Hahn Urges Adelphia to Drop Rate Hike
Los Angeles Mayor Jim Hahn and Councilman Jack Weiss sent a letter to Adelphia Communications Corp. urging the troubled cable company to abandon a plan to increase rates.
“In light of the many issues that have eroded consumer confidence in Adelphia, we urge you to withdraw your request to increase current subscription rates,” the officials said in the letter to Erland Kailbourne, the company’s interim chief executive.
The officials cited Adelphia’s recent Chapter 11 bankruptcy filing, the federal arrest of Adelphia’s founder and his sons on federal charges of bilking shareholders and looting the company coffers, and a civil lawsuit by the Securities and Exchange Commission in calling the rate increase proposal “ill-advised.”
On Wednesday, the City Council called for any future agreements with Adelphia for city cable franchises to include guarantees of high-speed Internet and data connections, which Weiss said were promised to subscribers but have never been delivered.
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