Altice Optimum to face investigation
AG turns eyes toward internet provider following complaints, about connection speeds, fees
For a second time in the past few years, Altice USA is under the eye of Attorney General William Tong, after hundreds of customers complained of hidden fees, inadequate technical support, or slower-than-promised internet speeds for its upper-tier Optimum broadband packages in Connecticut.
The AG’s office is investigating a $3.50 monthly fee for “network enhancement” charged to Optimum customers and whether the company’s broadband speeds for 300 megabits per second and 400 Mbps packages lagged those actual benchmarks.
In Connecticut, Altice has cable territories stretching from Greenwich to Milford along with several towns inland; and in Torrington and several other south and west. Frontier Communications is the only other wireline competitor in those cities and towns, with both companies racing to run fiber optic cable into neighborhoods for gigabit-level services in a massive investment for both.
Earlier this year, Frontier agreed to a $60 million settlement after a similar investigation into some 1,400 complaints over several years. The Connecticut Public Utilities Regulatory Authority intervened separately with a smaller fine over Frontier’s installation of fiber optic nodes.
“Our investigation seeks comprehensive records dating back to January 2017 to determine exactly what Altice Optimum knew and what they were doing to deliver the internet speeds and service they promised,” Tong said in a Monday press release. “If our investigation finds that Optimum violated Connecticut law, we will not hesitate to hold them accountable.”
Tong cited the possibility of invoking the Connecticut Unfair
Trade Practices Act, which covers a gamut of protections for consumers including truth in advertising and fulfilling terms of contractual promises.
An Altice spokesperson forwarded a statement noting the company’s continued investment in Connecticut and its goal of high-quality service and positive customer experiences.
“We are proud to serve our Connecticut communities and will cooperate with state officials to provide relevant information,” stated Altice USA spokesperson Janet Meahan, in an email response to a CTInsider query.
One customer in Fairfield complained last February of internet feeds being dropped repeatedly, even after upgrading to a new modem for an extra monthly charge. The AG’s office
did not disclose the identity of the individual.
“I’d call Optimum where you can never speak to a person, and I’m told there is no outage in your area,” the customer stated, according to the AG’s office. “My problem is getting someone out here. They have made it next to impossible to speak to a human being.”
State Sen. Norm Needleman, D-Essex, noted the increased importance home internet connections took on during the COVID-19 pandemic for remote schooling and work, and since then with many people continuing on a hybrid work schedule mixing time in the home office and at work.
“Customers deserve the services they pay for, and these allegations indicate Altice Optimum
has failed to deliver on its word for half a decade,” stated Needleman, who is co-chair of the Energy & Technology Committee of the Connecticut General Assembly. “As the internet has become a vital part of everyday life, households relying on these services for employment, education and entertainment can experience significant harm if they lack reliable internet service.”
Altice USA announced in September plans by CEO Dexter Goei to step down in order to return to Europe, after spearheading the roll out of Optimum fiber services in Connecticut and elsewhere. The company hired Dennis Mathew as CEO, who formerly led western New England operations for Comcast including its Connecticut territories.
Altice USA added 31,000 fiber broadband customers across all territories in the third quarter, pushing its total to 135,000 accounts for a 30 percent increase in just three months. But revenue was down 7 percent from a year ago to $2.4 billion, as the company citing intensifying competition as one factor.
“The company’s made a lot of progress in setting a strong foundation for best-quality broadband through the deployment of its fiber strategy,” Mathew said in early November on a conference call with investment analysts. “I’m really a big believer that fiber is the best technology that exists today.”