Southern Vermont Cable Company has officially been bought by Comcast, the company announced Wednesday, transferring the service of customers in Dummerston, Jamaica, Newfane, Putney and Townshend to the telecommunications giant.
Southern Vermont Cable was established in 1988 by president Ernie Scialabba, offering internet and cable service to the area for more than 30 years. Scialabba is now set to retire, and has said he thinks selling the company is the best way to retain service for his rural customer-base.
To complete the sale, Comcast needed a certificate of public good from the Vermont Public Utility Commission, allowing it to add Townshend, Putney and Newfane to the list of communities it can serve. The certificate was issued in May, with the addition of Dover to that list — a town where Southern Vermont Cable had a certificate to operate, though it had not.
Southern Vermont Cable has about 2,500 customers, while Comcast has more than 30 million residential subscribers in 39 states and the District of Columbia.
In April, the PUC approved an order allowing the financial information of the sale to remain private, as it had the potential to be “commercially sensitive” information.
At a public hearing in February, a number of residents spoke out against the sale to Comcast, fearing the company would be unresponsive and rates would be unaffordable in comparison to their service with Southern Vermont Cable. Many said they understood Scialabba’s decision to retire, but hoped that he would sell to a smaller local company instead.
Scialabba said he understood those concerns, and had received offers from a number of smaller start-up companies, but with quickly changing technology and high operating costs, said he feared that those companies wouldn’t be around for the long-haul. Scialabba said Comcast seemed the only viable option.
Despite residents’ disappointment with that decision, they applauded Scialabba for his work in the region — literally clapping when he walked into the February meeting.
Comcast’s certificate of public good will expire after 11 years. During that time, the certificate requires Comcast to meet annually with local officials to discuss community needs. The company is also required to provide a “reasonable quality of service,” including considerations of FCC minimum service standards, available technology, subscriber interest, and costs.
Its prices for services also “shall at all times be reasonable, having regard to the costs of providing such services,” according to the certificate.
Additionally, if Comcast receives at least two-and-a-half complaints per 1,000 customers, and officials determine the company should have acted differently, Comcast must submit a report to the state about the number and nature of the complaints, what systemic issues were found, and how the company would plan to respond.
Comcast must also send notices approved by the commission to its subscribers each year, seeking feedback on the quality of services, and providing information about how to communicate, both with the commission and Comcast.
