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Charter Backs Off Blaming Verizon For its Own Deployment Failure

Charter is backing away from a claim that Verizon slowed the company's ability to connect fiber lines to utility poles, resulting in a slowdown of broadband deployment in New York State. Charter was recently fined $13 million by the state for failing to adhere to rather modest broadband deployment goals affixed as conditions to its acquisition of Time Warner Cable and Bright House Networks. As an excuse, Charter tried to blame Verizon, claiming the company was blocking and slowing its access to necessary utility poles in the State.

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Charter's complaint was both ironic and disingenuous, given that Charter itself has tried to slow and hamstring Google Fiber's ability to access necessary utility pole infrastructure.

Verizon, for what it's worth, has told New York regulators that Charter is simply looking for a scapegoat for its inability to adhere to basic merger conditions.

"It is Charter, not Verizon, who is responsible for its failure to meet its first-year benchmark, and the commission should dismiss Charter's complaint and reject Charter's transparent attempt to deflect the blame for its own failures onto Verizon," a Verizon lawyer told the state earlier this month.

As part of the Public Service Commission's approval of the merger, Charter promised to expand its network to 145,000 upstate residents and businesses, and add 36,250 new customers in the first 12 months after the deal was signed. But Verizon says Charter never even contacted Verizon to access necessary poles, and that the cable company "did not appear to have done any pre-closing planning" to ensure it could meet the targets.

Its bluff having been called and the fine levied, Charter now appears to be backing away from its scapegoating of Verizon. That said, a Charter lawyer told the state it reserves the right to "reply in detail to Verizon's claims if and when a rely is appropriate." Which, apparently, will be never.

Most recommended from 17 comments



Packeteers
Premium Member
join:2005-06-18
Forest Hills, NY
Asus RT-AC3100
(Software) Asuswrt-Merlin

25 recommendations

Packeteers

Premium Member

why fines don't work

fines can be absorbed by shareholders and subscribers
no one in management will suffer because of these fines.

the only way to coerce a company like charter is to put it's licence to operate in nystate in jeopardy
meaning their state installed infrastructure goes into receivership and is managed by a competitor.

paying fines are simply considered the cost of doing business.

GOD666
join:2017-03-10

13 recommendations

GOD666

Member

The cost of doing business

A $13 million dollar fine to either you or I, would be life changing, and whatever caused such a fine to occur would forever remind us never to do it again. But for a multi-billion dollar company, $13 million dollars is pocket change, and they would have spent more than just $13 million expanding their network. For a company like Charter or Comcast or Verizon or any other large ISP, this is not only getting off easy, it is getting a discount by comparing the actual cost of doing the work.

It is no wonder why this has become nothing more than just the cost of doing business. I have no doubt they likely put the money aside beforehand as the deal closed and became final, just for this purpose for paying off our government, because from the consumer point of view, that is exactly what it looks like: A payoff. This is because once such fines are paid their obligation magically seem to go away!

So I ask, was it really an obligation or just the price of doing business? Because for companies like Charter or Comast or Verizon or ATT or Cox, etc... etc... For them, $13 million is simply paid to play in the oligopoly game.