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CSG forces issue in Comcast lawsuit

Mon, 12/16/2002 - 7:00pm
Duffy Hayes

A sideshow to the recently completed merger between Comcast Corp. and AT&T Broadband has been the legal wrangling between the new Comcast and billing system provider CSG Systems, which is fighting to keep alive a long-term deal it had forged with AT&T prior to the merger.

On Tuesday, CSG filed a motion in U.S. District Court for the Eastern District of Pennsylvania, requesting the court either dismiss a complaint previously filed on Nov. 15 by Comcast, or delay action on the suit until arbitration between CSG and AT&T Broadband could be completed.

In the filing, CSG argued that Comcast's complaints against the billing vendor are part and parcel of an upcoming arbitration hearing between AT&T Broadband and CSG, and that until that arbitration is complete, the Comcast-CSG suit should not go forward. That arbitration hearing between AT&T Broadband and CSG is scheduled to start May 5, 2003.

CSG is looking to head off a contract that it forged with Tele-Communications Inc. in 1997. That deal called for CSG to serve as TCI's cable and cable modem billing vendor through 2012. AT&T Broadband parent AT&T Corp. bought TCI in 1999, and had been at odds with CSG over the long-term billing agreement well before the MSO completed its merger with Comcast earlier this year.

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