$500 installation fee should kill off any new subscribers
Well, a $500 installation charge sure should kill off the desire of most people to get Fios TV from Frontier. I smell a lawsuit coming soon from some of the PUCs that approved this sale of some Verizon assets to Frontier.
I would expect that would depend of the franchise agreements that Frontier inherited from Verizon. I'm assuming that Frontier can't outright stop offering pay TV service unless subs fall below a certain number. I would also assume the franchise agreements are relatively vague about rate increases, hence it's the easiest route out of the agreements.
That was my point. Decreasing subscriber demand might be grounds for Frontier to end the requirement to offer the service at all...all made viable if rate increase stipulations are lax in the franchise agreements
Not true with those agreements. VZ's agreements have ALWAYS stated that if uptake was not at a number VZ was happy with they'd be able to stop offering TV. That number was NEVER stated which gave the company the right to do what they would want- pull out of the TV business. Frontier would have had to have those contracts transferred to them and possibly resign new ones with their names as they are NOT Verizon. And the PUCs can NOT hold them to any contract their name is NOT on nor signed.
This will be the same thing VZ will do in coming months/years to get out when their uptake does not meat their numbers to keep going. the ROI is what is going to matter and their number of FiOS TV customers do not match what they needed to start off with nor projected. Telco has been doing this all along. Look at Americast before SBC took Ameritech, ATT did this with their network to start off with and sold that to Comcast. VZ was smart and NEVER got into it until now. NONE of the VZ companies that merged to create VZ did actually. The Telcos made a mistake and now they need to get out and this is the easiest way and will help them in the end when they can write all of it off at the end of the years.
You can't hold a company to a franchise agreement or any contract when they have the write to end it. There are NEVER any requirements to offer service for X amount of years or $$$ involved if they pull out. The people will still have services available with other companies and Frontier is making sure they do with DirecTV. So it's a done deal in the end.
Frontier could also claim that the PUCs do NOT have right to dictate anything with cable as it is NOT a utility in the United States leaving the PUCs and the States open to a whole new ball game.
You can't hold a company to a franchise agreement or any contract when they have the write to end it.
I must be misunderstanding your post, because it all depends on the terms of the agreement. If a contact provides the "right" for either, out both parties to dissolve the agreement based of certain stipulations being met, then it certainly can be terminated. It happens quite frequently.
I think you read it right. Any company can back out of any contract. That's how they work. There ALWAYS is a clause for that. Just in this fact. the orginal contract stated a certain uptake in customers- ALL VZ FiOS contracts have that clause. But nobody knows the hard numbers on ANYTHING VZ does as far as that. But in all; Frontier can back out regardless due to the fact that area and all areas can NOT hold Frontier to providing services if they chooose to end service. The same goes for them offering phone service in any state. There always is a clause that states they can leave that area and only give a 90day notice.
No its the fact thats how those contracts work. It seems that you always stick up for the customer unless you feel that you should defend the company. But Frontier has the right to pull out and they will. You can't force them to offer services if they choose not to. And you can NOT pull their network from them. Frontier would SUE the states and in deed win. That's how taking a company's assets or anyone's assets work. You MUST pay fair market value for them. It works the same way when the gov't takes your land to sells it to someone to build the next big mall. The Gov't pays fair market value.
And that's how the Telco's work. Look at Americast and look at when they left- just before SBC and look at what they chose to do again. They got back into the TV business. What did ATT do prior to that- they were in the TV business- they sold that too. In the end- they only got back into it only to leave again when it goes belly up due to they can't get the customers to meet shareholder demands for $$$$.