Cablevision is quick to point out its the first rate increase for broadband in a decade.
5:47PM EST December.6.2012 – Bethpage, NY (Moriches Daily) — bet you won’t hear much about this on News12 or Newsday but Cablevision Systems Corp. (CVC) is increasing the price of its Optimum high-speed Internet service for all users by $5 a month in January.
The new pricing will result in an average increase of 3.2 percent on monthly bills for Internet customers who aren’t currently receiving promotional pricing, the company said in an e-mailed statement.
- Video, phone customers who also buy Optimum Internet to be affected
- Customers with promotions not affected by increases
- Increase is $5.00/Monthly
The company said in a statement that prices for its video and phone services will not be affected and that prices for promotional packages, which generally last one year, will not rise.
But all customers who have Internet service as part of their video or phone package will see their prices go up.
Price increases after the company’s poor post-Superstorm Sandy performance could lead to many customers dropping Cablevision altogether. One wall street analyst had this to say when asked about the rate increase: “Given the massive service outages among its subscribers, after Sandy, we don’t believe the company can raise rates … not without incurring material customer churn.”
The cable provider, which is controlled by the Dolan family, said in early November that costs from Sandy, which knocked out service for as many as half its customers, would be substantially higher than its $16 million bill from hurricane Irene in 2011.