Home » BCI Broadband » Recent Articles:

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

Phillip Dampier February 19, 2013 BCI Broadband, Bresnan, Consumer News, NewWave Communications, Public Policy & Gov't, Rural Broadband, Video Comments Off on 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Allegiance claims the outdated cable systems served few subscribers and the new owners were not interested in investing funds to upgrade them.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.

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:

  • chickenpatti13: I'm not going to be upset over loosing favorite channels.Once upon a time,there was no TV.I'll use all that free time to expand my farm.You can't wear...
  • DCUNY: 113/12 now in area of Hilton, NY. Was 70/6 last year or so....
  • Daniel Haro: no WORRIES FOR US IN San Antonio TX. Google FIBER HAS LAUNCH SHOULD BE AVAILABLE TO MOST OF San Antonio IN THE COMING MONTHS. WeCAN FINAL DITCH THIS P...
  • bc: woke up to 130/15 speeds this morning batavia ny 14020...
  • Racerbob: Confirmed upgrade here in West Webster. 60/5 is now 100/10 for me. http://beta.speedtest.net/result/6880083440.png...
  • Fred Pilot: Interesting that "the Internet" is still discussed as if it's something new circa early 1990s when in fact it's been widely available for some number ...
  • Don: I just got off the phone with Spectrum and I asked about the small speed increase. He said that I am part of the new lift area. He said that in my are...
  • Racerbob: A friend here in Webster started seeing 150 Mbps download speed yesterday. A chat with Spectrum today told him that more speed would be seen next week...
  • Don: I'm in Gates, New York and I'm on the ultra plan and my speeds were around 117/11.5 but now are showing around 141/11.5 but not sure why. The speed re...
  • Reuben Mahar: New Speeds are online in Waldoboro Maine. 04572. Testing at 112 x 11. I wonder if this has anything to do with LCI offering fiber in my area,,,,, ...
  • Peggy: Sorry to tell you but they set up the account based on your address, not your name. And the other thing is, it does depend not only on your address bu...
  • EJ: I am curious to see the specifics of this "DEAL". How bulletproof does this need to be, how much redundancy does there need to be, who decides what an...

Your Account:

%d bloggers like this: