Altice USA has more aggressively cut the rates of its Optimum broadband service than previously thought.
The company earlier this month had trimmed two of its plans, the 300 Mbps and 500 Mbps plans, down to $99.99 and $119.99, respectively. It turns out, they were part of a bigger change in rate plans that saw even steeper cutting, particularly with its fiber optic plans. An Altice spokeswoman said the changes were made at the beginning of the month all in a single move. The latest cuts were initially spotted by Light Reading, citing a MoffettNathanson report. Here’s the full page on the new prices.
Here are some of the biggest changes:
- The 300 Mbps plan fell $39.99 to $70 a month (fiber internet)
- The 500 Mbps plan fell $39.99 to $90 a month (fiber internet)
- The 1 Gbps plan fell $29.99 to $110 a month (fiber internet)
- The 2 Gbps plan fell $50 to $130 a month
- The 5 Gbps plan fell $40 to $200 a month
- The 8 Gbps plan fell $50 to $300 a month
The changes run counter to the past year’s trend of price increases from rival cable and streaming companies. But, as noted by Light Reading and others, Optimum has routinely raised rates for its service over the last decade, and the move represents a transition to simpler, lower rates that Altice USA CEO Dennis Matthew teased back in November. At the time, he said that this would have a marginal impact on revenue because so many people were paying a promotional rate that was far lower than these so-called public “rack rates.”
The change is a reversal of the company’s trend over the last several years of cutting costs and aggressively raising rates on service, which kicked off a decade ago. It turns out, enough was enough. Matthew was brought in to turn the business around and joined Altice in October 2022.
In the third quarter, Optimum said it lost 31,000 net customers, which it said was an improvement over wider losses seen a year earlier. It also lost 77,600 video customers and 68,100 phone customers in the third quarter too.
The changes also come ahead of the FCC’s broadband “nutrition labels,” which direct internet providers to provide simplified, clear pricing information for its plans.
If you’re an Optimum subscriber and paying more than these rates, it might be worth calling and asking for a reduction to these prices.