Spectrum being kicked out of New York State question about ISP

[Juan]

Charter/Spectrum agrees to $174M settlement for defrauding costumers on internet speeds
Charter/Spectrum agrees to $174M settlement for defrauding costumers on internet speeds

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[ncted]

Charter should call their bluff and start sending termination notices to customers effective Jan 31, 2019. See how many calls the PSC gets then.

Pretty sure the terms of the existing contract they have with the state would make that impossible. The penalties would probably bankrupt Charter and subsequently destroy their stock price, so even the execs wouldn't get their golden parachutes. NY is one of their biggest markets, and Spectrum has monopoly positions in so many cities and towns. I am sure the FTC, DOJ, and FCC would would have a fit as well.

 

[Voyager6]

Pretty sure the terms of the existing contract they have with the state would make that impossible. The penalties would probably bankrupt Charter and subsequently destroy their stock price, so even the execs wouldn't get their golden parachutes. NY is one of their biggest markets, and the have monopoly positions in so many cities and towns. I am sure the FTC, DOJ, and FCC would would have a fit as well.

They seem to have reached a settlement agreement. Typical shakedown for money by the Bureaucrats.

 

[ncted]

They seem to have reached a settlement agreement. Typical shakedown for money by the Bureaucrats.

Well, one settlement. There are several things NY is going after Charter for. I am sure it will probably work out in the end though. TWC started the bad behavior in NY, so it isn't entirely Charter's fault, but they hadn't really fixed the problems up there. I don't blame the state for sticking it to them. I wish NC would do the same to the monopolies here, but our politicians are in too deep with the telco lobby.

 

[NYDutch]

Charter should call their bluff and start sending termination notices to customers effective Jan 31, 2019. See how many calls the PSC gets then.

That would violate the PSC order: "Charter now has until Feb. 11 to submit the six-month plan, essentially a roadmap as to how the company would pull up stakes in the state without disrupting service to consumers." (emphasis added)

 

[Voyager6]

That would violate the PSC order: "Charter now has until Feb. 11 to submit the six-month plan, essentially a roadmap as to how the company would pull up stakes in the state without disrupting service to consumers." (emphasis added)

That is kind of contradictory isn't it? You have to shut down operations but you can't cause any disruption of service to your customers. I would answer, if we are being forced to shutdown what does it matter to us if customers' service is disrupted? That's your problem. If you want us to leave, then we're shutting down operations on this date. This entire thing is just a ploy to extract more money from Spectrum for failing to meet some goals. The NY PSC DOES NOT expect Spectrum to shut down. They would absolutely freak out if it looked like Spectrum was actually planning to shut down operations. This is all tongue in cheek of course. Spectrum and the PSC reached a settlement in regards to this matter. I was just thinking out loud as to what would happen if Spectrum HAD called their bluff and started to prepare to shut down without selling their operation to someone else. What would the appointed bureaucrats have done then?

 

[ncted]

That is kind of contradictory isn't it? You have to shut down operations but you can't cause any disruption of service to your customers. I would answer, if we are being forced to shutdown what does it matter to us if customers' service is disrupted? That's your problem. If you want us to leave, then we're shutting down operations on this date. This entire thing is just a ploy to extract more money from Spectrum for failing to meet some goals. The NY PSC DOES NOT expect Spectrum to shut down. They would absolutely freak out if it looked like Spectrum was actually planning to shut down operations. This is all tongue in cheek of course. Spectrum and the PSC reached a settlement in regards to this matter. I was just thinking out loud as to what would happen if Spectrum HAD called their bluff and started to prepare to shut down without selling their operation to someone else. What would the appointed bureaucrats have done then?

I would expect the PSC to take them to court, where the court would order Charter to resume service per the terms of the license they are operating under in NY, and they would impose fairly large penalties for every day they do not. Also, the union(s) would file suit. If Charter isn't meeting their obligations under the terms of the various agreements they signed, the PSC is fully within their rights to kick them out, although I don't think it is what anyone really wants. The state just wants Charter to do what they actually agreed to do. (Unlike NJ and PA where Verizon takes tons of money to expand residential broadband service, but only puts up a few cell phone towers and calls it a day.)

 

[Juan]

I would expect the PSC to take them to court, where the court would order Charter to resume service per the terms of the license they are operating under in NY, and they would impose fairly large penalties for every day they do not. Also, the union(s) would file suit. If Charter isn't meeting their obligations under the terms of the various agreements they signed, the PSC is fully within their rights to kick them out, although I don't think it is what anyone really wants. The state just wants Charter to do what they actually agreed to do. (Unlike NJ and PA where Verizon takes tons of money to expand residential broadband service, but only puts up a few cell phone towers and calls it a day.)

That was fios not wireless

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[ncted]

That was fios not wireless

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Right, they got paid for Fios, but didn't do it. Then they said their LTE wireless was all people needed anyway.

 

[NYDutch]

That is kind of contradictory isn't it? You have to shut down operations but you can't cause any disruption of service to your customers. I would answer, if we are being forced to shutdown what does it matter to us if customers' service is disrupted? That's your problem. If you want us to leave, then we're shutting down operations on this date. This entire thing is just a ploy to extract more money from Spectrum for failing to meet some goals. The NY PSC DOES NOT expect Spectrum to shut down. They would absolutely freak out if it looked like Spectrum was actually planning to shut down operations. This is all tongue in cheek of course. Spectrum and the PSC reached a settlement in regards to this matter. I was just thinking out loud as to what would happen if Spectrum HAD called their bluff and started to prepare to shut down without selling their operation to someone else. What would the appointed bureaucrats have done then?

Not contradictory at all... The PSC ordered Charter/Spectrum to sell off their NY holdings to a third party and leave the state, not just shut down. They also recently granted them an extension of when the plan for doing so must be presented. If Spectrum fails to follow the order or reach an agreeable settlement, the penalties could be pretty steep, likely keeping them in court for years to come at a cost of many millions.

 

[Voyager6]

Not contradictory at all... The PSC ordered Charter/Spectrum to sell off their NY holdings to a third party and leave the state, not just shut down. They also recently granted them an extension of when the plan for doing so must be presented. If Spectrum fails to follow the order or reach an agreeable settlement, the penalties could be pretty steep, likely keeping them in court for years to come at a cost of many millions.

And what happens if Spectrum can't make a deal with another ISP to buy Spectrum's assets in NY?

 

[NYDutch]

And what happens if Spectrum can't make a deal with another ISP to buy Spectrum's assets in NY?

My guess would be they could split NY operations off as a separate independent company. I really don't expect that would happen though. There are enough competitors around that would be happy to take over NY at some price point.

 

[Claude Greiner]

If Spectrum was smart they would call the states bluff and shut down now.

See how everyone feels when 3/4 of the state is without internet service

 

[NYDutch]

If Spectrum was smart they would call the states bluff and shut down now.

See how everyone feels when 3/4 of the state is without internet service

That would likely be the dumbest move they could make. Besides the huge civil lawsuits it would trigger, it would also likely trigger significant criminal charges over public safety issues at both the state and federal levels.

 

[navychop]

Well said!


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[Voyager6]

Not one of you has answered the question as to what happens if Spectrum does not find a buyer at a price that they are willing to sell at? The PSC cannot force Spectrum to continue to operate and maintain the network indefinitely after telling them to shutdown. Spectrum should call their bluff and set a shutdown date. Let the PSC take the heat for it's political grandstanding.

 

[NYDutch]

The PSC has not told Charter to shut down, they've been told to make arrangements to divest their NY holdings and get out. As long as the PSC keeps granting them extensions, there's no basis for them to shut down without bringing the legal weight of the NY PSC and FCC to bear on them. I don't think Charter wants to see the cost of that, especially when they've just been hit with a $174 million penalty for the speed deficit problems they inherited from TWC.

 

[Voyager6]

The PSC has not told Charter to shut down, they've been told to make arrangements to divest their NY holdings and get out. As long as the PSC keeps granting them extensions, there's no basis for them to shut down without bringing the legal weight of the NY PSC and FCC to bear on them. I don't think Charter wants to see the cost of that, especially when they've just been hit with a $174 million penalty for the speed deficit problems they inherited from TWC.

It sure sounds like the PSC intends to shut down Spectrum. Why would Spectrum be expected to continue to pay large fines levied by the PSC?
New York moves to oust cable provider Spectrum

"These recurring failures led the Commission to the broader conclusion that the company was not interested in being a good corporate citizen and that the Commission could no longer in good faith and conscience allow it to operate in New York," the commission said in a press release.

Even the original story asks this.

It's unclear which company would step in to provide service for New Yorkers if Charter is forced to cease operations in the state.

 

[NYDutch]

Ceasing Charter's operations is not the same as shutting down all services necessarily. The state could possibly even take over the operation themselves if necessary in the public interest until a suitable operator could be brought in. I'm sure the thousands of Charter employees in NY would be happy to still have jobs. Charter operates as a public carrier since they offer business and residential phone service. That brings a lot of legal obligations with it that prevent them from just closing up shop and walking away. I don't imagine their shareholders would be very pleased if they walked away with nothing either. Charter is not just a NY company, they have a lot of other interests to protect as well. I think the best outcome for all concerned will be that Charter shows a willingness and presents a valid timeline to fulfill the rural expansion they agreed to, and the state gives them a long enough extension to see positive results that meet those timeline markers.

 

[Juan]

There is always Comcast

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