Broadstripe Files For Chapter 11

That they owe hundreds of millions and only have 90,00 subscribers?

I refuse to believe the 93,000 figure, although I have no facts to back it up. They must service at least half that figure here in Seattle.

They have 17k in Seattle

cut

He's an appropriate spokesman. Seinfeld could make a movie about how these people ran their company. Story was the company was started by 4 former cable execs, each put up $25 million. They were able to borrow un-godly amounts of money in '99/early 2000's. I worked with an ISP they acquired(1 of 12). All key people offered options for the large cap IPO about 2 years off.

The original plan in part was for us to help design and support the addition of Internet to their local cable operation. We were looking forward to this new alliance. The the ILEC's treated ISP's like the enemy at that time and we thought it a great opportunity to bypass the phone companies. The local cable operation didn't like the idea and treated us worse than the ILECS. Wouldn't even take or return our calls. They ran adds for our dial up service but wouldn't allow us to schedule or detail what ran. Just sent summary bills to St. Louis. Parent company didn't fix it and our relationship ended there.

They made offers on several other local ISP's and put in a conditional order for more capacity. Only 1 deal closed but they forgot to cancel that order and were left with crazy monthly cost. They would authorize $100,000+ logo redesign and printing one month and refuse a business card order for sales the next. The logo redesign was scrapped 6 months after that for another new look, then our ISP name sold a few month later for a fraction of what paid. Major radio/print ad buy one month, salesmen's company cells cut off the next. We offered Covad, NAC and Northpoint DSL when purchased. Corporate didn't let our other 11 ISP's sell DSL all summer 2000 until they signed a company wide deal. They rolled out a preferred deal with Northpoint about 2 months before their bankruptcy. They signed a long term lease for NOC space in Ohio at .com pricing, then discovered the floor couldn't support the weight. By 2002 they sold all 12 ISP's for less than 25% paid.

They would come in and brutally fire people but pay months severance. They forced a salesman out but forgot to take him off the payroll for about 5 months. Another exec discovered his family still had health coverage after 8 months(he had other coverage). They came in 1 Friday to fire a well qualified tech with an attitude. The only one left that really knew our NOC. I asked to let me find him another job for him in the next month and send someone in to learn his job. They refused, canned him that night and gave him 6 weeks severance. He had another job in a week at 40% more pay and our customer email was sporadic all month.

I was sure they wanted me out. I removed my personal stuff, cleaned my laptop and submitted my resignation. Turns out they wanted me to stay. I agreed if they could give me a formal plan defining a direction. I left 2 weeks later. I had to fight for my last check even though I had an email stating they would pay out my notice. They refused to pay commissions until I sued, then had a very friendly lawyer pay up in full after a drafting a long, expensive agreement where I acknowledged they did no wrong. Probably cost more than they paid me.

I could go on for hours but I think you get the picture. I know creditors are not responsible for operations, but I can't feel bad for anyone who lent them so much money.

They should ask for a bail out from the government. Why not, everyone else is. Just look at the auto industry. They claimed that they would have to shut their doors if they did not get the money. NOT!!! They could go into restructuring such as this company has done, but, that would mean that all the UAW contracts would be null and void and we certainly cannot have them losing their $27 million country club.

»www.cnsnews.com/Public/C ··· ID=41148

By "them" you mean the (mostly) Democrat members of Congress who rely on UAW contributions rolling into their coffers every campaign cycle, right?

Actually, by "them", I mean anyone who knows that the UAW is the one behind the bailout option and supports it. Doesn't matter if they are democrat, republican, or martian.

Comcast & TWC will surely become bigger after all this.

Our building is locked into a service contract with Broadstripe. The price is great, and the channel selection includes a few things that Comcast doesn't, and their techs are knowledgeable. However, their customer service is extraordinarily poor, and probably a good 15-20% of the channels don't come in clearly.

We're looking at replacing them with satellite for the building, instead of going with Comcast (our only other alternative given that Verizon does not service the City of Seattle).

Is Broadstripe an incumbent cable co, or an overbuilder?

I believe they are an incumbent with their own service territory and franchise agreement with the city. I do also believe they serve some of the burbs, but I don't know which ones.

From Seattle's Office of Cable Communications (the franchise authority):

Broadstripe serves approximately 17,000 Seattle cable subscribers with cable television and Internet service and is the sole cable operator in the Central Area Franchise District. Broadstripe also serves the Downtown and parts of Capitol Hill, Beacon Hill and Queen Anne.

I eat crow from my earlier post. I am surprised their subscriber base is so small given the high population density of these neighborhoods.

Anyway, I would not be surprised to see the Bankruptcy Court sell off this service territory to Comcast.

Both. They are in competition where I lived with both Verizon FIOS and Comcast.

I run into a few of there customers here and there. They are in the Anne Arundel County Area in Maryland. That's why they were downsizing and cutting things back in the 4th Qtr.

Hmm, 373.5 million in debt. over 93,000 customers...betcha that debt per customer is much higher than that of Charter, wouldn't ya think? Don't think they'd be able to roll out DOCSIS 3 with those numbers...

That's a debt of $3931 or so per customer. With an ARPU of $100 per month (just pulling it out of the air) it's 40 months of REVENUE, with no operating costs or profit, to pay that off. Ridiculous...don't think this company can get out of the hole they're in, but that's just me.

I'd bet Comcast would buy them up. Their network is likely decent. Estimated buyout costs, including debt? Maybe 1/2 their debt, plus taking on the total debt. $500 million in all?

comcast was going to buy the MD properties but the deal fell thru. rcn looked at the MD properties as well since it fit with their DC area system. this is a sign that life of overbuilders are over. RCN, WOW, Wave, Knogody,Astound are next to go under.

At first I thought it said Red Stripe and I got nervous.

Hooray Beer!