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Sonic Imposes Mandatory Modem Rental Fee for New Users
New Users Must Now Pay $6.50 Modem Rental Fee
by Karl Bode 09:07AM Thursday Jul 05 2012 Tipped by gergles See Profile
A growing number of ISPs are eliminating the option to own your own mondem -- Charter Communications being the most recent. The reason is usually twofold: it provides the ISP with more consistency making troubleshooting easier, but it also allows them to charge an additional modem rental fee. Sonic.net has now joined the trend, the company announcing on their blog that as of this month, they've started giving their "Fusion" broadband users a ASDL2+ modem/router -- for an added charge of $6.50 per month.

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It's a mandatory device for new users, but existing users, for now, will be able to continue to use the modems they already own.

Sonic CEO Dane Jasper justifies the shift in the blog's comment section bynoting that it makes support easier -- and that, well, everybody else is doing it:
quote:
Regarding the rental fee, the rental of equipment with service has become quite common, and I believe it’s got some good benefits. The rental and the equipment supports the advance replacement of failed equipment, ongoing upgrades and overall integration of the equipment into the service. This facilitates more features and customer tools, plus ongoing upgrades (which might be software or hardware) when needed....it has become the industry norm to rent equipment alongside service, and to remain on a level competitive playing field, we must adapt. Both UVerse and Xfinity have equipment rental, at $6/mo and $7/mo respectively.


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newview
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reply to battleop

Re: Be Realistic

said by battleop:

It is a pain in the ass to support the customers equipment.

If it's such a pain in the ass to support customer equipment, then supply the required modem free of charge instead of turning it into a revenue stream, "just because you can".