Frontier lures Time Warner Cable subscribers angry over new modem fees

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.

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