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Altice Deploys Gigabit Broadband in Arkansas, Missouri, and Texas

Phillip Dampier July 19, 2017 Altice NV, Broadband Speed, Consumer News, Suddenlink No Comments

Altice’s Suddenlink Communications has announced gigabit service for its customers in Batesville and El Dorado, Ark., Maryville, Mo., and Conroe, Tex.

“Today’s announcement is the next step in Altice USA’s Operation GigaSpeed initiative to provide gigabit broadband service to our Suddenlink customers,” said Hakim Boubazine, co-president and chief operating officer of Altice USA, in a statement.

Altice will continue to use DOCSIS 3.0 technology for most of its Suddenlink customers instead of adopting DOCSIS 3.1 in the near future. Because Suddenlink systems are all-digital, Altice is using a significant amount of its available cable bandwidth for broadband services. Customers who don’t want to pay for 1,000Mbps can also choose from 100 and 200Mbps plans, up from 75 and 100Mbps respectively.

These communities bring the number of GigaSpeed enabled cities in Suddenlink territory to 45. Here are the others, below the break:

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Rebranded: Goodbye Suddenlink and Cablevision/Optimum, Hello Altice

Phillip Dampier May 25, 2017 Altice NV, Cablevision, Consumer News, Suddenlink No Comments

Patrick Drahi’s acquired cable properties in the United States will join a global rebranding under his company’s own brand: Altice.

Suddenlink, Cablevision/Optimum, SFR-Numericable (France), HOT (Israel), Portugal Telecom-MEO-Sapo (Portugal), and Orange-Tricom (Dominican Republic) will all be called simply “Altice” by the second quarter of 2018.

Cablevision’s Lightpath commercial service will be rebranded “Altice Business” as well.

The global rebranding has begun before Altice USA launches its IPO, expected to attract $1 billion or more that will likely be used to help finance the acquisition of other American cable companies.

Along with a new logo, Altice also introduced its new tagline: “Together Has No Limits” — ironic for a company that continues data capping its Suddenlink broadband customers. Drahi delivered lofty remarks about his aspirations for the new logo and tagline during a closed circuit presentation seen by employees in all the countries where he owns cable companies.

“Our innovations must not make our individual realities smaller, but our collective ambitions greater,” Drahi said. “Not to make individuals more dependent on technology, but more reliant on each other. ‘Together Has No Limits’ is an invitation from the Altice family to come together and build a dream engine that unlocks all of human potential. Together has no limits means ‘let’s learn together, let’s be safe together, let’s be knowledgeable together, and please let’s enjoy!'”

It’s all a part of Drahi’s master plan to dominate the cable and telecom marketplace in the United States. He has freely admitted Altice has started small, but is in no way done making acquisitions and forcing future mergers. In Drahi’s own words, he’s not interested unless he runs the #1 or #2 largest telecom company in a country.

Drahi’s recipe for acquisition success is paying handsomely for acquisitions and then gutting expenses and much of the workforce Drahi considers unnecessary or redundant. After paying $17.7 billion for Cablevision — an amount his critics called excessive, Drahi slashed salaries, closed call centers, and began obsessively scrutinizing expenses. Employees complain morale is low and even the most mundane tasks like keeping the employee break room up and running now requires justifying almost every purchase in management committee meetings that employees fear. Drahi jettisoned much of Cablevision’s senior management, if only because he deemed them overpaid.

Drahi

Extravagance was never a word used to describe Suddenlink. The smaller operator Drahi also acquired in 2015 is known for serving smaller, more rural and economically distressed markets. But Drahi remains obsessed about cost-cutting there as well.

Wall Street analysts scoffed at Drahi’s claim he would cut nearly $900 million in costs at the two American cable companies. But thanks to his “cut to the bone” strategy, Drahi has touted about $400 million in savings to investors so far, with more to come. While Drahi claims he likes to pay employees “as little as possible,” he has no problem splurging on new acquisitions and upgrading the ones he already owns. To allow his Cablevision property to stay competitive against Verizon FiOS, Drahi has authorized ripping out existing coaxial cable and moving to an all-fiber network instead. Speed upgrades are also underway at Suddenlink that now deliver faster speeds than the much-larger Charter Communications now offers its customers.

In March, Drahi acquired Teads, the number one video advertising marketplace in the world. He intends to precision-target audiences with relevant advertising, which could enhance revenue at his cable TV and online properties. Altice has also been beefing up its content operations, particularly in Europe where Drahi has decided to launch his own cable networks instead of overpaying for other companies’ networks. Domestically, Drahi sees value in expanding Cablevision’s News 12 Networks operation and will import i24, his Tel Aviv, Israel based international 24-hour news and current affairs network to the United States.

Just as he has done in Europe, Drahi has telegraphed how he intends to do business in the U.S.

“I have always been very clear, that first is fixed [cable], then mobile, then content,” Drahi said. “We started in the U.S. with cable. We are too small in cable to go mobile at the moment. But everything is open. We will see.”

French Press: U.S. Consumers Ripe for Fleecing By Cable Magnates Like Altice’s Patrick Drahi

The French press continues to report, with some bewilderment, that U.S. consumers are being fleeced by the country’s biggest telecom companies while politicians do nothing to regulate a duopoly market or force more competition to stop the pick-pocketing. The Francophone press is responding to reports that cable baron Patrick Drahi is vacuuming up profits from his American subsidiary Altice USA — which owns Cablevision and Suddenlink — and is likely to get much bigger in 2017, all thanks to the U.S. regulatory landscape.

“Americans live under a corrupt politician-sanctioned broadband monopoly in many places, and this assures telecoms operators in the United States can earn astounding profit margins impossible in European markets,” notes Giga France.

Le Figaro reported this month Altice’s directors had an easy job figuring out where much of the global conglomerate’s future profits would come from: the United States.

“Given the structure of the telecom market, [Altice’s] margin for growth in France is low, whereas in the United States it is considerable,” the newspaper reported. The reason is a persistent lack of competition, made possible by politicians that accepted the recommendations of lobbyists and corporate special interest think tanks on how to structure the broadband market.

Drahi

In the United States, providers have won near-absolute control of their networks and need not share access with competitors. Large telecom companies argued that requiring shared access to their infrastructure would threaten investment and stall broadband network deployment. Ironically, some even argued it would lead to reduced competition. But the reverse turned out to be true and the United States has fallen far behind in competition and network quality, while more traditionally regulated markets in Europe now enjoy low prices, faster internet speeds, and a larger number of competitors vying for consumers’ business.

Wall Street indirectly conspires to keep the status quo by discouraging the entry of new fixed line providers, claiming it will destroy shareholder value and consume billions of investor dollars constructing competing networks that will be unlikely to attract enough subscribers fast enough to give shareholders a timely return on their investment.

With a provider-friendly Trump Administration in power, and more importantly the installation of Ajit Pai, a notorious telecoms-friendly regulator as chairman of the FCC, Altice’s directors consider 2017 to be one of the most inviting years for expansion in the United States.

Le Figaro reports there is plenty of opportunity for Altice’s empire to become more dominant in North America. In France, its SFR unit now holds a 25% share in the fixed line market, but that number is unlikely to grow much considering ongoing price wars that come from fierce competition in France. In the U.S., Altice only holds barely 3% of the market, and Drahi has made no secret he would like to become at least the second-largest provider in the United States.

Les Echos suggested Altice is quietly preparing a full-scale ambush on the U.S. market starting with a much-anticipated IPO expected this year. Wall Street doesn’t welcome Altice entering the U.S. cable business as a market disruptor. Instead, investment banks are willing to loan huge sums to Altice for the purpose of acquiring telecom companies, maintaining the existing duopoly of one cable and one phone company for the majority of Americans.

“In the past, every time he introduced a publicly traded asset, Drahi proceeded with acquisitions: Numericable, in 2013, SFR the following year; and by 2015 Cablevision and Suddenlink in the U.S.A.,” reports Les Echos.

In France, up to four providers compete head to head for fixed line telecom customers. In other parts of Europe, telecom networks are often forced open to competitors. Neither is the case in the States, and consumers are paying very high telecom bills as a result.

Les Echos notes the U.S. cable business is so lucrative, “never before has a French company made such an important investment in the country of Uncle Sam.”

Suddenlink and Cablevision: Consistent source for fat revenue growth for Altice.

Drahi told investors more than a year ago he wanted to eventually generate 50% of Altice’s business overseas, primarily in the profitable U.S.

Altice has so far only bought up smaller cable operators, but observers expect Drahi will aim for much larger targets, including the possibility of buying out a wireless provider or even targeting Comcast, AT&T, or Charter. Les Echos quotes Vincent Maulay, an analyst at Oddo who notes that Drahi may be able to collect future assets inexpensively if Verizon decides to move on an acquisition of Charter. Regulators will likely force the combined company to shed cable assets in New York State where Verizon and Charter currently compete. That would allow Drahi’s Cablevision to pick up divested service areas, perhaps even in Manhattan.

Altice’s Cost Cutting Truth: 2.5+ Million Customers Fled for the Hills

Phillip Dampier January 24, 2017 Altice NV, Cablevision, Consumer News, Suddenlink No Comments

In 2016, just one company was responsible for more than half of all consumer complaints aimed at telecommunications companies in France. That provider was Altice-owned SFR/Numericable.

Last year alone, the number of complaints against Patrick Drahi’s telecom conglomerate jumped 120%, with consumers upset about the company’s landline, wireless, cable TV and broadband services, according to data from the French Association of Telecom Users (AFUTT) and noted by Capital.

The biggest spike in complaints targeted the company’s wired broadband services, where complaints rose 166% (in contrast, mobile complaints were up a milder 72% over the year before).

AFUTT records out of more than 5,000 complaints received last year, 73% of all contract complaints, 68% of customer service complaints and 66% of complaints about bait and switch promotions regarded Mr. Drahi’s operations in France.

Patrick Drahi’s business philosophy, backed by billions in Wall Street bank loans used to acquire companies and then slash budgets to the bone, proved to be terrible for his customers in 2016. Cablevision and Suddenlink subscribers can only hope those mistakes won’t be repeated here.

In just over two years after taking over one of France’s largest cell phone and cable operators — SFR/Numericable, more than 2.5 million customers have fled, fed up with Drahi’s initial lack of interest spending money on network upgrades and service improvements. It didn’t help that the prior owner — the conglomerate Vivendi — didn’t invest enough either, leaving the French cell phone company with headline-grabbing service outages, indifferent customer service, and a fear of employee suicides from threatened cutbacks and layoffs.

Even investors and the banks financing Drahi’s worldwide conquest of cable and telecom companies were concerned enough to apply pressure to stem customer losses that continued at a record pace for more than six months. The damage to SFR’s reputation has been so great, the wireless company has experienced two very bad years even with $2.3 billion in emergency spending to keep customers happy with service improvements while trying to win others back.

Paulin

Michel Paulin, in charge of SFR, told employees in an internal memo obtained by Les Echos things are still bad at the company.

“We have to face it: our customers are still not satisfied and far too many are still leaving for other operators,” Paulin wrote. “This year we will have to regain the confidence of our customers, but we will also have to return to growth in fixed and mobile broadband.”

That growth is still expected to come at the expense of jobs. By the summer of 2019, Drahi will have presided over the slashing of more than one-third of the SFR/Numericable workforce, amounting to at least 5,000 French workers. Many of Altice’s most recent investments are in content agreements to bolster programming for subscribers. SFR launched five sports channels, two news and information channels, and has spent heartily to acquire sports rights and programming agreements with American networks including NBCUniversal and Discovery.

Altice is also dramatically increasing spending on its news channel i24 News, which will soon be on the lineups of Cablevision and Suddenlink cable television customers. The news channel broadcasts multiple feeds in French, English, and Arabic and will supply viewers with international and Middle Eastern news, particularly focused on Arab countries where Al Jazeera delivers fierce competition.

Suddenlink Hiking Rates: Internet Up $3.50, Surcharges Now Exceed $13/Month

Phillip Dampier January 12, 2017 Broadband Speed, Consumer News, Data Caps, Suddenlink No Comments

Suddenlink customers around the country are finding accessing the internet has suddenly gotten more expensive. For many service areas, the cable operator raised its rates in December for television and broadband service, with some of the biggest hikes coming from sneaky surcharges.

In many states, the most popular basic bundle already costs $90 a month. The biggest increases have come from “surcharges” which are never a part of Suddenlink’s advertised promotions, surprising many customers on their first bill.

In Arizona, the Broadcast TV surcharge has gone up another $1.61 a month, making customers pay $8.39 a month for a handful of local channels. A separate sports programming surcharge of $5.15 also applies. Suddenlink is also part of the club of cable operators charging customers $10 a month to rent a cable modem. For good measure, the cable operator also wants another dollar a month for its DVR and $3.50 more for broadband. Assorted other fees and surcharges tack on another $4.50 a month.

Suddenlink has already notified some regulators more price hikes are coming in the next several months.

But a Suddenlink spokesperson said there is more good news than bad.

“We provide Suddenlink customers with superior products and services at a great value, continually introducing faster internet speeds and with plans to roll out an enhanced video experience in the coming months,” Janet Meahan, spokeswoman for Suddenlink, told the Daily Miner in Kingman, Ariz. “Our pricing remains extremely competitive in the face of rapidly rising programming costs.”

Mehan also told the newspaper that Suddenlink introduced 1 gigabit internet service in Kingman in October, and provided “complimentary” speed upgrades for residential customers at no extra charge.

“They also had their artificial internet rate hike when they implemented data ‘allowances’ (caps),” retorted Ryan, a Suddenlink customer. “Their upgrades are anything but complimentary.”

Readers report they’ve had success calling Suddenlink and threatening to cancel service over the rate increases. Some report they’ve successfully negotiated their rates down to a level just a dollar or two higher than what they paid two years ago. Customers can also buy their way out of Suddenlink’s data caps by upgrading their service.

New subscribers and existing customers who elect to get an upgrade will automatically be enrolled in an unlimited plan at no extra charge the first year, pay an added $5 a month after 12 months, and an added $10 a month after 24 months. Customers currently subscribing to Suddenlink’s fastest local services may choose to retain their existing usage-based plans or upgrade to an unlimited plan.

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  • Doug: So what are they (Charter Spectrum) supposed to do? Continue repairing the sabotage? Pay for "protection?" I am certain that those customers whose ...
  • tony russo: Promo with TWC ending this week. Had Starter TV (25 channels) plus Turbo internet for $65 total. Called to see what is available and the lowest tv p...
  • FredH: ....talk about flimsy (or no) evidence.....good luck Charter, wasting our cable fees on a lawsuit they stand no chance of winning....
  • Will: I have to agree with ATT here... Can't blame cord cutters when it's just that ATT's video service is awful and customers are fleeing at the first oppo...
  • kaniki: I really do not see much changing on the Tmobile end of things.. Sprint does not have much coverage outside of Tmobiles right now, so, Tmobile would g...
  • kaniki: I would have to disagree with the "cable company" part.. I would like to see someone, more like google, get them, then a cable company.. Most cable co...
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  • Josh: Good for them! Don't know that $500/day is remotely reasonable (how about $500,000/day?) but regardless good for them....
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