Sir, The travails of Altice should be no surprise to objective, knowledgeable and independent experts in the telecommunications field.
In 2015-16 the Federal Communications Commission reviewed Altice’s application to acquire Cablevision (now Optimum) in the US. During this review a few interveners including myself presented documented, verifiable evidence based on Patrick Drahi’s and Dexter Goei’s records in Europe and elsewhere about the foreseeable consequences of Mr Drahi’s debt-laden business model and his governance style.
Also emphasised was Altice’s unsupported claim of uniquely beneficial capabilities thanks to unrealistic assertions of how deeply it could reduce costs without incurring consequences, notably loss of subscribers and deterioration in the quality of services, already visible in France.
Of course Mr Drahi’s lenders, such as JPMorgan, Barclays and BNP, which did not want to stop the flow of substantial fees they have received from his dealmaking, and others that benefited financially in the short term from his ventures (for example the Canadian Pension Plan Investment Board) supported his application. US regulators (federal and state) eventually approved this deal, ignoring unmistakable warnings. The adage “Fool me once, shame on you, fool me twice (then thrice and more), shame on me” applies.
Martyn Roetter
Boston, MA, US