Home » BCI Broadband »Bresnan »Consumer News »NewWave Communications »Public Policy & Gov't »Rural Broadband »Video » Currently Reading:

Former Bresnan Execs Conspire With Private Equity Firm to Abandon Broadband in Rural Kansas

allegianceMore than 20 cable systems across Kansas will be terminating television and broadband service after a private equity firm, working with former Bresnan Cable executives, deemed them unprofitable and not worth upgrading.

Residents of Conway Springs (pop. 1,250), Chetopa (1,125), Sharon (158), and Harper (1,473) are among those who will find their cable and broadband service discontinued in the coming weeks. Abandoned cable subscribers are being told to buy satellite dishes to continue watching television. No immediate broadband solution was available.

Allegiance Communications, which provides cable TV, broadband Internet, and VOIP telephony services to rural and mid-size markets in Arkansas, Kansas, Missouri, Oklahoma, and Texas was acquired last month by former executives at Bresnan Communications, itself bought out by Cablevision Industries. The deal was largely financed by BBH Capital Partners, a New York City-based private equity firm.

The purchase by BCI Broadband orphaned nearly two dozen cable systems that Allegiance owned and operated, but were excluded from the sale. Subscribers are being notified they are about to be switched off permanently in letters signed by Allegiance executives.

Several Bresnan former executives are behind BCI Broadband.

Several former Bresnan Cable executives are behind BCI Broadband.

The service will leave rural Kansans without broadband service, cable television, or an alternative to AT&T and other independent phone companies operating in the state.

“This was not an easy decision for us, nor is it one that we came to hastily. The costs of doing business in Conway Springs can no longer be profitable,” Allegiance wrote in its letter, according to KSNW-TV.

Local officials in affected communities are rushing to find an alternative, appealing to providers like Southern Kansas Telephone to see if they can pick up where Allegiance left off, but the phone company has yet to respond.

Allegiance claims the outdated cable systems served few subscribers and the new owners were not interested in investing funds to upgrade them.

BCI Broadband is a new company run by former executives forced out of Bresnan Communications when the company was sold to Cablevision. BCI Broadband claims it wants to invest in system upgrades to improve service to remaining subscribers.

“Historically when we have purchased cable systems and invested in upgrading to the latest technology in markets like Shawnee, that has inevitably led to more customers and the need for more staff,” said Shawn Beqaj, vice president of public and government affairs for BCI Broadband. Beqaj was the former vice president of public affairs at Bresnan.

There has been an accelerating trend of industry consolidation among rural cable operators, particularly by private equity firms that are interested in the stable earnings cable operators usually generate.

GTCR, through its portfolio company Rural Broadband Investments LLC , separately announced its plans to acquire NewWave Communications Co., in what it hopes is just the first of a series of acquisitions. NewWave’s purchase was financed by debt capital from SunTrust Robinson Humphrey, Inc., and Goldman Sachs Bank USA.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KSNW Wichita Small towns losing cable service 2-7-13.mp4[/flv]

KSNW-TV reports more than 20 Kansas communities will lose television and broadband service when Allegiance Communications switches off the cable systems. (2 minutes)

Search This Site:

Contributions:

Recent Comments:

  • Mark Wilkinson: This is a nightmare. Life was good until Verizon sold us to Frontier. Our service has been cut off twice for non-payment of an "non-returned equipme...
  • Don: I don't even have Greenlight available yet at my address. I am in Gates and Greenlight is taking orders for my address so I look up to see what would ...
  • Jon Belkin: Since it launched, XFINITY Mobile (and likely Spectrum Mobile) have been unable to accept any Android devices on its plans that were not bought direct...
  • J.B.: Thanks, but I don't have their phone service; can barely stomach having to have them as my ISP, but there are no other REASONABLE options where I live...
  • Anthony Aguilar: I ordered the internet service only through Spectrum on 06/21/2018. I was given a 12 month promotional offer of 14.99 + an additional 5.00 monthly f...
  • Ron Fink: I pay my Spectrum Bundle bill at my local Spectrum store monthly. I have Spectrum as my Tv, Internet, and Phone provider because they do not require ...
  • Racerbob: Well Racerbob had nothing to do with the TV part of the findings here. That was my friend and neighbor hotshot187 who also is at DSLReports in the thr...
  • Phillip Dampier: If you have TWC/Spectrum phone service, dial 611 from that phone and see if that connects you. Or you can try 1-833-694-9259....
  • Phillip Dampier: I will be looking for the fine print terms and conditions and scrutinize it when it is available. I expect to see boiler plate language about the righ...
  • J.B.: I agree that your advice ("... or call your local cable office and ask for a service outage credit") would be a great way to easily request a credit b...
  • Dylan: Seems like a good deal. However, I’m curious about the caps. Even if a 1 terabyte or lower cap is instituted, I might not be interested in said servic...
  • Corey: Perhaps its in the contract already in the new service...

Your Account: