Comcast Renews CSG Deal3/17/2004 9:32 AM Eastern
CSG Systems International Inc. said Wednesday that it has reached a new contract with Comcast Corp.
The customer-care and billing-solutions provider will continue to support the MSO’s video and high-speed-data subscribers at least through Dec. 31, 2008, under terms of the deal.
The new contract contains several new clauses that differ from those included in the original contract Comcast inherited when it acquired AT&T Broadband, including:
• The elimination of any exclusive right by CSG to provide customer care and billing for AT&T Broadband’s entire 13 million-subscriber base;
• The elimination of any favored-nations pricing and the establishment of new, mutually agreed-upon pricing for CSG's products and services;
• The establishment of financial minimums that includes a period of three years of minimums under the five-year contract, totaling $220 million; and
• Should Comcast terminate the contract for reasons of convenience during that period, the balance of the financial minimums will be due to CSG and, upon such payment, the contract will terminate.