Charter Owes a Rebate To Some California Subs
By LINDA HAUGSTED -- Multichannel News, 7/23/2001
Charter Communications Inc. customers in Glendale and Burbank, Calif. will receive $12.12 under terms of a settlement to the two cities' challenge of the MSO's inside-wire maintenance package.
Charter had been offering the package to its suburban Los Angeles customers for 95 cents per month. But following a joint investigation of the charge, the two cities told Charter that the fee was excessive.
In November of 2000, the cities issued a joint order demanding the operator drop the charge from 95 cents to only 4 cents.
Charter argued that the service package was initially advertised as cable coverage. But because it now provides a "whole house" service for all modem, telephone or even satellite wiring connections, the service is no longer subject to municipal rules, Charter aruged.
When the cities refused to back down, Charter took the issue to the Federal Communications Commission. But federal authorities backed the city: Though Charter expanded the scope of the service, it was still marketed as a cable maintenance plan.
The FCC did, however, trim the amount of the rebate. The cities can only demand credits for overcharges that date back to March 2000, the FCC said.
Charter will make its customers whole by issuing a one-time credit of $12.12, which includes 8-percent interest, to consumers who subscribed to the maintenance plan. The credits will appear on subscribers' bills in the next 60 days.
The MSO has amended its marketing of the plan to inform would-be customers that maintenance package is for all telecommunications services. The package remains priced at 95 cents.
