dslreports logo
 story category
FCC Gives Green Light for Altice to Buy Suddenlink

The FCC has given the green light to French company Altice's plan to pay $9.1 billion to acquire Suddenlink. In a notice (pdf) posted to the FCC website, the agency stated that after careful review, the agency finds that the merger would be in the public interest.

Click for full size
“Based on our careful review of the record, we find the transaction is unlikely to result in any significant public interest harms,” the FCC said in the order. “We find that the transaction is likely to result in some public interest benefits of increased investment in local networks facilities and broadband services in Suddenlink’s service territory.”

Altice originally announced the Suddenlink acquisition back in May.

“We find nothing in the record leading us to conclude that Altice will deviate from what Applicants describe as a ‘demonstrated track record’ of investing in the service providers Altice acquires, while improving its offerings and competitive position in the market, to the benefit of consumers,” the Commission said of the deal.

Altice is also waiting on the government's approval for its planned $17.7 billion acquisition of Cablevision, announced last September. Cablevision, once on the bleeding edge of broadband speeds, had spent the last few years stuck in neutral as the company's owners (the Dolan family) focused on finding a company interested in paying top dollar for the NY area cable operator.

Users interested in seeing what Altice has in store in 2016 should keep an eye peeled on our Cablevision (Optimum) and Suddenlink forums.
view:
topics flat nest 
elefante72
join:2010-12-03
East Amherst, NY

1 recommendation

elefante72

Member

All financed with highly leveraged debt.

Just ask DirectTV folks that AT&T was touting that by combining forces it would lead to lower cost and better support. Do you guys remember all of the synergy and love-fest going on and how it would be better for everyone?

Drahi is essentially the Gordon Gecko of the cable industry. The only way to satisfy the bondholders AND stockholders is to come in, lower operating expenses (meaning fire a lot of people), reduce service levels (leading to lower CSAT), and raise fees until it hurts. As to investment, they have to, but it won't be at the rate of today.

So when they say this is in the public's best interest, they are speaking about the senior debt holders.
Cobra11M
join:2010-12-23
Mineral Wells, TX

1 recommendation

Cobra11M

Member

Re: All financed with highly leveraged debt.

thing is investment is already done, the idea here is to push 1gbps with caps+overagous like suddenlink has been doing for years.. or switch to a usage based system that will only benefit altice... I am a suddenlink customer my self, thankfully if it gets super bad we have local isp's that would be glad to accept the whole town in a heart beat
jzmax73
join:2011-05-13
Tampa, FL

jzmax73

Member

Re: All financed with highly leveraged debt.

What do you end up paying each month when you add up overages?

EliteData
EliteData
Premium Member
join:2003-07-06
Philippines

EliteData

Premium Member

BS

its all a bunch of BS.
everything wilts and so will this over a period of time.
exit quickly out of a faltering business, take the money and run.
track record ? yeah sure, not in the USA.
silbaco
Premium Member
join:2009-08-03
USA

silbaco

Premium Member

Re: BS

Unlikely. Altice has made it pretty clear they are in this for the long haul because they see cable as an endless money pit.

EliteData
EliteData
Premium Member
join:2003-07-06
Philippines

EliteData

Premium Member

Re: BS

said by silbaco:

Unlikely. Altice has made it pretty clear they are in this for the long haul because they see cable as an endless money pit.

maybe for now, until the vast majority jump ship and "cut the cord".
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

speaking of which

did the FCC ever give a blessing for the Altice/Cablevision deal?
no doubt a condition of the sale was that Cablevision CLOSE its books on ANY outstanding legal and network obligations that could negatively impact value. That said, there is every indication that prices are heading HIGHER for cablevision customers even though Time Warner prices have kind of been even or falling... for example an advertised $39.95 rate for 50 megabits.. while the new cablevision rate is higher and projected to be even higher AFTER the altice deal closes along with jacked up mandatory install fees and cablemodem rental fees.

Sure, no adverse affects there..
Will there be a marketplace for higher rates, or will the northeast riot for some new 3rd wireline to divide the market share even further-- maybe even google fiber?

While dangling a HFC to FTTP conversion in front of NY metro is enticing.. I am begining to believe that it will come at a HIGH cost to subscribers in the NY metro geography in terms of higher rates and less competition especially with Verizon. To some extent you saw that old dog and pony show with the Dolans for at least the last 8 or so years-- regardless of what they actually felt about Verizon deploying FTTP in their market over the last 12 years. If the Dolans believed there was "LIGHT" at the end of the tunnel, they could have brought Altice on as investors, kind of like the Sprint/Softbank deal.. or Verizon/Vodafone deal.

Greed will only get Altice so far in it's aqusition of northeast markets, before the regulatory or competition hammer drops by public demand.

kdwycha
join:2003-01-30
Ruskin, FL

kdwycha

Member

Well...

Now that the deal is done, here come the caps and overages.