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story category Cablevision 101Mbps: $300 'Activation Fee'
That's one way to manage demand...
(old news - 04:25PM Monday May 11 2009)
tags: prices · competition · business · bandwidth · consumers · Optimum Online
Tipped by Jeffrey See Profile
Late last month Cablevision took the wraps off of a new 101Mbps downstream and 15Mbps upstream DOCSIS 3.0 tier called Ultra. Users in our Cablevision forum are running the new tier through its paces. While the $99.95 per month price tag is tasty, some users have been surprised to note that there's a $300 "activation fee" for the new tier in addition to an installation fee of up to $34.95. The original press release made no mention of the $300 fee, which effectively raises the monthly price to $125 per month for the first twelve months, and is certainly one way of managing the added bandwidth demand of such a service. Still, the price remains less than Verizon charges for 50Mbps FiOS in many markets.

Related:
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  2. Rogers Offers 50Mbps DOCSIS 3.0, 802.11N Gateway
  3. Want A Better Broadband Price? Demand It
  4. Comcast Wireless Broadband Hits Atlanta
  5. Verizon's New Wireless Pricing Is An Insult
  6. Comcast DOCSIS 3.0 Hits Denver
  7. FCC To Investigate Special Access Pricing
  8. TDS Telecom Launches 50 Mbps Fiber
Forums » Cablevision 101Mbps: $300 'Activation Fee'
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Bit
Premium
join:2009-02-19
00000

Corp exec retirement fund contribution fee?

WTF? They really don't want to sell this tier do they?

SLD
Premium
join:2002-04-17

Re: Corp exec retirement fund contribution fee?

Probably they don't have actual capacity to sell to their entire usebase, but this gives them bragging rights without offering a viable product.

MxxCon

join:1999-11-19
Brooklyn, NY
clubs:

Re: Corp exec retirement fund contribution fee?

at $99/month it's not intended for their "entire userbase".

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

said by SLD See Profile :

Probably they don't have actual capacity to sell to their entire usebase, but this gives them bragging rights without offering a viable product.
BINGO!
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee
UofMiamiGrad
Premium
join:2001-02-03
Great Neck, NY
More along the lines, it cost $750/sub to upgrade to DOCSIS 3.0 according to Cablevision. So hit up the subs wanting DOCSIS 3.0 with a $300 upfront fee, recoup some of the costs.

Bit
Premium
join:2009-02-19
00000

Re: Corp exec retirement fund contribution fee?

How much did it cost to upgrade VZ subs with FiOS?
patcat88

join:2002-04-05
Jamaica, NY

Re: Corp exec retirement fund contribution fee?

$700 per house passed, then $700 per installation/subscription.

Bit
Premium
join:2009-02-19
00000

Re: Corp exec retirement fund contribution fee?

So there goes that CV excuse.

Bit
Premium
join:2009-02-19
00000
VZ spends several hundred per sub for FiOS and they don't have $340 install/activation fees.

rawgerz
In Debt we trust
Premium
join:2004-10-03
Grove City, PA
·Verizon Online DSL
·Sprint Mobile Broa..

Re: Corp exec retirement fund contribution fee?

Because Verizon has a popular wireless division and landline income.
All those rural people paying $67 for POTS and $8 dollars for caller ID helped contribute.
--

You can't make all the people happy all of the time. But it should be common sense to shoot for the majority.

Bit
Premium
join:2009-02-19
00000

Re: Corp exec retirement fund contribution fee?

And CV has lucrative video, voice and HSI income.
patcat88

join:2002-04-05
Jamaica, NY

Re: Corp exec retirement fund contribution fee?

CV doesn't get USF $, and doesn't sell $10.95 caller ID, and doesn't have a wireless division with premium pricing (compared to sprint) that extorts rural users (no SPCS or TM). The video programing eats the vast majority of CV's revenue. CV's Lightpath division's business broadband penetration is limited. Business still subscribe to pure profit bonded T1s from Verizon as if nothing else exists other than a T1. Also I don't think CV has any government customers, Verizon has tons of government customers that will pay whatever Verizon writes on the bill, they have an unlimited source of money, YOU!

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI


1 edit

Re: Corp exec retirement fund contribution fee?

They aren't bleeding voice customers by the tens of thousands either nor are they dropping $21B.

There is no excuse for them charging a $300 junk fee other than the simple fact that their network can't support this tier so they have to do what they can to insure no one buys it while still being able to throw a "$99 for the fastest broadband" claim around.

rawgerz
In Debt we trust
Premium
join:2004-10-03
Grove City, PA
·Verizon Online DSL
·Sprint Mobile Broa..

Re: Corp exec retirement fund contribution fee?

Wiki says CV had 7.23B in revenue in 2007, compared to Verizon's almost 100B.

I'd rather ask the question, why does it cost so much per sub for 3.0..
--

You can't make all the people happy all of the time. But it should be common sense to shoot for the majority.

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI

Re: Corp exec retirement fund contribution fee?

Cablevision has one of the highest per subscriber revenue rates in the industry »www.chicagotribune.com/business/···23.story . There is no excuse for a $300 junk fee other than to dissuade users from signing up since their network can't support a 100Mb tier.

rawgerz
In Debt we trust
Premium
join:2004-10-03
Grove City, PA
·Verizon Online DSL
·Sprint Mobile Broa..

Re: Corp exec retirement fund contribution fee?

If their infrastructure can't handle the tier, why would they spend so much per person to upgrade it? Where is this limitation?
Even if it was for something ludicrous, like bragging rights, it would take years to make up the initial investment.
I don't blame them, maybe $70-100 dollars goes to just a modem and the rest is to recoup some of the costs. And I'm sure most NY residents earn a pretty high average salary compared to the rest of the country.

If somebody wants it, they'll buy it.
--

You can't make all the people happy all of the time. But it should be common sense to shoot for the majority.

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI

Re: Corp exec retirement fund contribution fee?

Because the old tier could not handle sustained 20Mb service which is the reason they resort to gimmicks like powerboost.

The "old" network was designed for 10Mb service in an era where there wasn't tons of content and even then CV would cap uploads of "excessive" users.

Channel bonding will allow them to provide fairly reliable 40-50Mb powerboosted speeds but it simply can't provide capacity in these huge sustained quantities to more than just a couple of users.

This tier is all about marketing which is why they have to huge junk fee which insures even less adoption by higher end subscribers.

atuarre
Here come the drums
Premium
join:2004-02-14
Lake Charles, LA
clubs:

Re: Corp exec retirement fund contribution fee?

said by Bit See Profile :

Because the old tier could not handle sustained 20Mb service which is the reason they resort to gimmicks like powerboost.

The "old" network was designed for 10Mb service in an era where there wasn't tons of content and even then CV would cap uploads of "excessive" users.

Channel bonding will allow them to provide fairly reliable 40-50Mb powerboosted speeds but it simply can't provide capacity in these huge sustained quantities to more than just a couple of users.

This tier is all about marketing which is why they have to huge junk fee which insures even less adoption by higher end subscribers.
You obviously fail to realize the revenue that the ILECs like AT&T, and Verizon bring in, plus access to the universal service fund (that little line on your bill that adds up to billions upon billions of dollars worth of mismanaged money) vs Cable companies income. Sometimes i think people just post stuff, to stir the pot, with no real basis what so ever. Having different divisions, like a wireless division, and a landline division, and long distance helps the telcos.

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI


3 edits

Re: Corp exec retirement fund contribution fee?

You're right, it does appear some people just post stuff just to post stuff. No other cable operator is charging a $300 activation fee on top of an install fee. Not Comcast, not Cox.

Of course Verizon's overall revenues are higher. They have millions and millions of subscribers. Those larger revenues also have to support an aged and huge infrastructure (their expenses are higher by far). But in the scale that matters, per subscriber revenues, Cablevision is near the top of the industry.

So Verizon spends 3X Cablevision's entire revenue deploying FiOS and still doesn't have to charge for an install. In fact I can't think of any cable operator who charges $335 in activation and install fees. Cox certainly doesn't, they charge $100 for install. Comcast doesn't. Despite the expense of installing an ONT and pulling cable, Verizon doesn't charge for the install either.

Fact is there is simply no justification for such exorbitant junk/install fees other than Cablevision desperately wants to avoid too many people signing up because their network couldn't handle more than a few users local to each other on that tier. At the same time they want to mislead people/media about the price with big print $99 pricing with the real cost buried in the fine print.

Simply put, Cablevision wants to be able to make the claim of "fastest broadband service" while having a scant few actually take them up on the offer because their newly upgrade network isn't up to the task.

atuarre
Here come the drums
Premium
join:2004-02-14
Lake Charles, LA
clubs:

Re: Corp exec retirement fund contribution fee?

I seriously doubt Cablevision is the top cable company, or near the top of the industry. Think they are surpassed by Comcast, Cox, Charter, and Time Warner.

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI

Re: Corp exec retirement fund contribution fee?

»www.chicagotribune.com/business/···23.story

said by AP May 7, 2009 :
The average monthly revenue per subscriber rose 5.4 percent to $136.55, among the highest in the cable TV industry.

So while they may been spending money on their subscribers, they get a ton of money from their subscribers, near the highest in the industry.

rawgerz
In Debt we trust
Premium
join:2004-10-03
Grove City, PA
·Verizon Online DSL
·Sprint Mobile Broa..

Well they don't seem to offer analog tv, and that used up what, 65Mbps?

Seems to me like they will have the pipe for it with no analog. After all, what I've come across says the bottle neck for those speeds isn't the coax, just yet, it's the hardware and 3.0 is supposed to remedy that.
--

You can't make all the people happy all of the time. But it should be common sense to shoot for the majority.

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI

Re: Corp exec retirement fund contribution fee?

Thing is that analog is the same for everyone across the entire franchise area. It certainly frees up some additional channels to dedicate to HSI as would SDV but unless they dedicate a shitload of channels to HSI, they will never be able to support even remotely prevalent 100Mb service.

As previously they are trying to squeeze blood from a turnip. Instead of being reasonable, it is like their marketing department instead of their network engineers are determining the tier speeds they offer. They're going to quickly be in the same capacity mess they were in before the upgrades if they keep promising speeds the network has no hope of supporting.

They should offer 10, 20, 30Mb tiers with PB speeds to 50-60Mb, maybe even powerboosted speeds to 100Mb. That would be the responsible thing to do and insure that everyone has a good experience without the need for draconian network management efforts.

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
clubs:
·Packet8
·Verizon Online DSL

said by Bit See Profile :

Because the old tier could not handle sustained 20Mb service which is the reason they resort to gimmicks like powerboost.

Boot or "powerboost" as you call it was not really a gimick like you said.. when I was having issues with the non boot line It was hard to get up to 15mbps speeds switching to boost moves the modem over to another frequency less people might not have that so less people clogging it up..

Now with Ultra it's the same thing as with boost but with newer equipment and far less users.
--
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Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI

Re: Corp exec retirement fund contribution fee?

I'm saying gimmick in that a cable company can use it to provide 20-30Mb service without actually providing 20-30Mb service. And at least with my cable provider, Cox, more and more advertising shows the Powerboost speed as the tier speed and only on the actual order pages on their website do you see what the true tier speeds are.
mrbueno

join:2002-08-03
US
Why do they need an "excuse"? What a sense of entitlement you have.
ravensfan55

join:2008-06-16
Severna Park, MD
·Verizon FIOS
·Comcast
·Cingular Wireless

Yeah, $300 for a tech to come out and replace a modem is pretty steep.

FiOS install was free, and the tech

-Ran the fiber drop from the pole to my house
-Fed the fiber into the basement
-Installed the ONT and BBU
-Ran coax to the two splitters I have from the ONT
-Configured the ONT and Router
-Activated all 3 STBs
-Tested to make sure the alarm worked while he was still there
-Tested internet speed, HD quality, On Demand, Widgets, and phone service

battleop

join:2005-09-28
00000

It's the early adopter tax. Just the same as how most other things are really expensive at first, LCD TVs, CD Players, DVD Players etc. The people who want bragging rights will pay it and go on. Then when they are ready for mass market it will go away.

The Beer
I Love It When A Plan Comes Together
Premium
join:2001-07-24
Omaha, NE
clubs:

Re: Corp exec retirement fund contribution fee?

IIRC I paid $300 for my first cable modem
kieranmullen
Premium
join:2005-12-12
Portland, OR
clubs:

Re: Corp exec retirement fund contribution fee?

I paid that for my first 56k modem and my first 14.4 modem.
gigante

join:2000-06-30
Spring, TX

1 edit

Re: Corp exec retirement fund contribution fee?

I paid it for my first blow job bluetooth headset.

Bit
Premium
join:2009-02-19
00000
Hmmm, $300, that is what my 386DX33 proc cost. Paid about that for my trash-80 floppy at the ACP swap meet.
chef255

join:2004-07-15
Buchanan, NY
Of course they really want a lot of people to order this, it would kill their network
TheWiseGuy
Dog And Butterfly
Premium,MVM
join:2002-07-04
Yonkers, NY

A $300 fee on top of a $99/month cost will not keep anyone that needs this level of service from getting it. It works out to 129/month if it is kept a year. What is does is keep someone who wants to just try it out short term from jumping in and out.
--
Warning, If you post nonsense and use misinformation and are here to argue based on those methods, you will be put on ignore.

See 10 replies to this post

roc5955
Premium
join:2005-11-26
Rosendale, NY
·RoadRunner Cable

What we have here is another case of corporate greed. The cable companies will be the next ones to go to DC asking for a handout. Wait and see.

Why is broadband so expensive in the US when compared to the rest of the world? I think it has, in large part, to do with the mentality of greed that has overcome this country.

It used to be that people wanted to simply make a living. Now they want to make a killing.
--
"Understanding is a three-edged sword."
Hctim

join:2004-09-12
Denver, CO

Re: Corp exec retirement fund contribution fee?

I don't think you know anything about business. It cost allot to maintain fiber optic transport line and manage the routers/switch. This is really cheap compared to metro Ethernet or another transport service I could write page on why this is a great deal for small business.

SLD
Premium
join:2002-04-17

Re: Corp exec retirement fund contribution fee?

No it doesn't.

NOCMan
Verizon Fios User
Premium
join:2004-09-30
Flower Mound, TX
More like you're paying for the Docsis 3.0 modem up front. If anything you should own that outright if you bought into this package.
--
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Matt
Gone playing Dragon Age Origins
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

Re: Corp exec retirement fund contribution fee?

said by NOCMan See Profile :

More like you're paying for the Docsis 3.0 modem up front. If anything you should own that outright if you bought into this package.
You can pick them up much cheaper than $300 retail.

»www.google.com/products?hl=en&q=···ct=title
patcat88

join:2002-04-05
Jamaica, NY
CV has a problem about collecting, and billing for unreturned modems. Or they are really free, or they are free after a certain amount of time. I'm not sure.

RARPSL

join:1999-12-08
Suffern, NY

said by NOCMan See Profile :

More like you're paying for the Docsis 3.0 modem up front. If anything you should own that outright if you bought into this package.
The cost of a SB6120 (one of the two supported modems) from Amazon is ~$95. You can get a better price from others.

Eat Me

join:2002-09-25
Sussex, NJ
Do the Dolans still run CVC? I can't remember.

cork1958
Cork

join:2000-02-26
Fruitport, MI
·Verizon Online DSL
·Charter Pipeline

said by Bit See Profile :

WTF? They really don't want to sell this tier do they?
Flat out ridiculous!!
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»www.mozilla.org/projects/seamonkey/

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK
welcome to country club broadband. one way or another we'll figure out how to separate the haves from the have nots.

Bobcat
Volvo sucks donkey balls
Premium
join:2001-02-04
Bedminster, NJ
·Verizon Online DSL

Re: Corp exec retirement fund contribution fee?

said by inteller See Profile :

welcome to country club broadband. one way or another we'll figure out how to separate the haves from the have nots.
I can't afford Cablevision's lowest-price Internet service, which is $45 per month. If it was $25 (say, for 3 Mbs), I'd be a Cablevision customer. So, Verizon gets my money instead.

Cablevision is only for the rich.

--
It's nice to be important, but it's more important to be nice.
dhjdhj

join:2009-03-10
Mount Kisco, NY

I got a letter from Optimum yesterday --- they have a promotion going on until the end of this month where they will add voice to online and charge $29.95/month for both of these for a year. Not particularly compelling --- except they're also offering $200 back in the form of an American Express gift card as long as you keep this promotion for 4 months.

So do that, and then order Ultra! In a few months, you end up with 2/3rds of your activation fee recouped!
NYC Girl
Premium
join:2007-02-04
Bronx, NY
·Optimum Online
·Optimum Voice

said by Bit See Profile :

WTF? They really don't want to sell this tier do they?
ha ha, guess not..... I won't be upgrading that's for sure!!

dbmaven
There's no shortage
Premium,Mod
join:1999-10-26
Sty in Sky
clubs:

Activation Fee

In fairness, the 'activation fee' raises the price to $125/mo. for the first 12 months - not in perpetuity.


See 9 replies to this post

PolakPolak

join:2001-12-17
Thornwood, NY

ROFL

There is always a catch, but i didn't expect this from OOL. They r getting be like others, like my cell provider AT&T.
rayyung

join:2003-02-22
White Plains, NY

Insane

$300 activation fee for residential service, are they insane!!?
jammmin

join:2000-12-14
Upper Marlboro, MD

outrageous fee

What they should do is to waive the $300 fee if the subscriber signs a two year contract. That way, the subscriber won't jump ship for now when FIOS ups the ante with speeds in excess of 100 megs by summer.

Fershlugg

join:2000-10-11
Torrington, CT

Re: outrageous fee

yeah, just like the BS cell phone services... Lock ya in and rape you while you think you're getting a deal.. no thanks

Bobcat
Volvo sucks donkey balls
Premium
join:2001-02-04
Bedminster, NJ
·Verizon Online DSL

Cablevision is for the rich

Some cable operators have lower-priced tiers, but the cheapest tier Cablevision has is $45 per month. They have higher tiers at $60 and $99 per month, but no lower-priced tier. Cablevision keeps adding higher-priced tiers, but they don't care about people who can't afford to shell-out $540 per year.
--
It's nice to be important, but it's more important to be nice.

See 10 replies to this post
majortom1029

join:2006-10-19
Lindenhurst, NY

hmm.

I am guessing they are doing this for a couple of reasons.

1. they will prob be running a seperate drop to the docsis 3 modem. I am pretty sure cablevision normally charges to do this .

Also they are prob doing it to make sure people dont order it for a month then drop back down to boost or regular.

Cablevision states this service is mainly for small businesses and people who really need it at home.

The $300 activation fee makes sure of that.

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
clubs:

Wow

There is a sucker born every second.

Hpower
Roflmao

join:2000-06-08
Glendale, CA
·Charter Pipeline

Bleh

Wow that's a pretty hefty activation fee but what the heck, if you want that bandwidth, you might as well have the pockets
--
The Internet is about to go down....it is actually.

HEMIDART68

join:2000-12-13
Huntington Beach, CA

lol

Cablevision /Fail
tmc8080

join:2004-04-24
Floral Park, NY

$300 activation? is that even legal?

I've never in my life heard of a $300 installation/activation fee for broadband unless outside of an ordinarily SERVED market...

NOW Verizon doesn't have much to worry about if that's the way Cablevision wants to 1-up the competition. I seriously doubt that will hold.. BTW there is no INSTALLATION.. you bring your cablemodem into a cablevision office and swap it for a docsis 3 modem.. there is no need for a tech.. the existing install works just fine.

In conclusion, for existing customers it should cost absolutely $0 to get the new tier... anything else is price gouging profiteering.

See 13 replies to this post

Anonymous
Premium
join:2004-06-01
IA

Stupid

I'm a cable guy and I have to say this is just stupid. FIOS OWNS cable. When FIOS shows up the only thing a cable co can do is lower prices since they are too cheap to do proper FTTH upgrade.
max pl

join:2009-03-22
Hyde Park, NY

Re: Stupid

said by Anonymous See Profile :

I'm a cable guy and I have to say this is just stupid. FIOS OWNS cable. When FIOS shows up the only thing a cable co can do is lower prices since they are too cheap to do proper FTTH upgrade.
FIOS doesnt own anything. I had 15/5 internet with optimum back in 2001. thats 8 years ago. when did FIOS come out?
patcat88

join:2002-04-05
Jamaica, NY

Re: Stupid

said by max pl See Profile :

FIOS doesnt own anything. I had 15/5 internet with optimum back in 2001. thats 8 years ago. when did FIOS come out?
OOL was 10/1 back then I believe. Where did you get 15/5?
kieranmullen
Premium
join:2005-12-12
Portland, OR
clubs:
·Gizmo5
·Skype
·Vitelity VOIP
·magicjack.com
·Verizon FIOS
·Vonage
·ViaTalk
·VoicePulse

I am sure he meant in the overall capacity/capability that FIOS has, not the separate speed tiers which are market driven as they technically have the ability to push faster speeds.

KM

said by max pl See Profile :

said by Anonymous See Profile :

I'm a cable guy and I have to say this is just stupid. FIOS OWNS cable. When FIOS shows up the only thing a cable co can do is lower prices since they are too cheap to do proper FTTH upgrade.
FIOS doesnt own anything. I had 15/5 internet with optimum back in 2001. thats 8 years ago. when did FIOS come out?
CopperMux

join:2005-01-18
·Comcast

said by max pl See Profile :

said by Anonymous See Profile :

I'm a cable guy and I have to say this is just stupid. FIOS OWNS cable. When FIOS shows up the only thing a cable co can do is lower prices since they are too cheap to do proper FTTH upgrade.
FIOS doesnt own anything. I had 15/5 internet with optimum back in 2001. thats 8 years ago. when did FIOS come out?
No, you didnt. OOL never offered 15/5.

10/1 and it was throttled the moment you tired to actually use the bandwidth.

Contrarian

@comcast.net

said by max pl See Profile :

said by Anonymous See Profile :

I'm a cable guy and I have to say this is just stupid. FIOS OWNS cable. When FIOS shows up the only thing a cable co can do is lower prices since they are too cheap to do proper FTTH upgrade.
FIOS doesnt own anything. I had 15/5 internet with optimum back in 2001. thats 8 years ago. when did FIOS come out?
Wow, your logic is flawless.
"I had a V8 Chrysler back in 1965. That was 44 years ago. When did Lexus come out? I guess that means that Chrysler is better than Lexus".

Jeffrey
too dark too early
Premium
join:2002-12-24
Dix Hills,NY
clubs:
·Optimum Online
·Verizon FIOS
·Vonage
·magicjack.com


1 edit

Deceptive

Had CV simply mentioned the $300 in their press release about Ultra, I wouldn't have a beef with it. In fact, spread out over the year, it's still a "reasonable" (YMMV) $129 for 101/15 if they truly can provide that. However, $129/month doesn't sound nearly as good as $99/month does, and leave it to marketing and sales to spin that one effectively.

I don't need 101/15 bad enough to piss $300 away right now. I'll leave it to the early adopters sort this one out, work out the kinks, and get charged to be the guinea pigs.

Once Ultra gets rolling, I'd be interested to see Verizon's revised offers for customers in Cablevision's footprint. Somehow I sense a lower download, a higher upload, and no activation fee.
--
"Honesty may be the best policy, but it's important to remember that apparently, by elimination, dishonesty is the second-best policy." - George Carlin

[my ramblings]

Lee GWB
Yaco
Premium
join:2001-10-13
Allendale, NJ

Re: Deceptive

My thoughts exactly!! Cablevision "Bishop takes Pawn" Fios your move .

XBL2009
------

join:2001-01-03
Chicago, IL

Rape is still illegal isn't it?

We really need some competition, a third network or better regulation of cable and telephone.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Rape is still illegal isn't it?

your regulation is ATT building out or the states giving YOU the option to become your own provider. Take what they give you or leave it.

Orin

Not a smart move

Seems unwisely obnoxious. If they're not ready to sell the tier then they shouldn't offer it. If the tier is genuinely unprofitable they should not have proposed it. This smells too bait-and-switch'ish for comfort.

Shamayim
I already have a Messiah.
Premium
join:2002-09-23

Re: Not a smart move

Regardless of what it cost CV per customer to roll Ultra out, the way they've done this they lost a lot more in customer goodwill, IMHO.
--
Who is Jesus? and Why it matters (to YOU).

Fershlugg

join:2000-10-11
Torrington, CT
roger that
chasmn84

join:2009-05-07
Glen Ellyn, IL

Crazy

everyone is making a bigger deal then they should about this. Just because a car add says that you can rent/lease a car for under $250 doesn't always mean there is no money down. A cell phone still has activation and equipment costs. Nothing Cablevision said stated there would not be a startup fee.

If you dont want to spend some money on a company giving you technology advancements than why should they spend the money on you!

Solitude
Don't forget to bring a towel
Premium
join:2000-04-29
New York
clubs:
·Optimum Online

Ridiculous activation fee

I've been a longtime OOL customer with BOOST, and I was considering upgrading to their new ULTRA service, but a $300 activation fee is ridiculous and I'd be surprised if many people agree to pay that.
--
"We are the music makers, and we are the dreamers of dreams."
BoMarty

join:2001-02-01
Ballwin, MO

Re: Ridiculous activation fee

All I can say is that they need to clean up their marketing department and get some folks that can sell.

Activation fee is a joke.

I just upgraded with Charter and here is my total activation/install cost:

Self install = $000.00

zero

jsz0

join:2008-01-23
Jewett City, CT
·Comcast

Presumably...

CV is presumably not deploying this service system wide but rather activating it on a per-node basis as customers signup so there's some overhead required to do that. If it's worth $300 or not is the choice of the customer. Obviously CV being a for-profit organization is structuring the pricing as such.

atuarre
Here come the drums
Premium
join:2004-02-14
Lake Charles, LA
clubs:

RE

As someone said before, the price probably has a lot to do with people who want to try something out for a week, and then they want to go back to what they had.
jimboe

join:2000-08-14
New York
·Optimum Online

The skinny

Still, the price remains less than Verizon charges for 50Mbps FiOS in many markets.
The *only* relevant market, is the one in which Cablevision AND Verizon FiOS directly compete.

IN THAT MARKET, FiOS is quite competitive, and under bundle terms with or without yearly commitments, is cheaper.

Regardless, through the first year of service, with Ultra's $300 activation fee, FiOS is cheaper than Ultra under any conditions.

I suspect the $300 "Activation fee" is a deliberate ploy by Cablevision to discourage adoption of this tier because the network is in reality, incapable (as is) of supporting any real-world number of power users.

You can see the numbers of posters in the OOL forum who are NOW NOT going to be jumping on this tier as a direct result of this. In appearance, Cablevision is making the tier cost-prohibitive by having such an outlandish "Activation fee", which would make the tier solely a marketing gimmick to "claim" the top-prize in the speed wars in the New York region. It also lends much more credence to the Verizon rep who originally opined that the tier '..is nothing more than a "parlor trick" '.
Forums » Cablevision 101Mbps: $300 'Activation Fee'page: 1 · 2


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