Frontier cable, which offers video, broadband and Internet service to millions of customers, is set to get a boost after it said it will increase its subscription prices by up to 80 per cent to reflect competition.
A recent report from research firm Forrester said Frontier will be able to pay customers more for more of its services.
The company’s CEO, Bob McAfee, said he would increase the cost of the Frontier TV package by $30 a month, to $89 a month.
“This is a significant change for our customers, who pay more for our service,” he said.
McAfee said Frontier would continue to offer the TV package in some areas of the country.
He added that the price hike would be for existing customers only.
This is not a new move for Frontier.
Last year, it launched a cheaper, and still popular, broadband package for customers with a mobile broadband subscription, called Frontier Mobile.
However, Frontier has been criticised for its pricing model.
In 2014, a report from the American Cable Association said Frontier had charged customers $20 more per month for a broadband service than its competitors, including Comcast, AT&T and Verizon.
Its customers were charged an average of $60 more per year, compared to other companies, it said.
The company said the $20 increase was due to its cost structure, and the impact of the Federal Communications Commission’s net neutrality rules.
It said Frontier’s plans to increase its base of customers with existing broadband would be rolled out in the next few months.
There are also plans to extend its broadband services to areas that currently only have DSL, Frontier said.