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Adelphia Spinoff Files for Chapter 11
Adelphia Business Solutions heads for the hills
(old news - 03:50PM Wednesday Mar 27 2002)
tags: business · chapter11
Adelphia Business Solutions, the telecommunications company recently spun off from cable operator Adelphia Communications Corp., filed for protection under Chapter 11 of the U.S. Bankruptcy Code after failing to meet financial obligations. Adelphia itself is not faring a whole lot better, dealing with significant financial worries.

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Forums » Adelphia Spinoff Files for Chapter 11
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cbyrd
Where's The Any Key?

join:2001-07-11
Murfreesboro, NC
clubs:

How does this affect Powerlink

I'm curious to know who actually owns the fiber network that Adelphia is currently using for it's backbone. If it's ABS (which I believe it is, or was at one point), where will that leave Adelphia's Powerlink customers?

Will Adelphia purchase those assets from ABS or will the creditors get first dibs on the assets?
--
Powerlink, your reason for dialup

SAM Hunter$

join:2001-05-11
USA

Re: How does this affect Powerlink

They don't use a backbone. It is done with mirrors.
bgraham

join:2001-03-15
Smithtown, NY

There Goes Another One

they owed more that the company was worth, then cannot pay their interest bills. Just more thinning out of the industry. It seems that the parent co Adelphia Comm is now in the hole for $500 million.

SRFireside

join:2001-01-19
Houston, TX

Re: There Goes Another One

That was quick. Didn't they start ramping up in January?
--
When do I get my freakin' third star?!?!?

spg
Grrrr

join:2001-10-31
NOT Texas!

Re: There Goes Another One

Gee, I wonder if the guys out front tearing up the streets have been paid yet...

SAM Hunter$

join:2001-05-11
USA
Actually they only ramp in one direction, and it isn't up. They are the only national cable broadband provider that started at the bottom and worked their way down.

Minvaren
Premium
join:2001-07-26
Houston, TX
clubs:

YEEEESH!

Here where I work, we use one company for local service, and one company for LD and Internet/Frame relay.

Can you guess who they are?

Adelphia and WorldCom.

Ow, ow, ow, my head... Time to research alternatives.

Minvaren

UTSpectre
Fire Tempers Steel

join:2001-12-01
Mountain Home, ID
clubs:

And now we know the rest of the story

This explains the "nickel-and-dime" increases in our cable bills!! That is how they are getting their backing from their 300,000 cable subscribers. Just this month, they announced a $2 increase for basic cable.
--
"Show me your face, and I'll cure all your ills"

um

@attbi.com

Re: And now we know the rest of the story

Sarcasm, right?

DelphiaSuckz

@netcarrier.net


I know EXACTLY what you're talking about, UTSpectre. I have seen my cable bill rise via many small, gradual rate increases since Adelphia bought the local cable franchise from Cablevision in 1999.

I have analog cable with only 1 converter box (additional boxes cost extra), and I don't get any premium channels like HBO, etc.

My monthly bill with Cablevision was $36. Now it's $49 with Adelphia. Ugh.

Additionally, there has been a marked decline in audiovisual quality since the buyout. At times, certain channels (MTV in particular) suffer problems like poor picture clarity and weak or intermittent sound. Adelphia insists the problem is with my TV set. I know this is not the case, however, as my neighbors have the same problems on their sets.

The icing on the cake is that Adelphia has engaged in some major foot-dragging as to availability of broadband access in my area. As of now, I STILL can't get a cable modem. They have promised (repeatedly) to roll out broadband access, but it always gets pushed back. Judging by Adelphia's DSLR rating and my own experience with their crummy cable TV service, I wouldn't touch PowerLink with a 20-foot pole even if it were available.

The real kicker: if I still had Cablevision, I'd have Optimum Online by now! NOOOOOOOOOOOOOOOO!!!!!!

Personally, I'm glad to see Adelphia in rough financial straits. I hope they go bankrupt and have Cablevision buy the local franchise back (though with my luck, it'd end up being Comcast). Sighhh...I can dream, can't I?

As soon as I move, I'm getting DISH Network and IDSL from Covad.

Smell ya later, Ahellphia.

Darkflight
3G Stitch626

join:2001-03-03
Rowland Heights, CA

Re: And now we know the rest of the story

I've heard all these complaints from users, and I'm thinking I'm screwd if I move back to LA. (My parents are 'forced' into Adelphia). Curiosity though, if I remember correctly, didnt Adelphia spin off ABS intentionally with plans to fail. I remember reading that this was their way of 'debt' reduction or something like that. (I think it was mentioned here a couple months before the SPinoff).
--
Darkflight

SAM Hunter$

join:2001-05-11
USA


Re: And now we know the rest of the story

said by Darkflight:
I'm screwd if I move back to LA. (My parents are 'forced' into Adelphia)...didnt Adelphia spin off ABS intentionally with plans to fail.
IF true it is the only thing Adelphia has succeeded at doing right.

Overall, the LA area has lots of choices of broadband between DSL and cable. Hope your specific area is one of them.
[text was edited by author 2002-03-27 22:53:25]
djrobsd

join:2002-01-24
San Diego, CA

Adelphia will just get bought out if they can't ..

Let's get real guys.. They're a cable company. They're not going any where. They have a wire that goes straight to your house, which is something most companies can't say.. They're not just going to abandon that wire, or as they call it in the telecom business, "the last mile".. Someone else will buy them if they continue to struggle.

Honestly, Adelphia is trying really hard to win their customers... In my area alone, my modem has gotten so fast that it's almost back to @HOME speeds, with the exception of upload cap @128k, and my guess with DOCSIS 2.0 is they will offer tiered service.

Also, they are trying to make more money from the customer by offering enticing packages. For $99 a month, now I get digital cable, my cable modem, and ALL the premiums, HBO, Showtime, the works.. Now normally a cable company will charge like $70 to $80 for all those channels, but I am getting them all, and the modem for $99.

My old bill was $55.. So that's $45 more in revenue that adelphia is now collecting as a result of offering that good package to a loyal customer.. Smart business, when you give your customers an offer they can't refuse, they will go for it.. Normally I wouldn't even have TV at all, just data.

So, folks, I can't really bash adelphia any more.. They are getting better.. Now, if the installer shows up at 3pm on Monday, and has my cable modem working within 2 hours at my new apartment my faith in Adelphia will only grow stronger (I'm moving on monday!)

cmcgilton

join:2001-03-14
Stow, OH


Who ABS Really Is

Adelphia Business Solutions IS NOT a cable company. They are a CLEC which was officially once part of Adelphia Communications. They were officially "spun off" (meaning "let go from") from Adelphia Communications effective Jan 1, 2002. They are on their own now. This is a company which has lost $500+ million every year since it's inception in 1997 and borrowed this amount from Adelphia Communications every year to balance their financial sheet. This loss was primarily due to expansion, which many companies have had problems with in recent years.

Similar Chapter 11 CLEC filings have occurred with McLeod, XO Communications, MPower Communications, etc...

Ironically during the Chapter 11 interim ABS will borrow $135 million from Adelphia Communications. It's all "in the family"!

[text was edited by author 2002-03-28 07:14:27]

cbyrd
Where's The Any Key?

join:2001-07-11
Murfreesboro, NC
clubs:

Re: Who ABS Really Is

The thing that concerns me is that Adelphia currently uses ABS equipment and fiber as part of it's backbone. That was my original question. According to the DNS records, ABS owns much of the equipment on that backbone. Has Adelphia purchased it (or did they own it all along)? If not, what is going to happen to Adelphia's Powerlink customers? I now they're not going to go away, but if Adelphia does not (or is not allowed) to purchase those assets, will an already bad situation with regards to Powerlink service get worse?
--
Powerlink, your reason for dialup

cmcgilton

join:2001-03-14
Stow, OH

Adelphia/ABS Transport

Next Excuse,

You're correct, Adelphia uses ABS (as well as others) for transport. Since Adelphia and ABS are owned by the same family, even though they are not legally affiliated any longer, I would see no change in the arrangement. The "spin off" of ABS from the parent was a strategic move to allow Adelphia Communications to not lose any more money on their business which continually does not make a profit. However, if ABS went belly up in a significant way or if they were to be purchased by another company (not likely at this point), then Adelphia Communications may have to find alternative arrangements for transport if ABS no longer exists or if it's purchased by a company and their arrangements are not acceptable to Adelphia Communications.

I wouldn't fret too much, there plenty of capacity out there for transport with many hungry providers more than willing to provide it. In fact, if backbone routes are changed to other carriers, it may actually improve the situation, especially in the western US.

hcoltrain

@hsacorp.net

Re: Adelphia will just get bought out if they can't ..

Our Company uses ABS with a T-1 line. We have been satisfied with there service and are getting around 99% uptime. THhe speeds have been great, as well. On top of that, the prices have are very affordable , and support friendly and knowledgable. I hope they stick around , so we do not have to go with MCI or Bell South T's that are 75%-150% more costly.

sadowski
I Am My Own Doppelganger
Premium,MVM
join:2000-04-14
Buffalo, NY
clubs:

A used car salesman will make a seemingly great offer too but go back when the rot starts showing and see what happens.

You are at least in the short-term lucky that in your area they bought up an existing facility and didn't do it themselves on the cheap, but wait till they oversell it or it just ages or breaks and needs work.

Cheap cable

@mindspring.com
Cable bills here in the Cleveland Ohio suburbs are only $33.79. Yes they are up from two years ago ($30/month) and now I'm seriously thinking about Satellite instead of cable.

Krazy Kyle

@adelphia.net

Awww, screw it

Damnit, screw Adelphia. I'd like to live where you guys are getting blazing fast speeds and 99% uptime. Last week, My network was down all night off and on for 2 nights. Not to mention my friends Bellsouth DSL connection (he switched from Adelphia, BTW) is almost always faster than mine, and his upload speeds better. Screw Adelphia and their shit, I'm going to Bellsouth DSL.
mrweigand7

join:2000-10-17
Chesterland, OH

Re: Your best revenge.

And that is perhaps your best revenge. Don't pay for poor service. If enough people defect to a competitor, they may get the message before they go under. (Though I'm not sure which way to bet in Adelphia's case.)

hcoltrain

@hsacorp.net

Re: Awww, screw it

Sorry, to hear that. Guess we are lucky. There are a few differenes between our service and most ppl's cable here.

1.) Ethernet is shared media
2.) Point-Point Channelized T-1's are not.
3.) We are the only business connected in our POP
4.) I think T-1 technology is more reliable and was around before cable(i.e less NEW problems). Also, it is based on pre-existing telco technology which is better understood and the core digital transport systems were built around this cornerstone decades ago.

All this prob. helps. I am more of a fan of technologies based on telco systems such as DSL, SONET and T's as they seem more reliable than the sensitive Cable technologies. Cable may be speedy but I need reliability first. I can deal with a slow connection sometimes which to me is better than a speedy connection that has problems staying up at all.
Forums » Adelphia Spinoff Files for Chapter 11


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