Time Warner Cable’s modem fee cost it today, but should pay off tomorrow

Remember that $4 per month modem fee time Warner Cable implemented — the one that had Wall Street all excited about its potential boost to revenue? Well, it seems that people were miffed enough about the charge to affect how many subscriptions the nation’s second largest cable company added during the quarter — 75,000, which is less than the 129,000 Wall Street anticipated. But before feeling vindicated, know this — the fee generated about an extra $1.83 per month from each subscriber. And in the long term, analysts think it will pay off for the cable giant. Especially as consumers find themselves stuck between Time Warner Cable’s modem fee and slower DSL-based service offering.