 marigoldsGainfully employed, finallyPremium,MVM
join:2002-05-13
Saint Louis, MO
kudos:1 | reply to hottboiinnc
Re: Mayor not too bright said by hottboiinnc:That's the whole thing behind the State Franchise laws. Alabama doesn't have a statewide franchise law last I knew.
Anyway, you are ignoring that Charter is in serious financial trouble and not in particularly good position to engage in a protracted 30,000+ RGU pricing war. At $56, that would be a potential $6M loss per quarter, when they are already losing $81M per quarter.
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| and that is why they're trimming their debt by the courts.
And they only have to offer that plan to the masses until the muni goes under and stops. then for everyone that didn't sign up price is regular rate. everyone who signed up- price stays the same.
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marigoldsGainfully employed, finallyPremium,MVM
join:2002-05-13
Saint Louis, MO
kudos:1 | There is a secondary risk here though. Remember how these bonds work. The infrastructure backs the bonds too. That means that if the utility goes under, the built infrastructure will be sold off. And that means Charter will still have another company (likely Knology) to compete with; a company with a dirt cheap ftth network.
Charter will try to fight until at least that point, but they might give up the market in the long run. |
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