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Tricky TV Antics: Wyoming, Nevada TV Stations Moving to Delaware, New Jersey

Phillip Dampier March 31, 2014 Consumer News, Public Policy & Gov't No Comments
KJWY-TV was a station in Jackson, Wyo. But now it serves Philadelphia, Pa.

KJWY-TV was a station in Jackson, Wyo. But now it serves Philadelphia, Pa.

Two small television stations in Wyoming and Nevada with audiences in the thousands have packed up and are moving to bigger cities after exploiting a loophole in FCC rules.

KJWY, Channel 2 in Jackson, Wyo. used to relay television programs from a Casper station for the benefit of the 9,500 people living in the Teton County community. The station operated with just 178 watts — the lowest powered digital VHF station in the country. KVNV, Channel 3 in Ely, Nev., originally relayed Las Vegas’ NBC affiliate for the benefit of 4,200 locals. Both stations were purchased at a very low-cost by a mysterious partnership of buyers back east.

Today, KJWY has a new call sign – KJWP. It’s still on Channel 2, but the station is now licensed to operate from Wilmington, Del, with its transmitter located just across the border in Philadelphia. It’s one of the rare few television stations in the eastern half of the country that have “K” call letters usually assigned to stations west of the Mississippi River. KVNV is expected to follow to its new home in Middletown Township, Monmouth County, N.J., later this year. Its transmitter will have nothing but open water between northern New Jersey and nearby New York City — its intended target.

The two stations’ original combined audiences likely never exceeded 10,000, because both stations had very limited range for their transmitters which served two very small communities. But in the big cities of New York and Philadelphia, the stations can now reach a potential audience north of ten million and collect advertising revenue the stations in Wyoming and Nevada could only dream about.

PMCM, LLC., obviously had this in mind when it acquired the two stations in 2009. The principals behind PMCM already own six Jersey Shore radio stations in Monmouth and Ocean County under the name Press Communications, LLC.

How Congress and the FCC Opened the Door

wor PMCM discovered a little-known law that was originally introduced to help spur the launch of VHF television stations serving small Mid-Atlantic states shadowed by nearby large cities. In 1982, New Jersey Sen. Bill Bradley attached an amendment to an unrelated tax bill that required the FCC to automatically renew the license of any commercial VHF station that agrees to move to a state without one. The new law superseded nearly all the FCC’s other licensing regulations. At the time the law was passed, the only two states that were without any commercial VHF stations were Delaware and New Jersey.

That summer, RKO General, embroiled in a major scandal over illegal billing irregularities and deceiving regulators, thought it could save its New York station – WOR-TV – from threatened license revocation by agreeing to move from New York City to Secaucus, N.J. In agreeing to move the station, WOR would also expand much-needed coverage of New Jersey news and current affairs. But viewers barely noticed and by 1987 RKO General’s bad behavior got them booted out of the broadcasting business altogether after what FCC administrative law judge Edward Kuhlmann called a pattern of the worst case of dishonesty in FCC history. WOR’s new owners changed the call sign to WWOR-TV and the station’s home remains in Secaucus.

Two things happened after the mess with WOR. Bradley’s law remained on the books and America’s adoption of digital over the air television for full power stations meant channel number changes for many stations by the time the transition was complete in 2009. WWOR-TV relocated to UHF channel 38 (while still promoting itself as Channel 9) and Delaware’s only remaining VHF station is non-commercial WHYY Channel 12, a PBS station better known as hailing from Philadelphia. Once again, New Jersey and Delaware were without commercial VHF stations, a fact that did not escape the notice of PMCM.

Me-TV Launches in Philadelphia and New York

KJWP_LogoAfter a lengthy court battle with the FCC, PMCM successfully moved and relaunched KJWP, Channel 2, on March 1 as Philadelphia’s Me-TV affiliate. Although the transmitter power was raised, the station’s digital VHF signal still doesn’t reach very far, so its owners invoked “must-carry” with area cable systems, which means cable systems must carry the channel so long as the station does not ask for any payment.

The station’s reach is defined by the FCC far beyond its actual broadcast signal. Officially, the station can demand cable carriage as far south as Dover, Del., as far west as Lancaster, Pa., almost all of southern New Jersey and into northern New Jersey. Today, Comcast and other cable systems carry KJWP across Philadelphia and the Delaware Valley. Verizon FiOS is adding the station by this weekend and it is also available via satellite TV local station packages. Unlike larger stations fighting to be paid by cable systems, KJWP is happy to be carried by all without charge because it can sell advertising to a much larger potential audience. It plans to produce local programming, including news, which opens up even more advertising opportunities.

KVNV remains on the air in Ely for now as a My Family TV affiliate, showing a mix of family friendly and religious programs. But its days as a Nevada broadcast station are numbered. KVNV will officially sign-off in Ely for good in a few months and relaunch operations across the New York City market as New York’s official Me-TV affiliate. Like with KJWP, KVNV will keep its original call letters and invoke must-carry, which means the station is likely to appear on northern New Jersey Comcast systems, Time Warner Cable in Manhattan and other boroughs, as well as Cablevision on Long Island and across parts of Brooklyn.

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Time Warner Cable Wins Cheap Hydropower from New York State for Its Buffalo Call Center

timewarner twcTime Warner Cable is one of three New York businesses that are the latest to be awarded almost 1 megawatt of inexpensive hydropower under the state’s ReCharge New York program.

The cable company was allocated 176 kilowatts of electricity for its new call center in Buffalo from the Power Authority’s hydroelectric plants in Lewiston and Massena, and from the open market. In return, it plans to add 152 new jobs in Buffalo.

The program is designed to encourage businesses to increase investment in New York communities. Most of the inexpensive power awarded recently went to Pratt and Whitney in Middletown in the Hudson region and to six businesses on Long Island.

“ReCharge NY is one of the strongest tools in the Empire State’s economic development arsenal,” Governor Cuomo said. “Low-cost power for businesses has helped create thousands of high-impact jobs in local communities, and its ripple effect of ReCharge NY can be felt statewide. Innovative initiatives like ReCharge NY continue to establish New York as a great place for businesses to thrive and grow.”

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Time Warner Cable Releases Video Showing Broadband Upgrades Underway in LA, NYC

twcmaxDespite its pending merger with Comcast, Time Warner Cable is still promising to boost broadband speeds by the end of this year in New York City and Los Angeles.

The TWC Maxx program was announced before the merger, but Time Warner says it is still going ahead with upgrades and produced a video showing some of the behind-the-scenes work in Los Angeles.

Although the video doesn’t show much more than people pointing at equipment displays and maintaining equipment racks, it does include an interview about what Time Warner is doing to prepare for infrastructure upgrades serious enough to need a bigger air conditioner for the building.

Time Warner does warn customers they may experience brief service interruptions as a result of the work.

When complete, Time Warner Cable customers in both cities will have all-digital television service and major broadband speed upgrades:

 

Current Mbps Speeds Up to

New Mbps Speeds Up to

Everyday Low Price   Customers

2/1

3/1

Basic Customers

3/1

10/1

Standard Customers

15/1

50/5

Turbo Customers

20/2

100/10

Extreme Customers

30/5

200/20

Ultimate Customers

50/5

300/20

These upgrades may be modified if/when Comcast takes over, and Time Warner has not disclosed which cities will get the upgrades next.

http://www.phillipdampier.com/video/TWC Behind The Scenes at a Los Angeles Hub Time Warner Cable 3-26-14.flv

Jay Gormley, a former reporter for KTVT in Dallas now working for Time Warner Cable takes customers on a tour of a Los Angeles Time Warner Cable hub slated to get service upgrades. (2:01)

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New York Regulators Could Derail Comcast-Time Warner Cable Merger

Gov. Cuomo

Gov. Cuomo

New York State is hardly overwhelmed with excitement over the merger of the nation’s largest and second-largest cable operators and is taking steps to give regulators enough power to derail the merger.

New York Governor Andrew Cuomo has decided the state will not be a bystander as the $45 billion deal is reviewed by federal regulators and is seeking new powers for the state’s Public Service Commission that could force Comcast and Time Warner Cable to prove their merger is pro-consumer.

The New York Post reports the new approach would be the opposite of current rules that force the PSC to carry the burden of proof that a deal hurts the public interest.

“[The proposed changes] are very important arrangements, and the state has a valid role in making sure that the consumer is protected,” Cuomo said at the State Museum in Albany.

A source told the newspaper the rules change “could essentially kill the deal.”

comcast twcSince the federal government deregulated the cable industry in the 1990s, state and local officials have had little oversight over cable service and pricing, but in many states regulators still have a voice in mergers and other business deals.

The Cuomo Administration denied the rule changes were specifically aimed at Comcast, claiming that the state was simply mirroring the type of regulations impacting gas and oil companies doing business in New York.

If the deal fails to win approval in New York, it would mean Comcast could not assume control of Time Warner Cable’s lucrative franchises in New York City and most of upstate New York. Analysts speculate Comcast is especially interested in aligning its operations in northern New Jersey with those of Time Warner Cable in New York — both part of the largest television market in the country.

nys pscSo far, Comcast does not seem concerned about Cuomo’s proposal.

“We are confident that the pro-competitive, pro-consumer benefits like faster Internet speeds and improved video options resulting from the transaction are compelling and will result in approval from the state,” Comcast said in a statement, adding that it looks forward to “presenting the multiple consumer benefits” of the deal for New Yorkers.

Reuters reports Florida, Indiana and Pennsylvania — home state for Comcast’s corporate headquarters — will also be taking a closer look at the merger.

Florida will be coordinating with U.S. Department of Justice’s anti-trust officials to review the deal.

“We are part of a multistate group reviewing the proposed transaction along with the U.S. DOJ Antitrust Division,” the Florida attorney general’s office said in an email.

Indiana is studying the impact of the merger on its state, and Pennsylvania promised an “independent review.”

The attorneys general group is focused on broadband instead of cable television in assessing the $45.2 billion deal, according to a source familiar with the effort who was not authorized to speak on the record.

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Cablevision Execs Sued for Excessive Pay; $80 Million Paid to Dolan Family Over 3 Years

Phillip Dampier March 10, 2014 Cablevision, Consumer News No Comments
Charles Dolan, Cablevision CEO

Charles Dolan, Cablevision CEO

Cablevision Systems Corp.’s board of directors have been sued by an investor for wrongfully approving “grossly excessive” compensation for Chairman Charles Dolan and members of his family who serve as executives at the fifth-largest U.S. cable company.

The board of Bethpage, N.Y.-based Cablevision, which includes Dolan’s three daughters, approved more than $80 million in pay and benefits for the firm’s founder and his son over the last three years while the company piled up financial losses, according to the plaintiff’s suit.

Charles Dolan founded the cable company in 1973. Although others at the company have taken a larger role managing its day-to-day operations, Charles still won approval of $41 million in compensation for himself over a three-year period beginning in 2010. His son James was awarded $40 million, despite the fact he seems to be losing interest in Cablevision, preferring to devote more time to his rock band – JD & The Straight Shot – where he serves as lead singer, according to the lawsuit.

The plaintiff alleges the compensation packages were excessive and a waste of corporate assets at a time when Wall Street analysts criticized the cable company for underperforming financially.

cablevision“The Dolans treat Cablevision as a family coffer, routinely entering transactions with the company that have improperly favored the Dolan family’s interests over the interests of the company and its public stockholders,” said shareholder Gary Livingston, who filed the suit.

What the Dolan family wants, they usually get. The family collectively hold shares that control about 73 percent of the company’s voting rights.

It isn’t the first time the Dolan family — now billionaires — have found themselves in court over compensation issues. In 2008, the company’s top executives agreed to pay more than $24 million to settle shareholder lawsuits accusing them of benefiting from stock option grants that were backdated.

Livingston’s case is an example of “baseless shareholder lawsuits designed simply to enrich the plaintiff and his lawyers,” Charles Schueler, a Cablevision spokesman, told Bloomberg News today in an e-mailed statement.

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Time Warner Cable Phone Customers May See Their Phone Numbers Go Unlisted

Phillip Dampier March 10, 2014 Competition, Consumer News, Frontier, Time Warner Cable No Comments

digital phoneTime Warner Cable telephone customers may find their phone numbers missing from directory assistance records and residential phone books.

This year, the cable company began charging directory publishers for its residential customer listings and some, including Frontier Communications, have refused to pay.

As a result, customers are likely to find their next copy of the White Pages thinner than it used to be.

The usefulness of telephone directories and directory assistance services have both been in decline for years as customers migrate to unlisted cell phones. But the loss of cable phone customers from phone books is a new trend. In the past, cable companies provided the listings for free to most directory publishers as a service to customers who wanted to keep their phone numbers in the directory. But now those listings are a money-maker, only available for sale.

Phil Yawman, Frontier Communications vice president and general manager for the Rochester, N.Y. area — Frontier’s largest urban market — told WXXI News the phone company opted not to buy the listings. 

Time Warner Cable spokesperson Joli Plucknette-Farmen said charging a fee for residential directory listings is accepted by the Federal Communications Commission.

Frontier, like many other phone companies, also no longer provides automatic delivery of residential White Pages listings, although the lucrative Yellow Pages will still appear on customer doorsteps. 

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Sprint Faces $400 Million Lawsuit for Stiffing New York State’s Taxman

Here comes the taxman.

Here comes the taxman.

New York Attorney General Eric Schneiderman has won the right to continue the state’s lawsuit against Sprint-Nextel Corp., for allegedly underpaying millions of dollars in taxes. If the courts find Sprint fully liable, the company could owe New York up to $400 million in damages.

Schneiderman’s lawsuit claims Sprint has been illegally pro-rating state and local sales taxes on its service plans based on actual customer usage instead of the full amount of monthly access charges that New York law defines as taxable.

The lawsuit alleges Sprint has underpaid New York’s Department of Taxation and Finance at least $100 million since 2005.

sprintnextelSince 2002, New York Tax Law has required mobile phone companies to collect and pay sales taxes on the full amount of the monthly access charges for their calling plans. For example, when a customer pays Sprint a fixed monthly charge of $39.99 for 450 minutes of mobile calling time, the law requires Sprint to collect and pay sales taxes on the entire $39.99. According to the Attorney General’s complaint, starting in 2005, Sprint illegally failed to collect and pay New York sales taxes on an arbitrarily set portion of its revenue from these fixed monthly access charges.

Sprint’s scheme is ongoing, said Schneiderman. As a result, the state claims Sprint’s underpayment of New York sales taxes is growing by about a $210,000 a week, more than $30,000 a day.

The Attorney General’s lawsuit is the first ever tax enforcement action filed under the New York False Claims Act. The Act allows whistleblowers and prosecutors to take legal action against companies or individuals that defraud the government. Fraudsters found liable under the False Claims Act must pay triple damages, penalties and attorneys’ fees. Under the False Claims Act, whistleblowers may be eligible to receive up to 25 percent of any money recovered by the government as a result of information they provide.

Sprint asked the court to dismiss Schneiderman’s lawsuit, but the New York Supreme Court ruled against the company on July 1. Sprint appealed the decision to the Appellate Division, which unanimously affirmed the July 1 ruling on Feb. 27.

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Sen. Charles Schumer Recuses Himself from Consideration of Time Warner/Comcast Deal

Schumer

Sen. Schumer

Sen. Chuck Schumer (D-N.Y.), who quickly praised Comcast’s $45 billion buyout of Time Warner Cable on speculation it would preserve jobs in New York has now recused himself from any further consideration of the merger after revelations emerged his younger brother is integrally involved in the deal.

The American Lawyer magazine named Robert Schumer, a partner at Paul Weiss, its “Dealmaker of the Week.” Schumer is leading the Paul Weiss law firm’s team advising Time Warner Cable on its sale to Comcast in a $45.2 billion all-stock deal.

“As Senator Schumer and his brother had never discussed the matter before, the piece in American Lawyer was the first Senator Schumer learned that his brother had worked on the deal,” said Max Young, a spokesman for Schumer, in a statement. “Now that he’s aware of his brother’s involvement, Senator Schumer will recuse himself from Congressional consideration of the matter to avoid any appearance of bias.”

Most of Sen. Schumer’s support for the deal surrounded a commitment he obtained from top Comcast lobbyist David Cohen to honor Time Warner Cable’s plan to add jobs to a commercial services call center opening in Buffalo. Schumer was integral in the effort to get Time Warner to locate the new call center at Compass East, the site of the former Sheehan Hospital on Buffalo’s east side. The call center is expected to employ 250-300 workers and add 150 jobs over five years.  With 1,000 Time Warner Cable jobs on the line in western New York and over 10,000 throughout the state, Schumer sought commitments from Cohen that Comcast would not slash jobs as part of more than $1 billion in cost savings expected from the deal. Cohen would only commit to honoring the jobs at the Buffalo call center and other job commitments already in the works.

Analysts expect Comcast will heavily cut middle management positions from Time Warner’s workforce and eliminate several customer care centers as part of the merger. Comcast’s massive “customer care” operation is heavily committed to offshore call centers staffed by low paid, English-challenged operators. Comcast’s poor customer service earned the company fines last summer in Seattle.

Schumer’s recusal is a blow to Comcast’s effort to win the deal’s approval in Washington, where the deal will face intense anti-trust scrutiny.

Robert Schumer told American Lawyer the deal was specifically structured to expect many of the regulatory questions.

“We obviously had to be confident that we believed the deal could get done,” he told the magazine. “There were significant negotiations around the contract terms involving the regulatory approvals, but obviously we were very comfortable with it.”

But family connections mean Sen. Schumer will not be among those championing the merger deal.

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Arris Launching Six Tuner Mega Whole House DVR for Time Warner Cable

Phillip Dampier February 12, 2014 Consumer News, Time Warner Cable 1 Comment
The Arris IP805-M DVR, produced for Time Warner Cable

The Arris IP805-M DVR, produced for Time Warner Cable

Time Warner Cable customers in New York City and Los Angeles will get a major set-top box upgrade from a next generation DVR allowing six programs to be recorded and once and viewed anywhere in the home.

Arris filed papers with the Federal Communications Commission seeking certification of its new IP805-M set-top, branded with the Time Warner Cable logo.

The new device includes six internal tuners, 1TB of recording space, and a “whole house” platform that will let customers watch recordings from other televisions or portable wireless devices within the home. The new DVR is capable of transcoding traditional QAM channels into IP video.

Time Warner Cable will unveil the new box later this year as part of plans to upgrade service in New York City and Los Angeles under the TWC Maxx project. Customers in other cities may have to wait for the device to become available.

Time Warner has fallen behind many other cable operators, satellite providers and phone companies that offer superior DVR equipment.

Arris’ newest piece of equipment, caught by FierceCable, is just one of the upgrades the company announced last week.

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Time Warner Cable Plans to Triple Broadband Speeds (If They Survive a Hostile Takeover)

Time Warner Cable today announced major improvements in its service, including a tripling of broadband speeds and equipment upgrades that will first arrive in New York City and Los Angeles.

With the cable company facing a hostile takeover effort by Charter Communications with Comcast’s help, CEO Rob Marcus sought to appease shareholders that worry the cable company’s recent lackluster results originate from outdated technology, poor customer service, and broadband speeds that are well below the cable industry average.

Time Warner Cable will have to increase capital spending to pay for the upgrades, expected to cost $3.8 billion annually for the next three years.

nycla enhancements

CEO Rob Marcus calls the effort a “transformation of the Time Warner Cable customer experience.” The upgrade program is called TWC Maxx for now inside Time Warner Cable, but will have its own brand when it publicly launches later this year.

Here are some highlights:

Marcus

Marcus

TV Service

  • Network infrastructure upgrades to enhance reliability
  • New advanced set-top boxes
  • A six-tuner DVR
  • A cloud-based interface and navigation
  • An expanded on-demand library

Internet

  • Dramatic free speed boosts for all customers
  • A new Ultimate speed tier of 300/20Mbps

Unfortunately, customers outside of Los Angeles and New York will have to wait up to two years for the upgrades to reach their community.

twcmax

“With ‘TWC Maxx,’ we’re going to essentially reinvent the TWC experience market–by-market,” said Marcus. “We’ll triple Internet speeds for customers with our most popular tiers of service, add more community WiFi, dramatically improve the TV product and, perhaps most importantly, we’ll set a high bar in our industry for differentiated exceptional customer service. We’re focused on providing the features and benefits that matter most to our customers.”

The most noticeable improvement will be free broadband speed upgrades. Customers with Standard or above Internet service will also receive the latest generation cable modems including Advanced Wireless Gateways for customers with Turbo to Ultimate tier service. Marcus did not say whether the company is ending is monthly equipment fees for cable modems.

Here are the new speed tiers:

  • Everyday Low Price - Currently 2/1Mbps – New 3/1Mbps
  • Basic - Currently 3/1Mbps – New 10/1Mbps
  • Standard - Currently 15/1Mbps – New 50/5Mbps
  • Turbo - Currently 20/2Mbps – New 100/10Mbps
  • Extreme – Currently 30/5Mbps – New 200/20Mbps
  • Ultimate - Currently 50/5Mbps – New 300/20Mbps

nyla

New York and Los Angeles Upgrade Schedule

The first four network hubs scheduled for upgrade are those in West Hollywood and Costa Mesa, Calif. and portions of Woodside (Queens) and Staten Island, N.Y. The rest of both cities will be upgraded by the end of this year.

Los Angeles customers will also see analog cable television service discontinued in favor of digital later this year. New York City has already been converted to all-digital television. Customers in both cities will be able to schedule same-day appointments and one-hour service windows.

Who Gets Upgraded Next?

Analysts expect Time Warner Cable will upgrade cities where they face competition from U-verse and FiOS after completing NYC and LA.

Analysts expect Time Warner Cable will upgrade cities where they face competition from U-verse and FiOS after completing NYC and LA.

Analysts say Time Warner Cable’s upgrade plans are more aggressive than initially anticipated and many expect the company to move quickly, especially in competitive markets, to boost subscriber numbers and cut customer defections to help convince shareholders it is worthwhile to reject Charter’s hostile takeover bid.

The most likely markets to be targeted for upgrades after New York and Los Angeles are those facing stiff competition from Google Fiber and Verizon FiOS. Cities where AT&T U-verse delivers competition are likely to come next, and those cities where Time Warner Cable only faces competition from telephone company DSL service will likely be the last to be upgraded. However, long before that, Time Warner Cable could be sold off to other cable operators that will make these upgrade plans moot.

Marcus today reiterated his rejection of Charter’s latest $132.50 a share offer. Marcus said the cable company is only interested in an offer above $160 a share, and that at least $100 of that must be in cash, with the balance in Charter stock. Charter will have trouble delivering that amount of cash without the assistance of other cable operators.

Craig Moffett with MoffettNathanson Research isn’t sure Marcus’ plans are enough to keep TWC from being sold. He expects Charter to soon increase its offer above $140 with the help of Comcast, which is willing to pay cash for Time Warner Cable systems in New York, New England, and North Carolina after a deal with Charter is complete.

http://www.phillipdampier.com/video/Bloomberg Rob Marcus Interviewed 1-30-14.flv

Robert Marcus, chief executive officer of Time Warner Cable Inc., talks about the cable company’s fourth-quarter earnings and its forthcoming upgrades, and Charter Communications Inc.’s $37.4 billion buyout bid. Time Warner Cable beat fourth-quarter profit estimates and forecast subscriber growth. Marcus speaks with Betty Liu on Bloomberg Television. (8:38)

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