Recently we have heard from many new cord cutters who say cable systems are telling them it is less expensive to get Internet plus TV rather than just Internet. WARNING: IT’S A TRAP!
Let’s breakdown a few of the hidden cost that many of these companies hide.
First, there are taxes, and there are a lot of taxes with TV that Internet-only customers do not have to pay.
Second, they add in fees such as an HD fee, local sports fees, device fees, and rental fees. We recently broke down one customer’s bill to show how Comcast added over $40 in fees and taxes.
There is also a new wrinkle many cable companies are adding. They promise to lock in your rate for one year, but there is a catch. They forget to add that the free HBO and Showtime they add is not locked in at that rate. They only lock the basic cable in at that rate and after 3 months they start billing you for HBO or other premium channels. If you want to cancel HBO or other premium channels you have to pay a cancelation fee. Yes, some cable companies are now charging cancelation fees to drop premium channels.
The other trick we are hearing from readers who took these so-called deals is the contract lock. The price may be good for 12 months but you signed up for a 24-month contract. In the past people would try to renew their contract after 12 months to get a new promotion. Just be warned: we are hearing some customers are being told that with the deal they have they cannot renew until the contract is over, meaning they will be paying two or three times what their promotional rate is.
Also be careful of free TV for a year deals. Some companies are offering a deal that says if you sign up to their fastest Internet plans you can get cable TV free; however, they sock you with fees and taxes. Then after the free year of TV you are locked in to a two-year contract unless you want to pay termination fees.
In short, this all comes down to two different truths. Nothing is free and if the deal sounds too good to be true…
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