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orange77

join:2009-06-04
South San Francisco, CA

1 edit
reply to NormanS

Re: Modem rental?

Dane says: "I believe that the benefits will be large, and I'm hopeful that customers will continue to sign up despite the higher cost today."

We will never know how many new customers Sonic failed to get as a result of this change and it may not matter. As stated, Sonic is counting on this new change in the business model to contribute to expenses to build infrastructure.

That is fine, except that the new mandatory modem rental charge (actually over $7.00 per month, including California Use Tax) which is required only for new customers now, represents a monthly increase of 17.5% which is not trivial to many people.

None of the competition (Comcast, Verizon, AT&T) REQUIRES modem rental. It is optional in most cases. Who would have thought that Sonic.net, of all companies, would do this, and with such short notice?

Reminds me of going ice skating and the rink demanding that we rent the shoes from them. That way, they can be sure that if we slip or fall it is not the fault of the shoes since we rented from them and they must be ok.

There must be a way for Sonic.net to also make the modem rental optional or at least bring the pricing back to what it was, and still have growth and profitability.

The trend for broadband worldwide is more bandwidth for less monthly cost. Just look at Hong Kong. This is going in the wrong direction.


DaneJasper
Sonic.Net
Premium,VIP
join:2001-08-20
Santa Rosa, CA
kudos:9
said by orange77:

That is fine, except that the new mandatory modem rental charge (actually over $7.00 per month, including California Use Tax) which is required only for new customers now, represents a monthly increase of 17.5% which is not trivial to many people.

None of the competition (Comcast, Verizon, AT&T) REQUIRES modem rental. It is optional in most cases. Who would have thought that Sonic.net, of all companies, would do this, and with such short notice?

There is no tax on the modem rental; we pay sales tax on the modems when we buy them from the manufacturer, so there is no "use tax" on the $6.50 equipment fee.

A couple points:

Comcast will allow customers who do not have voice phone service to supply their own equipment, from a list of compatible devices. Those who have telephone service must have an "eMTA" device, of where there are only a couple options, and customers in some areas are barred from supplying their own. The outcome is that the vast majority of Comcast customers do rent equipment from them.

AT&T's U-Verse service, VDSL from the VRAD, IPTV etc - requires their equipment, and the equipment and $6.00/mo fee is mandatory. Additionally they charge for the set-top boxes, wireless TV device if you want it, etc.

-Dane


NormanS
I gave her time to steal my mind away
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:12
Reviews:
·SONIC.NET
·Pacific Bell - SBC
said by DaneJasper:

A couple points ...

Certainly to be considered, and somewhat eases the pain. Still ...

In the end, though, going back to AT&T, or running off to Comcast would still be more painful. The place I am trying to get into shows "Fusion" as available; but, alas, until I actually place the order I will not know for sure.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum


PremTech101

@aircloud.com
reply to DaneJasper

There is no tax on the modem rental; we pay sales tax on the modems when we buy them from the manufacturer, so there is no "use tax" on the $6.50 equipment fee.

A couple points:

Comcast will allow customers who do not have voice phone service to supply their own equipment, from a list of compatible devices. Those who have telephone service must have an "eMTA" device, of where there are only a couple options, and customers in some areas are barred from supplying their own. The outcome is that the vast majority of Comcast customers do rent equipment from them.

AT&T's U-Verse service, VDSL from the VRAD, IPTV etc - requires their equipment, and the equipment and $6.00/mo fee is mandatory. Additionally they charge for the set-top boxes, wireless TV device if you want it, etc.

-Dane

Just an FYI if you go stand alone internet you have the option of buying the U-verse RG. So you WONT have a $6 rental fee in that case.

Zeonis

join:2009-03-16
Not just for stand alone internet. If you go U-verse internet and phone you can still buy the modem (RG).