AG Morrisey Reaches $119.5M Settlement with Altice

AG Morrisey Reaches $119.5M Settlement with Altice

Introduction

The West Virginia Attorney General has reached a $119.5 million settlement with Altice USA to address thousands of consumer complaints regarding the company’s internet service quality and customer care issues in the state.

Investigation and Consumer Complaints

The Attorney General’s Office began investigating Altice in 2021 due to concerns about the services provided under its former Suddenlink and current Optimum brands. Complaints included issues with billing, technician visits, and overall service reliability. Since the start of the investigation, Altice has invested over $75 million in West Virginia to upgrade its internet infrastructure.

Breakdown of the Settlement

As part of the settlement, Altice has committed to investing an additional $119.5 million in the state to resolve the investigation without litigation. This includes:

• $75 million already invested since 2021

• $40 million in future investments between 2025 and 2027

• $4 million in consumer credits

• A $500,000 payment to the state

Additionally, the settlement follows a $2.2 million fine imposed by the Public Service Commission (PSC) on Altice’s predecessor, Suddenlink Communications, in 2022 for neglecting customer complaints and reducing essential maintenance work.

Infrastructure Upgrades and Penalties for Non-Compliance

Altice's investment aims to improve broadband infrastructure, allowing residential customers throughout its service area to access internet speeds of up to 1 Gig download and 100 Mbps upload. The company has committed to completing these upgrades by December 2027. If the project is not completed on time, Altice could face additional fines of up to $40 million.

Assurance of Voluntary Compliance

Without admitting wrongdoing, Altice entered into an Assurance of Voluntary Compliance with the state. The Attorney General emphasized that the agreement is a significant victory for consumers, ensuring they receive the level of service they deserve.

Public Service Commission Findings

From 2020 to 2023, the Attorney General’s Office received more than 2,300 complaints from West Virginia residents about service issues. The PSC’s investigation in 2022 found that Suddenlink had reduced its full-time workforce, cut back on maintenance spending, and altered customer communication methods to the detriment of service quality.

Consumer Compensation and Refunds

As part of the settlement, Altice has agreed to improve infrastructure across multiple counties. Current residential customers falling within specific criteria outlined in the Assurance of Voluntary Compliance will receive a $25 credit on their accounts, totaling approximately $4 million in consumer relief. Former customers can also submit claims for potential cash refunds.

Future Internet Service Improvements

Altice will expand its hybrid coaxial-fiber internet system to provide all residential customers with access to 1 Gig download and 100 Mbps upload speeds. The company expects to spend $40 million on these enhancements, with full project completion anticipated by the end of 2027.

Ongoing Monitoring and Compliance

The Attorney General’s Office will closely monitor Altice’s compliance to ensure the company follows through on its commitments and West Virgin.