Re: $500 installation fee should kill off any new subscribers
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.
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 $$$$.