Charter Communications has refused to cooperate in a review to determine if the company is meeting its merger obligations to customers in California.

The Public Advocates Office of the California Public Utilities Commission reports that Spectrum was required to offer at least 300 Mbps internet service to all households in its California service area by December 31, 2019. It was a key condition required of the cable company to win approval of its 2016 merger with Time Warner Cable. But after getting its merger, Charter officials have stopped cooperating with the Public Advocates Office, which is required to submit annual progress reports on Charter’s compliance.

“Charter’s reports thus far have consisted only of bald assertions, without any supporting household data, that it is providing download speeds of up to 300 Mbps to a certain percentage of households and, as stated in its 2017 report, 400 Mbps to a certain percentage of households,” the Public Advocates Office wrote in a Notice of Ex Parte Communication.

“Charter has refused to provide all data requested by the Public Advocates Office, making it impossible for the Public Advocates Office and the Commission to verify whether Charter is, in fact, in compliance with [its merger obligations},” the Office stated. “[I]f Charter fails to comply with merger conditions, the Commission may pursue appropriate enforcement remedies, including the imposition of fines.”

The Public Advocates Office won the granting of a motion to compel Charter Communications to provide the information, signed by Administrative Law Judge Karl J. Bemesderfer.

Charter Spectrum customers in New York State: today is the final day to claim free services as part of the state’s $174 million settlement with the cable operator.

About 700,000 customers, mostly in downstate New York, should have already received $62 million in refunds averaging $75 per household in the form of a bill credit. But many more are still qualified for up to three months of HBO or six months of Showtime for free. At the end of the term, services will automatically deactivate so you will never be billed for them.

The offers:

• Current subscribers who subscribe to both internet and cable television from Spectrum will have a choice of either three (3) months of HBO OR six (6) months of Showtime. (Note: This benefit is available to subscribers who do not already subscribe to both of the offered services through Spectrum.)
• Internet only subscribers will get one (1) month of Spectrum TV Choice streaming service—in which subscribers can (depending on their location) access broadcast television and a choice of 10 pay TV networks—as well as access to Showtime for one (1) month.

You can determine which offer you qualify for, if any, on your March 2019 billing statement, available from Spectrum’s website. Or call 1-833-422-8795 and you can learn more about what is available to you and select the free service of your choice. The deadline is today, May 30.

If you are new to Spectrum or already subscribe to HBO and Showtime, you will not qualify for either settlement. Neither will ex-customers that disconnected service.

New York Attorney General Leticia James is interested in learning your views and experiences on the settlement offer. After calling Spectrum, visit here to complete a survey.

Frontier Communications is selling its wireline and fiber assets in Idaho, Montana, Oregon and Washington in a $1.35 billion all-cash deal with two private investment firms.

Frontier will continue operating its FiOS and traditional landline networks in the four states until the transaction closes with regulator approval.

The buyers are WaveDivision Capital, a private investment firm run by the founder of Wave Broadband, an independent broadband provider serving the Pacific Northwest and Searchlight Capital Partners, a Wall Street investment firm seeking to “accelerate value creation” for its investors. The new owners plan to launch a new company to service existing Frontier customers and will honor existing contracts and service commitments.

“The sale of these properties reduces Frontier’s debt and strengthens liquidity,” said Dan McCarthy, Frontier’s president and CEO, in a statement. “We are pleased to have a buyer with extensive experience building and operating advanced fiber-based communications assets in these regions. We will be working very closely with the new owners to ensure a smooth, successful transition for our customers and the communities we serve.”

About 150,000 fiber, 150,000 copper and 35,000 fiber video customers are impacted by the sale in the four affected states. Frontier’s service area in the region is made up of large former Verizon service areas, many upgraded to fiber-to-the-home service, and a significant number of rural telephone exchanges operating with traditional copper wire networks. WaveDivision Capital claims it wants to invest in Frontier’s existing network to upgrade service and potentially retire additional copper infrastructure in favor of fiber.

Frontier service areas in Oregon, Washington, and Idaho.

“We are excited to transition these operations to a local ownership team and to invest in building out the network of next generation fiber throughout our region,” said Steve Weed, CEO of WaveDivision Capital, and founder and former CEO of Wave Broadband. “We are big believers in the Northwest’s future growth opportunities and that future runs on broadband. As the former leaders of another successful Northwest internet provider, Wave Broadband, we know what it takes to bring fiber and other advanced services to residential and business customers, give them choices, and keep them happy.”

Frontier, which has been struggling with a tremendous debt load and underinvestment in its network, sees the sale as a way to improve its balance sheet and cut both debt and expenses. The Pacific Northwest is a difficult region to serve because it is sparsely populated and can be a high cost area because of difficult terrain or long distances between customers. Although Frontier had committed to spending on upgrading its fiber customers, it promised little for its copper wireline customers still relying on low-speed DSL. Weed says his company hopes to change that.

“Our plan is to invest further in our markets, specifically by extending fiber to more homes and businesses, to bring them the high speeds they want,” Weed said in a statement.

Frontier’s Montana operations are in the northwest corner of the state, near the Kootenai National Forest.

The transaction is subject to regulatory approvals by the Federal Communications Commission, the U.S. Department of Justice, the Committee on Foreign Investment in the United States (CFIUS), applicable state regulatory agencies, and certain local video franchise authorities where Frontier FiOS operates. Frontier expects little opposition to the deal.

Weed’s involvement in Wave Broadband is no more, but at the time he left the company, Wave had reached 140 cities and towns in Washington, Oregon, and California. Wave was formed in 2003 with a series of strategic acquisitions of “distressed” independent cable systems and those owned by pre-bankruptcy Charter Communications, Northland Communications, and Cedar Communications. In May 2017, Wave Broadband was sold to TPG Capital for $2.36 billion, and today operates under TPG’s leadership with its close cousins RCN and Grande Communications.

Weed has a reputation for successfully deploying fiber networks in a region where capital can be difficult to find and easy returns on investment are rare, so there is considerable good will he will successfully upgrade Frontier service areas that have been neglected for years.

Although the transaction could deliver temporary fiscal relief for Frontier, shareholders remain displeased with the current leadership team at the company, and there are still significant signs Frontier remains in serious financial and operational distress, especially because of its ongoing customer losses. Frontier is likely to be pressured to find other sales opportunities, assuming it can find willing buyers.

Altice USA could be your next cell phone provider, if you subscribe to Cablevision’s broadband service in the metro New York City area.

The Wall Street Journal reports Altice is preparing to launch an unlimited calling/texting/data plan that will cost between $20-30 per month, powered by Cablevision’s in-home Wi-Fi, its network of public Wi-Fi hotspots, and Sprint’s 4G LTE network.

The service, likely to be called Altice Mobile, is the latest entry from cable operators pitching low cost mobile service as an incentive to keep customers from switching providers. Altice will charge dramatically less for its unlimited plan than Xfinity Mobile and Spectrum Mobile ($45) — both reselling Verizon Wireless service — (with speeds reduced to 1 Mbps download and 512 kbps upload after 20 GB of data usage in a month.)

Customers using AT&T and Verizon pay even more. Unlimited monthly plans for a single phone start at $80 at Verizon and $70 at AT&T, depending on bundling certain other AT&T-owned services. For less than half the price, Altice Mobile would deliver all the same services larger providers offer, although Altice intends to offload as much usage as possible to its network of Wi-Fi hotspots, to keep costs low. Before Altice acquired the cable company, Cablevision built a major Wi-Fi presence in the New York City metro areas where it provides cable service. Altice announced it intends to strengthen that network to support its mobile initiative, including the possibility of deploying its own small cell network.

Where Altice cannot supply its own wireless connection, it will rely on Sprint to take over, paying the cell phone company for its customers’ traffic. In return, Sprint will be able to bolster its network in Altice’s service area, perhaps even using Altice’s fiber-to-the-home network, now under construction. That could help Sprint launch 5G service relatively soon in the region, regardless of whether its pending merger with T-Mobile USA is approved. To protect the venture, Altice has secured an agreement with both T-Mobile and Sprint not to terminate its contractual agreement with Sprint should a merger be approved. But the service will still be dependent on network owners like Sprint willing to sell connectivity. Should Altice Mobile take a significant share of the market, network owners may be reluctant to renew such contracts, or price them much higher at renewal time, raising prices.

The cable industry’s incentive for getting into the wireless business, even if it proves unprofitable, is plain to see. All entrants require their mobile customers to maintain a broadband account in good standing to qualify for mobile service. Comcast, Charter, and Altice are aware their video packages are increasingly untenable in a cord-cutter’s marketplace, but maintaining internet service remains essential. In most areas where the cable operators provide service, Verizon or AT&T also sells both broadband and wireless service. Customers may be reluctant to bounce between providers looking for a better deal if they also have to switch mobile providers at the same time.

Cinemax is under siege, after the nation’s two largest cable operators announced they have turned their backs on HBO’s sister premium movie channel.

Several months after Charter Spectrum stripped Cinemax out of its TV bundle packages, Comcast has announced it will do the same starting this July, replacing Cinemax with its own commercial-free, on-demand movie network Hitz:

We are excited to introduce Hitz, a new commercial-free on-demand movie service available as part of Xfinity Premier, Super and certain other TV packages. Hitz will feature more than 200 movies and will be included with these packages at no additional cost. It will replace Cinemax and its associated channels.

Movie lovers of all kinds will enjoy Hitz. This exciting new offering will provide even better value and variety for you. Here’s how:

• Hitz will offer a rotating list of more than 200 movie titles from a variety of top studios.
• Hitz will include an assortment of movie titles that complements the films already available to Xfinity Premier and Super TV customers on other channels and adds to the thousands of On Demand movies already available.

What is Hitz?
Hitz is a new on-demand movie service that includes more than 200 titles from a variety of top studios. This selection will rotate over time.

Where can I find Hitz?
The easiest way to find Hitz is by saying “Hitz” into your X1 voice remote. Hitz can also be found in the Networks section of the On Demand menu. You can also see current Hitz movies in the on-screen grid guide – frequently near other movie services.

Why are you doing this?
Most of the movies on Cinemax have also aired on HBO. By offering Hitz instead, we’ll be delivering customers a better variety of content.

How can I watch Cinemax original content?
While Cinemax will no longer be included in the packages being adjusted, Cinemax will still be available to purchase on its own for $12 per month.

Should I pay a different price now that I am no longer receiving Cinemax?
While Cinemax is being removed from these packages, we believe the new lineup offers a better value. Most of the movies on Cinemax have also aired on HBO. By offering Hitz instead, we’ll be delivering a better variety of content.

The dissing of Cinemax seems to have started after AT&T acquired Time Warner (Entertainment), which also owns HBO and Cinemax. Like Comcast, Charter Spectrum customers can still subscribe to Cinemax, but only as an a-la-carte option, typically $15 a month. Verizon FiOS dropped Cinemax from its bundles starting in 2018. When cable operators drop legendary networks like Cinemax, it is almost always a matter of money. Cable operators may have been asked to accept a reduced share of the subscription fee split (usually 60% sent to the network, the remaining 40% kept by the cable company) or required to carry new services as part of a contract renewal they ultimately rejected.