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Cablevision Declares War on Deal-Hunting Customers; Plans to Cut Off “Low Quality” Subscribers

Phillip Dampier March 10, 2015 Cablevision (see Altice USA), Competition, Consumer News 1 Comment

optimumCalling and asking for a better deal from Cablevision might just get you Verizon’s phone number with an invitation to take your business to them instead.

That is exactly what happened to Sandra Ramirez of Deer Park, N.Y. who reports to Stop the Cap! she was given Verizon’s phone number by a Cablevision “customer retention specialist” after complaining about her bill shooting up $30 a month after a promotion expired.

“I didn’t expect that,” Ramirez tells us. “The representative, who was actually hostile, complained to me that I already had two Cablevision promotions in the last five years and didn’t deserve another one.”

At least 34,000 customers may have taken Cablevision up on its offer to leave because the cable operator lost that many video subscribers during the fourth quarter, most switching to Verizon FiOS.

The “go ahead and cancel” technique appears to be part of Cablevision’s strategy to purge itself of “low quality” customers by denying repeated requests for promotions and discounts.

verizon fios bundle“We found out that we were pushing subscribers back and forth on a highly promoted basis,” Cablevision vice chairman Gregg Seibert told investors at this week’s Deutsche Bank 2015 Media, Internet & Telecom Conference in Palm Beach, Fla. “I don’t want to roll a truck to you every two years if you keep going back and forth to another provider, so we’re getting rid of that lower quality, lower profitability base of subscriber.”

Cablevision started cracking down on promotional deal shoppers more than two years ago, denying extensions on promotions even when it leads to a customer disconnect.

If Cablevision hoped Verizon would follow their lead and stop heavily discounting service, that doesn’t appear to be happening. Verizon has seen significant success picking up new FiOS customers in Cablevision service areas. That falls right into place with Verizon CEO Lowell McAdam’s strategy to focus on building customer numbers in existing FiOS service areas instead of expanding into new ones.

Ramirez accepted Cablevision’s offer, wrote down the phone number and called to sign up for FiOS.

“When the representative asked me where I heard about FiOS, I told her Cablevision,” Ramirez tells us. “She said it was not the first time the cable company referred new customers Verizon’s way and we both got a laugh out of it. Verizon installed my service yesterday and I took my cable boxes back to Cablevision and told them goodbye.”

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Dave Hancock
Dave Hancock
9 years ago

Sounds like Time Warner. When I moved from a TW only area in Rochester to an area (Buffalo suburb) that had both TW and FiOS, TW was just not motivated to even return my call.

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