Frontier Communications (Nasdaq: FTR) is capitalizing on Time Warner Cable's (NYSE: TWC) move to impose a $5.99 a month cable modem fee--TWC's third fee increase in the past year--by running ads in Upstate New York to influence customers to switch service providers.
With its new "Goodbye Time Warner" ad campaign, Frontier is pitching customers located in Buffalo and Rochester with its $19.99 broadband package, which doesn't require a contract and promises no rate increases for two years.
However, Frontier's promotion comes with a few catches: To get the up 6 Mbps DSL service at the $19.99 price, customers have to subscribe to a qualifying Frontier landline voice package. The operator is also offering a 12 Mbps option in limited areas.
Customers that decide to disconnect the Internet service will also be on the hook for a $9.99 "Broadband Processing Fee."
By comparison, Verizon (NYSE: VZ) is offering a promotional dual-play FiOS bundle for $84.99 that includes 50/25 Mbps with landline voice in parts of Buffalo where it has built out its Fiber to the Premises (FTTP) network. However, the majority of customers in Buffalo can only get copper-based DSL service.
For more:
- Stop the Cap has this post
Special report: Frontier, FairPoint, others find new wholesale life with wireless backhaul
Related articles:
Time Warner Cable hikes modem rental fee to $6 monthly
Frontier workers in West Virginia rally for new contract
Frontier meets performance metrics, broadband plans in West Va. market
Frontier names Melinda White as president of its West region
Frontier reorganizes Central Region to serve 6 Midwest states