The cable company announced on Thursday that it will raise its Internet subscription fee by $5 a month, starting in January. The company said that it hadn’t raised the monthly charge for Internet service in a decade, Reuters noted.
Investors liked the news, sending Cablevision shares up more than 2% in Friday morning trading.
Cablevision does not impose a data usage limit on its Internet subscribers, a practice common among other service providers. The company competes with rivals including Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC).
While Cablevision has spent $140 million upgrading its Internet infrastructure in recent years, last month, a Canaccord Genuity analyst warned that service fee hikes in the wake of Hurricane Sandy, which battered the company’s primary service territory, were potentially risky. Customers in New York and New Jersey experienced significant periods of service disruptions in the storm’s wake. Raising fees soon after the storm could prompt some customers to look to Cablevision’s competitors.
Monthly subscription fees for Cablevision’s television and telephone services are not affected by the Internet service fee increase.