RCN Raises Rates, Adds 'Downgrade Fee' - Recession? Too bad. Here's a price hike and new feesRecession? Too bad. Here's a price hike and new fees (old news - 04:17PM Tuesday Apr 21 2009) tags: prices · competition · business · bandwidth · cable · consumers · RCN CABLE As users in our RCN forums discuss, cable overbuilder RCN is raising their rates for a number of services, increasing bundle costs for consumers anywhere from $8 to $20 per month, while raising the prices for a number of their broadband tiers across several markets. A mailer (see pic) informs customers that the price increases are necessary to provide "the most up-to-date products and services at a competitive rate." Of course the term "up to date product" and "competitive rate" are subjective, as one of our users notes: I had the 7mps service up until a few months ago. I had called, as I do every year, to complain about the prices and request a discount. Last year, they gave me $15.00 per month off, this year, it's $25.00 per month (when they get it correct on the bill). Because I did this, and the fact that they no longer offer the 7mps speeds, they "reset" my account to the 5mps service. And with discounts, my internet is $29.99 for the 5mps service. Now, looking at the rates listed, the 5mps is now a whopping $50.00 per month. Of interesting note (and something picked up by the Consumerist) is that starting May 1, RCN says they will be joining the industry trend of imposing a $5 downgrade fee for any customer who wants to make changes to their account. Usually, such fees are used by carriers to push ordinary business costs into below the line fees so they don't have to advertise higher prices (rate hikes in disguise). In this instance, RCN successfully institutes a double whammy, both raising prices and then applying a new fee to any customer who tries to save money.
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