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When Spectrum Kabel clients are thrown out of charter, what happens to them?
Practically nobody loves his wire service, so it's difficult to believe that many people were shed a tear in New York this week-end because of the messages that Charter Communications could be thrown out of the state. The State Public Service Commission, in an uncommon move, approved the revocation of Charter's authorisation to merge with the New York firm Time Warner Cable, which means that Charter is practically prohibited from doing business in New York where it does business under the Spectrum name.
In support of its choice, the Honourable Member states that the Charter has breached its obligations under the concentration, in particular its commitment to improve service to areas under-served. "The Charter's recurrent failure to minister to the New Yorkers and honour their obligations is well documenting and only getting worse," John B. Rhodes, chairman of the committee, said in a declaration.
That' all well and good, but what about the more than 2 million clients who trust Spectrum for their cabling, web or telephone services? When I contacted the committee to clarify what Spectrum clients could be expecting, a spokesperson referred me to the Friday order.
Briefly, the Charter has been instructed by the European Parliament to develop a scheme for its own substitution. For each contract, the firm will have 60 working day to submit an SAAP informing the European Parliament of the precise steps it intends to take to secure a seamless switch to one or more successors. Meanwhile, Charter is obliged to continue to provide services and fulfil its commitments under national legislation - making sure that its current clients are not disrupted during the transfer.
That is a great deal to ask of a business that, according to the Commission's own knowledge, has already fallen so far short of doing what it is to do. Rhodes says in his declaration that Charter has shown "audacious disrespect to the State of New York and its customers" and yet clients are expecting to have confidence that the same business will supervise a seamless and ordered move to a new supplier?
One way or another, it felt like clients were getting lost in this issue, but then, welcome to the wire business. For its part, the Charter is planning to combat last week's order, so it is likely that nothing will happen in the near future. Arguing in a declaration that it had not fulfilled its commitments, the undertaking contests the claim and proposes instead that the Commission's conclusion is political.
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