Replacing a cable modem

Replacing a cable modem
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Replacing a cable modem StormFront88 05-31-2006
Posted by on May 31, 2006, 6:16 pm
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I was given a Motoralla sufboard modem by my ISP (Optimum Online) years
ago when I first subscribed. I was wondering if this is just rental
equipment.. if I wanted to buy a new router made by another company as
a replacement would it still work?


Posted by $Bill on May 31, 2006, 9:50 pm
StormFront88@gmail.com wrote:

> I was given a Motoralla sufboard modem by my ISP (Optimum Online) years
> ago when I first subscribed. I was wondering if this is just rental
> equipment.. if I wanted to buy a new router made by another company as
> a replacement would it still work?

You don't replace a modem with a router. You should be able to add a router
after the modem with no problems.

As far as replacing the modem, I would first check my bill and see if I'm being
charged a rental fee. If so, you can probably go to your ISP's website and
check out what modems are on the compatibility list (assuming they have one)
and find one that they accept. Then, if acceptable, swap out the modem and give
them a call to provision it. If all is well, return their modem and get the
rental fee canceled.

If they aren't charging a rental fee or if it's really low (under $3/mo),
I'd stick with their equipment. If there's a problem with the modem,
call them and ask them for a swapout. I think in your case it's free and
I'd stick with it unless there's a problem - in which case I'd call cust.
service and tell them.


Posted by Henry on June 1, 2006, 12:16 am

> If they aren't charging a rental fee or if it's really low (under $3/mo),
> I'd stick with their equipment.

I'd say that (under $3/mo) _is_ 'really low' and it would be hard to
beat that. My ISP, on the other hand, charges more like $9/mo if you
want to rent it from them.

In any case, there is a simple formula which tells you whether to rent
or buy.

(purchase price / rental price) - warranty period = x

If x is positive, rent; if it's negative, buy.

In other words, if you can completely depreciate the purchase price
before the warranty expires, buy it; otherwise rent.

Now, I should add that this way of thinking does presuppose that you
have a reliable warranty. Those who advocate renting always say, 'that
way, the equipment is theirs so if you have any problems you just take
it back and they give you a replacement!' However, if you buy the modem
from the ISP and it fails within the warranty period, they should treat
you just as well. On the other hand, if you buy from a third party you
may have downtime for however long it takes to get the repair /
replacement sorted out.

cheers,

Henry

Posted by $Bill on June 1, 2006, 1:35 am
Henry wrote:

>
>
>>If they aren't charging a rental fee or if it's really low (under $3/mo),
>>I'd stick with their equipment.
>
>
> I'd say that (under $3/mo) _is_ 'really low' and it would be hard to
> beat that. My ISP, on the other hand, charges more like $9/mo if you
> want to rent it from them.

Mine costs $3/mo and I could easily justify replacing it, but saving the
hassle of dealing with a failure is worth some bucks too. I figure it's
18 months of rental to buy, but you have to add on for the bonus of free
replacement/repair with the ISP. Over $3 - I wouldn't argue - buy your
own. At $9/mo - buy two of them in case one fails in 6 mos.

> In any case, there is a simple formula which tells you whether to rent
> or buy.
>
> (purchase price / rental price) - warranty period = x
>
> If x is positive, rent; if it's negative, buy.
>
> In other words, if you can completely depreciate the purchase price
> before the warranty expires, buy it; otherwise rent.
>
> Now, I should add that this way of thinking does presuppose that you
> have a reliable warranty. Those who advocate renting always say, 'that
> way, the equipment is theirs so if you have any problems you just take
> it back and they give you a replacement!' However, if you buy the modem
> from the ISP and it fails within the warranty period, they should treat
> you just as well. On the other hand, if you buy from a third party you
> may have downtime for however long it takes to get the repair /
> replacement sorted out.

Posted by Warren on June 1, 2006, 2:13 pm
$Bill wrote:
> Mine costs $3/mo and I could easily justify replacing it, but saving
> the
> hassle of dealing with a failure is worth some bucks too. I figure
> it's
> 18 months of rental to buy, but you have to add on for the bonus of
> free
> replacement/repair with the ISP. Over $3 - I wouldn't argue - buy
> your
> own. At $9/mo - buy two of them in case one fails in 6 mos.

Chances are that in 6 months the cost of buying a new modem will more
likely fall than rise. Unless the nearest Radio Shack, Best Buy, Circuit
City or other store that sells cable modems is more than an hour away
(which is unlikely as 94% of the population of the US is within 5
minutes of a Radio Shack), I wouldn't buy the second one until the first
fails.

The bigger variable is whether or not the cable company will continue to
charge the same rental rate. At one time ATTBI was $9/month, and a lot
of people based their purchase decisions on that rate. When it dropped
to $3/month, some folks were upset that their break-even point moved out
a number of months.

If someone is a new customer, the decision is easier. If you sign-up for
the service at Radio Shack, Best Buy, Circuit City or some other
retailer that resells Comcast High Speed Internet, and/or whatever other
service might be in their market area, there will usually be a rebate of
the entire cost of the cable modem, plus the introductory package may
include either a lower rate, or a longer period at the introductory rate
than if you go through the cable company itself. There may even be a
self-install kit with cables and a splitter involved, and sometimes even
a gift card for that store as well.

So for a new customer, head to a store to buy instead of signing-up
directly with your cable company. Your break-even point for purchasing
the modem will usually be the day your rebate check arrives -- and
sooner if an instant gift card to the store is part of the offer.

--
Warren H.

==========
Disclaimer: My views reflect those of myself, and not my
employer, my friends, nor (as she often tells me) my wife.
Any resemblance to the views of anybody living or dead is
coincidental. No animals were hurt in the writing of this
response -- unless you count my dog who desperately wants
to go outside now.

Power Lawncare Tools for Spring Clean-up:
http://www.holzemville.com/mall/blackanddecker/




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