Altice/Cablevision Say Deal Will Boost Customer Service Quality, Cut Churn, Defend Set-top Practices
The cost savings and greater efficiencies that will come with its purchase by Altice will let Cablevision "maintain and improve its network and customer service quality and at the same time insulate the company from risk," the two companies said in a filing Friday in docket 15-257 in response to an FCC information request as it reviews the $17.7 billion transaction (see 1602050013). Customers will see "an all-in-one home center" that lets subscribers mesh cable TV, over-the-top video, online storage services, home media, and Wi-Fi and ethernet connected devices, making for easier access to non-cable services on TVs, tablets and game consoles, the two said.
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Altice/Cablevision expects to see incremental subscriber growth and less churn due to the improved product mix and service quality coming from those cost savings and greater efficiencies. Some deal opponents such as the Communications Workers of America (CWA) have said the post-deal debt would likely lead to cuts to employment and to customer service (see 1601270048), and the FCC information request asked about debt issues. Altice/Cablevision said Cablevision and its subsidiaries will be stand-alone and self-financing, not responsible for debt for any other Altice operations. The debt being taken on for the transaction "has a long maturity ... and low cost" with a 7.5 percent interest rate, Altice/Cablevision said. "We continue to have deep concerns, serious concerns about the high level of debt and corresponding projected cuts Altice and Cablevision have told Wall Street they'll be making," CWA Telecommunications Policy Director Debbie Goldman told us. She said the union will continue to raise those red flags.
The FCC information request also covered such territory as broadband speeds, net neutrality practices and cable modem policies. Altice/Cablevision said about all of Cablevision's 5.1 million household footprint has broadband access at 101, 50, 25 or 5 Mbps speeds, and Cablevision has begun testing a 1 Gbps service. They said there was no set time frame for such upgrades. In response to questions regarding interconnection policies and practices, Altice/Cablevision said neither Cablevision nor Suddenlink put paid peering requirements on third parties or plans to do so. Altice took over Suddenlink in December. (see 1512180035).
Since November 2014, Cablevision has been providing cable modems for a monthly charge that appeared as a separate line item on bills, while customers who use a third-party modem aren't charged, and Altice/Cablevision said the deal wouldn't change Cablevision's policy of allowing customer use of third-party set-top boxes. Cable modem producer Zoom Telephonics has questioned Altice/Cablevision (see 1512290018) on grounds Altice hasn't committed to expanding that Cablevision modem policy of breaking out the monthly rental fee on bills to Suddenlink. Altice/Cablevision said Friday the Suddenlink billing policies "are intended to help Suddenlink recover equipment costs associated with the provision of broadband Internet access service."
A decision by New York Public Service Commission on the deal is expected by April 29, according to Cablevision/Altice, while a pair of applications are before the New Jersey Board of Public Utilities -- one with an order due March 4 and the other with no specific timeline for decision. Altice/Cablevision also said they are working with New York City, which "has asserted a right to review the proposed transfer of control."