DSL Oberst
join:2001-11-29
| An Interesting Tactical Thought.....
I wonder if a company could just pull all DSL or cable service from an area? Just give notice that 6 months down the road, all broadband services in blah area will be shut down for blah reason.
Let me use Aldephia as an example.
There is currently a class action lawsuit going on for Adelphia's connection in the New Hampshire area. Let's assume the class action wins, and everyone gets a chunk of change from Aldelphia.
Adelphia then announces a week later that due to inability to maintain a profit in the area, and lack of funds to do so, they're going to be shutting off all broadband cable service in 6 months in the New ampshire area. Sorry folks, it's too expensive to play, we're packing up and going home.
6 months later, everything is shut down [without the termination fees applying since the contracts were broken]. Aldephiagoes on making money elsewhere. The weak link is cut. All the customers who had Aldephia Boradband in that area are SOL, and are forced to seek other providers.....if there are any other than dial-up.
I think this would be an effective legal tactic for a cable or telco, as they are not required to -provide- service in an area, but are required to provide -good- service in an area. |
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tcp1
Premium
join:2000-04-17
Herndon, VA
 ·Sprint Mobile Broa..
 ·Verizon FIOS
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 ·Bandwidth.com
| This has happened to me... I was in Fredericksburg, VA.. Cox Cable was using ISPChannel for the provider, when one day in October they decided to just pull the plug...
And pull the plug they did!!
Cox told me they'd have new service "sometime in the future" once they "researched the market"..
I moved in April, and never found out what happened there. |
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user_hater
join:2001-12-14
Tyler, TX | isp packed up and cox moved in |
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Jackson$
Need It Wrecked? 1-800-Marine
join:2001-11-17
Buffalo, NY
| reply to DSL Oberst
This is what I _fear_ will hapen with a _lot_ of broadband providers. Most of these companies offer a "Bussiness" and a "Residential" package. The cheaper "residential" package is used for 'Entertainment' purposes and could _easily_ be washed out.
These companies could hold comsumers hostage to higher 'bussiness' rates, which would be unethical (IMO).
I have seen first hand a company pack its bags, lay-off 5,000+ workers and leave a state with a lot of lost tax revenues as a retaliation to such suits. this might not have been said publically, but a percentage of the workers were offered their jobs back in another area outside of the state with raises to boot!( Smells really funny eh? ).
What also will happen is these areas will be deemed 'hostile' by other 'competition' that might be looking to move into those markets.
My 2cents, not on acheck tho 
Jackson.
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mystery45
join:2001-06-13
Titusville, FL
| reply to DSL Oberst
this is what i see will happen. fine you get your money but you lose your service you cable tv and everything else. it is non profitable to the company. they roll there fiber and there plants and go elsewhere. now the city has to try and entice someone else to come in and see that it is worth the risk. of course now the city has a wrap of law suits against a company so who would want to move in for fear of being sued. and so the actions of a few punish the entire city. no tv no internet unless you have dial up. the words biting the hand that feeds you applies in most of these cases. and this is not just for adelphia i can see any company doing this. and most cable providers do not have contacts you can drop the service anytime you wish unlike dsl and there is no disconnect fee. |
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lesopp
join:2001-06-27
Land O Lakes, FL
| reply to DSL Oberst
I would hope the attorney's would preemptively address this in the suit. They could put in language that says Adelphia may not cease operations in that market without selling to another provider. If they shuts down in that market without selling to another provider they forfeit, to the local communities, their physical plant, facilities, fiber, copper and all equipment. They could probably get away with this by citing some of the same examples I read here. |
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SAM Hunter$
join:2001-05-11
USA
| reply to DSL Oberst
An interesting thought. Not sure it would work because of exclusive service agreements cable companys have with the cities they serve. But, maybe there is a way around that or it doesn't apply in the scenario you mention.
One thing for sure, if they did pull it off successfully, all of the Adelphia nolink employees would have to have plastic surgery, move from their current locations and go into some type of company equivalent to the Federal witness protection plan. |
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Jon_Hanson
Mountain Dew Rules
Premium
join:2001-07-09
Gilbert, AZ | reply to lesopp
I think a more likely scenario is that the lawyers will request the court to put a lien on the provider's assets as a bond in case they lose the class action suit. |
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Jackson$
Need It Wrecked? 1-800-Marine
join:2001-11-17
Buffalo, NY
| reply to lesopp
..and this is the principle that is destroying our society. Those plants are _owned_ by a private corporation. So long as they aren't damaging the enviornment in the area, what gives any other entity the right to take anothers property?
Should the IRS be allowed to lock people out of their houses without due process? _I_ don't think so.
But it would be all well and dandy to just take 2 other entities with different names and apply the same principle before any guilt is even proven.
Its due to reasoning you have enscribed that the theory of junk bonds came into effect.
[text was edited by author 2002-03-28 22:14:46] |
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