Altice, Suddenlink Renew Pitch to FCC About Deal Benefits
Altice's takeover of Suddenlink will be good for rural subscribers, particularly through better broadband, they said in a joint FCC filing posted Tuesday in docket 15-135 in which they both make a public interest case for the transaction and remind…
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the agency that regulatory approval has been pending almost four months. Even though Suddenlink operates mostly in smaller, rural areas, it "has endeavored to deploy broadband throughout its footprint," now offering high-speed data to more than 97.5 percent of the homes it passes nationally, the two said. The company is in the midst of its Project Gigaspeed to bring 1 Gbps service to most customers by the end of 2017, though "its ability to do so is not assured," Altice and Suddenlink said. "Project Gigaspeed is a multi-year program and it will require considerable year-over-year funding to achieve its objectives," the companies said, saying Suddenlink spent more than $35 million on it last year and expects to spend more than $170 million before it's done. "Although Suddenlink has in place a plan for Project Gigaspeed, funding decisions for that plan are made annually and other business priorities can affect them," the two said. Being taken over by Altice would give the combined company "access to considerable financial resources, often at advantageous terms that are not readily available to smaller providers like Suddenlink," they said. Citing major network upgrades and higher speeds in such markets as Belgium, France and Israel, the two said Altice "has demonstrated repeatedly that it continually invests in networks to ensure their long-term viability and growth." Meanwhile, with the proposed deal not having seen any material objection either at the FCC or elsewhere, the FCC "should complete its review ... and approve the proposed Transaction promptly," they said. Altice also is buying Cablevision -- a deal which "should not have any effect on the timing or substance" of the commission's Suddenlink review, Altice and Suddenlink said.