As Time Warner Cable Defends Merger Plans, It Keeps Gouging Customers With Obnoxious New Sneaky Fees

from the surcharged-to-death dept

For years now, the broadband and TV industry has hammered its customers with all manner of creatively sneaky fees, buried below the line to jack up consumer prices -- while leaving the advertised price alone. It's clearly false advertising, though regulators have seen fit to ignore these practices as business as usual -- even though many of the fee names have become increasingly, aggressively ridiculous. CenturyLink, for example, charges its users a $1 "Internet Cost Recovery Fee" and a $1.55 "Non-Telcom Services Surcharge" -- both fees are little more than pure profit and entirely untethered to logic or any actual service rendered.

Other ISPs happily charge customers a non-government mandated "regulatory recovery fee," purportedly to counter ambiguous government regulation -- despite a decade of being deregulated. The latest obnoxious fee trend is a "broadcast TV fee" that has been showing up on many cable customers' bills over the last year. This too is little more than the cable company breaking out a portion of programming costs and burying it below the line -- again to give the illusion of a lower advertised price.

Despite the fact that Time Warner Cable is putting on a polite face to get its $45 billion fusion with Comcast approved, it's certainly no exception to this aggressive sneaky fee parade. The company was just sued for billing shenanigans and the vast difference between promotional and real world prices. Undaunted, the company informed customers this month that it's socking them with a new $2.75-per-month sports fee, as well as bumping its broadcast TV surcharge from $2.25 to $2.75. Like most cable operators, Time Warner Cable is quick to blame broadcasters for the increases:

"Time Warner Cable said broadcast fees have risen more than 60% in the past two years and that the cost of cable sports channels has increased 91% since 2008. The company said the charges only represent a fraction of what it pays to programmers."

Amusingly unmentioned is that Time Warner Cable itself owns Time Warner Cable Sports Net and SportsNet LA -- two sports channels directly responsible for some of the highest sports programming costs in the nation. Despite blaming programming costs, Time Warner Cable is also quick to bump its monthly modem rental fee from $6 to $8 (though, fortunately users can buy their own modem to avoid this charge). All in all, it's part of the cable and broadband industry's ingenious plan to self-immolate and mindlessly raise rates in the face of competition from disruptive new viewing options.

These costs not only are an assault on customers in uncompetitive TV and broadband markets, but they skew all policy conversations on industry pricing because they're historically not included in price analysis. In other words, all of those studies that already indicate how U.S. consumers pay significantly more for broadband and television aren't even including this layer of creative pricing fat companies pile on top. One can only guess the new heights of obnoxious fee creativity obtainable by a larger, combined Comcast and Time Warner Cable. Ready for the "Shut up, it's because we can" fee?

Filed Under: fees, sneaky fees
Companies: time warner cable