investments. I really don't care if they charge an install fee but this smells a lot like a Billy Mays infomercial where if you buy one at $19.99, you get one free, just pay a separate $15.99 processing/postage/shipping/handling/whatever fee.


Ultra is a premium service which results in higher incremental network investments, equipment costs, and other operating expenses," the company tells me. "In an effort to maintain reasonable monthly recurring service fees, we have implemented a higher installation fee for Ultra customers."

This statement is especially full of hot air in an economy that loves to give stuff away but charge a monthly fee for the life of the product. The RIAA would just love to get rid of the concept of selling a song on any medium if they could figure out a way to charge you every time you play a song.

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1
said by Bhruic:

Is "you can afford to pay it" the metric that we are now using to determine if something is priced fairly?

just half of the supply and demand equation that sets prices in a capitalist market.
--
--Standard disclaimers apply.--
Expand your moderator at work
big_e

join:2011-03-05
As long as it benefits a corporation, or the wealthy the answer is yes. But when it comes to taxes, or anything that will benefit the poor or middle class the answer is no.

franknalco

join:2005-01-27
Littleton, CO
Non-recurring charges have been rising as companies try to recoup money lost from other sources, at least in the b2b segment. This has been the trend especially in markets where the monthly recurring charges have been under pricing pressure.
Charter operates in a lot of 3rd-tier markets, i.e. places like St Louis. This often gives them an advantage because of the lack of competition. If you have to have 100 Mb service and they are the only ones around to provide it, they can count on whoever needs that level of service to come to them regardless of the NRC. It is a charge many business won't spend a lot of time thinking about. They will try to keep the MRC as low as possible and usually don't negotiate the NRC. So on the b2b segment, the NRC has been rising.
For the last 10 years, MRCs have been falling in b2b markets, not just in the US, but around the globe. Margins are very thin the on b2b side in most markets where there is more than one strong player. What i used to pay for a T1 I can now get an OC3 in many markets, but usually with a much higher NRC/Install cost. NRCs have been rising, and $200 - $500 for an install is not unusual. I guess if you want a level of service that is often consumed by businesses and enterprises, then you will probably have to pay the same NRC, or perhaps more since consumers usually can't negotiate a deal for themselves.

battleop

join:2005-09-28
00000
You seem to have forgotten that people are entitled to 100Mbps and therefore the $200 activation fee is just a money grab by Charter.

root@battleop# killall -HUP sarcasm
--
I do not, have not, and will not work for AT&T/Comcast/Verizon/Charter or similar sized company.
Ahuacamolli

join:2001-11-30
Rancho Santa Fe, CA
But you would be okay with Charter's 500 GB cap for it's 100 Mbps residential cable internet service?

DaSneaky1D
what's up
Premium,MVM
join:2001-03-29
The Lou

IB4T$200AF

Own my modem and promo on 100mbps....

Feel like I made it just in time!
john_fla

join:2002-09-10
Gainesville, FL

Re: IB4T$200AF

How much of a promo?
Chuck_IV

join:2003-11-18
Connecticut
said by DaSneaky1D:

Own my modem and promo on 100mbps....

Feel like I made it just in time!

And this fee is how they will get you to stay on that 100mbps speed, even when your promo runs out and the price goes up.
When your promo runs out, either pay them the higher $110/mo and avoid the $200 fee OR drop to the 30mbps package, but when you wanna go back to the 100mbps package, cough up an additional $200.

I'm on a great promo now for the 100mbps package, but when it runs out, it's back to the 30mbps.

88615298
Premium
join:2004-07-28
West Tenness

Re: IB4T$200AF

said by Chuck_IV:

said by DaSneaky1D:

Own my modem and promo on 100mbps....

Feel like I made it just in time!

And this fee is how they will get you to stay on that 100mbps speed, even when your promo runs out and the price goes up.
When your promo runs out, either pay them the higher $110/mo and avoid the $200 fee OR drop to the 30mbps package, but when you wanna go back to the 100mbps package, cough up an additional $200.

I'm on a great promo now for the 100mbps package, but when it runs out, it's back to the 30mbps.

There isn't a $200 activation fee on 30 Mbps. And if you're already on 100 meg and you dropped down to 30 Mbps there wouldn't be ANY activation fee at all. So please.
Chuck_IV

join:2003-11-18
Connecticut

Re: IB4T$200AF

said by 88615298:

said by Chuck_IV:

said by DaSneaky1D:

Own my modem and promo on 100mbps....

Feel like I made it just in time!

And this fee is how they will get you to stay on that 100mbps speed, even when your promo runs out and the price goes up.
When your promo runs out, either pay them the higher $110/mo and avoid the $200 fee OR drop to the 30mbps package, but when you wanna go back to the 100mbps package, cough up an additional $200.

I'm on a great promo now for the 100mbps package, but when it runs out, it's back to the 30mbps.

There isn't a $200 activation fee on 30 Mbps. And if you're already on 100 meg and you dropped down to 30 Mbps there wouldn't be ANY activation fee at all. So please.

Sigh... I know there is no fee to drop to the 30mbps tier.
The point is if you drop to the 30mbps and decide you wanna go back to the 100mbps, it will cost you $200. So you either STAY in the 100mbps tier now or pay them $200 later when you wanna go back.

88615298
Premium
join:2004-07-28
West Tenness

Re: IB4T$200AF

said by Chuck_IV:

Sigh... I know there is no fee to drop to the 30mbps tier.
The point is if you drop to the 30mbps and decide you wanna go back to the 100mbps, it will cost you $200. So you either STAY in the 100mbps tier now or pay them $200 later when you wanna go back.

That's dumb. Why would one play musical speed tiers? And if that's what one does oh well. I'm supposed to feel bad for someone that does that? If 100 Mbps is so fricken awesome I guess it's worth the $200 fee.
wingrider01

join:2006-07-25
Saint Louis, MO
Agree, changed a couple of months back - 94.00 a month no promo pricing and no activation penalty and my own modem

LightS
Premium
join:2005-12-17
Greenville, TX

"Premium Service"

When I think of a "Premium Service" - I think of service that comes with some sort of SLA.

Nope..

88615298
Premium
join:2004-07-28
West Tenness

Re: "Premium Service"

said by LightS:

When I think of a "Premium Service" - I think of service that comes with some sort of SLA.

Nope..

SLA?

Also I wonder what you get for around $110 month for other ISPs?

LightS
Premium
join:2005-12-17
Greenville, TX

Re: "Premium Service"

I know that you know what a SLA is!

As far as your latter question, it really varies a lot.

88615298
Premium
join:2004-07-28
West Tenness

Re: "Premium Service"

said by LightS:

I know that you know what a SLA is!

Maybe you should get one, but isn't that what they push business accounts for?

As far as your latter question, it really varies a lot.

Well some example would be nice. Most ISP's websites ask for an actual address so I don't have access to their pricing.

LightS
Premium
join:2005-12-17
Greenville, TX

Re: "Premium Service"

said by 88615298:

Maybe you should get one, but isn't that what they push business accounts for?

Yes, but I wouldn't consider any residential service a "premium service" mostly because of shoddy customer service, "up to" terminology and other small niches.

said by 88615298:

Well some example would be nice. Most ISP's websites ask for an actual address so I don't have access to their pricing.

It depends on the ISP & what's available & the service you inquire about. For example, a recent quote from Suddenlink informed me of $125/mbps for standard, and $155/mbps for MPLS. This is of course fiber, but still. It comes with an SLA lol. Suddenlink also offers 12/2 for $199.95, but it's cable & they don't provide an SLA for this

limegrass69
Here's my Posting tag

join:2008-05-28

Cheap

Well, that's cheap compared to the $300 activation fee charged by Cablevision for a similar tier of service (Ultra)!

•••
google2

join:2004-02-04
South Beloit, IL

No problem

I have no problem with the activation fee. If you can afford the monthly fee, the activation fee isn't an issue. The issue I have with this is the pathetic 5Mbps upload speed that accompanies it. It's a total joke.

•••••

cork1958
Cork
Premium
join:2000-02-26

1 edit

$100 install fee back in time

I think it was the year 2000, I had to pay a $100 installation fee for their original 256/128 plan! 3 days later, they dropped that fee!

First line of my review when I ordered Charter. I can't see a date of when that was.

"I ordered the 256/128 package for $24.95 a month plus $3.95 modem rental."

I just can't believe some of these insane things Charter is pulling off!!
--
The Firefox alternative.
»www.mozilla.org/projects/seamonkey/

•••••••
grayem

join:2000-09-22
Saint Louis, MO
Reviews:
·Charter

modem fee

New customers must use Charter modems, and there is a modem fee; its just included in the price. There are no promo prices for Internet only... in effect the prices have been raised to cover the modem cost by forcing customers into the 30 Mbps tier at full price. Charter is not giving anyone anything for free. Not that they should, but the CEO is not paying for the modems out of his personal bank account, the customer is.

••••

neumannu47
Premium
join:2002-08-14
USA

I'd pay the activation fee

I'd pay $2000 activation fee for 100 Mb. Since I'm on Time Warner, I doubt I'll see speeds like that in my lifetime.

Apple, Microsoft, Google, and Netflix need to team up to provide 1Gb symmetrical service nationwide and render the TV cable companies to irrelevance.
Telco

join:2008-12-19

Re: I'd pay the activation fee

100% agree. It's the only way anyone can break this cable stronghold on America.

jtudor
Xm 60's On 6 Freak
Premium,MVM
join:2002-12-07
Morganton, NC

Re: I'd pay the activation fee

said by Telco:

100% agree. It's the only way anyone can break this cable stronghold on America.

If they tried, you can bet that the cable companies would team up to lobby for (and probably get) legislation in many states preventing MS/Google/etc from going in to the ISP business, that has been their MO everywhere so far.
--
Best of luck

"Do, or Do not, there is no try!" Yoda

tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

too much..

There is no justification for a plain old docsis 3 installation at any speed it supports currently (upwards of 300mbits down). What might be worth paying more for is a symmetric 100+ megabit tier with QOS and a conditioned line. AFAIK, NO cable company using docsis technology offers symmetric tiers..

jeffro

join:2007-04-20
Bay City, MI

Uh no.

$200 just to provision a damn modem? No way. That's nuts. It isn't like Comcasts new service that needs to run fiber. Its simply someone clicking something on a computer screen.

••••••

James M

@charter.com

totaly false info - Biased -

I am a charter retailer in California and can tell you there price is $39/Mo. for 30 MBPS - gives you - and they GIVE YOU A FREE MODEM - a fact left out .

Is DSL reports getting a fee to report false info? Time Warner involved ?

Shame....

kilrathi
Premium
join:2005-04-22
Rockaway Park, NY

Does that mean instant service problem resolution?

For that kind of money I would expect same day plant tech team resolution on stand by if there is a problem.

PeteC2
Got Mouse?
Premium,MVM
join:2002-01-20
Bristol, CT
kudos:6
Reviews:
·Comcast

Well, it is a premium plan - vote with your wallet

Nobody is forcing anyone to get the 100Mbps tier. It is a premium tier for those who really want it.

I fully understand folks who have concerns that there should be affordable Internet access (which is an endlessly debatable term - at one time, I thought having a 1.5 Mbps dsl line at $34.99 a month was a great deal), so that this is widely available to most everybody. Broadband access may not exactly be a "right", but I am comfortable that it has reached the level of being a basic "utility" for most folks, and access should be reasonably available and affordable for a base rate of performance.

I see no rationale that Charter, or any other ISP has got to offer any "justification" for their pricing of higher-level tiers other than whatever they feel the market place will sustain.

Although this statement will not be correct in perpetuity, as of right now, nobody "needs" 100 Mbps service.

Don't like the price? Vote with your wallet and don't get it. It is pretty safe to say that Charter needs to hit a certain threshold of customers on their 100 Mbps tier for it to be profitable - let the market place speak.
--
Deeds, not words