| reply to Tel
Re: Mayor not too bright I don't know where you get your information from but YES they can lower their rates to anything they wish when ever they want. They don't have to ask the PSC or the PUC to raise rates like the telcos do. Cable may have to pay the state $$$ to operate in areas but they don't answer regarding pricing. Never have never will.
And yes a company of Charter's size or bigger could lower their rates that low and run ANY Muni into the ground faster than they can build.
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| Yes they do. Most towns require aproval. A rate in
crease |
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| that is a rate INCREASE! not DE-CREASE. And most towns? LOL. Not many towns have a say so on what goes on as far as cable providers anymore.
And the towns can require what they want. It doesn't mean they have to give the towns what they want. That's the whole thing behind the State Franchise laws.
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 marigoldsGainfully employed, finallyPremium,MVM
join:2002-05-13
Saint Louis, MO
kudos:2 | said by hottboiinnc:That's the whole thing behind the State Franchise laws. Alabama doesn't have a statewide franchise law last I knew.
Anyway, you are ignoring that Charter is in serious financial trouble and not in particularly good position to engage in a protracted 30,000+ RGU pricing war. At $56, that would be a potential $6M loss per quarter, when they are already losing $81M per quarter.
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| and that is why they're trimming their debt by the courts.
And they only have to offer that plan to the masses until the muni goes under and stops. then for everyone that didn't sign up price is regular rate. everyone who signed up- price stays the same.
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marigoldsGainfully employed, finallyPremium,MVM
join:2002-05-13
Saint Louis, MO
kudos:2 | There is a secondary risk here though. Remember how these bonds work. The infrastructure backs the bonds too. That means that if the utility goes under, the built infrastructure will be sold off. And that means Charter will still have another company (likely Knology) to compete with; a company with a dirt cheap ftth network.
Charter will try to fight until at least that point, but they might give up the market in the long run. |
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