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story category Charter Sells Virginia, Illinois Systems
549,000 customers for $896 million
(old news - 08:54AM Tuesday Feb 28 2006)
tags: business · cable
According to a Charter press release, the company is selling 549,000 revenue generating units (RGUs) for approximately $896 million. Charter's cable systems located in West Virginia and Virginia are being sold to Cebridge Acquisition, while the Company's systems located in Illinois and Kentucky are being sold to New Wave Communications. We recently discussed how things haven't been looking bright for the cable provider.

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Forums » Charter Sells Virginia, Illinois Systems
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cbrain

join:2000-05-21
Silver Spring, MD

RGU??

Perhaps customer service in the cable industry would improve if they stopped using term like RGU and realized their money comes from customers.

ronpin
Imagine Reality

join:2002-12-06
Nirvana

1 edit

Re: RGU??

Please sell Texas!

"Cebridge Acquisition LP" is registered as a "Foreign Corporation" -- and has dozens of Cable acquisitions listed on the FCC website.

Who are they, and what are they up to? (is this a another U.A.E. deal?)

GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast


1 edit

Re: RGU??

said by ronpin See Profile :

Please sell Texas!

"Cebridge Acquisition LP" is registered as a "Foreign Corporation" -- and has dozens of Cable acquisitions listed on the FCC website.

Who are they, and what are they up to? (is this a another U.A.E. deal?)
Cebridge is incorporated in Delaware. It is run by an executive who is very close to Paul Allen(Microsoft billionaire) who owns 90% of Charter Communications voting stock. That Charter is spinning off it's more rural, less profitable properties to Cebridge is hardly surprising. Charter is trying to reduce is crushing debt load and spinning off some of their franchises allows that to happen. But what do the Cebridge owners get? Tax writeoffs probably. By the way, the LP on the end of the Cebridge buyers means "limited Partnership". Read that as very rich people who don't want to be identified making a killing, and probably thru tax advantages of ownership.

»www.cebridge.net/cebridge/ctl?vo···ut_us.vm
Cebridge Connections provides basic and digital cable television, and high-speed Internet services. The company has hundreds of thousands of business and residential customers that live and work in primarily suburban, small-town, and rural communities across more than twenty states.
»www.cebridge.net/cebridge/ctl?vo···_kent.vm
A 20-year veteran of the cable television industry, Jerry Kent began his career as an officer of Cencom Cable Associates, Inc., and later co-founded Charter Communications in 1993.

Prior to founding Cequel III, he served as Charter's President and CEO. Microsoft co-founder Paul Allen acquired Charter in 1998, and combined it with another investment, Marcus Cable, in early 1999 under the Charter Communications name. Mr. Kent was named President and CEO of this merged entity
»biz.yahoo.com/ic/60/60451.html
Cebridge is controlled by investment firms GS Capital Partners and Oaktree Capital Management and run by telecom management firm Cequel.
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ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest

Re: RGU??

So why is it registered as a "Foreign Corporation"? Why doesn't the FCC website list it as such? Is this another Rupert Murdoch deal? (there is a "Cebridge" in Australia). Is the name "Cebridge" some kind of play-on-words? (i.e. "Conservative-Euro-Bridge"?, "China-Egress-Bridge" )
--
"Now is the time for all good men to come to the aid of their country" - and stop the NeoCons

GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Re: RGU??

said by ronpin See Profile :

So why is it registered as a "Foreign Corporation"? Why doesn't the FCC website list it as such? Is this another Rupert Murdoch deal? (there is a "Cebridge" in Australia). Is the name "Cebridge" some kind of play-on-words? (i.e. "Conservative-Euro-Bridge"?, "China-Egress-Bridge" )
Can you provide a link? I can't find anything on the FCC site that identifies cebridge as a foreign corporation.

There are some Google entries about Cebridge being foreign on some Louisiana government sites. But by that they mean out of state, not out of country.
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ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest

Re: RGU??

said by GOLFnSUN See Profile :

There are some Google entries about Cebridge being foreign on some Louisiana government sites. But by that they mean out of state, not out of country.
That's the one I was referring to. Never mind.

I had hoped Charter would fall into the hands of Comcast or TW -- somebody with a track record of cutting-edge upgrades. I don't see that here -- yet.
--
"Now is the time for all good men to come to the aid of their country" - and stop the NeoCons
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

1 edit
In Ohio a Foreign Corp is a company that is not based in Ohio but is registered to do business here.

charter_hsd
VIP
join:2001-08-07
Calera, AL

RGU =! Customer

An RGU is not the same thing as a customer.

For example, one customer who subscribes to Analog Cable, Digital Cable and High Speed Internet is equal to three Revenue Generating Units.

A customer who only subscribes to one service is equivalent to to a single RGU.

Regards.

J D McDorce
Premium
join:2001-12-29
Westland, MI

Re: RGU =! Customer

It is, however, certainly a means to come up with some big numbers. It is likely just a matter of time before related statistics come into play. For example, looking at the 4Q05 results from a cable company other than Charter, one could generate a RGU/HP (revenue generating units per homes passed) value of 98.7%. This should not be confused with a similar RGU/Op (revenue generating units per opportunity) value of 32.7%.

theowl
Go Cards

join:2001-05-03
Saint Louis, MO
clubs:

1 edit
charter_hsd

You tried
tirebiter

join:2002-02-16
Champaign, IL

RGUs

Maybe one clue as to why things haven't been too good for Charter is that it refers to its customers as "revenue generating units." In my business we still call the people that put food on our tables simply, "customers."

pb5k
more cowbell
Premium
join:2005-11-16
Glendale, AZ
·Cox HSI

Re: RGUs

I agree. I'd also like to see companies stop referring to me as a "human resource". I just don't like the connotation. It might just be the american in me, but when someone refers to something as a "resource", I think of it as something to be exploited and used up then discarded, like strip mining, deforestation, etc.

One of my favorite theories I discussed in my college classes was that people like to make themselves feel important by increasing the number of syllables of their titles, and in my experiences this seems to hold true - "Personnel"(3 syllables) becomes "Human Resources"(5 syllables); "Trash pickup"(3 syllables) becomes "Waste Management"(4 syllables), etc.

So maybe Charter is making "Customers"(3 syllables) more important by calling them "revenue generating units")(9 syllables). Thanks guys!

kamm

join:2001-02-14
Brooklyn, NY
Yep, Charter is probably the most arrogant and stupidest provider - no wonder it's a sorry-ass loser... RGUS... what a primitive @sshole term. Just die, Charter, nobody will miss you.
lemkepf

join:2003-06-12
Elkhorn, WI

Come on WISCONSIN!!!

Please sell your RGU's in wisconsin! Please??? I beg of you??? Anything will be better than the charter service i've been getting...

metachronos

join:2005-01-26
Green Bay, WI

Re: Come on WISCONSIN!!!

said by lemkepf See Profile :

Please sell your RGU's in wisconsin! Please??? I beg of you??? Anything will be better than the charter service i've been getting...
I hear that! Maybe we'll get fiber in about 30 years.
InnerMe

join:2002-08-30

Re: Come on WISCONSIN!!!

Wisconsin and the Great Lakes division is an excellent market for Charter, easily one of the best in the company.

BigE123

@wi.charter


1 edit

Re: Come on WISCONSIN!!!

Yes profitable and arrogant but oh how the tides of change are coming. I see more dishnetwork sats going up all the time. Myself included. I see a pathetic little company that has had major issues with every rollout of a new service and have been so slow to fix them that customers are bailing with every opportunity.

Alas I used to game. My "hsi" fixed that hobby. Now I am paying $48.99 a month for unbundled hsi so I can surf/download faster at night. Are you listening Charter? When I have any viable alternative to your hsi we are through, the marriage is over and I wish I could have half of my money back.

I do share some fond memories with you though. Like the time I had three customer computers to fix at home and you disconnected my internet because of your billing error. You know common sense would indicate that customers who have NEVER been disconnected probably dont want to be disconnected because you "inadvertantly" applied a credit to their phone bill so their internet bill was a month behind.

You always were a wee daft.

Charter you dont "suck" as others suggest.

You [Nah, too graphic] --Mod


nightshade74
Yet another genxer
Premium
join:2004-11-06
Prattville, AL

Alabama Maybe?

Please oh please sell Alabama...

// Analog Cable only in my neck of the woods
/// Praise be to DTV

kamm

join:2001-02-14
Brooklyn, NY

Hahaha, Charter, you're on the right track to die...

... and hopefully very soon, hahaha.
Charter, the worst cable company is in trouble and selling its assets? What a surprise...

qdemn7
Smurf in My Loop
Premium
join:2003-09-16
Fort Worth, TX

Re: Hahaha, Charter, you're on the right track to die...

If had seen the term "revenue generating unit" somewhere else not in the context of this article. I would have gone WTF is a "revenue generating unit"?????

Just more corporate doublespeak. I bet an accountant came up with that one.
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markopoleo

join:2003-04-02
Bonne Terre, MO
·Charter Pipeline

said by kamm See Profile :

... and hopefully very soon, hahaha.
Charter, the worst cable company is in trouble and selling its assets? What a surprise...
Remember its just in some areas, most of its main stomping grounds have good service. It prob won't sell all of it.

Fangz

join:2000-10-11
Magna, UT

Just a commodity

Whether it be an RGU or customer(s), users are nothing but a commodity.

A commodity to be bought sold and traded from one firm to another. You may not like it but it’s true. With this sale or trade, all those customers will be transitioned from Charter to other carriers. So say goodbye to the Charter resources (email, newsgroups, security suites and premier services) and get ready for new companies services.

In addition, get ready for their level of service and customer care that may or may not be better than Charter’s. They are most likely taking over Charter’s infrastructure so they will have to pay to upgrade the equipment to their level or leave it as is. So for all those that want better pings and speed, will have to wait for the new firm to decide on if, when and how they will upgrade.
mobbo

join:2005-04-13
Denton, TX
·Verizon FIOS

ROFL

ROFL!!! Revenue Generating Unit??? That makes me feel really good. Keep it up Charter and I'll take my unit and shove it right in your &^%$*

FOR THE LOVE OF GOD HURRY UP FiOS!!!! I can't wait to throw my cable box and modem through Charter's window.

Shad0wlore
Premium
join:2004-06-15
USA
·AT&T Midwest

*sigh*

Just when I go out and buy a nice new HD TV.... Charter announces it's going to sell it's Illinois customer to some hole in the wall provider. From what I can tell, New Wave's service has no DVR, no HD, and their HSI is insane for the price ($50 for a 1.5mbit connection??).

So much for all the praises I was starting to sing of Charter.

Shadowlore
msm20032003

join:2006-02-14
Vincennes, IN

Re: *sigh*

What about Indiana Customers?
msm20032003

join:2006-02-14
Vincennes, IN

Charter

What about Indiana Customers? I figured if Illinois customers were sold indiana would be too...but I guess not?

KEN_JOHN

join:2002-08-07
O Fallon, IL

Illinois, all? Part? If so where?

Can anyone answer this. Was everything in Illinois sold? I live just outside of St. Louis was wondering.
Forums » Charter Sells Virginia, Illinois Systems


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