Comcast Achieves Favorable Arbitrator's Decision on CSG Case
Comcast Corporation (Nasdaq: CMCSA, CMCSK) announced today that its subsidiary, Comcast ABB Management Corporation, successfully concluded its arbitration against customer care and billing vendor, CSG Systems, Inc. The arbitrator ruled that CSG violated the most favored nations provision in the contract under which it provides customer care and billing services for former AT&T Broadband Cable systems that Comcast acquired in a transaction with AT&T Broadband last year. The arbitrator awarded approximately $120 million in damages for CSG's past violations of the most favored nations provision and ruled that going forward Comcast ABB Management Corp. will pay no more than the charges and fees CSG charges to other customers. The arbitrator confirmed AT&T Broadband's right to terminate the CSG contract at any time with a $44 million payment and CSG's obligation to provide transition services. The arbitrator also denied all of CSG's counterclaims.
"We are obviously very pleased with this outcome," said Terry Bienstock, Executive Vice President and General Counsel for Comcast Cable. "The arbitrator's decision brings CSG's pricing down to market rates and recognizes AT&T Broadband's most-favored-nations and termination rights."
Comcast Corporation (www.comcast.com) is principally involved in the development, management and operation of broadband cable networks, and in the provision of electronic commerce and programming content. Comcast Cable is the leading cable company in the United States serving more than 21 million cable subscribers. Comcast's commerce and content businesses include majority ownership of Comcast-Spectacor, Comcast SportsNet, The Gold Channel, Outdoor Life Network, G4, a controlling interest in E! Entertainment Television and Style. Comcast's Class A and Class A Special Common Stock are traded on The Nasdaq Stock Market under the symbols CMCSA and CMCSK, respectively.