Altice U.S. is rolling out a new pricing structure for its broadband Internet service sold under the Optimum brand, one that will result in lower bills for customers who are not receiving a promotional price.
Starting this week, Altice began issuing notices to Optimum customers notifying them of the change, which will see some of its monthly fiber-based Internet plans lowered by 20 percent or more. Customers can also opt to maintain their current pricing while receiving faster download speeds by switching to a new tier of service.
The new standard rate for Optimum fiber-based Internet is:
- 300 Mbps: $70 per month (previously $110 per month)
- 500 Mbps: $90 per month (previously $130 per month)
- 1 Gig: $110 per month (previously $140 per month)
- 2 Gigs: $130 per month (previously $180 per month)
- 5 Gigs: $200 per month (previously $240 per month
- 8 Gigs: $300 per month (previously $350 per month)
While Altice is lowering the overall price of its Optimum fiber-based Internet, it is increasing a little-known surcharge known as the “Network Enhancement Fee,” which will rise to $6 per month, a difference of $1.50. Altice justifies the fee as necessary to provide continued investment in its fiber-based broadband network; despite the increase, most customers on non-promotional prices will still pay less per month than they did before.
Customers on promotional pricing plans won’t see the new monthly service fees until the end of their discount term, Altice said. Those who are already receiving the new standard rate will see their bills increase by $1.50 to account for the rate hike on the Network Enhancement Fee.
A spokesperson for Altice told industry publication Fierce Telecom that the adjustments were intended to “reduce complexity” and provide a higher level of transparency on promotional rates. Separately, industry analyst Jonathan Chaplin suggested fewer than 1 out of 10 Altice customers are paying non-promotional rates for Optimum broadband service.
Altice says its broadband customers can save even more if they switch to Optimum Mobile, which costs around $15 per month and can help lower their overall bill when bundled with an eligible broadband Internet or cable TV plan.
