If you signed up on a contract for which you received a gift (TV or similar), and cancelled before the contract expired, you would be obligated to pay a cancellation fee. If, on the other hand, you were beyond the end of such a contract, there would be no cancellation costs, provided they received their equipment. A $200 fee sounds like they did not receive, or did not record the equipment return.
Alternative suppliers of TV are few, and depend on where you live. There are a few secondary internet providers, but again differ depending on where you live.
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