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Charter Cable Wants To Emerge From Bankruptcy And Overcharge Customers: Rate Hikes & Limits Under Consideration

Phillip Dampier November 19, 2009 Charter, Editorial & Site News, Internet Overcharging 1 Comment

charterYour company has been in bankruptcy since late March.  Investors wiped out, debtors in court fighting settlements, you try and hang on by keeping customers from fleeing for the limited alternatives.  You also overpay your management to make sure they don’t flee with annoyed customers.  Charter CEO Neil Smit, who waltzed Charter into bankruptcy under his leadership, effectively doubled his salary, becoming St. Louis’ top paid executive, negotiating a $6 million dollar bonus if he helped waltz the company out of bankruptcy.  If he agrees to do his job after that, he gets another bonus.  How nice.

Now that Charter is looking for the bankruptcy exit door, it’s time for someone to pay.  It won’t be Smit.  It will be Charter’s customers.

In addition to across the board price increases, Charter is also considering slapping Internet Overcharging schemes on their broadband customers with “consumption-based billing” sometime next year, Smit told Bloomberg News.

Charter’s failure didn’t come about because their broadband users are using their service too much.  It came from bad management decisions that have plagued the company since it went public in 1999.  Charter has never had a single year since when it did not report a loss, eventually accumulating an enormous $21 billion in debt through mergers and acquisitions and efforts to keep its position as the nation’s fourth largest cable operator.

Now, that same bad management team will be making all-new bad decisions to further alienate Charter’s remaining 5.3 million customers.  Many of them will be hearing from AT&T to switch to U-verse soon enough.

Perhaps instead of punishing customers, Charter should consider replacing the people that put the company where it is today.  If Charter needs money to upgrade their network, why not start with the ridiculous salaries paid to reward the people that failed the company and its customers in the first place.

Tell Charter Cable if they bring consumption billing to your area, you’ll waltz your business to the other provider in town.

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  • Mike The Great: All I can say is LOL!...
  • Dave: Please post your references for your assertion that ATT made a $70,000 donation. All google searches just link back to you for this....
  • Phillip Dampier: That is a relief. I have WH-DVR service here, mostly so I can watch MSNBC Morning Joe and get annoyed by the always mercurial Joe Scarborough, which i...
  • hillary clinton: if you need a set top box on each tv for $7 my price will go up for that also unless I use a roku stick. $7 x $4 is $28 TWC I only use 1 hd box a...
  • James R Curry: It's also worth noting that in Maxx areas, 50/5 is the same price as 15/1 in non-Maxx areas. So without the Charter buy out, you would have eventuall...
  • Ricardo S: The DVR is treated as an umbrella charge. For example: customer wants 4 DVR's so cost would be 4.99 a piece and one 19.99 DVR service fee. Modem cost ...
  • John: My rates went up so I dropped my cable with the intention of signing up for a streaming service. However, dropping cable caused my 50mbs service to g...
  • Phillip Dampier: You missed my point. Many customers prefer a lower price over faster speed. You started with 50/5Mbps. Most TWC customers choose to pay for 15/1Mbps b...
  • Jk: The article is misleading. You compare the price of 15/1 internet to the price of Charter 60? I have 50/5 from a TW non max area, but I'm paying close...
  • Charles Dennett: Regarding the modem, from what I've heard, Charter includes the price of the modem rental in the price of the Internet access. They don't break it ou...
  • Derpson: Interesting, I have only seen 4megabits/sec advertised as the upload speed. They should be forced to show the upload speed in their advertisements, t...
  • Andy: Thought maybe AT&T and Verizon would consolidate all the land lines in the U.S. at one point. With Verizon shedding systems year after year, I gue...

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