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Businesses Communications Network

Charter Has Moved Millions of Customers To New -- And Often Higher -- Pricing (arstechnica.com) 84

After Charter closed the acquisitions of Time Warner Cable and Bright House Networks in May 2016, it moved 30 percent of the customers it acquired onto new pricing plans, resulting in many people paying higher prices. "Before the merger, Charter had about 6.8 million customers; afterward, Charter had 25.4 million customers in 41 states and became the second-largest U.S. cable company after Comcast," reports Ars Technica. From the report: Charter came up with new prices and packages, and many customers saw their bills rise when their previous discounts expired and they were switched to non-promotional pricing. Now, 30 percent of the ex-TWC and ex-Bright House customers are paying different -- and often higher -- prices. Charter CEO Thomas Rutledge provided the update in an earnings call last week (hat tip to FierceCable). According to a Seeking Alpha transcript, Rutledge said: "In June, we finished the rollout of our new pricing, packaging, and branding across our national footprint with the last launch of Spectrum in Hawaii. We now offer a simple, straightforward, high-value product using a consistent and uniform approach across our 50 million passings under one brand, Spectrum. The new product is succeeding with consumers across our footprint. In the second quarter, our customers and PSU [primary service unit] connects were higher year-over-year. And as of the end of the second quarter, 30 percent of Time Warner Cable and Bright House legacy customers were in our new pricing and packaging, up from 17 percent at the end of last quarter. In areas where we've had Spectrum in place for at least three quarters, 43 percent of our residential customers have Spectrum package products."
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Charter Has Moved Millions of Customers To New -- And Often Higher -- Pricing

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  • by Anonymous Coward on Thursday August 03, 2017 @05:03PM (#54936697)
    U.S. companies seem to be competing with each other to be more and more abusive.
    • I'm pretty sure "competing" is not something they are interested in - hence the merging of companies.
      • by harvey the nerd ( 582806 ) on Thursday August 03, 2017 @06:03PM (#54937015)
        Merging is done to destroy competition where regulatory constraints prevent easy entry into a business. Municipalities are often the guilty party on preventing internet and cable competition - e.g. "can't cross our right of way", etc.
        • Municipalities have been granting easements and other uses of government property for several hundred years in this country for private enterprise for all sorts purposes - it is a very well defined process, and almost always the denial is because of some common sense reason - like denying others use, potential for damage, costs for removal after sun setting, environment, but most important there is some not so obvious cost shifting to the public to the private sector - essentially a subsidy.

          If you want so

    • by elrous0 ( 869638 )

      Actually, my cousin's internet price went DOWN with the switch from Time-Warner to Spectrum, and he got a huge speed boost too. He was paying $70/month for 25Mbps from Time Warner. When he called Spectrum, he found they were offering 100Mbps for just $65. And that's not promotional pricing either. That's the regular rate.

      Of course, I still get to brag that I have fiber. So I can still rub my speed in his face. But he's getting a lot closer to where I'm at, and for $5 less than what he was paying. No complai

    • I dunno. If the previous discounts were set to expire, I don't see what the big deal is.
      • by gfxguy ( 98788 )
        That was my thought. When the discounts and promotional rates expire, what do you expect?
  • by rsilvergun ( 571051 ) on Thursday August 03, 2017 @05:04PM (#54936717)
    everybody knows mergers increase innovation which lowers pricing while improving service. Charter told me so before they merged.
  • by rmdingler ( 1955220 ) on Thursday August 03, 2017 @05:13PM (#54936757) Journal

    Charter came up with new prices and packages, and many customers saw their bills rise when their previous discounts expired and they were switched to non-promotional pricing.

    Clearly, the nature of cable conglomerates is chaotic evil, but it seems likely on the order of tomorrow's sunrise the same customers would've been subjected to rate increases at their original cable providers when their promotional discounts expired.

    We're talking about an industry where the only sure method of getting discount rates involves switching providers. No one gets great rates staying with their current provider.

    • by xxxJonBoyxxx ( 565205 ) on Thursday August 03, 2017 @05:24PM (#54936823)
      >> the nature of cable conglomerates is chaotic evil

      It's lawful evil. As in:

      Step 1: change the law to be evil
      Step 2: be evil, but within the constraints of the new law
      Step 3: PRRRROFFFFIT!
    • Re: (Score:3, Interesting)

      by Anonymous Coward

      The story itself is misleading. I wasn't in any promotional period and I saw my pricing raise by 40%. Even worse, when I called to find out the reason for it, I was on hold for 3 hours then gave up. Never called back. I just pay a shitton more and there's really nothing I can do about it since there isn't any other providers.

  • deja vu (Score:4, Insightful)

    by roc97007 ( 608802 ) on Thursday August 03, 2017 @05:14PM (#54936763) Journal

    > Charter came up with new prices and packages, and many customers saw their bills rise when their previous discounts expired

    So, just like Comcast, then.

  • Simple. Call and cancel service. They'll put you through to the retention department. That department offers the best discounts. I cut my $120 cable bill to $70 that way.

    • by Anonymous Coward

      It is against Charter's policy to offer discounts or new promotions to retain customers or to allow 'promo hopping" and it is rare to be offered anything, especially anything substantial. They shut the door on that years ago. Charter's has officially and fully embraced "fuck the current customer". If you threaten to cancel Charter you better be prepared to follow through because they WILL let you walk. Either go without for 30 days after paying your last bill to requalify as a 'new' customer, or switch to a

      • by pnutjam ( 523990 )
        If the price is fair, I prefer that to AT&T / Xfinity's requirement that you call every 6 months to get a new special if you want a reasonable price.
  • by Nutria ( 679911 ) on Thursday August 03, 2017 @05:24PM (#54936815)

    many customers saw their bills rise when their previous discounts expired and they were switched to non-promotional pricing.

    FFS, the whole point of promotional discounts is that your bill increases when the period is up!

  • The Invisible Hand (Score:5, Insightful)

    by Sparowl ( 4374991 ) on Thursday August 03, 2017 @05:28PM (#54936841)
    The Invisible Hand of the market clearly lead to this. People must've been paying too little for the services provided, so the market has self corrected and brought everyone in line. If Charter is charging too much, then people will move to a competing product, right?

    What? There is no competition? Impossible. Everyone knows that the market encourages competition and companies to work for the good of the people, not to collude in order to increase their own bottom line.

    Barriers to entry? Listen, son, if you want to get ahead in the world, you need to pull yourself up by your boot straps, overcome the paid for barriers that other ISPs have put in place, and create a multi-million dollar infrastructure by hand. Go ahead, all you need is guts and determination!

    (rides away on piles of money) AMERICAN DREAM!

    • by rogoshen1 ( 2922505 ) on Thursday August 03, 2017 @05:48PM (#54936955)

      Business logic:

      Government acting in the interest of consumers: "That's anti-competitive, anti-freemarket. A free market is what made this country great."
      Government acting in the interest of business: *crickets* ... "A free market is what made this country great, and we're job creators. We're simply acting on our fiduciary duty to maximize value for our share-holders"

      The double talk coming from these types is positively awe inspiring. On one hand decrying government intervention while simultaneously engaging in every conceivable manner of rent-seeking.

    • From the horse's mouth:

      The new product is succeeding with consumers across our footprint

      They are literally saying they have their boot on your necks.

  • by EzInKy ( 115248 ) on Thursday August 03, 2017 @05:35PM (#54936871)

    http://www.wdrb.com/story/3605... [wdrb.com]


    There was a steady stream of traffic going into and out of the Spectrum cable office in St. Matthews Thursday afternoon. Sekou Davis had his arms full of electronic equipment, including a phone modem and a DVR box. He was turning it all in, and cutting the cord after more than 20 years with cable.

    “For one, the cost of the service, and, two, just the quality,” said Davis.

    Davis says Spectrum's latest change is the last straw. The company is encrypting, or scrambling, its signal in Louisville. It means customers must now have cable boxes for every TV set. They can no long plug cable-ready TV sets directly into a cable outlet.

    To be fair, the boxes will be free, at least for a while.


    Spectrum is offering customers two free boxes for two years, and five free years for customers on Medicaid. After that, it will cost $5.99 a month for each box.

    Well isn't that generous of them.

    • by Nutria ( 679911 )

      The company is encrypting, or scrambling, its signal in Louisville. It means customers must now have cable boxes for every TV set. They can no long plug cable-ready TV sets directly into a cable outlet.

      Cox did this a few years ago, and there's been no sign of a monthly fee.

      • Comcast did this in my area some years ago. Initially, the additional DTA boxes were free, but at some point, Comcast started charging for them.

        Keep a close eye on your bill. The charges will eventually show up, just about the time that Cox believes people have forgotten about any promises to provide the adapters at no cost.

  • If I had the Congress of the US to back me, I would pass a law proactively banning the use of Encrypted QAM.

    Beyond that, everyone who can Cut the cord should.

  • many customers saw their bills rise when their previous discounts expired and they were switched to non-promotional pricing.

    Quick show of hands, who expected their rates to go DOWN when discounts and promotions ended?!?!

    What a huge non-story.

    "My two year discount rate ended after just 24 months - those bastards!"

  • My internet bill went up $5 but there is no longer a modem rental fee. SCORE!!
  • I ran into the same issue that is outlined here, went ahead and changed my plan only to get significantly degraded. Most of the shows I wanted to watch didn't record. They said "Oh it's your equipment! Let us roll a truck to you (for 49.99) and we'll fix that problem right away!" It turns out I'm not the only person experiencing the issue. My Grandmother had the same exact issue, and only after Spectrum took over. Wow, I wonder what it could be? Instead of arguing with them, I went ahead and just dumped eve
  • Since these things all tend to be an orgy of piling on the awful cable companies, I thought I'd share my very good experience. I was stuck on TWC's pretty mediocre 20 mb internet for $80/mo, with no realistic alternatives, unless you count centurylink crappy 10mb dsl (ha!). After the merger, I was offered the spectrum plan for $20 *less*, and I am regularly getting 70 mb downstream. The difference is night and day. This is for internet only, no phone or TV, so I can't speak to that part, However, the wordi

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