Comcast (NASDAQ: CMCSA) became the latest pay-TV operator to implement early-2015 rate increases, upping the monthly lease price of its cable modems from $8 to $10.
A Comcast representative told Multichannel News that the rate increase was related to the integration of faster DOCSIS 3.0-powered equipment and expanded Wi-Fi services.
"We continue to make investments in our network and technology to give customers more for their money," the rep told Multichannel. "Last year, we made our 12th speed increase in 13 years, offered the fastest outdoor Wi-Fi hotspots as well as the fastest indoor Wi-Fi connection speeds on our latest and greatest advanced wireless gateways, plus we are at nearly 8 million total Xfinity Wi-Fi hotspots. As a result, we periodically need to adjust prices due to increases we incur in rolling out these new technologies."
Comcast's increase comes as Time Warner Cable (NYSE: TWC) is simultaneously upping its modem lease price from $5.99 to $8 a month. This is part of a wide-ranging set of TWC rate hikes which will also see the addition of a sports surcharge.
DirecTV (NASDAQ: DTV), meanwhile, is increasing the prices of its video packages by 5.7 percent on average starting in February.
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