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story category RCN Bankruptcy Protection
Cable 'revolution' ends in Chapter 11
(old news - 01:31PM Tuesday Feb 17 2004)
tags: cable · trouble · chapter11
As we reported last fall, things haven't been looking particularly good for cable provider RCN. Layoffs and financial troubles have finally caught up with the company, executives announcing the company will be heading into bankruptcy protection - never delivering on that telecom "revolution" their marketing materials long promised. To ease their cash crunch, the company may be looking to sell some of their systems in Pennsylvania according to the Morning Call. One likely suitor could be Time Warner Cable, their executives being very vocal about the fact the company is looking for smaller "bolt on" acquisitions. Since RCN was founded in 1997, they've burned through four billion in cash - and their stock, once valued at $75, now trades for less than a dollar.

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Forums » RCN Bankruptcy Protection
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Post a:
damascene

join:2000-07-13
Brooklyn, NY

oh well

that sucks. i wonder whos gonna be the superman and buy them out

hjdiet

join:2004-02-12
Bethlehem, PA

Re: oh well

Comcast is everywhere(including nearby Reading, PA), so you never know. RCN product is ok, there customer service isn't.:p
sylvayn

join:2003-01-03
Swarthmore, PA

Im crying RCN rocks. Im right outside philly. The bandwith they offer trounces Comcast and their prices cant be beat. I guess it may have been to much of a good thing. One thing is for sure I'll go to satelite before I go back to Comcast or Verizon. These companies do nothing but tell you what they ae giving you then don't. RCN has always delivered as much or more then they promised.

GNXPower
Got Boost?
Premium
join:2003-12-18
Huntington Beach, CA

Should have gone the way of Comcast

and had 20% yearly price increases.
cheylee522

join:2003-11-25
Everett, WA

Re: Should have gone the way of Comcast

why is everyone so down on comcast? I have ha no problems with them and I dont really mind the price at all!!:D

GNXPower
Got Boost?
Premium
join:2003-12-18
Huntington Beach, CA


2 edits

Re: Should have gone the way of Comcast

I'm down on them because of their constant price increases (my bill went up 20% ($17) in one year and got nothing new for it). I got good service too but the penalties and price increases kill the value. When I went to leave to DBS, I faced a 30% increase for HSI. $56-$59 for HSI is hardly a good price for capped service.
--
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N10Cities
Premium
join:2002-05-07
Roland, OK
clubs:
·Cox HSI
·World Lynx

Re: Should have gone the way of Comcast

said by GNXPower See Profile:
I'm down on them because of their constant price increases (my bill went up 20% ($17) in one year and got nothing new for it). I got good service too but the penalties and price increases kill the value. When I went to leave to DBS, I faced a 30% increase for HSI. $56-$59 for HSI is hardly a good price for capped service.

They had to have the extra cash to buy Disney!
kawikamuca

join:2003-01-18
Gardena, CA
ITS NOT CAPPED.i WORK AT COMCAST...

NewLife
Just Keep Swimming, Just Keep Swimming

join:2001-07-31
Calhoun, GA
·AT&T Southeast
·Comcast

Re: Should have gone the way of Comcast

Its not capped. Then explain why so many people keep getting their account terminated for going over the invisible limit which Comcast refuses to disclose but yet everybody seems to be hitting no matter how little or how much they download.
--
Help Find A Cure! Join Team Helix!
AMD 2400 XP/512 PC2700 RAM/128 MEG ASUS 9280TS Video/80 GB HDD/Audigy

GNXPower
Got Boost?
Premium
join:2003-12-18
Huntington Beach, CA


2 edits
Really? Not according to users who are getting cancelled for it and only a ZILLION posts about Comcast's caps.

»/speak/print/d···;9077696
»Comcast Bandwidth Abuse Suspensions--Part II
»Comcast Bandwidth Abuse Suspensions Part III

But of course Comcast employees are always the last to know.
--
Don't have it?!? Demand it!!! The Anime Network »www.theanimenetwork.com

ArchAngel21x
MacFan Pro
Premium
join:2001-10-28
Lincoln, NE
Speaking of caps, it's not necessary to use all caps when you post here.

Rhobite
Premium
join:2002-02-24
Cambridge, MA
clubs:

Ladies and gentlemen, may I introduce the Comcast Information Minister. Welcome! "There are no caps. Our service is free. We have no spam problem, and our techs are friendly and knowledgeable!"
--
Jimmysquid.com - I take pictures.

GNXPower
Got Boost?
Premium
join:2003-12-18
Huntington Beach, CA

Re: Should have gone the way of Comcast

Here ya go

FLea973
Premium
join:2001-02-27
Morristown, NJ
clubs:
lol, I love this guy

»www.welovetheiraqiinformationminister.com/

Winerin
Premium
join:2002-03-30
Woodland Hills, CA
lol
djrobsd

join:2002-01-24
San Diego, CA

Adelphia anyone?

My friend has Comcast in VA. It goes down about 2-3 times a month. Now wonder why everyone hates them.

Maybe Adelphia should buy this little bankrupt cable provider in PA out. After all, they're both in PA. One bankrupt company buying another, now wouldn't that be a great all American story to tell your grandkids when you're old and grey.
thunderblock

join:2004-02-10

Re: Adelphia anyone?

Adelphia is now HQ'd in Colorado... but most of their staff is still in PA

bistro777
Donuts-Is There Anything They Can't Do?
Premium
join:2002-02-07
Englewood, CO

Another one bites the dust...

Another misguided “build it and they will come” business plan where “residences or COs passed” were more important than positive cash flow and ROI. Not the first telecom firm to do this, of course, simply one that lasted a bit longer than many others.

EBITDA = Earnings Before Irregularities, Tampering, and Dubious Accounting (Om Malik in Broadbandits:Inside the $750 Billion Telecom Heist

Frink
Professor

join:2000-07-13
Scotch Plains, NJ


2 edits

RCN = Communism :)

RCN used to fill entire subway cars in NYC with red-colored ads touting their "revolution" with pictures of Russian dictators. My friends and I used to call them the Russian Communism Network. Just goes to show you, Democracy will always previal...Wait, now I will have less choice in NYC cable company...oh, the confusion.

DaveNJ
No Fear

join:1999-09-01
New Jersey

Re: RCN = Communism :)

Makes me wonder if they put George Washington on instead what would of happened ? More Green ?
--
Alright DR. Slotkin do your worst.

ruscorp
I Never Stop Posting For You
Premium
join:2002-08-29
Earth
clubs:

No competition for TW

There goes competition in NYC.

Julio
Bachatero y Que?
Premium
join:2003-03-19
Brooklyn, NY
clubs:

Re: No competition for TW

said by ruscorp See Profile:
There goes competition in NYC.

there is always Cablevision.
--
GEORGE BUSH FOR PRESIDENT 2004

ruscorp
I Never Stop Posting For You
Premium
join:2002-08-29
Earth
clubs:

Re: No competition for TW

said by Julio See Profile:
said by ruscorp See Profile:
There goes competition in NYC.

there is always Cablevision.

Exactly what I said. No competition in NYC.

Tha ReAlEsT
The King Is Back, Where My Crown At?
Premium
join:2002-09-28
the past

said by Julio See Profile:
said by ruscorp See Profile:
There goes competition in NYC.

there is always Cablevision.

Cablevision and TWC have different territories, so they was never competition for each other. To me, if Rcn could have been a bigger company, then they could have effected twc prices here in Nyc.
--
treated like an animal understand the jewel, brought to the 50 states deuteronomy 28, verse 68, it all relates-Killah Priest
kawikamuca

join:2003-01-18
Gardena, CA

RCN a good company actually

THIS IS TOO BAD...I have RCN, and the price and service is good. Its too bad that when you finally git a good company, this happens!

Then maybe Comcast will buy RCN instead of Disny....lol

sycocowz

join:2002-06-13
Ottsville, PA

Re: RCN a good company actually

that would suck, around here there would be comcast and a-company-owned-by-comcast

KfunnyE

join:2004-01-20
Cranbury, NJ

Re: RCN a good company actually

I worked for an old part of RCN's footprint in central New Jersey, Patriot Media. They bought that section of the service last April because of RCN's financial problems, and the poor condition the area's infrastructure. The area has since undergone a huge upgrade under the new company. I wouldn't be surprised if RCN is broken up into several different company's footprints, each company picking up a different section depending on location. The company I worked for is small and only purchased that small area of the service, which will likely expand in the event that RCN sells out completely.

DaveNJ
No Fear

join:1999-09-01
New Jersey
·Comcast


1 edit

RCN what would you expect ?

Like everyone didnt know this was going to happen? RCN is worse then a used car salesman. They make promises they cant keep, I was so glad when they left NJ. RCN the dying wire in communications.
--
Alright DR. Slotkin do your worst.

Talon_Sr

@atw.pa

And Justice is served

What goes around, comes around. Those bastards at RCN have been promising me two-way cable for the last five years. And all along they were charging me the same price for one-way that a two-way cable subscriber pays. I told them on many an ocassion that they will rue the day they gouge their customers...and that day has come. They have, on numerous ocassions, screwed up my monthly bill and always to their benefit. Then, as if to appease me, they'd offer a free month of HBO or something shady like that. So, I'd have to always check my bills for unauthorized add-ons. And now I know why they were doing this. The problem is, that so many of these cable companies have unwritten aggreements with competitors, not to enter their "territory" so as to establish what amounts to a monopoly for TV-PHONE-INTERNET services. If we all had choices as to which provider we wanted, you'd then see companies clean up their acts. RCN? I hope they rot in hell.

roamer1
sticking it out at you

join:2001-03-24
Atlanta, GA
clubs:

Why the death march so soon?

RCN is filing Chapter **11** -- once they restructure their debt they should be fine.

Getting out of the non-overbuild markets (Lehigh Valley) makes sense -- RCN's strength is as an *overbuilder*. Also, RCN has a very small operation in the L.A. area (Carson) that could very well get sold off to Altrio (overbuilder that has a presence primarily in the Pasadena area) -- the L.A. system is rather different from most of RCN's other markets in that it serves rather different demographics compared to RCN's other markets (denser markets with more apartment/condo/co-op buildings.)

-SC
--
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FLea973
Premium
join:2001-02-27
Morristown, NJ
clubs:

Re: Why the death march so soon?

said by roamer1 See Profile:
RCN is filing Chapter **11** -- once they restructure their debt they should be fine.
Take a closer look at their 10-Q from last quarter - the auditors didn't think simply restructuring the debt and selling a few markets would do the job (auditor remarks made AFTER the sale of the NJ market).

The question is, which markets ARE they making money in and which are the biggest $$ sinkholes? New Jersey and Lehigh Valley were/are definitely the biggest money losers since they are on old non-upgraded networks - and they were required by the state to immediately blow the money on the New Jersey upgrade (they managed to sell that responsibility and part of the cost when they sold NJ to Patmedia). But where are they making money?

Chagoi

@eas-ubr8.atw-ea

RCN shares 80% of the same area as their competitor, Service Electric. Service Electric, (Walson, family owned)the very first cable company in the US started in Jim thorpe area has been around since 1948.

RCN started out as ClearPic in Easton, Pa. around 1959?
then became Twin County, cicra 1963 then became C-Tech until bought by RCN.

I worked for Twin County during the late 1970, left after 4 years, then went to work for RCN as a contractor 4/2001 doing rebuild in Allentown. That lasted till 10/2001 when they decided to stop the Allentown rebuild @ 50% and the Easton rebuild was @ 97%.

They finished up the Easton rebuild, but to this date they they still only sell a 1-way cable connection in 90% of the area. I happen to live in the township where we are serviced by the Bethlehem system. You would think it would be more smarter to sell the existing 2-way modem system to increase revenue than to continue expending revenue extending the rebuild.

Last spring I took my cable modem to a friends house, in downtown Easton hooked it up and it connected with no problem. Even though they have had the system upgraded for over a year. Every time my friend calls he is still told that it won't be available for another 6-9 months X 4= 2 years.

enOehT
Premium
join:2003-05-17
Langhorne, PA

OOL/CV are you listening?

Cablevision/OptimumOnline please buy the Lehigh Valley RCN branch! We could use the boost in speed!
--
John F. Kerry for President!

EL_TB

join:2003-05-03
Fairfax, VA

Starpower??

RCN is Starpower right? Site looks like it.

I heard Starpower was supposed to move into my county. Grr. We need competition here! Oh well.

Cuchulainn
The Roar of the Masses Could be Farts

join:2000-11-09
Chevy Chase, MD
·Verizon FIOS

Re: Starpower??

said by EL_TB See Profile:
RCN is Starpower right? Site looks like it.

I heard Starpower was supposed to move into my county. Grr. We need competition here! Oh well.

Actually, Starpower is a JV between RCN and Pepco. One of those "bright ideas" spawned back in the late 1990s.

I used to live in MontGoCo and we had Comcast and Starpower. There never was any competition - both were uniformly bad.
--
Nullum Ingenum Sine Mixturia Dementiae Fuit

sycocowz

join:2002-06-13
Ottsville, PA

Re: Starpower??

pepco is trying to sell or just sold its share in Starpower, I believe (as of a few weeks ago)

Cuchulainn
The Roar of the Masses Could be Farts

join:2000-11-09
Chevy Chase, MD
·Verizon FIOS

Re: Starpower??

said by sycocowz See Profile:
pepco is trying to sell or just sold its share in Starpower, I believe (as of a few weeks ago)
Thanks for the update!
--
Nullum Ingenum Sine Mixturia Dementiae Fuit

datguy

@verizon.n

execs always make out

I never thought this company would succeede anyway... they burned wayyyy to much money in the beginning.

But I guess if I were a high up executive or CEO I wouldnt really care- I still made mega bucks no matter what.

Let see, I'll start a company, sell stock raise cash and promise the world (mercata, 800.com etc,now RCN)

in the meantime I will pay my self and freinds very nice salaries, cash out on stock options, hey who cares if we make it or not??

My company will last 5-10 years and then we will sell out.

the rich get richer! what a country!

Pseydtonne
Premium
join:2003-01-25
Melrose, MA

I work for Comcast; I hope RCN emerges from ch.11

Now, I obviously do not speak on behalf of my employer and my words should not be construed as such. I'm just a salescritter in metro Boston. Every day I pimp the three products of love, sometimes to people coming back from RCN.

I sincerely hope they survive. They need to make some very severe changes but they can come back. Their biggest issues come down to accountability for their front line, willingness to control account abuses, and an end to prejudice.

When you call RCN, you get a person in Wilkes-Barre. Often, these people do not seem to be customers (employees only get free dial-up service). There is no consistency in the call -- I ran a test and got four different responses about prices for the same town.

Here's what I mean about account abuse: if you have RCN for cable modem but nothing else, you can often bootleg standard cable. They don't always filter the lines. This means a smart customer will be watching 70 channels without paying for any of them. That's a loss.

RCN has one problem no one likes to mention: they only want to serve the white parts of town. "What? How can you say that?" Look at their service area in Boston. They provide service in Allston and Brighton (BU and BC student ghetto, old Irish neighborhood) but not to Dorchester or Roxbury (black and Hispanic areas). Same triple-decker houses but no lines. Their revolution extends to places that don't' threaten their bottom line, or so they think.

Competition makes life better. Look at your cel phone bill to see that value. DSL competition has made us improve our network.

I need to get to work. So do all my competitors. I'd rather not have prisoners for customers. May RCN survive if only to keep me on my toes!
jjsole

join:2002-08-11
Albuquerque, NM

Re: I work for Comcast; I hope RCN emerges from ch.11

I discovered last year that my Rcn line wasn't filtered and have cable tv.

I wouldn't have paid for it anyways tho.

But RCN has been outstanding in Chicago for me. I'm very concerned because I use it for business all day and I'll be depressed if comcast single-handedly takes over this area.

RCN_Lives

@upd-ubr1.trpr-u

Comcast and sunspots

I fled the monopoly that is Comcast for RCN due to their pricing and unlike others have said excellent service (Guess it depends on what area you may live in). Comcast kept giving us BS about sunspots interfering with their signals ........year round???!!! I have had incredible up and download speeds that I've clocked well above any other offering on the market. RCN offered an excellent package deal with phone service, internet and tv for a minimal fee in comparison to paying for Comcast and separate phone service(gee no more sunspots either). I'm sick of industry gobbling monopolies like Comcast, Cingular and Microsoft. In most cases if you really did need customer service you're a blithering idiot who shouldn't own a computer let alone a calculator or an abacus. You're complaining about communism when you should be talking dictatorship. I hope Comcast goes down in flames under some government investigation.
Hexxman

join:2004-03-16
North Weymouth, MA

Bleh

Well folks im gonna tell you a few things, being an Ex RCN employeee first let me say the only losers are the customers. Yeah i see people in chicago complaining about the service but what they dont tell you is the number one worst set of networks in the country is in chicago. RCN agreed to go in and atempt to lay new fiber for these people and instead got railroaded by your lovely civic leaders. For example Chicago demanded RCN pay 10 million dollars per year for the privelidge of serving you. all over the country RCN was forced to pay these kickbacks to cities and towns to offer them service. That killed us. Also for comcast to say that out customer service is bad and located in wilkes barre. well we only moved it there about 4 months ago befor that ti was regionalized in massachusetts, new york , pa and chicago. sothat neither here nor there. Comcast was busted here in massachusetts for cutting rcn customers cables and then mysteriously showing up at the customers door to fix the problem and in the process switch them to comcast without the customer knowing. But it made a nice broadcast on the news. You wntr to know RCN's big problem? We made customers pay too little and we gave too much. We gave free megamodem service to so many customers when comcat and others werent even offering half the bandwidth. And this white only thing is dumber than dumb here in massachusetts we had huge poor and mixed race areas in our footprint so thats out the window. We charged less than al of our competitors but you have to understand one thing, we didnt just go up against comcast, we fought on three fronts, telephone, cabe tv and broadband. so we fought aol, comcast, verizon, AT&T to name a few. Yep RCNis gone even though they can rebound from chap 11. i can tell you here in mass all of the management team is gone , having reitred ( our president) or resigned. theres no one left to right the ship and those of you who think rcn was bad... just wait till you get that comcast bill and its 27 to 30 % higher for less service. You will quickly wish for competition.

EricTheO

join:2001-04-12
South San Francisco, CA

RCN beats them all in our area!

Having been through several different Cable Services in our area and having had ATT promise Bundled services and never delivering on that promise, we went with RCN. We have never looked back. RCN built out a new cable system from scratch faster than ATT could update an older one. I'm not sure if Comcast is even offering bundled services in our area. We live on the S.F. Penninsula.
--
-Eric

mr a1

@snmt-ubr2.sfrn-

Real Crazy N****Z

RCN knocks comcast out the frame out here in the SF Peninsula. Sure, Comcast gots all sorts of cash for advertising and what not but RCN delivers an incredible product. It's a trip how folks out here on the west love RCN and you folks back east aint got no love. 5MB Internet when Comcast barely started providing 3... RCN been done had 3MB years ago. i wouldnt be complaining.... Comcast still pushing one-way cable all over the bay... what kind of crap is that? no matter how much money Comcast got, they will never be RCN and thats exactly what they trying to do. RCN will defintiely rebound because it has a product that sells... Cable, Phone, Internet, HDTV, Networking... Nuff said. by the way, whoever said that RCN only caters to whites is straight trippin. Go see the film "Straight Outta Hunters Point" and youll see how HOOD RCN gets... Ask the tons of Latinos watching their CANALES Tier or the Filipinos watching TFC or all the brothas... RCN dont discriminate. That's why Comcast only allows employees to work from 9am-12pm in the hood cuz they scurred they gonna get shot. LOL. RCN is no joke. Let's not forget... Comcast was disconnecting RCN customers from SF to Redwood City and still do it to this day... RCN Customer for lyfe, Right Here!!!
Forums » RCN Bankruptcy Protection


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