Time Warner to Make Over $350 Million-a-year from Cable Modem Rentals

Time Warner Cable, a cable broadband service provider, has started to charge its customers a $2.50 monthly broadband modem rental fee, a fee that is going to increase to $3.95 a month in the fourth quarter of 2012. According to UBS Research estimates, Time Warner Cable will bring in an additional $360 million to $370 million in annual revenues for next few years, thanks to these new cable modem fees. UBS thinks TWC will make about $3-per-subscriber-per-month in incremental data ARPU (average revenue per subscriber).