How RCN Justifies a Price Increase

Back in January, cable television and Internet service provider RCN announced that they were closing their portal website. Last week I was notified by mail about a price increase to my account. Please note that this is at least the 2nd price increase in a year and I actually think it’s the third.

Here’s the email they just sent me to confirm I know about the price change:

To ensure we are providing you with the most up-to-date products and services at a competitive rate, we are implementing changes to your RCN account. We are adjusting your current package and will provide you with a new plan. You will see this change in either your May or June bill depending on your regular billing date. Your new plan will offer the same high level of service, plus a redesigned, easier-to-read bill. By updating our packages, RCN will be able to simplify your services and make sure you receive enhanced customer care. Your current and new monthly charges are listed below for your convenience. Your new monthly charges reflect a 12 month promotional discount.

We’re constantly striving to bring you the best in cable, Internet and phone. We thank you for being an RCN customer and hope that you’ll enjoy our growing array of services. RCN Customer Service is available at (866) 540-1575 between the hours of 8 AM and 5 PM EST.

When I read the postcard I laughed as it appeared that they were trying to justify a 10% increase by saying that we will have a better “easier-to-read” bill. I already pay $18.00 monthly for a dvr which is absolutely pathetic. It’s amazing how the cable providers continue to get away with highway robbery on their prices and I fear it will only get worse as people move more of their viewing needs to the web and also want faster connections.

I wonder what “enhanced customer care” means – once the change goes into effect I will need to call customer care to experience the enhanced opportunity.

BTW, the “new package” actually has less channels and less offerings – so not only are they charging me more, they are taking away some of the channels.

I wonder how many executives had to come up with this spin on why they are raising rates.