Coming soon: New Fusion equipment!

June 28, 2012 – 3:41 pm by dane

I’m very excited to announce that on July 1st, we will be launching a new equipment program for our residential Fusion Broadband+Phone service. The new equipment is a super-fast ASDL2+ modem/router with four Fast Ethernet ports, high-powered WiFi “N” and an easy-to-use web interface. Built-in Firewall protection for your home network is also included.

Our new Fusion equipment will also streamline our support systems, and allow us to upgrade firmware, manage configuration and roll out new features. For example, in future this capability will be used to offer IPv6 to customers.

The new equipment will be owned by Sonic.net and rented to customers as part of the Fusion home service, for $6.50 per month. This assures you’ll always have working equipment – we can remotely troubleshoot it, and replace it for you at no charge if the equipment fails.

Existing customers are of course welcome to continue to use the equipment that they already own, or you will be able to upgrade (starting next week) to new rental equipment if you find the features compelling.

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  1. 155 Responses to “Coming soon: New Fusion equipment!”

  2. Yay for IPv6!

    Does this mean you have some native IPv6 plan?

    By Alun on Jun 28, 2012

  3. Yes, we always have a plan. ;)

    I should also point out, we’ve been offering customers IPv6 tunnels since 2002, way before any other service providers. So, we’re not new to v6 by any means. (Notably, we were told by an Apple engineer & customer that the Apple Airport wouldn’t have had v6 support without our service: the engineer took it home to his Sonic.net connection to develop and test 6in4 tunnel support.)

    By dane on Jun 28, 2012

  4. what if we buy the identical device instead of paying rent every month? do we get the same ease of service. obviously if it needed to be replaced we would have to purchase our own again.

    By dana on Jun 28, 2012

  5. Will this mean faster DSL speeds than with Fusion?

    By Jon on Jun 28, 2012

  6. I’ve had good experiences with the D-Link 2640B, which is pretty cheap and featurewise comparable (only 802.11g – they have a new version with n but that’s close to irrelevant since the ethernet ports are still 100 Mbit).

    Unfortunately none of the integrated modem/routers seem to have GigE ports, nor do they support open firmware, so I still need an unsightly stack of routers and modems :-(

    By Jon on Jun 28, 2012

  7. Will the ZTE ADSL2+ unit be able to pass IPv6 traffic once IPv6 is available on Sonic.net? Or will the new equipment be mandatory?

    By David on Jun 28, 2012

  8. I prefer to own the equipment since it ends up being cheaper than renting. Will you still be supporting other modems like you do currently? I know I have had to call a few times to get the proper settings for my Motorola modem.

    By Chris on Jun 28, 2012

  9. The ZTE equipment does not support IPv6, so in order to get native IPv6, you’d need to switch to the new equipment. Note that you can use IPv6 today, using our 6in4 tunnel service – modem support is not required for this.

    By dane on Jun 28, 2012

  10. As an existing customer, you will be welcome to continue using your own equipment.

    By dane on Jun 28, 2012

  11. Would one be able to receive native IPv6 service with existing hardware? My existing device is used in bridge mode, not as a router.

    By Jon V on Jun 28, 2012

  12. In our testing, the new Fusion equipment has achieved slightly higher Annex A and Annex M speeds than any other DSL modems we have deployed. It’s not a lot, but it’s marginally better.

    By dane on Jun 28, 2012

  13. As an existing customer, you will be welcome to continue using your own equipment – but no, even an identical device wouldn’t integrate in the same way with our configuration management, support portal, features like IPv6, etc. (Note also that an identical device isn’t available from a retailer like Amazon or BestBuy, it’s a customized platform.)

    By dane on Jun 28, 2012

  14. The details of the IPv6 deployment are not final, but at this time it is anticipated that the new CPE will be required for native IPv6 support. We expect hope to deploy v6 around the fourth quarter of this year.

    By dane on Jun 28, 2012

  15. Will you be offering a modem only cpe device that will work with IPv6 when it rolls out?

    By David on Jun 28, 2012

  16. @David, no, this will be the only equipment available. Note though that you can put your own router behind it, and there’s an easy “DMZPlus” mode that will forward all ports toward that router so you can manage NAT/PAT on your own device behind ours.

    By dane on Jun 28, 2012

  17. What is the make and model of the equipment? Can I just buy the equipment instead of renting it?

    By Stefan Lasiewski on Jun 28, 2012

  18. @Stefan, the new equipment for residential Fusion is the Pace 4111N, with custom Sonic.net firmware. If you are a current customer and own equipment, you are of course welcome to continue using that! And, if you are considering becoming a customer and do not want Sonic.net supplied equipment for some reason, do sign up before July 1st!

    By dane on Jun 28, 2012

  19. Why would I want to put my own router behind it? Would that be if I wanted more than 4 hardwired ports? This is an intriguing option…

    By Jennie on Jun 28, 2012

  20. Will there be an option to purchase it outright? It’s kind of cable company-ish to have to rent a $50 router for $80 a year.

    By Todd on Jun 28, 2012

  21. How much stress testing has been done with this new equipment? I ask because the existing ZTE devices have proven unreliable and prone to overheating and crashing under what I consider to be normal (local) load when Wireless is enabled. It seems the burden of combining 3 features, DSL modem, LAN router, and wireless in one device just generated too much load (heat). Hopefully the new devices do not have the same issues.

    By Oshyan Greene on Jun 28, 2012

  22. This is rather cool. I’m too far away for Fusion, but it’s still good to see.

    A concern: It looks like this is going to be a mandatory device for new customers. AT&T U-Verse has a similar mandatory device. Unfortunately, it causes big problems with those who want to run more sophisticated networks at home. Check this out:

    http://ka9q.net/Uverse/static-ip.html

    This rant is mostly about IPv4, but still, it serves a point. Will there be any recourse for those who need IP addressing features not supported by the default “out of the box” setup of this new Fusion device?

    By Josh Lehan on Jun 28, 2012

  23. I live at the very end of the DSL range 14,000-16,000 feet away. Will ADSL2+ make a difference for me?

    By Bill Barrett on Jun 28, 2012

  24. Being an I.T. person, will I still be able to log into the new device and review the stats, such as the signal to noise ratio, error stats, etc.? Thanks for your feedback!

    By Jim Carter on Jun 28, 2012

  25. @Jim yes, there are connection stats available in the interface. You will simply visit gateway.sonic.net, it’s got a great interface and lots of flexibility and features.

    By dane on Jun 28, 2012

  26. @Bill – at long distances, ADSL2+ is only marginally better for download performance, but upstream can be more than twice as fast. Switching in any case is likely to save you some money, as the phone line service is included.

    By dane on Jun 28, 2012

  27. So how does that affect those of us in Sebastopol who expect to get a fiber link soon?

    By JohnM on Jun 28, 2012

  28. I like the IPv6 tunnel Sonic.net provides. With DD-WRT, my router connects to the 6in4 tunnel and advertises addresses for devices on my home network. It is functionally the same as having native IPv6.

    By Daniel on Jun 29, 2012

  29. @JohnM fiber access requires different equipment than copper. We are in the process of specification and testing now. (The current Sebastopol fiber customers are on early-release, interim hardware.)

    By dane on Jun 29, 2012

  30. @Josh you could always put the device in bridge mode. But, in your situation, with a static IP you could also consider DMZPlus mode, where all traffic is forwarded to with 1:1 NAT to a device behind the router.

    By dane on Jun 29, 2012

  31. @Oshyan the new equipment runs quite cool, and has been reliable in our testing. One thing to bear in mind with equipment renting is that if it’s unreliable, we will bear the cost of dealing the the issues, so we also really want to make sure it works consistently.

    By dane on Jun 29, 2012

  32. @Todd no, we will no longer be selling equipment. FYI, it’s more like a $100 router. But you’re right, it has become the industry norm to rent equipment alongside service, and to remain on a level competitive playing field, we must adapt. Both UVerse and Xfinity have equipment rental, at $6/mo and $7/mo respectively.

    As a current customer, there’s no obligation to join the program.

    By dane on Jun 29, 2012

  33. @Jennie if you wanted more than four ports, you’d simply place a switch behind the router. They’re inexpensive, and allow you to continue to access all the other systems on the network. The reason you might want to put your own router behind our router could be that you’ve got some special configuration that you prefer, which is offered by your own system. One comment here mentioned a router running DD-WRT – the Sonic.net equipment could be put into “DMZPlus” mode, where it simply forwards all traffic toward a designated system or router behind it, sort of “delegating the brains” of the network to the other device. But, this wouldn’t be typical for most customers, but it’s an advanced feature that is available.

    By dane on Jun 29, 2012

  34. Will the new modems/routers support bridging mode? I like to bind all of my static IP’s to a separate device witch NAT’s the internal network. This was the main factor behind not getting the 40mbps service as it I couldn’t find a modem that did this.

    By Lucas Dohring on Jun 29, 2012

  35. Yes, you can bridge the modem, but this leaves it like Dorothy’s Scarecrow: without a brain. This precludes our ability to troubleshoot and manage it, and features like IPv6.

    A middle ground option is DMZPlus, which does 1:1 NAT of all ports, but allows the remote management still to function. There are also some other advanced options, they’re unsupported, but available for your use. See the overview of LAN Subports and Broadband IPs on LAN here: https://forums.sonic.net/viewtopic.php?f=10&t=674&p=4044&hilit=subports#p4044

    By dane on Jun 29, 2012

  36. I would really encourage you to keep an option for future customers to not have to rent and pay an additional $8 each month! It just raises the cost for customers who don’t need that kind of support.

    Even Comcast offers an option to buy or BYO to avoid the rental fee.

    By Torsten Budesheim on Jun 29, 2012

  37. Do I understand correctly that the main technical reason you merge the modem and mandate your own router, is to ease the rollout of IPv6?

    It makes sense from technical perspective to have this default for non-tech customers, due to tech support nightmare that would otherwise ensue in IPv6 area between many routers and bridges.

    However, it would be nice to have bridge-only option for those of us who prefer to not have an extra layer of abstraction to troubleshoot between our custom configured router and the bridge itself.

    You know… be friendly to the tech folk.

    The perpetual rental fee, however, I don’t get at all. Shouldn’t it only apply to the point until overall increments add up to the equipment cost?

    By Aleksey on Jun 29, 2012

  38. @Alexskey,

    The new equipment will facilitate many features, including of course IPv6 – but v6 is just one benefit.

    It does offer a large number of configuration options for advanced customers, including a number of advanced modes where we can still manage the device remotely – OR, if you want to you can give it a lobotomy and make it a simple bridge. However, if you choose to do this, support may need you to put it back into a normal mode in order to fully troubleshoot your circuit in future.

    Regarding the rental fee, the rental of equipment with service has become quite common, and I believe it’s got some good benefits. The rental and the equipment supports the advance replacement of failed equipment, ongoing upgrades and overall integration of the equipment into the service. This facilitates more features and customer tools, plus ongoing upgrades (which might be software or hardware) when needed.

    All of that said, current customers are welcome to continue to use their existing equipment, there’s no need to switch if you don’t want to.

    By dane on Jun 29, 2012

  39. Requiring equipment rental is a bad plan. I have always actively avoided services with this bogus requirement. As an existing customer, I will continue to use my current equipment, though I expect that you will make that obsolete soon.

    This is the first negative comment I have ever made about Sonic. I have really enjoyed your service and your excellent customer support, and have convinced most of my family to join you. Please don’t start messing up a good thing.

    By Larry on Jun 29, 2012

  40. @Dane: For (soon to be) Sebastopol fiber customers who also have copper-wired fusion phone service, will the adsl phone lines just revert to POTS once I switch from adsl to fiber? Any plans to use the fiber bandwidth for anything other than internet (like phone, TV, etc)? Thanks from an early adopter.

    By JohnM on Jun 29, 2012

  41. I very much second Alexskey here. It’s impossible to see this as anything except a stealth fee. When I suggest Sonic to people in the future I’ll have to say “well, I pay around $50-$51/month, but you’ll pay substantially more than that”. If I move I’ll suddenly be paying substantially more than I pay today for exactly the same service (except that I’ll have custody of an effectively useless new modem).

    This just isn’t consistent with how Sonic has treated customers in the past, and is frankly pretty disturbing as a harbinger even though the immediate financial impact on me is nil. If you require greater revenue then personally I’d much rather see you raise the base monthly rate and work out some other arrangement regarding the modem, than pretend you’re charging people much less than you actually are.

    By Jon on Jun 29, 2012

  42. Also, saying that you’re moving to this model as an “industry norm” is perhaps even more disturbing than the specific modem issue. I am a Sonic customer precisely because you do *not* treat people by the industry norms of AT&T, Comcast, etc. If that changes then I’ll be off to the cheapest provider instead of being happy to pay a premium for features such as speaking to customer support who speak English as their native language and treat me like a human being instead of a checklist.

    By Jon on Jun 29, 2012

  43. I understand why Sonic is doing this and I don’t think there is any hidden agenda or other anti-customer activity going on here. However, for Sonic’s mix of customers, there are clearly many people for whom this change will be worrisome, even if it doesn’t really change things much in reality. The fee is of concern, but is also relatively small, and Sonic continues to have competitive pricing despite the change.

    The real concern here is, I think, some sort of “slippery slope” toward more typical (and negative) ISP policies, hidden charges, and ultimately a “customers last” attitude. I don’t think this is a harbinger of that but I recognize the concern and certainly hope it doesn’t go that way.

    Sonic may have to bow to the will of their more savvy customers and offer an owned-equipment option, given that the policy is already in place to allow support of *existing* equipment. Without such allowances, some of the more dedicated customers (and biggest evangelists) may be lost.

    By Oshyan Greene on Jun 29, 2012

  44. > The real concern here is, I think, some sort of “slippery slope” toward more typical (and negative) ISP policies, hidden charges, and ultimately a “customers last” attitude.

    Yes, precisely. I was a Speakeasy customer for about 6 years because they had policies and behavior much like Sonic today. Then they decided that growth and being bought out were more important and everything went to crap. Fortunately I still had an alternative, one not available to most US broadband customers, and I will be extremely sad if that changes.

    By Jon on Jun 29, 2012

  45. @Larry, Jon and Oshyan,

    I certainly hear your concerns, and I can tell you that the topic has been much debated here, with members of my management team taking both positions. Some argue for a flat rate, as MetroPCS offers; they offer for example $40 for unlimited talk, text and web, with all taxes and fees in that base rate. On the other side of the coin is …. everyone else; all other carriers keep these things (and items like equipment) separate from the monthly service fee.

    In particular, I would say that the move by ATT to an equipment fee for U~Verse put us on a sloped playing field, but cable has long had this revenue source as well. Without taking our costs of equipment out of the product and making them a line item, I don’t believe we can continue to appear to be a competitively priced offering.

    Our Fusion service does not please all prospective customers. Some dislike the inclusion of phone service, and others really disagree with our requirement that a credit or debit card be used for automatic payment. Others will dislike the equipment rental, but I believe that in the long run, this product is going in a direction that current and future customers will very much enjoy, and find to be a strong value.

    You are welcome to criticize me on the specifics, and I welcome that, because that input helps guide where we go with our products. I don’t participate in all of the various forums and Twitter only to help customers; I am there to LEARN from them.

    Please also take note that as we steer this product toward it’s future form, we are not forcing existing customers to conform to the “new rules”. A new customer who doesn’t like our terms may choose not to sign up, and we’ll react if and when that turns out to be the case. And, we are not changing the game for existing clients.

    Finally, with respect to our large number of technical customers who like equipment they can configure, manage and even bridge, this new equipment supports all of that. All of these options are not supported by phone, and we’d refer you to the forums for discussion, but they are all available – you’re not locked down. Here are the options which are available beyond basic as-delivered dynamic NAT – and all of these continue to allow for remote device upgrade and management.

    DMZplus

    Explanation of DMZplus:
    From the modem’s interface: All inbound traffic, except traffic which has been specifically assigned to another computer using the “Allow individual applications” feature, will automatically be directed to this computer. The DMZplus-enabled computer is not firewalled – all unassigned ports are opened for that computer.

    LAN Subports

    Explanation of LAN Subports:
    LAN Subports allow you to essentially bridge any number of ethernet ports on the modem and allow them to grab a WAN IP directly from us as opposed to being assigned a private “192″ address. For example, you can set ethernet port one as a LAN Subport, then put a router behind it, and that router will either obtain an IP via DHCP from us, or can be assigned one of a customer’s static IPs. This will allow us to continue to manage the modem remotely while at the same time a customer can use their own equipment behind it without any of the funky stuff that can happen with multiple routers.

    Broadband IPs on LAN

    Explanation of Broadband IPs on LAN:
    The “Use Broadband IPs on LAN” feature allows you to configure a customer’s static WAN IP to be assigned to a computer or device set to DHCP connected via ethernet. This will ONLY work on a static circuit since dynamic circuits don’t often get assigned consecutive IP’s and often are assigned from different subnets completely. When using this feature, the computer will have the WAN IP, but our MAC table will show the MAC address of the modem, not the device itself.

    By dane on Jun 29, 2012

  46. I would make the case that we are still the good guys. You may not agree with all of our product design or business rules, but we do give consideration to the customer ramifications of all of our decisions.

    See also:
    http://www.forbes.com/sites/andygreenberg/2012/06/22/ceo-of-internet-provider-sonic-net-we-delete-user-logs-after-two-weeks-your-internet-provider-should-too/

    https://www.eff.org/pages/who-has-your-back

    http://blogs.cio.com/internet/16981/so-long-att-why-im-better-small-isp

    http://arstechnica.com/tech-policy/2012/02/gigabit-internet-for-80-the-unlikely-success-of-californias-sonicnet/

    http://blogs.wsj.com/digits/2011/10/09/the-little-isp-that-stood-up-to-the-government/

    http://www.sfgate.com/business/article/Sonic-net-bucking-the-data-cap-trend-2355518.php

    By dane on Jun 29, 2012

  47. Thanks Dane, I appreciate your detailed and consistent communications here. Just to be clear, for my part I am not particularly bothered by this change, in fact I welcome the possibility of better equipment than the ZTE device that I’ve had historical problems with (now operating in bridged mode, it’s fine). But I do recognize the legitimacy of the concerns being expressed and wanted to add some support for alternative approaches.

    In general I’m very happy with Fusion and Sonic.net overall. I’ll be even happier when fiber reaches me in San Francisco, but I’ve not heard any mention of that even being on the way, so I’m not holding my breath. ;)

    By Oshyan Greene on Jun 29, 2012

  48. The amount of negativity is absurd. Savvy users will buy their own modem, those who don’t care will just pay the fee. It’s still cheaper than AT&T.

    By Daniel on Jun 29, 2012

  49. @Daniel,

    To be clear, I think the reason for the adverse reaction is that buying their own modem won’t be an option. Fusion service from 7/1/2012 will be bundled with our equipment. In this way we are similar in policy to ATT with their U~Verse service, as opposed to cable where the modem may be omitted at the customer’s option.

    Folks could bridge the device if they don’t like the routering/firewalling, or just put it in a drawer and use something else they like better, but support will ask them to connect it, in a non-bridged mode, from time to time when troubleshooting circuit issues.

    By dane on Jun 29, 2012

  50. @Oshyan, we are making progress on our SF fiber pilot in the Outer Sunset, FYI.

    By dane on Jun 29, 2012

  51. @dane,

    “we are making progress on our SF fiber pilot in the Outer Sunset, FYI.”

    - How much progress? I’m a current customer in the Inner Sunset and am curious as to when I might be able to avail of the fiber upgrade. :)

    By hkorp on Jun 29, 2012

  52. Outer Sunset, eh? Seems like low population density (at least compared to many other neighborhoods), but I’m sure there’s a good reason for it. I recommend the Mission as your next deployment. ;)

    By Oshyan Greene on Jun 29, 2012

  53. Thank you for your info on the update. Not being at all techy, I don’t understand most of what you say. My phone/internet costs have definitely gone down with Sonic vs my old AT&T, but even with two phone lines, I have not noticed any increase in speeds with Fusion.
    If, after my son leaves for college, I might want to drop one of my phone lines. Will my speeds decrease?
    I do not want to change to your new service.

    By Richard Diamond on Jun 29, 2012

  54. I’m sure you tried to fight crossing over to the dark side for as long as possible, Dane. But once my current ADSL2+ modem is obsolete I’ll probably be moving on and leaving sonic behind. It makes just about as much sense to pay rent on a toaster as it does to pay rent on a modem.

    By Todd on Jun 29, 2012

  55. @Todd,

    We are not forcing you to rent equipment. You signed up before that was the offering. If and when the modem you own breaks, you could just go buy a new one.

    By dane on Jun 29, 2012

  56. What sort of testing/certification is done on the firewall software? Does it go through any sort of periodic testing/review for bugs? Is it open-source so that it can be reviewed? I run my modem in bridged mode since I have my own firewall, but I’d consider using the new modem’s firewall.

    DMZ option on the firewall sounds like a good idea. Is one of the four Ethernet ports dedicated to connect to the DMZ computer/network? Looks like the LAN Subports feature is able to dedicate a port for this purpose.

    By Robert on Jun 30, 2012

  57. Man, I want to support Sonic, and definitely would like to stay away from the big companies. I’m moving to SF and researching options. I cannot understand nor justify paying $6.50 extra per month for some mandatory equipment charge for using adsl2 on top of being forced to have a phone line (don’t want it). It’s just a little too much. I despise Verizon and AT&T, but I also need to save money.

    It’s also a bit disingenuous to pitch this change as an exciting benefit to customers, when actually what was available was just fine (hence, you allowing previous customers to keep that equipment), and without being up front about the fact that the actual price goes from $39.99 to $46.49. I’m certain you won’t include that new price in the advertisements and splashes on the homepage, but instead it’ll be kept as a fine print type of charge. Am I wrong? Why not have it be an opt-in, optional, deluxe feature?

    Sorry, but this is just lame.

    Won’t be signing up.

    By Ivan on Jun 30, 2012

  58. While I’m not thrilled about moving to a renting the equipement model, I do see some advantages. Whatever I decide, again I am impressed by Sonic’s forthright answers and honesty. I understand needing to adapt to competition and I’m willing to pay the additional cost because Sonic has given me stellar service from day one. And that is the most important thing to me.

    By Kevin Cureton on Jun 30, 2012

  59. @Ivan,

    I think that the fundamental issue is that with capitalism, you end up with shrouding – the true cost of things is hidden. This is true in nearly every mainstream buying transaction – so much so that it feels a bit odd to simply pay the stated price for something, for example at a flea market, when you pay $5 for an object – and that’s truly the total transaction cost.

    Read more here:
    http://redtape.msnbc.msn.com/_news/2012/05/25/11864178-fair-and-square-pricing-thatll-never-work-jc-penney-we-like-being-shafted

    The study cited is just fascinating reading, you can find it here:
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=728545
    (Click “Download this paper” for a PDF copy of the study.)

    The study makes the astounding point that in some ways consumers prefer services where some costs are shrouded, as the consumer who cares can then take action to avoid the costs, while those unaware prop up the lower rate for the savvy shopper. Think, for example of coupon users, or those who mail in a rebate, or take advantage of an intro price – they are getting something for less because everyone else is NOT getting the same deal (generally through inaction of lack of awareness of the offer), and their deal is propped up by the unaware spending of others.

    And so it is in the market around Internet access, telephone service and television – there is a constant shell game underway, with the unaware consumer supporting financially the new offers to win over the value shopper with introductory pricing, etc.

    In our case I’d point out that this recent change is the opposite: existing customers continue to pay the monthly rate that does not include equipment rental, while new users will pay more. This is a conscious decision on our part, we are managing the supply (staff availability) and demand (customers and their support calls) curve as we make gradual changes to the product. We must maintain adequate staffing availability to serve well the customers we have today, else we will lose what has been most hard won: their loyalty. Thus, a slightly higher rate having a dampening effect on new signups is not an entirely bad thing.

    By dane on Jun 30, 2012

  60. @Robert,

    My team has engaged in extensive testing of the equipment – and this particular model of modem is in use by millions of DSL end-users today on other carrier’s networks. We’re optimistic that it’ll be a solid performer. I’m also very pleased that we’re able to manage and upgrade it going forward, allowing us to push out new features or bug fixes through firmware updates without much impact on support or the customer.

    By dane on Jun 30, 2012

  61. @dane

    An insufficient response all the way around. Perhaps you can find and then cite the study that says that individuals are perfectly capable of discerning their own wants and priorities. But instead you tell those self-same individuals that they don’t actually know what they like or what they want, and that consumers are best told by the companies what actually suits their needs sufficiently. It’s pure arrogance. The issue is that you raised the prices, but you present it as if you’re doing us a favor. You’re forcing new clients to rent equipment that isn’t a necessary component to utilizing your service, and you refuse to acknowledge that it sucks.

    Sorry, just because other companies force you to rent equipment you don’t need, doesn’t justify it in your case. I can understand and even get on board with incentivizing the use of multiple products, but when you say that I MUST get phone service (with all of the attendant taxes and fees) AND now that I MUST rent equipment from you in addition, and you announce it without any meaningful acknowledgement of how much that aligns with the worst and most disingenuous components of large, depersonalized commerce, then you’re really seeming to be tone-deaf and naive. You shrug this off as a fundamental component of capitalism and in doing so you conveniently absolve your company of any culpability in contributing to the worst part capitalism: the de-personalization and ignorance of the individual.

    I am not opposed to raising prices for an improvement in service, I’m just opposed to being told that it’s a joyful thing and that I don’t know any better. I can go to Comcast for that.

    By Ivan on Jun 30, 2012

  62. @Ivan,

    While you might prefer that I be less forthcoming about the realities of commerce in America, this is how I feel.

    I should clarify also that the reason I announced this before it was in place was to allow those who do not want to be on the new rate to order prior to it being in effect. You are welcome to take the current offer today – or to not buy the offering tomorrow. Whatever suits you. Your indignation at the fact that we might change our offer for new customers is misplaced.

    By dane on Jun 30, 2012

  63. Why not simply sell the Sonic.net customized version of the Pace 4111N like you have in the past? It would be a much more palatable option to me.

    Here is a question for the other techies out there. How complicated will it be to connect some other ipv6 compatible modem once Sonic’s IPv6 service is in place?

    By David on Jun 30, 2012

  64. David – the new equipment we’re using would require us to bump up the unit cost significantly from previous offerings. By stretching the cost of the device out over many months, we hope to get an excellent CPE out there, reduce the initial pocketbook pain involved with a new circuit, and not lose our shirts. It’s a balancing act, to be sure.

    By John Fitzgerald on Jun 30, 2012

  65. @dane,

    Please don’t condescend to tell me the “realities” of commerce. Firstly, how you “feel” and the “realities” are two very different things, and you have a perfect example of a consumer (me) providing an example of an actual reality (not derived from a focus group), and instead of listening, and recognizing the opportunity to connect and clarify, you’re resorting to pompous platitudes. Stop it. I am eager to support Sonic because I want a smaller, more personal alternative to the other options that are out there.

    As for the advanced announcement, you posted that entry on the 28th of June, that’s 2 business days to take action, hardly a benevolent gesture of goodwill.

    And as to your last point, my indignation is of course not at your raising prices (if you’d read my last post, you know that; in fact, here’s a quote: “I am not opposed to raising prices for an improvement in service…”), but actually my derision is directed at being told that I like it, and that it’s better for me, and that I don’t actually know what I like, and that I don’t understand American commerce, and that you were thinking ahead by announcing it ‘in advance.’ But of course, you don’t have the decency and goodwill to level with us by saying, for example, “this amounts to an increase in price,” or “it is actually not necessary equipment, but we are trying to raise revenue,” or “we recognize that raising prices in this economy is a tough pill to swallow and we’re really sorry.”

    Of course that’s the least you could do. What would be truly revolutionary would be for you to avoid following the unfortunate practices of your really crappy competitors who use bulk survey analysis to make decisions but refuse to listen to individuals who are frustrated.

    BTW, I actually did try to sign up today, and was told that somebody would call me. It’s 4:15, and still no call…

    By Ivan on Jun 30, 2012

  66. $99 at Best Buy.
    http://www.bestbuy.com/site/Pace—Home-Portal-802.11n-Router/4845848.p?id=1218548311950&skuId=4845848

    By David on Jun 30, 2012

  67. Granted, without the Sonic firmware.

    By David on Jun 30, 2012

  68. This is an ATT version – configured for use on their network, but also notably managed by their ACS instance. This allows them to configure, push firmware and engage in diagnostics. (ATT also offers it for sale to their customers on their own website, for a penny more.)

    By dane on Jun 30, 2012

  69. @Ivan,

    Clearly, we disagree on a number of point. That’s okay, and I do very much appreciate your feedback and concerns both about the change, and my communications.

    By dane on Jun 30, 2012

  70. Getting Internet and phone with Sonic.net was cheaper than getting only Internet with Comcast and AT&T. They’ve already got a loop of copper coming into your house, why not apply 5 volts to it and throw in phone service while their at it? If Sonic didn’t provide telephone service everyone would be complaining about it. It’s much simpler for a CLEC like Sonic to have a single unified product rather than trying to run around the whole Bay Area supporting multiple combinations of a la carte services.

    There is a lot of stuff you get for free with Sonic…like shell access, no data caps, web hosting, voicemail, full-name caller id. If you had to get all the same services from AT&T, Sonic would look like a bargain.

    There are also things you can’t buy from AT&T or Comcast, like fighting for customer’s privacy rights. http://online.wsj.com/article/SB10001424052970203476804576613284007315072.html

    By Daniel on Jun 30, 2012

  71. I have an iffy AT&T landline through which i get Sonic’s phone+DSL service, and i have been very happy with Sonic’s service. I’ll be happy to pay an additional seven bucks a month for an improved DSL connection.

    By Louis Bryan AKA "Matte Gray" on Jun 30, 2012

  72. Dane, does the new modem offer any benefits for those of us on 10K+ foot loops?

    By Chuck Fry on Jun 30, 2012

  73. @Chuck,

    It has a good analog front-end chip, a good Broadcom implementation and a twisted pair line cord, so it’s “as good as possible”, but I wouldn’t expect performance to be significantly better than any current device you may be using.

    By dane on Jun 30, 2012

  74. I should have mentioned we currently have the ZTE box Sonic.net supplied when we first hooked up with you. I’m not thrilled with that box’s feature set, or ADSL speeds on our loop, but it has been fairly reliable.

    By Chuck Fry on Jun 30, 2012

  75. wow. it’s really sucks finding out about the new mandate equipment rental after the clock ticked pass midnight into 7/1. Thanks so much Dane for the 2days notice. But for now, I’ll stay with ATT. Not providing customer with a choice is NOT an American way of doing business. I wholeheartedly agree with Ivan that you and your company are very arrogant and do not care about your customers or prospective customer input. First, you control your customers by making decision for them on what they should get (additional landline + modem rental). I hate companies who treat people like dummies, incapable of making their own decisions. Sonic.net is not being honest in implementing a price increase. If your company really cares about how each individual feels, you should conduct a poll survey. My 2cents.

    By Dan on Jul 1, 2012

  76. @dane

    Not sure what we disagree on, as you’ve yet to respond directly to a single point. So far you’ve set me up as somebody who’s indignant to change, who doesn’t know what I actually want and who doesn’t understand american commerce. I suppose I disagree with you on all of that. But that I still don’t know how you justify the move.

    That said, I signed up yesterday, just before the cutoff. I dislike the kind of tactics you’ve displayed thus far, as I think they’re insulting and disingenuous, but I nonetheless appreciate the forum to let you know. And in the grand scheme, this option is better than the alternatives.

    By Ivan on Jul 1, 2012

  77. @Ivan,

    Sorry to have given offense. I found the study, which I linked to, to be a fascinating read. It makes some points about shrouding that are really, really interesting – and in particular, the point that savvy consumers benefit (for example by signing up a day before a change), at the expense of those less informed. And, it attacks the premise that a business can prosper while swimming upstream against the shrouding trend, via consumer education for example – as educated consumers simply become the minority who work around the shrouded practice while continuing to purchase from the companies who use these methods.

    We see this ourselves with customers who want to switch to Sonic.net for a simple and fair single price point (Fusion for $39.95), but they say they keep calling ATT or Comcst once yearly and threatening to cancel, and getting a retention rate. This retention rate is supported at those firms by the consumers who are NOT paying an intro or retention rate, which is actually higher than the “single, fair price” the consumer would pay if they were to switch to Sonic.net.

    Just interesting stuff, in any case. Glad to hear you got in on the offering when configured as you wanted!

    By dane on Jul 1, 2012

  78. *sigh* I had been a long-term sonic subscriber (referring several friends and members of my family) until I moved out of range a couple of years ago. Now that Fusion is in my area, I was contemplating switching back, but with the extra charges I may have to rethink it. This is especially annoying as I check the Sonic.net website regularly to see whats happening, but I missed the 2 day warning window. It would have been nice if it was a 14 day window so I could have put my order in.

    Is there a write up of the functionality available in the new equipment? I am a fairly heavy user of port forwarding.

    By mike on Jul 1, 2012

  79. @mike, the new modem/router/firewall include four Ethernet ports and high power 802.11N WiFi. The configuration is quite flexible, and there’s of course support for port forwarding. There’s even a “DMZPlus” feature, which is useful if you want all ports forwarded to a specific host on your LAN. That devices comes out of firewalling, and becomes the default destination for all incoming traffic. It’s a nice bit of hardware – and it’s also tightly integrated into our support team’s tools, so they can engage in some diagnostics (for example, it will flag our team and you via the interface if it detects that there is a missing filter in the premise), plus we can deploy new firmware to fix bugs or add features.

    By dane on Jul 1, 2012

  80. What if consumers just want a standalone modem like the ZTE series? The all-in-one configuration might be nice but I already have my own wireless router.

    I’ve been a customer for a year and after hearing this *mandatory* modem rental for new customers, I don’t think my friends would go to Sonic. It would be better if consumers have more choices such as being able to purchase the modem or their own modem instead of paying a monthly rental fee. Why limit the options?

    By David on Jul 1, 2012

  81. For now I will stay with my old Sonic equipment. But since your customer service is so outstanding, there is no way I would change my provider away from you.
    Thanks!

    By Richard Diamond on Jul 1, 2012

  82. @David,

    In the interests of a single streamlined product, which offers the fastest speed, unlimited use and good policies – we have made many decisions which may not be ideal for every potential customer. The sacrifice of flexibility in the product results in a “one size fits many” outcome which helps us achieve operational efficiency that greatly benefits customers with lowest possible cost alongside best unlimited performance and quality customer care.

    For example, customer support can be delivered more quickly if the modems are all tied into our central management. We can upgrade firmware, roll out new features, etc. A unified modem solution enables this for all customers.

    All of the decisions we are making as we move the Fusion product down our road map are intended to deliver more, for less, through simplification. There will sometimes be unpopular decisions (some people hate the automatic credit/debit card payment, and others don’t want a phone line) or losses of some “wouldn’t it be nice if they would offer an option X?” potentials.

    But, as a benefit of this simplification, we will end up with a product that will amaze you, and be an astounding value.

    As to the technical side though – you can certainly put your own router behind the Sonic.net supplied unit. If you want to avoid going through network address translation (NAT) twice, you can enable LAN Subports, where our router obtains it’s own IP via DHCP, but also one or up to all of the Ethernet ports can be configured to bridge – they also obtain an IP directly. This lets you deploy a different router “bridged” to our network if that’s your preference.

    By dane on Jul 1, 2012

  83. Talk about stirring up a hornets nest. I for one depend on the high quality service sonic offers, and fusion is one of the best values in the industry. While I may not choose to upgrade to the new equipment, I feel sonic will continue to deliver the value and reliability we have all come to enjoy.

    Improved service and support is a good thing. We shouldn’t complain about it.

    By jm on Jul 2, 2012

  84. Right on Jim! As I am a happy 11 + years and counting current customer of Sonic.net, I agree: “Improved service and support is a good thing. We shouldn’t complain about it”.
    Thank you Dane & your crew for increasing value year after year.

    By Eric on Jul 2, 2012

  85. I think there’s one very simple question that hasn’t been addressed: Why don’t customers have the option to buy the new modem from Sonic instead of renting it? $6.50 a month is a great deal if the modem lasts for, say, only a year before failing, but I would feel that I’m being taken advantage of if I it lasts for four years and I end up paying, in effect, $312 for a $100 modem. Why not give me the option to buy the modem and assume the risk of equipment failure?

    By Jay on Jul 3, 2012

  86. @Jay, equipment rental supports the cost of our pool of modem inventory including future replacements if needed, the hosted back-end support portal and management system (which we pay an annual per-customer fee for), the diagnostic and loop optimization system (which we pay a monthly per-customer fee for) and support overhead including shipping to/from of replacement equipment. The rental of equipment as part of broadband service has become typical in the industry, and we have made a decision to do the same with our offerings. As described more fully in a few of my other responses, Fusion is a somewhat inflexible product, with no options to opt out of it’s various features, including phone service, the fax and hosting items that are included – or equipment.

    By dane on Jul 3, 2012

  87. Dane, I understand that it costs Sonic money to provide us with Fusion services and that you need to be profitable. It’s possible that you’d have to charge a premium, well above the $100 price of an off-the-shelf unit, in order to support your plans for growth and other goals, but that is justified since Sonic’s firmware, custom settings, etc., add value to the hardware. I’m not saying you should do this for free, but I do think it would be wise to offer your customers a choice between renting and purchasing, if only to differentiate Sonic from your competitors who deny consumers that option.

    By Jay on Jul 3, 2012

  88. I’ll quote myself here: “As described more fully in a few of my other responses, Fusion is a somewhat inflexible product, with no options to opt out of it’s various features, including phone service, the fax and hosting items that are included – or equipment.”

    The lack of flexibility is the point, it’s a key simplification component that helps us build toward a more disruptive product for all customers.

    By dane on Jul 3, 2012

  89. “The rental and the equipment supports the advance replacement of failed equipment, ongoing upgrades and overall integration of the equipment into the service. This facilitates more features and customer tools, plus ongoing upgrades (which might be software or hardware) when needed.” -Dane

    So you’re introducing this new router because the failure rate of past devices outpaced what customers paid for them?

    —–

    “The new equipment runs quite cool, and has been reliable in our testing. One thing to bear in mind with equipment renting is that if it’s unreliable, we will bear the cost of dealing the the issues, so we also really want to make sure it works consistently.” -Dane

    “It has a good analog front-end chip, a good Broadcom implementation and a twisted pair line cord, so it’s “as good as possible”” -Dane

    “My team has engaged in extensive testing of the equipment – and this particular model of modem is in use by millions of DSL end-users today on other carrier’s networks. We’re optimistic that it’ll be a solid performer.” -Dane

    And now you’ll offset that imbalance by charging a rental fee for a device that is expected to be far more reliable?

    —–

    “it has become the industry norm to rent equipment alongside service, and to remain on a level competitive playing field, we must adapt. Both UVerse and Xfinity have equipment rental, at $6/mo and $7/mo respectively.” -Dane

    The $6.50 fee fits rather neatly between what ATT and Comcast charge. Competition is about offering a better deal. Why not charge $3 or $4 instead?

    —–

    “We are not forcing you to rent equipment. You signed up before that was the offering. If and when the modem you own breaks, you could just go buy a new one.” -Dane

    So if my old (unreliable) equipment fails, I would have to pay full price for a replacement out of pocket or join the ranks of equipment renters. How long do you figure that Chinese-made ZTE you shipped to me a few weeks ago will last?

    —–

    “equipment rental supports the cost of our pool of modem inventory including future replacements if needed, the hosted back-end support portal and management system (which we pay an annual per-customer fee for), the diagnostic and loop optimization system (which we pay a monthly per-customer fee for) and support overhead including shipping to/from of replacement equipment.” -Dane

    “This is a conscious decision on our part, we are managing the supply (staff availability) and demand (customers and their support calls) curve as we make gradual changes to the product. We must maintain adequate staffing availability to serve well the customers we have today, else we will lose what has been most hard won: their loyalty.” -Dane

    Seems like you’re lacking adequate funding for operating costs and support staff. Shouldn’t that expense fall under the Fusion monthly rate rather than equipment fees?

    —–

    As some have already stated, the issue is not so much about raising the price of Fusion service, but rather adopting deceptive practices of the very competitors Sonic claims to set itself apart from. We can all understand that it’s hard for a small fish to keep swimming in such a big ocean, but the fish has to be honest with its customers. I would have understood and accepted a higher base rate for Fusion service. I can’t, however, justify the “equipment rental fee” *asterisk in the fine-print. It downright contradicts the “NOT an intro price” and “no contracts” selling points. It also undermines Sonic’s image for new and existing customers alike.
    And that ’2-day notice for prospective customers’ is, quite frankly, a joke.

    By Alex on Jul 3, 2012

  90. I’d like access to the user manual for this modem, so I could look into what features its software provides.

    By Robert on Jul 4, 2012

  91. I’m hoping there’s no need to install software on a Windows or Mac computer in order to control this, that it is purely a web interface, since I run FreeBSD at home.

    By Robert on Jul 4, 2012

  92. How well does this router support the relatively large number of connections made by typical BitTorrent clients, or has this been tested?

    By Robert on Jul 4, 2012

  93. Yes, to manage your modem/router, simply access it at http://gateway.sonic.net/

    By dane on Jul 4, 2012

  94. Very well – but we’d welcome any testing or feedback, and if bugs are found we can push new firmware out to resolve.

    By dane on Jul 4, 2012

  95. A user manual is not available at this time, but a quick setup guide is included with the system, and an overview of some of the basic connections settings can be found here: https://wiki.sonic.net/wiki/Pace_4111N

    By dane on Jul 4, 2012

  96. Dear Sonic.net,
    I love your Fusion service and the value proposition it offered. I am one of the few who actively promote your Fusion offering to everyone I know and come across. I don’t gain anything from that activity beside the satisfaction that people will get a better deal from you.
    In the few short weeks I have promoted your offering, you have gained an additional 10 new customers because they believe in the value proposition I have pointed out in your Fusion offering (without the rental requirement).
    However, since finding out about this new modem rental requirement today, I have opted to stop promoting your Fusion product. It is very much like one of the previous commentator has said – it is very cable company like. I have three new potential customers that I have convinced to switch from AT&T this week. However, I now have to point out to them to pause and factor in the extra $78/year that you are looking to get from them.
    Thank you for offering the Fusion the way it was. I am a happy customer of that. Please consider continue offering Fusion without equipment rental.

    By eric on Jul 4, 2012

  97. I’ve probably referred and outright set up about 6 friends to sonic since I switched over and I’m also switching from enthusiastic advocate to actively warning people away.

    And please stop with the “everyone else does it”. In a child it’s a teachable moment, in an adult it’s pathetic and just plain unacceptable when it comes from a corporation.

    By Todd on Jul 4, 2012

  98. “http://gateway.sonic.net/” ?

    Wait, so this new setup comes with mandatory “cloud” management interface?

    Cisco just forced this on their customers. Did someone miss the backlash?

    Nobody wants to “cloud manage” devices that are located in their own house. It’s a security hole, and an information leak.

    All in all, thumbs down.

    By Aleksey on Jul 4, 2012

  99. Yeah, so far Dane et al. have cited the recent tactics of really, really shi*ty companies as justification for making the moves they make, with a subtext that it’s a necessity in order to stay competitive.

    But, in the same breath, they brag about being different, about being disruptive, about being better. I suppose we are supposed to take it on faith that endorsing (by copying) the worst current practices of the absolute worst companies possible doesn’t signal anything to worry about. But it sure would be nice if they could be straight up and vocalize the reasons, or better yet, if they could think bigger, and less like scared sycophants.

    Anybody looks good when compared to the worst possible example, but that doesn’t make you actually good. Beating the last place team doesn’t make you a contender; kicking a toddler’s ass doesn’t make you tough.

    Ingenuity, quality, creativity, and goodness are not relative terms.

    By Ivan on Jul 4, 2012

  100. I have to say this is the worst thing I have seen in a long time. I live in a U-Verse exclusive building now and as such cannot have Sonic.net service, but I was incredibly eager to get the service once I moved.

    Now, I will actively suggest people look elsewhere. There are several things wrong with this move:

    1) Whining “but everybody else does it, mom!” as an excuse for adding a hidden below-the-line fee is completely despicable. First off, U-Verse doesn’t charge for equipment rental unless you have one of the top-speed tiers or also have TV or Phone service. You can get U-Verse Internet Only (up to 12Mb/s) and have customer-owned equipment. I know, because I have it. Second, I thought the whole POINT of your operation was to disrupt and to not be like everyone else. If you’re just going to become another scummy telco, that’s a very disappointing turn of events.

    2) Your fee is not disclosed in a way that is honest and forthcoming. $39.95* is in approximately 42-point type, and the $6.50 “equipment fee” is in 8-point type. Just call it $46.50* (*plus [expletive-removed] fees we try to pretend are taxes but are actually just another way of us increasing the rate, like the USF surcharge, but hey, everybody else does it so apparently that makes it OK) and be done with it. The practice of burying sneaky fees in is despicable. The arguments of “if we do it this way, savvy customers are better off” is irrelevant. You are required to pay it, there’s no way out of it, so you cannot justify hiding it (or even itemizing it IMO). There’s no way to NOT pay you $6.50 a month in additional profit, I mean, equipment charges.

    3) Oh, it turns out there’s ALSO an $8.72 (that’s awfully specific) shipping fee for the modem, that is only disclosed if you click through to the equipment page. That’s not even listed on the page with your initial fee disclosure. For pete’s sake, you can’t argue that you mandate rentals to try to spread shipping costs out (rolleyes) in one post then also charge for shipping the damn modem. There’s also a $75 installation fee that isn’t disclosed unless you click around, and a $35 “pay us this fee for the privilege of paying us money every month” fee that, to your credit, is disclosed.

    Come on, guys. You have a great deal. Probably the best deal. Advertising it in this confusing, opaque way does not do you any favors. You don’t need every customer; it is probably substantially cheaper to you to only service customers who are capable of figuring out that your advertised fee (assuming you actually advertised the actual fee) is cheaper than a cable company’s “$39.95 a month”.

    What exactly is wrong with saying “Fusion DSL and Voice service, including equipment, is $50.00 a month plus government-required taxes only. Click here to calculate your exact bill based on your ZIP code”? You could even compare that to the advertised prices from major providers to illustrate their confusing, opaque, and unpredictable pricing… or you could ‘compete’ with them by doing exactly what they’re doing.

    Hopefully you guys change your mind.

    By Greg on Jul 4, 2012

  101. I think Greg’s comments, while a tad bit harsh, are very valid. I’ve been a very happy Sonic customer for many years (especially this last year or so once Fusion was available in my area) but I too balked a bit at the $6.50 service fee. It’s not a lot of money, now, but will it eventually go to $7.00, $7.50….? I’m assuming that the additional fees Greg pointed out are for new customers ($75 installation fee, $35 credit/debit use fee) and not for those of us who choose to upgrade to the newer modems or need to replace our ZTEs because of failure or problems. It would appear the the use of the new modems will be an eventuality for most of us so how about waiving all of the additional fees (shipping, installation, etc) for existing, long time customers (we are the ones who have helped you grow) and just send us out a new modem when requested and/or needed and charge only the $6.50 service fee?

    By Scott on Jul 5, 2012

  102. I think Sonic.net is going the wrong direction. It tried to get more customers by adding features like Static IP, free call to Canada, free call even to Guam/Puerto Rico/US Virgin Islands, 250MB Disk Storage, 1GB hosted bandwidth that majority of people don’t really need. All those cost money. To make up for it, they charge this rental fee which angry all their customers which in turn no one promote Sonic.net anymore. If they want to make more money, they should just cut those features that majority of customers don’t need(charge some small fee for those that want them). Come up with new features that they can charge monthly fee but not something like modem that cost <$70 to buy it out right.

    By JC on Jul 6, 2012

  103. I just priced out ATT service for something similar to fusion as I’m looking for access to espn3 online – something you can’t get with Sonic. The equipment fee was waived for a 12 year contract and if you go fewer months than that you pay a flat fee for the equipment. With the new modem rental fees fusion is now very close in price to ATT.

    By Jenna on Jul 7, 2012

  104. I have been a Sonic/Fusion customer for just shy of two years. I am tending toward liking this development.

    Eventually IPv6 will actually be required. This seems like a good way to help get there with less stress.

    I am at about the 10,000 foot range, so this change does not do much for me one way or the other, so I might wait until it is time to replace my wifi router. When that time comes I suspect I will be happy to switch to the lease.

    By Doug on Jul 7, 2012

  105. @Aleksey

    The “gateway.sonic.net” thing is a fake/intercept address that will point at the Sonic.net interface on your CPE (router/modem). It’s not Cisco-style hijacking or anything.

    My Vonage V-portal device does the same sort of thing (if I hit “v-configure.com” from behind it, I get the management web interface on the ATA). It should also have an IP address of course, so that if your DNS overrides this interpretation, you can still manage the box.

    By Rob on Jul 7, 2012

  106. I have got to agree with Greg and Scott. This change is not something that makes me comfortable recommending Sonic to other people. $6.50 per month is not a good deal. Sure, some people will like the convenience of not having to worry about equipment, but I know I do not want some mandated piece of equipment to access your service. The only piece of equipment that I have no choice about is a Comcast CableCard (for which they credit me $2.50 a month to take in lieu of a cable box). I have not and do not intend to ever take a mandated modem/router for a fee disguised as a service benefit. It disappoints me that a company I previously had no problem recommending now seems no different from everyone else, activation fees, modem fees (and to add insult to injury shipping fees), installation fees. I hope that it improves your bottom line in the short term, but I think in the long term you are digging yourself into a hole.

    If I was a new customer looking for service today, I would certainly no longer pick Sonic.

    By Oliver on Jul 8, 2012

  107. I will no longer be recommending Sonic to my friends because of this change. It was bad enough that you forced phone service with Fusion along with the phony official sounding required $6.50 subscriber line fee, now you charge another $6.50 modem fee.

    And the excuse of everyone is doing it so we will too is ridiculous. Both AT&T and Comcast allow customer-owned equipment. They don’t force rentals. Not to mention your business model was built being different in a good way from the big companies.

    By R on Jul 9, 2012

  108. Does this new recurring charge and movement to following the “industry norm” mean we’ll be able to get ESPN3 now… (for an additional recurring charge).

    http://corp.sonic.net/ceo/2010/06/16/full-circle/

    By Alun on Jul 9, 2012

  109. Before I left for vacation I decided to switch ISPs from Comcast to Sonic. I didn’t place my order then due to the duration of my trip. Sadly, when I returned and wanted to place my order Sonic had a new package which requires new subscribers to rent equipment. This is a huge disappointment and turn-off!

    By Ryan on Jul 9, 2012

  110. @R Agreed… Even with AT&T U-verse they allow you to purchase the modem if you are only getting internet and phone.

    By S on Jul 10, 2012

  111. I was just about to sign up, but this deceptive way of doing business makes me mad and disappointed. I thought sonic was different from the major providers, but sadly I was wrong. You will not get my business or recommendation any longer.

    By Colin on Jul 15, 2012

  112. Do the new Sonic-provided modems support ADSL2 Annex L
    (reach-extended ADSL, for your distance-challenged
    customers)? If so, does Sonic have any actual
    experience with customers using Annex L?

    By John on Jul 18, 2012

  113. Yes, the new equipment does support Annex L, and the DSLAM, when in the standard Multimode configuration, will use Annex L if it determines that it is the best configuration for a given loop.

    As for experience, we do have customers using Annex L today, as it’s automatic, but honestly I don’t believe we’ve done any comparative testing between Annex A and Annex L for these customers to see what the gains are.

    By dane on Jul 18, 2012

  114. (I’m late to the party on this topic.)

    I can understand Sonic’s desire to simplify installation and maintenance; trying to support a mixed-bag of CPE can be a support nightmare, especially for a service that has a lot of other variables such as DSL. But what a lot of people here are choking on is the economic rationalization of the monthly fee. Will there be any promise (guarantee?) of a modem upgrade at any point in the future? A few years from now the original device will be generations behind (no 802.11ac, MIMO support, etc.) yet we will still be paying the same $6.50 per month. That makes us feel like suckers, and that does not make for happy customers.

    I have a proposal for Sonic: pro-rate the modem fee after the first year and let us feel better about continuing to use older equipment. Drop it to zero after three years. Your best customers are the ones who never call for support and simply pay their bills every month. Give long-term and loyal customers an incentive to recommend your service.

    (If, instead, your business projections include the modem fee as part of your future revenue, raise your price instead and be honest about it. We can handle that, but non-negotiable equipment rental is unpalatable no matter which industry does it.)

    By Don on Jul 19, 2012

  115. I was a happy Sonic.net customer at the place I lived some years back before a couple moves. The reputation for excellent customer service, value, and none of the crap pulled by other ISPs was well earned and lead me to recommend them to many people in the years since.

    I’ve had my eye on the Fusion DSL service for awhile now, and when our AT&T uVerse modem died I figure it was a good time to switch since it is now available here. I have another compatible modem, but AT&T wouldn’t activate it since it wasn’t provided by them. Fortunately I knew that Sonic.net would function as long as it met the standards. I called up the sales number tonight to check on prices and times and was told that I could use my modem, but I would have to pay an equipment rental fee anyway.

    What?? There must be some mistake! I am talking to Sonic.net? The service is $40 / month, right? That’s what I saw advertised.

    That’s right.

    But there’s also a mandatory additional charge whether or not I use my own equipment? If it’s part of the monthly price, and not optional, why isn’t it advertised as such?

    I decided not to order the service. I figured the sales person I spoke with must have been confused, so I came online to search for more details, and found this post. This cannot be! I come to Sonic.net because I know there are no gimmicks, no games, just straightforward service. Don’t throw away your sterling reputation this way. If your costs or margin are too low, raise your prices, that’s fine. But don’t become just another service provider that I cannot trust and must carefully scrutinize the fine print for gotchas to let me down. For now, I will stop recommending Sonic.net to my friends.

    Please, please reconsider this change and return to providing honest excellent service for a transparent cost.

    By Dave on Jul 19, 2012

  116. Are you going to stay with U-Verse, and pay their $6.00/mo equipment fee?

    By dane on Jul 19, 2012

  117. They haven’t been charging that to me so far. Perhaps it’s because I have dry loop DSL, but they are actually not charging any extra fees, just the exact $38 / month quoted. If they allow me to purchase a modem for a reasonable price that will continue to work with them without extra fees, then I will stick with them. At least for now.

    By Dave on Jul 20, 2012

  118. Dane,

    I know that you’re just waiting for the noise to die down and for people to accept your modem rental, but believe me, you would be more appealing to future customers if you would just admit that this was a marketing blunder and raise your monthly base rate. That is far more acceptable to customers like me than for you to add this bogus “rental” fee. You are still the best deal in my area even at the higher rate.

    By candl on Jul 20, 2012

  119. We are certainly continuing to think about and discuss the responses and the business model. With the move to equipment rental of our main competitors, it seemed impossible to avoid while allowing prospective customers to compare products and price points on equal footing.

    Since the roll-out in July 1st, we have been watching both prospective customer feedback and our sign-up statistics, and the results are mixed. Some new customers are expressing that they like the better new equipment, and some existing customers are upgrading from the rather basic ZTE equipment to the new more powerful modem/router/firewall. Meanwhile, new customer signups are down, off about 20% in the first two weeks of July versus the weeks prior. Some have cited the new higher cost of service as a barrier, while others have expressed that they like the “no worries” equipment inclusion, and the features such as MIMO-2×2 400mw WiFi-N, etc.

    As an existing customer with equipment, you are in the best position: you can choose to keep using that equipment, or you can choose to upgrade. It’s up to you. Clearly, when the price went up for new customers, we are going to attract less new customers, I think that’s to be expected.

    (Ironically, with our competitors it is generally the new customer who gets the short-term lower cost intro price, while the established customer pays more. Is that fair?)

    By dane on Jul 20, 2012

  120. candl’s comment++

    I think it’s worth noting that I work for a large network tech company, people turn to me to ask what do I recommend, I was always saying sonic.net. I asked someone who is more senior than me, and left the bay area 12 years ago, it was that person who suggested sonic through their connections.

    I think this company does very well from it’s reputation, and that’s a hard thing to resurrect when it’s gone.

    By Alun on Jul 20, 2012

  121. Dane,

    How about “grandfathering” in existing Fusion customers when they need to/want to upgrade and just apply the fee to new customers?

    By scasse on Jul 21, 2012

  122. How about “grandfathering” in existing Fusion customers when they need to/want to upgrade and just apply the fee to new customers?

    Yes, this is exactly what we have done. Existing customers already have equipment, which they of course own and are welcome to continue to use. They could replace it in future if they wanted to, either by buying equipment at retail, or they are welcome to opt in to the new equipment offering. It’s quite flexible.

    By dane on Jul 21, 2012

  123. So if I decide to upgrade my Comtrend, what is the cost of the new “modem” and will it be fully supported if I buy it outright and not opt to pay the monthly $6.50 service fee?

    By scasse on Jul 21, 2012

  124. I’m glad I found this thread. I have been planning to sign up with sonic.net (have been with speakeasy for years), and have always heard good things about sonic. I was getting ready to put in an order. The mandatory equipment rental absolutely means I will not go with sonic. Either sell the hardware one time, or support other hardware. Otherwise there are a large number of users you will never acquire.

    By Mark on Jul 24, 2012

  125. Sonic is still one of the best ISPs around, especially if you can get their Fusion service, and their customer support is top notch. This new service fee is definitely a blemish on their otherwise excellent reputation. I’m not happy about it either so I sincerely hope they reconsider this.

    By Scott on Jul 24, 2012

  126. I’m curious if Sonic is willing to listen to some of the concerns raised here? Obviously, it has touched a nerve, as there are 125 responses on this thread already.

    1) Choice of equipment.

    Will third-party equipment (customer-owned modems) still be allowed on Sonic’s network for new subscribers (not just grandfathered subscribers), or will third-party equipment be banned?

    2) Purchase option.

    Is there a way to get out of the $6.50/month price increase by buying the modem outright, or perhaps buying it over time on the installment plan (as Pacific Bell used to allow, back in the days of expensive telephones)? Otherwise, it isn’t a “modem rental”, but an unavoidable surcharge. Which leads me to:

    3) Honesty.

    It would seem much more honest if Sonic were to simply announce a base price increase of $6.50/month and drop the entire idea of the separate “modem rental” charge. Only the most naive of all customers fall for the old trick of lowballing the base price (making it up on surcharges), and Sonic’s customers tend to be exactly the opposite!

    Thanks for reading this!

    Josh

    By Josh Lehan on Jul 24, 2012

  127. I wonder how much of the pushback is because of the integrated router, versus just the modem. Some people are (justifiably) selective about their routers, whereas a modem is just another piece of faceless telco equipment.

    Sonic understandably wants to streamline the DSL installation and maintenance, and bundling their own modem makes sense to eliminate variables. I personally wouldn’t mind so much if the cost went up, say, two dollars a month and included a ‘rental’ modem, if it helps Sonic with the troubleshooting.

    But the router is a different matter. Not only are they subject to rapid development (and thus obsolescence in some cases), but many people have personal preferences and features that they desire. Sonic’s response is to turn their equipment into a bridge and still use your own personal router, but then the monthly rental fee really stings.

    I don’t know if such a DSL modem exists (probably not), but what if Sonic offered, for less per month, an optimized modem as part of their monthly fee that served their diagnostic needs, but left the choice of router to the customer? (They could still offer the new modem/router as an upgrade for those who want it.) Would people find that more acceptable?

    By Don on Jul 25, 2012

  128. @Don – I would not find that more acceptable (I already have a GigE router attached to my own router/modem).

    I do not necessarily object to Sonic charging more money, because I want them to be able to stay in business. I do very much object to Sonic hiding how much people are paying in tiny footnotes and layers of obfuscation, while approvingly saying they are adopting industry standard practices. If I wanted industry standard treatment of customers I’d be on Comcast – and getting much higher download speeds than Fusion can deliver.

    It’s nice and all that as a current customer I am not currently affected by this new behavior – until they change their minds – but meaningless compared the loss of trust in Dane that I’ve had as a result of how he’s approached this issue. As a direct result of this I will no longer recommend Sonic to potential new customers.

    By Jon on Jul 25, 2012

  129. Dane – If you refuse to sell the Pace 4111N with the Sonic custom firmware, would you at least provide a link so users can install the firmware themselves, on their own Pace 4111N’s?

    By Drew on Jul 26, 2012

  130. @Drew,

    I’ll look into this. We upgrade firmware using the remote management platform for the devices we own, and I really don’t know if our customized firmware is something we can release. It’s just not something we’ve discussed with Pace. We’ll see what they say!

    By dane on Jul 26, 2012

  131. Grandfathering in old customers is great, as long as you happen to be an old customer. I’ve had my current dsl line for almost 10 years. From the Sonic reputation I was expecting to do the same with Sonic. Maybe I’d be grandfathered into some new setup at some point. But now I don’t know if I’ll ever find out.

    I’m in the unfortunate boat of planning to switch to sonic but only now getting around to it… after 1 July. I am responsible for two friends switching to sonic earlier in the year (and they’re both happy as clams), at a time when I was unable. I’m now able but I’m really torn as to whether I’m still willing. The whole modem fee fiasco (which is what I consider it to be) really grates. It was a shock when I went to the web page today to start the sign up process and found extra fees. Especially given what I know about the past history of sonic. This is the last thing I expected to find – Sonic apparently behaving just like any other big company out there.

    I have no problem paying a reasonable cost (one time!) for a specific *modem* the provider requires to connect the line. But to pay $6.50 per month just doesn’t sit right when that fee will/should pay for the router many times over in the end. How much will that fee be next month? Or next year? Will the line fee be bumped one month and the router fee the next in order to hide aggregate increases? Etc.

    The gig switch I have just died so I figured I’d upgrade my old wireless router to N along with gig lan ports. If I had bought that and gone with sonic it’d be essentially worthless. Either that or, from comments above, I could use the DMZ setting on the sonic router in which case I’m paying $6.50/month for… a modem.

    The rental fee and all that it implies along with the way it was presented has me once again looking for a new internet provider. And that’s too bad because there was so much good about sonic… until this.

    Remember, goodwill is one of the hardest of things to obtain and easiest to lose.

    Finally, I’ll note that along with my line I was going to have two family members switch (1 comcast, 1 att) to sonic. Now I’m not so sure that’ll be happening either.

    By Andy on Aug 2, 2012

  132. So today a friend asked me: “who was that ISP you loved when you were in the San Francisco?”

    So I said “well, it’s complicated”, and have sent them to this link…

    By Alun on Aug 4, 2012

  133. @dane New police of requiring customers to rent a modem is a huge disappointment. I’m moving to another place and I was recommended by sonic support to order a new service before the move. I’m glad that Sonic support advised of possibility of keeping my old equipment and not renting a new one – otherwise I would cancel my order for a new service.

    It is complete obstruction of truth that both evil companies (or industry as you say) does not allow BYOD. You can buy Pace 411N from ATT for $100 and you can BYOD to Comcast. Both of them are just having rental option as a default, but you have a choice. If you short on revenue – just say that your service costs $44 not $40, but give us a choice.

    I’m fine with buying a new equipment to simplify things for Sonic, I’m even fine with buying Pace 411N if you wish, but I will use it as a modem – I don’t need any new security holes in my home network.

    As concerning Sonic offering – I’m and old school and I want POTS service in my new place. I almost do not use it as in fact Sonic internet because of the slow connection speed, but I want to have it as a backup for Comcrap services just in case I need it and static ip option seals the deal.

    I hope that Sonic will re-consider it’s policies about rental equipment and it will offer a choice for a willing customers…

    Thanks in advance,
    Roman

    By Roman Avdanin on Aug 16, 2012

  134. I hope soon you will update the boulder creek area. I one of alos of high techer’s that would like to get off att and get real 12mb internet.

    Gary

    By Gary Argue on Aug 18, 2012

  135. I just found this link after someone I recommended Sonic.net to told
    me they had to lease a modem.

    So, here are my thoughts:

    1) Saying Xfinity or others rent equipment is disingenuous at best, as
    I just bought my sister-in-law a modem from Costco that we use on
    Xfinity. Indeed, when I called them, they said “yup, sure, here’s the
    list of approved devices”:

    http://mydeviceinfo.comcast.net/

    Woa. Now, I hate the cable companies, but, really, this was really
    cool. And arguably the right thing to do.

    2) Saying “We bake custom firmware for our modems” is great. I’m
    totally fine with that. I’m even fine with a list of one device,
    purchasable only through you. In two years, you’ll pay $156, or $56
    over what @dane said is the rough cost of the modem. I’ve been with
    Sonic.net for 6 years. If this had been in place since when I
    started, I’d have paid $468 for that $100 modem.

    3) What’s the upgrade policy? Because if someone I recommend goes
    this route, I’d also suggest they email every month and ask if there’s
    a new modem they can get. Because if you’re leasing it, you should be
    able to get the latest and greatest with every release, right?

    4) One thing I love about Sonic is that it is the ISP not only known
    for quality, but for the fact they have a clue. And that attracts
    people like me, that (hopefully) have a clue. Run their own
    equipment, web servers, mail servers, etc. I was annoyed before that
    I can’t get rid of my sonic.net email address, but at least they
    forwarded it to /dev/null. Until Sonic.net *ONLY* notified my
    sonic.net email address when I switched to Fusion. . . Grr. Anyway,
    my point is, you (the collect Sonic.net you, not just @dane) have
    angered a bunch of geeks who know better. Your arguments are great if
    you are striving to be the next Comcast, and connect just anyone. And
    I’m not against that. I just think you should have a “I know what the
    heck I’m doing” switch and let those of us who think we know what
    we’re doing flip it. And get a straight-up bridging device.

    5) I think it’s insane that your Equipment Policy states that we don’t
    have to use the equipment, but we have to keep it (see “Fusion &
    Legacy DSL Customers under
    https://wiki.sonic.net/wiki/Equipment_Policy). Seriously? I’m even
    fine with you just saying “Fusion costs $6.50 more per month, with or
    without equipment”, ’cause I ain’t gonna keep your equipment in a box
    waiting for the day I need it.

    6) What on earth are these features? I mean, the only thing the modem
    should be doing is handling the signaling on the line. What is going
    to require specified equipment on the downlink for IPv6? You’re
    saying the downlink will use voodoo magic to get packets to the
    router/modem, and that device will transmogrify them into actual
    ethernet packets that are legitimate IPv6 packets?

    7) Stop telling people to double-NAT. That’s unnecessary and a waste
    of processing power, and all it does is add latency. Sure, it’s
    small, but come on. I control my own PTR records and expect to be
    able to get packets from IPs I control and send them out with
    addresses I specify. I don’t want to screw around with some stupid
    web interface when I have my PF rules set up on my OpenBSD firewall to
    handle it all.

    I cannot argue the benefits of a lease option on the router.
    Undoubtedly it’s the greatest thing since the Internet was invented,
    and you’ll have accolades heaped on you for how great it is to just
    get this magic box that does everything.

    However, it would appear there are plenty of us who don’t want that,
    and clearly only a small number of us have found this thread and
    bothered to comment.

    I was looking forward to FiOS when it came into town. Now I’m
    concerned. I don’t mind having to have a special piece of equipment
    on my end — but I *REALLY* bristle at the notion of renting
    something. For all the bluster about how you guys can manage,
    upgrade, handle, fix, diagnose, make the world a happier place, the
    truth is by not letting us buy the equipment, you’re just lining your
    pockets. Unless you put your money where your mouth is and send out
    replacement routers when something new comes along.

    Just my $0.02.

    Sean

    By Sean Kamath on Aug 20, 2012

  136. Sean,

    Thanks for the comments – I think you’ve pretty well summed up the feelings of many of the folks who have posted. I’ve previously addressed some of these points, so I’ll just respond on a couple.

    You asked about features, and in specific, “What is going
    to require specified equipment on the downlink for IPv6? You’re
    saying the downlink will use voodoo magic to get packets to the
    router/modem, and that device will transmogrify them into actual
    ethernet packets that are legitimate IPv6 packets?”

    Yes, this is basically how it works. We will offer native IPv6 to client systems using 6RD, which is one of the methods of supporting IPv6 on ISP networks. 6RD is deployed or planned at Charter, Free (France), Softbank (Japan) and Swisscom to give some other carrier examples. See http://en.wikipedia.org/wiki/IPv6_rapid_deployment for more details, or RFC 5569: http://tools.ietf.org/html/rfc5569

    Our goal is reliable service delivery to a rapidly growing group of customers, and we have found that modems are a huge source of instability and support interaction. In one block of calls last year, we found that nearly 20% of our support calls were related to helping customers configure modems which were not acquired here. (Generally changing settings from PPPoE to DHCP.) A lack of ownership at the network edge creates an inherent problem of blame: is it the loop, or the equipment? We also spend an astounding amount of time trying to divide responsibility here when equipment is customer owned, even when it was purchased from us. Providing known good and remotely manageable equipment which we can swap as needed at no cost to the customer is a part of solving the issues of scaling our service delivery.

    (Sidebar: If we had call centers off-shore, we might not care so much about wasting their time and yours fussing around with potentially bad equipment – but here in California, with talented support reps and a recognition that our customer’s time is also valuable, I would much rather be able to say “we think it’s likely the modem, we will ship you a new one and it should arrive tomorrow.”)

    By dane on Aug 20, 2012

  137. Hi Dane,

    I appreciate your candor in responding to the inputs here, and I appreciate that you are running a business, not just trying to keep us happy. But I was very disappointed by this latest hiccup.

    FYI, I ordered sonic.net a few months ago, had a great experience with it, and recommended it to my daughter, who is setting herself up as a starving student in a new apartment. She just got dinged with the new additional $6.50 for “required equipment rental”. (Not helped by the fact that it was back-billed to 2 weeks before her service started.) I was willing to help her out by covering the insane phone taxes that Fusion comes with because Sonic won’t unbundle the DSL from the phone service she doesn’t need, but this no longer makes economic sense. AT&T is willing to sell her a modem + router for $100, offers a dry DSL line for $19.95/mo for a year (about what Sonic bills for the DSL part of Fusion), doesn’t impose the equipment rental fee, and doesn’t charge any phone-line taxes. Even after the rate bumps up to their regular one, it’s still going to be cheaper than Sonic by about $18/month – over $200/year. That’s a lot for a student.

    Addressing the repeated requests to allow people to buy your modem/router might help address some of the anguish – that does seem to be the main gripe, even though it’ll still not address more than half of the AT&T price advantage.

    By the way, I still haven’t seen any answer to the repeated questions about equipment upgrades.

    Thanks for listening.

    By john wilkes on Aug 27, 2012

  138. @dane,

    thanks for the pointer about 6rd. So, the implication is you’ll be using your address prefix? for my local network? And when I go elsewhere, I guess I don’t take my IP6 addrs with me (not unlike today, but I was hoping. . .)

    One thing that really chaffs with me is that a) you own the router, b) it’s *WAY* more than I actually want (I have always just wanted a pipe, not a web site, email address, wireless AP, router, etc — I *DO* like the POTS line, however), and c) because you own the router, you can do whatever the hell you want to with it. That last bothers me, since now I now longer have control over when, how or if my router gets a firmware upgrade.

    I’m not thrilled with the IPv6rd stuff, either, as it’s a riff on 6to4. Sounding rather like FCoE in a way. :-) Regardless, I’d prefer to see you folks have a true IPv6 infrastructure, and my IPv6 router can talk to your IPv6 router, and my packets can egress your network to the larger Internet. And my modem be just a modem, a means of sending packets to the other side.

    Much as Audiophiles have, for years, had discreet components which individually could be upgraded and purchased to provide the best possible sound reproduction, many of us geeks want to do essentially the same thing with our network gear.

    Being forced to pay for that all-in-one stereo rental (8-track included!) when you just want the amplifier. . . Sigh.

    At least you’re listening. And responding.

    Sean

    By Sean Kamath on Aug 27, 2012

  139. Oh god how I wish I signed up for Sonic.net 1 year ago; I got baited by AT&T’s 15/mo for 1 yr deal… :(

    By De Ming Liu on Aug 31, 2012

  140. I just want to add that I am not happy with this mandatory/no option rental fee either. It does make me suspicious of Sonic, the company I went with 15 (or more?) years ago because it was different, better, personal; it seemed to treat its customers as individuals, allowing them great options and a unique, exemplary service. Does it now mainly want to be bigger– in which case it will end up only being the same.

    By Denise on Sep 26, 2012

  141. I was about to make the switch from ATT DSL to sonic.net but after seeing the mandatory rental fee I have reconsidered to go to try out Comcast.

    By Lawrence on Oct 26, 2012

  142. Sorry to hear that Lawrence. I think you will find if you look beyond the teaser rates, you will find Fusion is less expensive, even with the equipment fee.

    By dane on Oct 26, 2012

  143. Sonic, I guess the mandatory Modem fee is about money, nothing else. The modem cost what a 100 dollars. I thought Sonic was anout service being the best and cost effective, not taking your customer for a modern fee.

    By Gary on Oct 26, 2012

  144. The justification that this is “industry standard” is horrible reasoning. Poor customer support also is “industry standard”. A change like this creeps sonic.net closer to being like comcast and AT&T. I would think sonic.net’s modus operandi would be to differentiate themselves as much as possible from these two horrible firms. Luckily, I know that you guys still do differentiate, but this puts a dent in my enthusiasm when doing word of mouth (not to mention the hidden voice fees, at a time when more people do not want landline voice service and see this as an unnecessary tax).

    I look at a DSL modem as a long term investment. I expect my modem to last 4+ years. The DSL modem we have at work has latest 10 years. I really do not like the idea of paying for a $780 modem.

    Dane, how much would it cost to pay for the modem and whatever future support and services you are highlighting by this move? $100? $150? $200?

    Why not price the modem at whatever this cost is? You can charge a high price and justify it with “future support and service”. You’d get upfront capital and the “look at the complete investment” customer is happy now that they get to own their equipment and will pay less in the long term. It may still cause some disgruntlement but I bet it’s less than mandatory equipment rentals will. And I’d expect most would still fall for your rental scheme anyway.

    By Mike on Nov 17, 2012

  145. Prospective customer here, shopping for new service for the first time in a long time.

    sonic looked great until I read about the new modem rental policy. I’ll be continuing my search.

    Saying modem rentals are industry-standard practice really doesn’t mean anything to me – I’m looking for alternatives to AT&T, not more of the same.

    By Patrick Calahan on Nov 22, 2012

  146. I’ve been a customer for about 12 years now. An equipment rental would come to $936 over that time. Nor do I recall ever calling over equipment issues related to my modems.
    I read thru this entire blog and it strikes me the major complaint is the more than 10% increased usage fee (13-16% depending what you use as a base). I’d bet $3/mo wouldn’t have provoked so much antagonism.
    I’ll stay with sonic because I like the acceptable use policy compared to the majors. But I am glad I beat the cutoff date.
    Maybe after 18 months or so you could re-evaluate the cash flow and decide to amortize the equipment over 2 years and charge a lower ongoing monthly maintenance fee for your longer running customers. Maybe even split the charge up. If you did that, you could offer the option of customers purchasing their equipment solely from you (because of the customization) and getting the lower monthly cost upfront. Probably have to sign a waiver to allow your technicians access for remotely updating. You might even have an accountant look at it and find your cash flow improves overall.
    After all, one desirable aspect of sonic is allowing customers choice. If you could do that and still remain profitable, why not?

    By doug on Dec 2, 2012

  147. I just wanted to be the first customer to note that it’s 2013… and despite 5 months of terribly negative feedback about the new requirement to lease equipment that increases costs by roughly 20%, Sonic has responded with justifications, but no changes. This company has turned an important corner without us on board and is not looking back. Maybe if everyone destroyed the modem they would really start considering costs. Like Ghandi’s Salt March, only instead of making salt, you’re twisting transistors until they say “Uncle” and let you buy your own equipment with the understanding that they won’t support it unless you agree to pay extra for that service…But not $78/year. Come on Dale. It’s New Year’s Resolution time…and fyi, my Sonic modem just stopped working, or Oakland’s DSL is seriously down since the first 3 hrs. of the year with no support in sight for 1/1/13.

    By Paul on Jan 1, 2013

  148. I’ve been with Sonic DSL a year and just switched to Fusion…I have referred others…my most recent referral told me yesterday about the $6.50 mandatory rental fee after I told her her modem was usable per your website…she’s exploring other options as I write…on the subject of mandatory $6.50 this shows up under the tax portion of my invoice…interesting that with DSL intro rate, I paid $14.95 no taxes/fees…hmmm! I guess $6.50 is the operative number these days…I do think your Customer Service is great! My download speed is better! While I’ve eliminated noise on my line, my upload service is a problem right now but I’m sure your fantastic English speaking and savvy techies will help me resolve that…If I make any more referrals, I’ll just have to be sure to tell them about the mandatory modem rental and fees.

    By merna on Jan 22, 2013

  149. We are considering leaving Comcast, very unhappy with their service, but we are definitely not willing to rent equipment where after a little over a year we have effectively paid for it outright and start to lose $7/month.

    I was hoping to scroll down to the bottom of all these comments and learn that you have resolved this issue. Between this and the very high fee to have someone come out and “install” the modem (in our household of professional geeks) – it’s not looking too promising we will switch over.

    Justifications about it being “normal” does not help, but is actually pushing me in the other direction as it sure seems like corporate greed. We are trying to get *away* from bogus fees like this.

    Curious move in the Bay Area, where you have a higher per-capita of tech savvy customers who see through this, own more equipment, and have custom setup requirements.

    By Jen on Mar 15, 2013

  150. this is to Jen: shortly after my post on 1/22 Dane told me they were stopping the mandatory rental of the modem; haven’t been following this since but somehow i was advised of your posting today.

    By merna on Mar 15, 2013

  151. Hi Jen,

    I’m sorry to hear that you’re unhappy with the service! We do understand that the Bay Area is a very tech savy area, and this is why we refund the installation fee for any Fusion customer who ends up installing the service her/himself and can demonstrate working service. However, the install is more involved than just hooking up the DSL modem. It usually requires connecting the internal house wiring to the new telephone pair provided to your phone utility box. Even in this part of the country, it’s not the kind of thing we want to suggest customers without the necessary expertise try.

    Kind regards,

    Adam E.
    Sonic.net Support

    By adame on Mar 15, 2013

  152. Thanks Adam, good to know about installation to factor into our considerations. So the rental policy stands? That’s our primary concern, as it’s obviously quite costly over the years – we’re definitely not buying new modems every 14 months, which the cost seems to work out to. Pretty sure our Comcast equipment didn’t have any “maintenance” or replacements in the 8 years we used it (in Sonic terms, over $500 in rental fees above the cost of the box).

    I understand how it makes your tech support easier for those who use it (when I was a QE, I would have loved to force all customers to use a single OS!), but I’m not sure if I understand why an unnecessary additional cost is passed on to the customer in doing so. Seems like it should be the other way around. At least let customers buy a designated modem, even better at the reduced bulk rate you’re getting them at, or close to it.

    By Jen on Mar 16, 2013

  153. my oops..it wasn’t Dane..but this is what got:”On Fri, Feb 15, 2013 at 11:10 AM, Sonic.net Tech Support wrote:
    Hello,

    We have heard a strong reaction to our modem rental program and are now allowing customers to “opt out” of the program after verifying with our provided modem that the connection is working. Customers do pay for the shipping but there is no ongoing charge associated if they decide to provide their own modem at that point. That said we cannot support third party modems and we do lose some visibility into the connection statistics. I hope this addresses your concern but please do let us know if you have further questions or concerns. Thank you for choosing Sonic.net!”

    By merna on Mar 16, 2013

  154. Thank you Merna! I hope they will honor that when we call them for more info, and I am glad that they are listening to the feedback.

    By Jen on Mar 16, 2013

  155. Nice, thanks for listening! I’m glad Sonic notices this *very long* thread of replies, almost unanimously negative, about their mandatory modem rental and associated fee. Nice to see them willing to bend a little on this policy.

    By Josh on Mar 20, 2013

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