Home » Altice NV » Recent Articles:

Conn. Regulator Bans Public Broadband to Protect Comcast, Frontier, and Altice from Competition

Connecticut’s telecommunications regulator has effectively banned public broadband in the state, ruling that municipalities cannot use their reserved space on utility poles if it means competing with the state’s dominant telecom companies — Comcast, Altice, and Frontier Communications.

The ruling by Connecticut’s Public Utilities Regulatory Authority (PURA) is a death-blow for municipalities seeking to build gigabit fiber networks to offer residents the broadband speeds and services that incumbent phone and cable companies either refuse to provide or offer at unaffordable prices.

Among the petitioners appealing to PURA to protect them from competition is Frontier Communications, which owns a large number of utility poles across the state acquired from AT&T. The company was unhappy that municipalities were planning to use reserved space on state utility poles to construct fiber to the home networks that are generally superior to what Frontier offers consumers and businesses in the state. Other providers, like Frontier, said little about the early 1900s Connecticut statute that guarantees municipalities “right of use space” on poles until it became clear some communities were planning to threaten their monopoly/duopoly profits.

The law was originally written to deal with the dynamic telecommunications marketplace that was common in the U.S. during the late 1800s and early 1900s. Utility pole owners were confronted with a myriad of companies selling telegraph and telephone service — all seeking a place on increasingly crowded poles. Local governments could have been crowded out, were it not for the “Act Concerning the Use of Telegraph and Telephone Poles,” approved on July 19, 1905. It was one sentence long:

Every town, city, or borough shall have the right to occupy and use for municipal purposes, without payment therefor, the top gain of every pole now or hereafter erected by any telephone or telegraph company within the limits of any such town, city, or borough.

The law stood as written until 2013, when the legislature clarified exactly who could benefit from the use of “municipal gain.” Where the original law effectively protected reserved pole space for “municipal” use, the language was broadened in 2013 to read “for any purpose.”

Observers said the law was modified because of ongoing disputes with pole owners relating to planned municipal broadband projects. Frontier, in particular, has sought restrictive pole attachment agreements with communities trying to build out their broadband networks. In addition to accusations of foot-dragging over issues like “make ready” — when existing pole users move wiring closer together to make room for new providers, Frontier has tried to impose restrictive language on communities that would permanently restrict their ability to offer service. The most common restriction is to compel towns to agree to use their pole space exclusively “for government use,” which would restrict third-party providers hired to manage a community’s municipal broadband service.

PURA’s decision surprised many, because it completely ignored the 2013 language changes and relied instead on its perception of a conflict between state and federal laws. PURA ruled “municipal gain” establishes “preferential access” for towns and communities, and could be in conflict with the federal Communications Act, which mandates “non-discriminatory access” to utility poles, and prohibits local governments from blocking companies from providing telecommunications services.

“Providing municipal entities free access to the communications gain for the purpose of offering competitive telecommunications services … appears to be inconsistent with these principals and other aspects of federal law,” the decision reads.

In the early 20th century, vibrant competition meant a lot of utility poles were crowded with wires.

Except communities are not seeking to block providers looking to offer broadband service. These communities are seeking to become a provider. Pole attachment controversies typically relate to unreasonable limits on access to poles and allegations of price gouging pole attachment fees, not “preferential access.”

The end effect of PURA’s ruling: communities can use their pole space for government or institutional purposes only, such as building closed fiber networks available only in public buildings like libraries, schools, town halls, and police and fire departments. It also means any community seeking to build a fiber broadband network serving homes and businesses will either have to pay market rates for pole space, give up on the project, or place all the project’s wiring exclusively underground — a potentially costly alternative to aerial cable and one likely to cost taxpayers millions.

“We are very disappointed in the decision,” Consumer Counsel Elin Katz told Hartford Business. Katz is a strong supporter of municipal broadband. “It ignores the plain language of the statute, and by deciding that [municipal gain] cannot be used by our cities and towns to provide broadband to those affected by the digital divide, denies our municipalities a tool provided by the legislature for just that purpose.”

Frontier and the state’s cable and wireless companies, however, are delighted PURA has come to their rescue, calling its decision “fully consistent with the law.”

“Frontier Communications continues to support efforts to expand broadband access in Connecticut,” said spokesman Andy Malinowski. “PURA reached the correct result. This decision helps ensure the continuation of robust broadband competition in our state.”

The New England Cable & Telecommunications Association (NECTA), the cable industry’s regional lobbying group in the region, was also happy to see an end to unchecked municipal broadband growth and the competition it will bring.

“Our members, who pay millions of dollars annually to rent space on utility poles, offer competitive broadband services with speeds ranging up to 1 gigabit-per-second for residential Connecticut customers, in addition to offering speeds up to 10 gigabits for business customers,” noted NECTA CEO Paul Cianelli.

Other supporters of PURA’s decision include the wireless industry lobbying group CTIA and the Communications Workers of America — unionized employees at Frontier Communications who fear their jobs may be at risk if a municipal provider gives Connecticut customers an additional option for broadband service.

PURA’s decision leaves little room for municipal broadband expansion efforts that have been underway in the state for a decade. Most projects that cannot afford to pay for space on utility poles or the cost to switch to underground cable burial will probably not survive unless a court overturns the regulator’s decision or the state legislature clarifies state law in a way that makes PURA’s current interpretation untenable.

A number of groups are considering suing PURA to overturn its decision, noting the regulator completely ignored the very clear and understandable 2013 language that allows municipalities to use their allotted space on utility poles “for any purpose.” That purpose includes giving the state’s telecom duopoly some competition.

Some Optimum Customers Getting Free 400 Mbps Upgrades

Some Altice-Optimum customers in New York and New Jersey are enjoying a free speed upgrade to 400 Mbps, double the speed of the 200 Mbps they used to get.

Max Sharfstein reports his speeds suddenly increased late last week after his modem rebooted. Other customers report similar speed upgrades.

“I was on a promotion for 200 Mbps service but now I am getting 400 Mbps performance, based on speedtest results,” Sharfstein told Stop the Cap! “It’s quite a boost from the 100 Mbps I was originally paying for before Altice started giving out promotional credits to hold onto customers.”

Sharfstein’s bill shows his 200 Mbps tier has been replaced with the 400 Mbps tier, without any action on his part. His current promotion ends in September.

“I’m not sure what I will have then,” Sharfstein admits.

The Optimum website shows the cable operator selling 20, 100, 200, and 400 Mbps tiers. Customers can check with Optimum customer service to see if they qualify for any free speed upgrades.

With a recent rate hike now taking effect, most customers will pay $64.95 for 100 Mbps service starting in June. The company runs free or discounted speed upgrade promotions from time to time, mostly as a customer retention tool and a way to better compete against Verizon FiOS.

If customers balk about the price, Optimum also sells a basic 20 Mbps tier for around $29.99 a month with a $10 modem rental fee (waived if you bring your own modem.) Existing customers report getting downgraded to this tier can be difficult, with representatives claiming it is not available, despite the fact it is as of now. New customers should have no trouble signing up for the $29.99 plan, however.

If you are an Optimum customer, let us know if you see a speed upgrade in your area in the comments.

Altice Raising Rates Across the Board for Optimum/Cablevision Customers

Phillip Dampier May 7, 2018 Altice NV, Cablevision, Consumer News No Comments

Altice, which operates Cablevision’s Optimum brand cable service in New York, New Jersey, and Connecticut, has informed regulators of a broad-based “rate event” that will take effect on June 1, 2018. Unless a customer is currently enrolled in a price-locked promotion, these new rates generally affect all customers, except as noted.

Altice told Connecticut regulators the rate changes “reflect the rising cost of programming and our significant investment in the customer experience. Optimum pricing is competitive when compared with other providers, and the Company continues to offer a wide array of products to meet all consumer needs and budgets.”

Altice has told Wall Street a different story, noting it is prioritizing a reduction of the company’s massive debts that came from aggressive acquisitions of other cable systems. Altice also told investors in February Altice USA will distribute a special cash dividend to shareholders of $1.5 billion to celebrate Altice USA’s split from its Netherlands-based parent company Altice NV. The company also told shareholders it was happy with its latest profitable results, showing Altice’s residential business growing to just over 80% of total revenue, up 2.9% in 2017 and 1.8% in the fourth quarter of 2017. Business services is growing in mid single digits.

Altice also plans to continue increasing marketing on its advanced all-in-one-box solution — Altice One, which costs $25 a month.

Changes effective June 1, 2018:

Set-Top Box: For customers who elect to receive a traditional set-top box from Optimum, the monthly rate will increase from $10.00 to $11.00. Does not apply to existing commercial customers.

CableCARD: For customers who request a CableCARD from Optimum, the monthly rate will increase from $2.00 to $2.50.

Sports Surcharge: To partially cover the continually increasing costs that programmers charge Altice to carry sports, the Sports Surcharge will increase from $6.97 to $7.97, for customers subscribing to the Optimum Core or higher tiers. (Broadcast Basic & Economy customers are not charged the Sports Surcharge.)

Broadcast TV Surcharge: New residential Broadcast Basic and above customers currently pay a $3.99 monthly “Broadcast TV Surcharge” to partially offset the high costs that broadcasters charge. This fee will increase to $4.99 a month and will also be applied to existing Broadcast Basic residential customers and new commercial customers.

Broadcast Basic Tier: New residential customers currently pay $19.99 per month for Broadcast Basic. To align basic tier rates, this same rate will apply to existing residential Broadcast Basic customers currently paying a monthly rate over $13.95. As an accommodation to existing Basic Tier customers currently paying $13.95/month, the new monthly Basic rate will be $14.95.

Sports and Entertainment Package: This a la carte subscription will increase from $8.95 to $10.00.

Residential Service Protection Plan: In addition to the free 24/7 technical support that Optimum offers all customers, the optional Service Protection plan covers any fees assessed for service visits. To align our rates, existing customers who currently pay $4.99/month will pay the same $6.99 fee currently applicable to new customers.

Restoration Fee: Optimum customers who do not pay their bill within 30 days of the due date, despite multiple reminder notices, are currently subject to a $4.99 per service fee to restore their service. Effective June 1, the minimum service restoration fee will be $10.00 for single and double product customers and $15.00 for triple product customers.

Installation Fee: Starting June 1, the prices paid by customers for standard and premium installations will increase from $69.00 to $99.00 and $99.00 to $129.00, respectively. Customers are being notified 30 days in advance for each of these changes through bill messages or inserts. In addition, rate information will be available on our website at www.optimum.net.

Altice USA: 90% of Our New Customers Want Broadband Speeds 100+ Mbps

Cablevision customers get very attractive promotions in the highly competitive northeastern United States, while Suddenlink customers in more rural areas pay more.

The majority of Cablevision and Suddenlink broadband customers want speeds of 100 Mbps or greater from the Altice-owned cable operators, and average monthly data usage by those customers is now reaching 200 GB per month.

Those statistics were part of a quarterly financial results presentation by Altice USA executives about how the company is doing in the United States.

Altice’s cable holdings include Cablevision, serving a generally affluent customer base in and around the New York City area where Verizon FiOS is its biggest competitor, and Suddenlink, which serves in less competitive markets where local economies are often challenged and phone company DSL still has a significant presence.

Regardless of whether customers receive broadband from Cablevision or Suddenlink, Altice USA CEO Dexter Goei made it clear consumers want faster internet service and are consuming exponentially more data than ever before.

Goei said Altice will continue to increase internet speeds over its existing hybrid fiber-coax network (HFC) even as it builds out its fiber to the home replacement network in some areas. At least 95% of Cablevision customers can now subscribe to 400 Mbps broadband on the company’s legacy HFC network. Around 72% of Suddenlink customers can get similar speeds today. Gigabit speed is available to 29% of Altice USA customers.

Goei said 90% of new Cablevision and Suddenlink customers now choose internet plans featuring 100 Mbps or faster broadband. The average data use of those customers “is now reaching about 200 GB” per month, Goei reported. For customers on HFC systems, Goei said the maximum speed Altice’s implementation of DOCSIS 3 can support is around 600 Mbps, depending on how many customers are sharing the connection. As customers transition to fiber service in the northeast, faster speeds are planned. In fact, Goei wants Cablevision to offer speeds even faster than Verizon FiOS, its chief competitor.

“In terms of the speed capabilities, we’ll have the ability to do higher speeds than the competition,” Goei said.

Altice USA’s fiber-to-the-home (FTTH) deployment is “well underway” in New York, New Jersey, and Connecticut, with plans to connect several hundred thousand customers to the new network starting later this year. Goei told investors Altice was accelerating the rollout this year with the hope of further reducing network and customer operation costs related to servicing the older coaxial network.

Cablevision and Suddenlink will gradually be rebranded as Altice, and the company has begun familiarizing customers with the new brand name in various ways, including the rollout of its new deluxe set-top box, called Altice One.

“This is our new entertainment platform with an all in one box, including TV, internet, Wi-Fi, integrated apps such as Netflix and a voice activated remote control,” said Goei. “The service includes an improved Wi-Fi experience […] as many TV boxes double up as Wi-Fi repeaters around the home. This is a key part of our strategy of enhancing the customer experience and we’ll have the capacity for ongoing upgrades and the addition of new apps as they become available.”

But that new platform comes at a cost. Currently, Cablevision customers can pay as much as $10 for each set-top box and $5 for a cable modem. Altice One is regularly priced at $25 a month — $10 more for a customer that has one television set-top box and cable modem. That makes Altice’s box among the most costly in the cable industry. The company is trying to hide the cost of its box by bundling it into promotions targeting price sensitive new customers.

In fact, the cost of service is increasingly becoming a factor, especially for Suddenlink customers. Over the last two years, Altice has been “harmonizing” Suddenlink’s rate plans, which used to be set based on the technical capabilities and performance of each cable system. Goei said Suddenlink comprised “five or six different customer bases” — each served by cable systems with different capabilities and rate plans. In the last two years, Suddenlink customers have been introduced to new rate plans, and some are paying considerably higher rates than before, especially for equipment and surcharges.

“All of that activity was probably more than we ever wanted to or anticipated as harmonizing all the different variables is not that easy,” Goei said. “And so we made a very concerted effort to not implement a usual or industry like price increase at the end of 2017, given all the various changes that happened over both customer bases as we harmonized them.” But Goei added the reprieve from rate hikes won’t last forever, promising a “rate event” strategy sometime this year, different from rate changes in past years.

Altice is emphasizing the progress it is making boosting internet speeds at its Cablevision and Suddenlink cable systems.

What Suddenlink and Cablevision charge for service is very dependent on what the competition is offering in Altice’s various markets. Goei paradoxically noted that some of the most attractive rates go to customers living in the most affluent areas of the New York Tri-State Area because of intense competition from Verizon FiOS. Prices have remained so low historically that, in Goei’s view, “it makes it very difficult for third parties to come into these markets” and compete with attractive offers that can match Cablevision. That also explains why Cablevision customers do not deal with data caps while Suddenlink customers often do.

Goei

Conversely, in Suddenlink service areas where less capable competitors exist, prices can be higher and service is considered less affordable. As a result, financial analysts have noted Suddenlink’s broadband growth has been anemic since Altice bought the company, presumably because would-be customers cannot afford the service or have chosen a more economic package sold by the phone company, even if it less capable.

Goei promised Altice would be more “nimble” in the future about targeting pricing in different service areas, taking current conditions on the ground into account when setting rates.

In more general terms, Altice is dealing with the same challenges most cable operators are facing these days. Cord-cutting continues to result in reduced numbers of video subscribers. The company also recently endured a multi-week programming dispute with Starz that cost the company video subscribers in the Cablevision service area. The dispute eventually ended with a new multi-year affiliation agreement that allows Altice systems to carry Starz and Starz Encore networks, on-demand services, and online access for several years.

But Altice clearly sees broadband as its key product going forward, which is why the company is upgrading its Cablevision and Suddenlink systems to support faster internet speeds.

Cablevision, Suddenlink Will Bail Out Altice’s Struggling European Business

Phillip Dampier January 11, 2018 Altice NV, Cablevision, Competition, Consumer News, Suddenlink No Comments

Altice’s American cable companies will help bail out the parent company’s struggling French operations.

Cablevision and Suddenlink are coming to the rescue of their parent company Altice in a deal that will transfer $1.5 billion from the two American cable operators to help bail out its struggling European operation, according to the Wall Street Journal.

Founding shareholder Patrick Drahi is splitting his U.S. cable operations away from Altice NV, spinning them off into a new publicly traded company known as Altice USA. But Drahi has also ordered the new U.S. company to pay a one time $1.5 billion dividend, most of which will end up in the bank account of Altice NV to help the parent company reduce its leveraged debts that have been largely responsible for its falling stock price.

While Cablevision and Suddenlink customers can look forward to additional rate increases, shareholders of Altice USA are being enticed to invest with sweeteners including an unexpected dividend payout and a sudden decision by Drahi to forego his usual management fee charged to companies he acquires to acquaint them with the “Altice Way” of doing business. That fee can amount to an initial $30 million payment plus an ongoing percentage (usually 2-3%) of a Drahi-acquired company’s future revenue.

Altice USA believes it can afford the bailout thanks to President Donald Trump’s tax cuts. In addition to using $2 billion of anticipated savings to pay for share buybacks, Altice USA hopes to quickly recoup an additional $1.5 billion from reduced taxes and revenue increases it will earn from customer rate hikes and new broadband customers.

Altice NV, soon to be renamed Altice Europe, was a veritable disaster financially — called the “worst large-cap performer in Europe” in 2017. At the center of Altice’s European operations remains the dismally performing SFR-Numericable, the French wireless and cable company. After Drahi acquired the company, he slashed costs and investments and threatened to lay off one-third of its workforce. Service deteriorated and customers canceled in droves. Investors starting selling their Altice shares around Halloween of 2017, after watching Mr. Drahi pile on unprecedented debt and become convinced Drahi’s highly leveraged company could not succeed.

The Wall Street Journal cautioned potential investors in Altice USA that the new venture will gladly take your money, but give shareholders almost no say in how it will be governed. Drahi has engineered his continued dominance of the new entity with control of at least 51% of voting rights.

Wall Street analysts are largely positive about the deal, noting Altice USA won’t be attached to Altice’s European money troubles and the company will have the ability to extract revenue from its customers with ongoing rate increases.

Search This Site:

Contributions:

Recent Comments:

  • FredH: ...and we'll be able to reach our 1TB monthly cap in a few minutes....
  • L. Nova: If you want to stop public corruption you have to follow the money and go after the the greedy corporations that are bribing government officials. It...
  • markvs: I know and they aren't even trying to hide the corruption either - it's so blatantly obvious....
  • LG: Truly disgusting. Every time something like this happens, it further erodes trust and belief in our government. At this point, I think 3/4 of this c...
  • George: 802.11ax with 8x8:8 MIMO streams are hitting the market, and Comcast is stuck in the past with 2 stream MIMO on 802.11ac, playing ping-pong with high ...
  • K Richner: These apparently are just Plume Pods with custom Firmware I own 12 Plume Pods! That are not locked to a isp this is a rip off since they cost about th...
  • Paul Houle: There is hope for fixed wireless, at least for me, since I have no hope for Frontier. I have investigated some wireless offerings from MVNOs and si...
  • Ian Littman: Counterpoint: mmWave based 5G is going to be a bear to deploy, to the point that 5G NR from T-Mo et al will likely have nationwide coverage before mmW...
  • Butch Kara: We still have Centurylink DSL (or should I say, we have it when it works) supposedly 1.5Mbps, but usually 0.6 or slower (right now around 0.2). and ha...
  • Lee: Seems I need to amend my post about the closed fiber optic loop system. Frontier Communications is not installing it. It is an expansion of the Elkhar...
  • James: In the beginning I was hopeful of Frontier a good review but I just zcan't do it.. we switched from comcrooks recently oct. '17, the phone reps screwe...
  • Lee: Change the name from Spectrum to Speculum....

Your Account: