Time Warner Cable raises Internet modem fees for customers

Time Warner Cable has started notifying customers that it is raising the monthly fees to rent modems from the cable company. Subscribers on Time Warner's Cable's most popular Internet plan began paying $3.95 a month last November to lease a modem. The fee will rise to $5.99 a month starting in the next billing cycle for customers. The higher rate could generate an additional $150 million in revenue this year, according to ISI analyst Vijay Jayant. Time Warner Cable has roughly 12 million customers.