This is very interesting. The numbers for the cable proposals are crunched, putting a whole new perspective on the deal.
Donald, David, et al,
Attached are the numbers just run comparing Atlantic Broadband VS Comcast 7/15/17 THRU 6/30/27.
Regarding Atlantic Broadband,the only way to compare apples to apples is to use the Comcast numbers for the first two years of a hypothetical Atlantic Broadband contract because those current Comcast cost would continue in effect until 7/15/19.Calculation eliminates the last two years of an Atlantic Broadband contract (total of $8,559,650) as again only way to compare apples to apples. It would be extremely more favorable to eliminate the last two expensive years of 2028 and 2029 in any new TV bulk agreement.
Unless made an error somewhere, only arguable numbers seem to be first the broadcasting fee and second the estimated savings to some individuals currently paying Comcast for services over and above the current bulk agreement with Comcast.
Analysis indicates an incredibly close net excess cost for Comcast vs Atlantic Broadband in the amount of $278,153 for the subject ten year period. Also, the gateway fee of $450 per unit offered by Atlantic Broadband is $785,400 higher than the $350 per unit offered by Comcast. This difference is included in the total net difference of $ 278,153 with Comcast being more expensive by that net amount.
In my opinion, based solely on the bulk TV deal, Comcast is very much superior because:
1) While customer service is not appreciated by many at either Atlantic Broadband or Comcast, the services of Comcast are much more well known by our residents and when the service is functioning IMHO it is excellent. Atlantic Broadband (even if consolidated with Cogeco its Canadian parent company) is a significantly smaller company than Comcast so its financial viability is more speculative.
2) It would be extremely more favorable to eliminate the last two expensive years of 2028 and 2029 from any new TV bulk agreement so that also favors Comcast. An award to Comcast in effect results in an extension of eight years over their current in effect contract while an award to Atlantic Broadband will result in a new contract in effect until 6/30/2029. With technology changing so rapidly it is not in the best interests of CV-WPB to have a ten year contract all the way out until 2029.
3) Comcast's proposal does not involve any build out or construction issues so its contract can become effective 7/15/17 without any of those additional risks which would be applicable if the contract would be awarded to Atlantic Broadband. Atlantic Broadband's proposal includes the laying of new fiber to each building in Century Village -WPB. They have also indicated that their fiber network currently only comes as far north as Boca Raton and that they plan on extending their fiber all the way to West Palm Beach so they can service additional communities. There is certainly no guarantee they can meet the 7/15/19 time frame.
4) The enhanced services under the proposed Comcast contract can be effective as early as 7/15/17 while services from Atlantic Broadband can not be effective until 7/15/19.
5) The $278,153 difference in the costs of a Comcast contract over and above an Atlantic Broadband contract do not warrant the assumption of the additional risks inherent in an award to Atlantic Broadband.
6) Per the Atlantic Broadband proposal, Atlantic Broadband will only offer their TIVO 6 cable box to CV residents who purchase broadband services from Atlantic Broadband while Comcast has indicated that they will offer their X1 box to all residents under the bulk agreement regardless of whether or not broadband services are purchased from Comcast. This analysis does not include any adjustment in the increased cost of Atlantic Broadband's services should a resident have to pay for a TIVO 6 over and above the bulk agreement. However, if such a calculation were included the amount would undoubtedly wipe out the current $278,153 Atlantic Broadband cost advantage multiple times over the length of the entire contract period.
If you should notice any errors and/ or omissions please bring them to my attention for review and possible revision. We all want the most accurate data being presented to the CV unit owners, they deserve the most accurate information.
Thank you,
Jack Adams
Member, Executive Board
Member, Bid Committee
Thanks for your analysis. I and the board members of Camden D agree with you. I personally think a big factor is that we would have to wait two years for the AB service instead of only a few months for the new Comcast service. What is the difference between 300 or 220 channels since most of us only watch about 8 to 10 channels anyway. Internet and WiFi is the future for many current owners and all future owners so it is great that both contracts offer cheap and fast internet service - although I think the Comcast offer is slightly better. I currently have to pay $65 a month to Comcast for fast Internet service. The new contract will save me $39 a month just on Internet service.
ReplyDeleteThanks for your input it's much appreciated. There is one thing that deserves a mention: CSI , who are heavily involved in negotiations, stand to get a bigger fee for their service if Atlantic is chosen . Their fee is determined as a percentage of the gateway fee. Why UCO/ David Israel is so determined to get Atlantic in here is another matter that deserves a look.
ReplyDeleteI have seen nothing that indicates Comcast will forego the final 2 years of the current contract----and give CV the new benefits & costs starting this July!! I would add that your first 2 paragraphs are a little confusing to the average person. Are you saying that the comparisons in the UCO reporter are WRONG & INCORRECT???
ReplyDelete