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Cogeco’s Atlantic Broadband Acquires Harron Family’s MetroCast in $1.4 Billion Deal

Phillip Dampier July 10, 2017 Atlantic Broadband, Cogeco, Consumer News, Metrocast Comments Off on Cogeco’s Atlantic Broadband Acquires Harron Family’s MetroCast in $1.4 Billion Deal

Montréal-based Cogeco Communications today announced its U.S. Atlantic Broadband subsidiary was growing larger with the acquisition of MetroCast’s cable systems in Maryland, Maine, New Hampshire, Pennsylvania, and Virginia in a deal worth $1.4 billion.

MetroCast, owned and operated by Harron Communications, LP is one of the few remaining independent, family owned cable firms. The Harron family has been in the cable business for more than 50 years.

Two years ago, MetroCast sold its Connecticut cable systems to Atlantic Broadband. Now, the Harron family seems ready to exit the cable industry altogether with the sale of its remaining cable systems. Today’s acquisition will transfer 120,000 internet, 76,000 video, and 37,000 phone customers to Atlantic Broadband.

Cogeco will also receive $310 million in U.S. federal tax benefits from the transaction.

“The acquisition of the MetroCast cable systems allows Atlantic Broadband to increase its presence in the growing and lucrative U.S. cable market,” said Louis Audet, president and CEO of Cogeco Communications. “With this acquisition, we are increasing our customer base in attractive markets adjacent to the ones we currently serve.”

Spectrum Continues Its Campaign to Encrypt All TV Channels

Phillip Dampier July 3, 2017 Charter Spectrum, Consumer News 3 Comments

Spectrum cable subscribers still watching cable television without a set-top box will soon need one, or a functional equivalent, for every television connected in their home or business as Charter Communications continues its effort to encrypt all cable channels.

The campaign has now reached Kentucky, where Spectrum is preparing to encrypt every television channel on the lineup and is sending notices to its residential and commercial customers.

The University of Kentucky is working to get the word out to facilities operated by UK they may lose all television service as early as July 11 if they don’t take action.

Encryption forces customers to use set-top boxes or other equipment, often at an additional expense, to continue watching cable television service. Cable companies use encryption to reduce signal theft and eliminate the need to send trucks to disconnect customers at the pole. Instead, Charter will simply deauthorize a customer’s set-top box or other equipment so they can no longer watch when the customer cancels or does not pay their bill.

FCC Quietly Allows Sinclair to Take Control of 7 More TV Stations in Friday Night News Dump

The Federal Communications Commission on Friday quietly approved the transfer of seven high-power television station licenses owned by Bluestone Television/Bonten Media to Sinclair Broadcast Group without informing the sole Democratic commissioner Mignon Clyburn of the agency’s action.

An FCC letter informing Sinclair it approved of the transfer of licenses also included an authorization allowing KCFW (NBC) Kalispell, Mont., to continue operating as a satellite station of KECI (NBC) Missoula.

“Given that KCFW is the only full-power television station in its community of license, is located in a community of license with limited economic viability, and is costly to operate as a stand-alone station, it is unlikely that an alternative operator would be willing and able to purchase or operate the station as a stand-alone facility,” the FCC wrote. “Moreover, KCFW has operated as a satellite of KECI under Commission authority for almost 50 years, most recently reauthorized in 2007 in the Missoula DMA, and we see no evidence in the record that continuing the satellite exemption will harm competition in that market,” the FCC added.

The transfer may put Sinclair over the FCC’s station ownership cap, unless the agency changes its rules to favor Sinclair’s ongoing expansion. Sinclair is already the nation’s biggest owner of local television stations.

Commissioner Clyburn was reportedly not happy to learn about the FCC’s decision only through media reports and tweeted her displeasure this morning, calling the announcement part of a “Friday night news dump.”

The stations involved:

  • WCYB (NBC) Tri-Cities, Tenn./Vir.
  • KRCR (ABC) Chico-Redding, Calif.
  • KECI (NBC) Missoula, Mont.
  • KCFW (NBC) Kalispell, Mont. (satellite station simulcasts KECI)
  • KTXS (ABC) Abilene-Sweetwater, Tex.
  • KTVM (NBC) Butte-Bozeman, Mont.
  • KAEF (ABC) Eureka, Calif.

Most of the television stations are in smaller television markets but will still profit Sinclair because most operate profitable local news operations.

Sinclair’s growing domination of local television station ownership concerned HBO’s John Oliver enough that he spent almost 20 minutes of his Last Week Tonight with John Oliver show discussing how Sinclair’s owners have a history of skewing local newscasts to cater to its own political agenda. (Strong Language) (19 minutes)

CenturyLink Drops Hard Usage Cap Trial; “No Longer Aligns With Our Goals”

Phillip Dampier July 3, 2017 CenturyLink, Consumer News, Data Caps 1 Comment

CenturyLink has ended a year-long trial of usage-based billing for its customers, claiming charging for excess usage “no longer aligns with our goal to simplify offers and pricing for our customers.”

The data cap and overlimit program was first market tested in Yakima, Wash. in 2016, but has now been dropped with no plans to extend usage-based billing to any other CenturyLink customers.

“If you incurred overage charges related to this program, those charges will be credited and appear on your July monthly billing statement,” CenturyLink reports. “No action is required on your part, and there are no impacts to your existing CenturyLink service.”

CenturyLink does have a program of “soft caps” — generally unenforced data allowances for its customers:

  • 1.5Mbps plan: 150GB
  • 1.5Mbps-999Mbps: 250GB
  • 1Gbps: No download limit

“CenturyLink will weigh variables such as network health, congestion, availability of customer usage data, and the line speed purchased by the customer as factors when enforcing this policy,” writes the phone company. “Customers who are subject to enforcement receive a web notification and/or written communication from CenturyLink providing notice that they have exceeded their usage limit.”

In practice, very few customers are ever bothered by CenturyLink regarding their usage.

Charter Spectrum Introduces $19.95 Sports-free Online Cable TV Alternative

If you can’t beat ’em, join ’em.

Charter Communications this week quietly announced a cord-cutters cable TV package that works on your tablet, smartphone, Xbox One, Roku, and Samsung Smart TVs.

Spectrum TV Stream ($19.95/mo) gives access to a sports-free, slimmed down basic cable TV package of popular cable networks and, rare among online streaming services, access to your local ABC, CBS, FOX, NBC, and PBS stations. You also get access to Spectrum News (where available), a 24/7 local news service carried over from the days of Time Warner Cable and Bright House Networks.

The basic cable networks covered include:

  • CNN
  • Bravo
  • A&E
  • AMC
  • Discovery
  • Food
  • TBS
  • Lifetime
  • FX
  • National Geographic Channel
  • HGTV
  • The History Channel
  • Freeform
  • Hallmark Channel
  • Hallmark Movies
  • Animal Planet
  • E!
  • Lifetime Movie Network
  • Oxygen
  • TNT
  • TLC
  • USA
  • WGN America
  • Spectrum News

Remarkably, customers can buy premium movie channels in this package for less than what they would pay with Spectrum’s traditional cable TV package. For 36 months, customers can get HBO, Showtime, Starz, Starz Encore, and The Movie Channel for $15 more per month (or $7.50 each). Oddly, Cinemax and Epix are not included.

(Image courtesy of Ian Littman)

Customers who sign up will also be able to access Spectrum TV apps and have an authenticated subscriber login to access on-demand programming from the respective websites of the networks included in the package. Spectrum also will include about 5,000 free on-demand streaming titles.

There are some restrictions with the service. You must be a Spectrum broadband customer. We are uncertain if customers still holding on to their Time Warner Cable or Bright House packages will qualify. You must not owe any past due balance to Charter Communications (or TWC or BH), and it seems likely Spectrum will charge you the Broadcast TV surcharge (usually $4-7 a month depending on the market), plus taxes and fees.

There may be availability restrictions as well. We do know the service is available in parts of California and Texas, but you may need to call to ascertain availability in your area.

To protect the cable TV industry from any undue competition, the service is only being sold in Charter/Spectrum service areas, so if you thought this would help you cancel Comcast or Cox cable TV, forget it.

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