dslreports logo
 story category
Charter Responds to Consumer Pricing Concerns With Price Hikes
'Mini Basic' tier was too inexpensive, so Charter 'fixes' it...

First cable companies insisted that people canceling TV service weren't real. Then, as companies began noticing the last two quarters that people were actually canceling TV service due to cost, they began insisting those consumers really don't matter all that much (which is only true when looking at the relatively massive size of some companies). The reality is that you can't continue to impose rate hikes twice a year and not see some consumer response; the cable industry just doesn't care, because they feel these consumers are little more than a statistical blip.

Click for full size
The seriousness with which cable companies take consumer concerns about high prices is reflected in the way they continue to gleefully impose rate hikes on not only cable TV, but DVR rentals and other services. When they do try their hand at the unfamiliar idea of lowering prices, the end result is often somewhat insulting, like Time Warner Cable's new entry level cable tiers that offer no consumer value and are loaded with restrictions like the inability to bundle it with additional services, or even use a DVR.

Following in Time Warner Cable's footsteps, Charter is illustrating what they think about cord cutters and those struggling financially, by sending out notices saying they'll be hiking the price of, well, everything:

quote:
effective with your January Statement pricing will be adjusted for TV Install fees: New Primary Outlet Installation and Reconnection will be adjusted from $29.99 to $39.00; Change of Service Special Trip from $23.62 to $30.00; Additional Outlet with Initial Install from $9.87 to $9.99; Additional Outlet with Special Trip from $29.86 to $39.00; Labor Charge (formerly Hourly Service Charge) from $34.85 to $39.00; Inside Wire Service Call from $35.00 to $45.00; Ancillary Equipment Install with Initial Install from $5.99 to $9.99 and Ancillary Equipment Install with Special Trip from $27.15 to $35.00.

Public Access Fee will change from $0.52 to $0.55, Franchise Fee will change from $1. 13 to $1.17. Basic Service Tier from $12. 85 to $16.21 an increase of $3.36; Expanded Service Tier from $48.14 to $44.78 a decrease of (-$3.36). Customers in a promotion will not see this immediate price change; however, new pricing will apply at the end of your promotional period.
While Charter jacked up the price of essentially everything, they did reduce the price of their "Expanded Service" tier from $48.14 to $44.78. However, they actually increased the price of their entry-level "Basic" service tier $12.85 to $16.21. Why? As Charter customers in our forums correctly note, Charter was seeing more customers downgrading to their cheapest TV tier due to the economy, so they raised the price and lowered the price of the next level tier in the hopes they'd upgrade. Cable's borderline disdain for cash-strapped customers couldn't be any more clear, and it will be a historical cornerstone when the story of the inevitable (but glacial) Internet video (r)evolution is told.
view:
topics flat nest 

Edrick
I aspire to tell the story of a lifetime
Premium Member
join:2004-09-11
San Diego, CA

Edrick

Premium Member

Ahhh

That a' boy Charter. Why change the status quo or do something good for the customers. Instead continue to stuff your executives pockets and loose more customers.

That's like having a giant storage tank of water and it springs a leak. Well how do we fix it we must keep it full of water?! Just keep pouring more water into it and not fix the underlying cause!

We keep loosing customers so lets increase the price!

Icarus
CHAOS RULES
Mod
join:2000-11-08
Off Center

Icarus

Mod

Re: Ahhh

After getting my...*Sorry valued customer,we cant fix your 6 week old connection problem and if you call again it will cost you $35 letter* yesterday,Ive about had it with Charter after a long and great relationship with them. They have no loyalty to their customers anymore and is now just about the $$$ apparently.

Edit to add: The "letter" referenced above was received via the Charter Direct forum and dated 2 weeks ago but no hard copy in the snail mail. Skimping on postage maybe?
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: Ahhh

if the letter isn't a hard copy they can't legally bill you for something. Electronic form via a public message board isn't acceptable - even if using the Direct forum.
GrantGevens
join:2000-03-16
Knoxville, TN

GrantGevens to Edrick

Member

to Edrick
I take umbrage at your imputation that Charter's customers are loose. Butt, we minus whale hit the breaks and start over irregardless and for all intensive porpoises.


Cableismoney
@mchsi.com

Cableismoney

Anon

Cable business as usual

Seems to me the cable companies are the new telcos with their business behavior and attitude toward customers. Companies like Comcast are the new MaBell.
BHNtechXpert
The One & Only
Premium Member
join:2006-02-16
Saint Petersburg, FL

BHNtechXpert

Premium Member

Re: Cable business as usual

said by Cableismoney :

Seems to me the cable companies are the new telcos with their business behavior and attitude toward customers. Companies like Comcast are the new MaBell.

Not all cable co's are behaving like this...blv it or not there are plenty of very good and affordable MSO's.

jeffro
join:2007-04-20
Cordova, TN

1 recommendation

jeffro

Member

Low doesn't quite cover it.

That's right. Trying to save some money lowly consumer? Gonna drop down to the lowest tier? Not without giving us $4 more. Way to go Charter. You've been and still are one of the absolute worst cable companies in this country. It's amazing and appalling how you charge what you charge for how little you provide compared to other cable companies for the same price. If I had a choice I would have had you out of my house and life forever years ago. How you are still in business is beyond me.

IowaMan
Premium Member
join:2008-08-21
Grinnell, IA

IowaMan

Premium Member

Re: Low doesn't quite cover it.

Umm Mediacom?
I'd love the "Basic" for $16 vs the $27.95 I pay now
I'd love 8 Mb Internet for $29.95 instead of the 3Mb I pay now as well.

It could be worse for you

mmainprize
join:2001-12-06
Houghton Lake, MI

mmainprize

Member

Re: Low doesn't quite cover it.

How many channel do you get with your $27 basic package.

Because the mini basic package they talk about here in some parts of the US is only 5 local channels to about 12 or 15 channels in the bigger city's. Some markets like mine, we get the same channel from two markets but the same shows are on the two channels just different ads. I get 5 local channels plus 3 more of the same channels from a second market. So 8 locals but CBS, NBC and ABC have two channel each.

IowaMan
Premium Member
join:2008-08-21
Grinnell, IA

IowaMan

Premium Member

Re: Low doesn't quite cover it.

I receive
ABCx2 WGN
NBCx2 TBS (Analog)
CBSx1 CMT (Analog)
FOXx1 + Shopping Channels
PAX1 and digital sub-channels like MyNetwork TV etc
CWx1
C-SPANx3
TBN
Insprionational Network

mmainprize
join:2001-12-06
Houghton Lake, MI

mmainprize

Member

Re: Low doesn't quite cover it.

Well then i agree, Your both getting screwed, but that goes double for your area.

uther
join:2001-12-04
Saint Louis, MO

uther to jeffro

Member

to jeffro
said by jeffro:

How you are still in business is beyond me.

I worked at Charter for 7 months back in 2006. If I was given a dime for every time I heard that phrase, I'd retire young and wealthy.

Uther
RainX
join:2009-12-07
Rochester, MN

1 edit

RainX

Member

This is why

This is why I completely cut ties with Charter back in September '08 and haven't looked back since. 6MB DSL through AT&T and OTA broadcasts might not be perfect, but it's a hell of a lot better than dealing with Charter's frequent outages and biannual rate hikes.

Jerm
join:2000-04-10
Richland, WA

Jerm

Member

BEST KARL quote evar!

Cable's borderline disdain for cash-strapped customers couldn't be any more clear, and it will be a historical cornerstone when the story of the inevitable (but glacial) Internet video (r)evolution is told.

QFT.

cork1958
Cork
Premium Member
join:2000-02-26

cork1958

Premium Member

Re: BEST KARL quote evar!

My wife, who usually doesn't complain about much at all, just said a couple days ago about how fed up she is getting with Charter, and I'm the one that pays that bill!!

They took her Hallmark channel and tv guide channel off the expanded tier and moved it to the digital tier. I just posted a question asking what happened to those channels a few days ago in the Charter forum even.

Just may have to check into Dish Network or something real soon.
rid0617
join:2003-07-20
Greer, SC

rid0617

Member

No longer pay to watch TV

Because I refused to be a sucker to this anymore I cut the cord about 3 years ago. Crummy service, Indian customer service, crap programming and constant price hikes.

Doing very well with Netflix DVDs, free to air satellite and HDTV. As long as people refused to do without anything the situation will never change and these providers will keep ramming it to the customers with out a kiss.

nottrue
@comcast.net

nottrue

Anon

Re: No longer pay to watch TV

As useual carl does not have all the facts the area that is getting the increase is only one are not charter wide

fonzbear2000
Premium Member
join:2005-08-09
Saint Paul, MN

fonzbear2000

Premium Member

Re: No longer pay to watch TV

said by nottrue :

As useual carl does not have all the facts the area that is getting the increase is only one are not charter wide

Give it time and it will be Charter wide.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to nottrue

Member

to nottrue
said by nottrue :

As useual carl does not have all the facts the area that is getting the increase is only one are not charter wide

Well of course not becuase in my area they increased the price of mini-basic to $30 several months ago.
Expand your moderator at work

dr3yec
join:2002-12-19
00000

dr3yec to rid0617

Member

to rid0617

Re: No longer pay to watch TV

I cut the cord about 5 years ago, there is to many online video options these days. I could never pay for tv ever again.

wdoa
join:2001-10-16
Spencer, MA

wdoa

Member

minibasic may still be regulated

... just read this »www.fcc.gov/cgb/consumer ··· tes.html Tomorrow I'll be calling my LFA which is Boston (according to my bill) and see what I can find out. Wouldn't surprise me in the least if Charter "Forgot" about getting the appropriate clearances for the rate hike on minibasic service. I'll report back tomorrow.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: minibasic may still be regulated

you must have missed- this isn't system wide.

morbo
Complete Your Transaction
join:2002-01-22
00000

morbo to wdoa

Member

to wdoa
Please do.
puffgussy36
join:2007-01-15
Hampton, NH

puffgussy36

Member

Coming to a head...

Do we let free-market enterprise work itself out or step in with consumer-minded regulation? If only it were a simple either or. This will likely come to an ugly head just as unsustainable housing prices did. Will consumers, in increasing numbers, just opt out altogether or get shut off for non-payment of service bills spun out of control? Either way spells a decline in the value of telcos' customer bases. Verizon is weak. They had a real opportunity here to snag all the disgruntled customers away from the land line providers but not at $80 for 10 GB. Perhaps they are pulling a Sony PS3 for $600 to start approach. Though I see that as fatal tactic for a service provider (vs. a goods manufacturer). Well it's AT&T's move next. They have been conspicuously absent from the tech headlines lately.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Re: Coming to a head...

said by puffgussy36:

Do we let free-market enterprise work itself out or step in with consumer-minded regulation?

There is no free market. Do I have a choice of cable companies? can I choose to go with Comcast or Cox or Time Warner if I don't like Charter? Nope. Thus a free market doesn't exist.
puffgussy36
join:2007-01-15
Hampton, NH

puffgussy36

Member

Re: Coming to a head...

Then I guess consumer-minded regulation it is.

Oh wait, the FCC chairman is a complete wuss and in the pocket of the telcos. Looks like we are all SOL.

DocDrew
How can I help?
Premium Member
join:2009-01-28
SoCal
Ubee E31U2V1
Technicolor TC4400
Linksys EA6900

DocDrew

Premium Member

This happens when broadcasts demand fee increases

You didn't think Charter was immune from the fee increases broadcasters like ABC and Fox have demanded from other cable providers do you?

»www.hollywoodreporter.co ··· es-34041
»Dish And Fox Latest To Have Ugly Carriage Dispute [51] comments
»www.deadline.com/2010/08 ··· dispute/

When you have a basic tier and the channels in them demand fee increases, they tend to get passed on.

tlylework
@sbcglobal.net

tlylework

Anon

Re: This happens when broadcasts demand fee increases

You ever get the feeling that the Cable Co's and Teley Co's have people on their payroll in this forum??

The cable companies and teley companies will continue to buy the content providers, then who will they have to blame?? Its not long for me before I dump the whole thing, of course I think when that happens they will start upping the broadband charges, of course by then will probably be paying by the Kilobyte... Then its back to campfires and marshmellows for me.

mmainprize
join:2001-12-06
Houghton Lake, MI

mmainprize to DocDrew

Member

to DocDrew
said by DocDrew:

When you have a basic tier and the channels in them demand fee increases, they tend to get passed on.

Didn't they just add an extra fee in the fees section of your bills for that a few weeks ago. Now this is a new increase it can't be for the same reason.

DocDrew
How can I help?
Premium Member
join:2009-01-28
SoCal

DocDrew

Premium Member

Re: This happens when broadcasts demand fee increases

Who said this particular franchise got both?

There's details missing from the story... but that's SOP for Karl. He posts just enough slanted info to rile up the masses.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to DocDrew

Member

to DocDrew
said by DocDrew:

You didn't think Charter was immune from the fee increases broadcasters like ABC and Fox have demanded from other cable providers do you?

»www.hollywoodreporter.co ··· es-34041
»Dish And Fox Latest To Have Ugly Carriage Dispute [51] comments
»www.deadline.com/2010/08 ··· dispute/

When you have a basic tier and the channels in them demand fee increases, they tend to get passed on.

Yeah except last month they said a $1 "broadcast fee" was being added to the bills. So this price increase has nothing to do with that.
jagged
join:2003-07-01
Boynton Beach, FL

jagged

Member

$16 for basic is cheap

in South Florida basic cable is $21 as of this year and it will probably go up more around February or march

••••••

stinger6
join:2001-03-22
Florissant, MO

stinger6

Member

Don't worry, Be happy...

They're not worried about losing customers because plans are in the works to relieve broadcasters of their over-the-air bandwidth.

Very soon the only television available will be subscription based.

•••

AC21365
join:2001-03-24
Colorado Springs, CO

AC21365

Member

Suddenlink's DOCSIS3 aint -that- bad

Ah, been off the cable since late 2008... Streaming services do what I need them to, torrents and OTA do the rest.

Racket
@usda.gov

Racket

Anon

OTA transmission is the future

I believe that the long term future of OTA TV is better now than it was 10 years ago. Whatever the reason, cable tv is experiencing its first quarter over quarter contraction in history. The only way to offset this is to either raise rates or reduce expense. Raising rates will continue to erode the customer base so eventually they will begin to cut expense. This will be done by reducing the number of channels offered at the lower tiers. When these channels get less money they will collapse and the few shows that have any following will be moved to a surviving network. Reducing the number of channels will increase the amount that can be charged for advertising per channel, the OTA networks win. There is also the issue of live events like sports or the oscars.
j33p33
join:2010-11-21

j33p33

Member

Re: OTA transmission is the future

Well well well, i seen all your dispointment with Cable providers, what if you guys from the same city, or even further, that have high speed internet connection connect their Cable tv to their PCs and broadcast TV channels with such programs as VLC player and TVants? there is already lots of channels available on such programs if you do a simple search for these two on google for example, you will realize that it is easier than you may think, with a 30$ generic tv pci grabbing card, you would be able to share your own channels trough internet with your friends, and get theirs if they do the same, imagine everyone doing this, but in a encrypted manner, how would the cable companies react to that and how, tell me how they would figure out stopping that trend... seriously, guys, do some research, it is worth it...

j33p33