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Department of Public Service Case No. 15-M-0647 January 27, 2016

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Department of Public Service Case No. 15-M-0647 January 27, 2016 Department of Public Service Case No. 15-M-0647 January 27, 2016 1 1 STATE OF NEW YORK DEPARTMENT OF PUBLIC SERVICE 2 --------------------------------------------X Case No. 15-M-0647, Joint Petition of 3 Altice N.V. and Cablevision Systems Corporation and Subsidiaries for Approval 4 of a Holding Company Level Transfers of Control of Cablevision Lightpath, Inc. 5 and Cablevision Cable Entities, and for Certain Financing Arrangements. 6 --------------------------------------------X Public Statement Hearing 7 Bronx Supreme Court Court Room 600 8 851 Grand Concourse Bronx, New York 10451 9 January 27, 2016 10 7:00 p.m. 11 12 13 PRESIDING: 14 DAVID R. VAN ORT, ESQ. 15 Administrative Law Judge 16 17 ALSO PRESENT: COMMISSIONER DIANE BURMAN 18 19 20 21 STENO-KATH REPORTING SERVICES, LTD. 139 Mamaroneck Avenue 22 Mamaroneck, New York 10543 (212)95-DEPOS (953-3767)*(914)381-2061 23 Fax: (212)681-1985*(914)381-2064 Email: [email protected] 24 25 Department of Public Service Case No. 15-M-0647 January 27, 2016 2 1 2 SPEAKER PAGE 3 Timothy O'Boyle, Common Cause................ 5 4 Stuart Reid, Digital Divide Partners......... 8 5 Michael Max Knobbe, BronxNet................. 11 6 Ray Meyers................................... 18 7 Steve Ashurst................................ 20 8 Ken Sales.................................... 21 9 Jurtreau Villegas, CWA....................... 22 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Department of Public Service Case No. 15-M-0647 January 27, 2016 3 1 Proceedings 2 ALJ VAN ORT: On the record. 3 This is case 15-M-0647, Joint 4 Petition of Altice N.V. and Cablevision 5 Systems Corporation and subsidiaries for 6 Approval of a Holding Company Level Transfers 7 of Control of Cablevision Lightpath, Inc., and 8 Cablevision Cable Entities, and for Certain 9 Financing Arrangements. 10 Good evening. My name is David 11 Van Ort. I'm an Administrative Law Judge with 12 the New York State Department of Public 13 Service. I have been assigned to this case. 14 With me here this evening is Diane 15 Burman. She's a Commissioner with the Public 16 Service Commission, and she will be one of the 17 ultimate decision makers in this proceeding. 18 The purpose of this proceeding is 19 to get your input and your comments with 20 respect to the pending application. 21 I should note that one of the 22 things that we do here, and I only have a few 23 speakers signed up, I believe six or seven, 24 but our policy is to keep this proceeding open 25 for a period of one hour. So if we finish, Department of Public Service Case No. 15-M-0647 January 27, 2016 4 1 Proceedings 2 which I expect to finish long in advance of 3 the one hour, we will recess until promptly 4 eight o'clock, and then at that point we will 5 continue and close out the proceeding. 6 Now, one of the things that I want 7 to point out to you is that when we conduct 8 the hearing, the testimony or the statements 9 that you're going to be giving today are not 10 sworn statements. No one is going to be 11 subject to cross examination. 12 We've got a microphone set up up 13 front here so that you can come and speak into 14 the microphone. That way the statements you 15 make will be accurately recorded. 16 In addition to the oral 17 statements, you can make written statements 18 here. We have the address out front at the 19 desk, and we can provide it to you if you 20 don't want to make an oral statement. 21 We recognize that not everybody is 22 willing to make statements orally. Some 23 people do not feel comfortable doing it. Some 24 people may not be able to stay until it's 25 their time to speak. So you can submit Department of Public Service Case No. 15-M-0647 January 27, 2016 5 1 Proceedings 2 written comments as well. The comments that 3 you make, the statements, whether they're oral 4 or written, they mean the exact same thing. 5 It's the content of your statement that's 6 important, not the means by which you give it. 7 One of the things that I've been 8 asked by the reporter, and we'll do the same 9 thing here, is if somebody is reading a 10 written statement, we ask that at the 11 conclusion of their statement, or if they have 12 an extra one, that they provide it to the 13 reporter so we can assure that it is 14 accurately recorded as part of the record in 15 this proceeding. 16 I'll begin by starting with the 17 first speaker this evening. It is Timothy 18 O'Boyle. Mr. O'Boyle, there's a microphone 19 right up front for you here. 20 MR. O'BOYLE: Yes, sir. 21 Good evening. My name is Timothy 22 O'Boyle, and I serve as program director at 23 Common Cause, a nationwide, non-partisan 24 organization dedicated to restoring the great 25 ideals of American democracy. On behalf of Department of Public Service Case No. 15-M-0647 January 27, 2016 6 1 Proceedings 2 our more than 400,000 members, including more 3 than 20,000 New Yorkers, thank you to the 4 Commission for convening this series of timely 5 hearings. 6 In the matter of the question 7 before us, would allowing Altice to acquire 8 Cablevision advance the public interest? The 9 answer is an emphatic no, it will not. Common 10 Cause urges you to reject this merger. 11 The proposed combination of Altice 12 and Cablevision lacks credible public interest 13 benefits, but presents many obvious harms. 14 The proposal is under-specified. Altice 15 asserts some one billion dollars in 16 efficiencies, but the firms have assiduously 17 resisted calls to specify where those savings 18 will come from, and what the public should 19 expect in terms of benefits. 20 Common Cause has long been 21 skeptical of merger conditions. They're 22 rarely merger specific, and they are very 23 challenging to enforce. However, we find it 24 telling that Cablevision has resisted making 25 even minimal commitments to respect workers' Department of Public Service Case No. 15-M-0647 January 27, 2016 7 1 Proceedings 2 rights or offer low income broadband service. 3 Their reluctance we find 4 illustrative. The single failure of American 5 broadband is its affordability. In its recent 6 Home Broadband report, Pew finds that, and I'm 7 quoting here, "The share of Americans with 8 broadband at home has plateaued" while noting 9 that, quote, "the affordability is a main 10 driver for those without cable or satellite." 11 Yet, everything about this deal suggests that 12 it would exacerbate the problem of 13 affordability. That's because this deal is so 14 highly leveraged that it will result in higher 15 prices on captive Cablevision customers. 16 Alternately, post-merger 17 Altice/Cablevision will trim the balance sheet 18 through layoffs that harm customer service. 19 Or, perhaps the firm will allow -- I'm sorry, 20 or perhaps the firm will restrict capital 21 investment and allow its network to go to 22 seed. Either way, the public interest loses. 23 To reiterate, while we reject the 24 merger as inimical to the public interest, and 25 are generally skeptical of merger conditions, Department of Public Service Case No. 15-M-0647 January 27, 2016 8 1 Proceedings 2 should the Commission move forward with 3 approving the merger, I urge you to consider 4 requiring the following. 5 A best-in-class low income 6 broadband program, or, in the alternative, 7 meaningful broadband adoption programs through 8 community partnerships in low income 9 neighborhoods; 10 Additionally, front line job 11 guarantees to protect workers and quality of 12 service; 13 Ensuring public educational and 14 governmental stations have non-discriminatory 15 channel placement so they can reach diverse, 16 local audiences. 17 Thank you. 18 ALJ VAN ORT: Thank you. 19 Our next speaker is Stuart Reid. 20 Mr. Reid, I expect to see you at 21 each one of these. 22 MR. REID: You may. 23 (Laughter) 24 MR. REID: Good evening. My name 25 is Stuart Reid. Yes, I am back again. We Department of Public Service Case No. 15-M-0647 January 27, 2016 9 1 Proceedings 2 have a number of community partners, as I 3 indicated in earlier testimony. We had John 4 Johnson from the New York City Housing 5 Authority Residents Association earlier today. 6 This evening, though, I want to read into the 7 record a letter from the general manager, 8 Angela Harden, general manager of the radio 9 station WHCR-FM at City College. 10 (Reading:) Dear Commissioners, as 11 General Manager of WHCR 90.3FM at the City 12 College of New York, I am writing today to 13 talk about our partnership with Digital Divide 14 Partners, DDP. 15 For the past four years, WHCR 16 90.3FM has worked with DDP in the development 17 of the Streaming University Project, an 18 innovative collection of videos utilizing our 19 diverse cadre of over 70 radio programs. We 20 have created what I like to call a broadband 21 version of community focused alternative news 22 and informational public service programming, 23 incorporating a wide variety of genres, 24 delivered over the air and the Internet, and 25 produced by and for local residents of New Department of Public Service Case No.
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