Cablevision to Hike Internet Prices in January

Fees for telephone and TV service are not affected

   

cablevision 120 Cablevision to Hike Internet Prices in JanuarySubscribers to Cablevision‘s (NYSE:CVC) Internet service can expect to start paying more for their online connection next month.

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.

watching tv television cable 630 200x200 Cablevision to Hike Internet Prices in January
Time Warner Cable Threatens to Drop Channels

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.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/cablevision-to-hike-internet-prices-in-january/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.