Altice Underwhelms Critics

Underwhelmed.

That’s the reaction of insiders and analysts assessing Altice’s response to repeated queries of how it’ll serve the public interest, should it succeed in buying Cablevision. The Capitol Forum’s March 10 report surmises the deal will be delayed, thanks to public outcry, but whether or not it will be denied is fast becoming a case of politics vs. the public interest.

As public awareness of the issue takes flight — thanks in part to InnovateLI.com’s Feb. 9 local news story, quickly followed by Long Island Business News coverage — more questions are being raised as to how the company intends to serve the public interest in light of its stated intentions to dramatically cut costs while assuming a debt load pegged at $15.3 billion, according to New York City. In recent filings with the New York State Public Service Commission (NYSPSC), local politicians want assurances that jobs will not be eliminated, costs to the consumer will not go up nor service suffer a downgrade. Even the aspect of Cablevision’s headquarters being moved out of Bethpage and into New York City has been addressed.

Yet, no answers from Altice. The company has made very few specifics available. Among them: $14.99 as its offering for broadband to low income households that meet the company’s criteria.

The NYSPSC asks for just more than $1 billion in incremental benefits; Altice argues that number should be less than $1 million. The Commission also put forth a recommendation for a 50 percent customer/50 percent shareholder sharing of savings in New York, then gave a bit of latitude in those numbers — but not as much swing as Altice has, which is offering no more than a 15 percent-to-85-percent split.

Fair Media Council has filed objections to the sale with the NYSPSC, and FMC commentary on the matter is before the FCC. FMC also reached out the New York City Mayor Bill De Blasio’s office, in support of his office’s strong opposition to the sale. New York City, along with the Communication Workers of America, have been highly critical of the proposed sale and, interestingly, New York City’s attempts to negotiate and seek clarity of intention with Altice have been rebuffed, with the company noting it believes New York City has no say in the deal.

Included with the letter to legal counsel Maya Wiley in the New York City Mayor’s office was a copy of the Fair Media Council’s filing with the NYSPSC, outlining FMC’s stance that the deal presented ‘grave concern’ for the public interest.

The filing noted, in part:

‘Based on public statements, Altice’s strategy to succeed in this marketplace is a combination of draconian expense-cutting measures that will negatively impact the local economy while causing what can only be described as undue harm to Newsday and the news and information it provides for the nearly 3 million people in the Long Island community. Further, Cablevision’s control of the distribution of information to the people of New York, New Jersey and Connecticut, via its cable, internet and Wi-Fi offerings, stands to suffer readily should Altice not find the profit margins they need to reinvest in the aging communication infrastructure.

Please keep in mind, the vulnerability our coastal geography affords us, and the important role Cablevision systems’ information dissemination provides in times of emergency. The health and well-being of this region is directly influenced by the strength of Cablevision’s infrastructure.

The burden of debt and its impact on operations; the lack of expertise in the New York marketplace (and the American market, for that matter) and the lack of commitment to the local community are three major reasons why you should not approve of this deal. Taking Cablevision earnings out of this market is another factor to serious consider – or is the New York economy so strong it won’t miss that $6 billion it has grown to rely on? For all of the issues noted above, the Fair Media Council cites no confidence in Altice’s ability to own Cablevision and Newsday. We respectfully request the Public Service Commission not approve this sale, for the sake of the public.’

The filing was done on Feb. 5, 2016. On Feb. 24, FMC opined on the impact the sale would have on Long Island’s future. That commentary has been submitted to the FCC, along with subsequent action by a third-party seeking answers from Altice to provide information on what is planned for Newsday and News12, which has previously gone unmentioned, as Long Island’s main news providers.