Home » Public Policy & Gov’t » Recent Articles:

Rogers Ripoffs: Company Sells Internet Service to Customers Without Computers

Phillip Dampier January 15, 2018 Canada, Consumer News, Public Policy & Gov't, Rogers, Video 2 Comments

A special investigation by the Canadian Broadcasting Corporation found Rogers’ call center employees engaging in high pressure sales tactics, pushing customers to buy products and services they do not need.

In emails and interviews with Go Public, a CBC consumer investigations unit that seeks to hold corporate and government powers accountable, more than a dozen Rogers workers report they’re under “extreme pressure” to hit sales targets or risk termination.

“You’re supposed to look at a customer’s account and sell them cable, home phone, home security, a credit card — whatever is missing,” says an employee who currently works at a large Rogers’ call center in Ottawa and has asked CBC to conceal his identity to avoid retribution in his workplace.

Employees report they are constantly under stress to meet sales quotas, which are not eased even an employee is out sick. Employees know Rogers will terminate call center workers that do not sell enough products to customers, which has created an atmosphere where some desperate workers sign up customers for services they do not understand or cannot use to keep their jobs.

One employee told the CBC he will sign up seniors for internet service, and inform them a technician will come to their home  “to install a modem for their TV,” despite the fact modems are used with internet service, not cable television.

“We’re giving internet service to customers who actually do not have a computer,” he says.

The alleged corrupt business practices begin with the first job interview, where ex-employee Jessica Robinson was asked just how strongly committed she was to sell Rogers’ services.

CBC relied on several whistleblowers that are or were employees at Rogers Communications call centers. (Image courtesy of: Christian Patry/CBC)

“When I had my interview … they actually asked me ‘If an elderly lady calls in to cancel her sports package on her TV because her husband just died, are you going to convince her to keep it and add more?'” says Robinson.

Robinson echoed many other employees who told CBC they were expected to sell on every call, no matter the reason. If a customer calls to cancel service or report a service problem, before they get help, they will get a sales pitch.

To keep customers buying, representatives sometimes wrongly claim buying more products will result in a lower bill because of bundling discounts.

“Even customers who have home phone service, I say, ‘How about I add a second line for your home phone and I’ll give you a discount for your other product?’ Which makes no sense,” a representative said.

What the call center workers often don’t tell customers is they are also sneaking other items on to customer bills. The biggest are installation and activation fees for the services being pitched, which often run $25-50.

Customers are sure to call back 1-2 months later when a much higher-than-expected bill arrives, and those call center workers are trained to handle that as well.

That is what happened with Sheldon Nider in 2017 when the 72-year old resident of Richmond, B.C., called to upgrade his phone and inquire about adding a 25% corporate discount he was entitled to receive. After 90 minutes on the phone, a Rogers representative told him he did qualify and also sold him a phone for his granddaughter. The following month, a 17-page bill arrived in the mail. Nider’s bill unexpectedly jumped $135 a month and, just as bad, he did not get the corporate discount he originally called about.

“I think it’s a bait and switch because they bait you with a discount, then switch it and don’t give it to you. It’s as simple as that,” Nider told CBC.

Rogers later admitted in an email message to Nider the sales agent “misinformed” him, but that was all they were willing to do. When Go Public later contacted Rogers, the company grudgingly offered a $360 credit to address other issues, but still refuses to provide the corporate discount or end the expensive term contract he is now stuck with for the next few years. When Nider now calls for an explanation about other mysterious charges on his bill, the representatives seem empathetic, but don’t deliver customer satisfaction.

“They teach us how to be empathetic. To say things like ‘I understand how frustrating that must be,'” Robinson says about customers calling in to complain. “I’m like, why? We’re the ones screwing them over.”

Customers and workers are both left stressed about the insistent sales tactics. Customers don’t appreciate having to fight their way through a sales pitch to get their concerns addressed and employees are constantly worried they will be terminated because many customers either don’t want or cannot afford to add anything else to their bill.

Rogers employees claim their managers are well aware of these tactics and are also the source of much of the pressure. Despite a responsibility to monitor and manage ethical business practices on behalf of Rogers, managers are also rewarded for achieving sales quotas and bend over backwards to protect the most aggressive and unethical employees by avoiding monitoring their calls or questioning their sales.

Rogers sells cable TV, home phone, internet, cell phones, home security and other services. Its banking subsidiary even offers its own credit card.

“Managers know these reps are unethical,” says James Woodward, who worked in a Rogers call center two years ago. “So they try not to listen to those calls.”

Woodward told CBC managers don’t care what you sell as much as what you didn’t.

“I would get five cellphone activations in a day and sell a bunch of cable products, and then my manager would say, ‘No credit card?’ It was always what I didn’t do.”

When a customer calls to drop services or cancel altogether, there is a good chance that call will be dropped, because reducing your bill or closing your account will count against the employee’s sales targets.

“That’s why most customers have to call in three, four, five times to get a problem resolved,” says the employee working at Rogers’ Ottawa call center. “This is normal.”

At the end of each month, employees who fail to meet their targets can be forced to take “performance improvement” courses. If sales numbers still do not improve, they are likely to be terminated.

A Rogers spokesperson told the CBC the company’s sales targets are “achievable” and employees can be terminated for a number of reasons other than missing sales expectations. But Rogers’ Paula Lash added, “While we do not believe the concerns raised represent our values or sales practices, we take them very seriously and we will work with our team to respond to these concerns.”

An Ottawa-based public advocacy group, the Public Interest Advocacy Centre (PIAC) now wants the Canadian Radio-television and Telecommunications Commission (CRTC) to open a public inquiry on the matter. PIAC’s executive director John Lawford says the CBC report exposes a loophole in Canadian regulations, which do not currently cover industry sales practices.

Lawford says these sales tactics, and other similar incidents involving other large Canadian phone and cable companies, appear to directly target seniors, grieving spouses, and the visually impaired community.

“It’s completely appropriate for the CRTC to say, ‘We’re going to set out rules,'” adds Lawford. “I think it’d be quite eye-opening to have an open, public consultation at the CRTC about sales practices of big telecom companies.”

The former and current employees at Rogers who communicated with the CBC about the sales practices offered their own suggestion: “Stop increasing our targets. Stop pressuring us to try to make a sale on every call. And remove these [performance improvement] plans to get you fired.”

CBC-TV’s “The National” reports on Rogers Communications’ pushy sales tactics that sell customers services they don’t want or need. (4:09)

Frontier Communications’ Broken Promises to Mountain Counties of North Carolina

Frontier Communications customers in the mountainous western counties of North Carolina have run out of patience waiting for web pages to load and upgrades to arrive, despite repeated promises from the phone company that its aging copper-wire DSL service would improve over time.

Stop the Cap! readers in the region pointed us to a special investigative report by WLOS-TV, Asheville’s ABC affiliate, which reports Frontier service is so bad, speeds under 1 Mbps are common. The station saw examples of Frontier unable to supply even modest speeds of just 3 Mbps.

“I’d rather stab myself than rely on Frontier’s fake internet access,” says our reader Darrell, who lives near Brasstown. “The only thing high-speed at Frontier is how fast they hang up on you when you call to complain.”

Frontier sold him “up to 10 Mbps” speed and instead struggles to deliver 1 Mbps, despite repeated service calls and promises of improvements.

“They keep telling us the federal government has to come up with money to help upgrade the area, and I keep wondering why a private company needs our tax dollars to build a network they will profit from for years,” Dan said. “If they cannot do the job, maybe the town should because they at least answer to us.”

Aiden Davis, who lives near Asheville, said he’d rather have the government give money to the cable company to extend broadband to his home, which is located about 1/4th a mile away from the nearest cable connection.

“At least the cable company can give me speeds DSL never will,” he told us.

Reporters at WLOS visited Murphy, N.C., a community of 1,600 people in Cherokee — the westernmost county of the state.

Craig Marble escaped Washington, D.C. to live in the picturesque community nestled in the mountains. But his efforts to telecommute to his IT employer are frustrated by Frontier’s DSL service, which is supposed to provide up to 3 Mbps to Marble and his neighbors. But Frontier delivers far less than it advertises.

Western North Carolina

“It’s just a comedy of errors except that it’s not funny. It takes five minutes to load a single webpage,” Marble said. “This should be 3.0, not .3 [Mbps],” Marble said while showing reporters various speed tests for his service, resulting in .3 and .5, and .6 Mbps at various times throughout the morning and afternoon.

More than 50 similar complaints have been filed with the North Carolina Attorney General, some about internet speed, others about service, outages, and billing problems.

“If there are companies out there making representations to consumers that they can not back up and we hear from consumers, we will absolutely take action on their behalf,” Attorney General Josh Stein told the station. “If we determine that Frontier is not complying with the law, we’ll hold them accountable, but there’s a lot of work we still need to do.”

But residents contend Stein does not seem to be in a hurry to chase down Frontier, and may not have the resources to follow through even if he wanted. After the Democrat won the North Carolina Attorney General race and took office in 2017, the Republican-controlled legislature slashed $10 million from his budget, forcing layoffs of dozens of staff attorneys and limiting his office’s ability to act.

Stein told the TV station he wrote to Frontier about internet speed issues in North Carolina, but hasn’t received a response.

Frontier responded to WLOS with a statement, reading in part:

“Copper-based internet service is difficult to represent consistently as it is subject to distance limitations. That is why it is sold as offering ‘up to’ a specified speed. Not all customers will have the same DSL service.”

But some customers report speeds are consistently better at times when most people are unlikely to be online, suggesting Frontier may be overselling its DSL service — forcing too many customers to share a limited bandwidth connection.

“When it is 2:30 in the morning, we always have the best speeds,” Davis reported. “They always drop as soon as the kids get home from school and keep dropping into the evening. During recent winter storms, speeds dropped to the point where the internet was unusable.”

Attorney General Joel Stein

“It’s not a technical problem, it’s a ‘reluctance to spend money to fix it’ problem,” he added.

Frontier frequently responds to speed complaints with press releases touting recent internet service improvements made possible through the federal government’s Connect America Fund, without always disclosing many of these projects pay to extend internet access into areas where it did not exist before, not improve service for customers that already have it.

Frontier’s willingness to spend its own money on broadband improvements is often challenged by Wall Street’s demands for a dividend payout to shareholders, sending a significant portion of Frontier’s incoming revenue to investors. The company has reduced its dividend during difficult times to invest in limited upgrades. But critics claim Frontier’s devotion to a robust upgrade program comes second to shareholders and depends mostly on federal government handouts.

“The company struggles to spend $14.4 million on upgrades through 2020, but had no problem spending more than $10 billion to buyout Verizon in Florida, California, and Texas,” complained Darrell. “When you ask them specific questions, you learn that upgrade spending is window dressing that won’t address their speed problems across this part of the state.”

Marble tells WLOS that seems to be his impression as well, noting Frontier representatives didn’t give him much hope.

“They said — several of them said, ‘There are no plans for upgrades in your area, period’,” Marble said.

The TV station sent Frontier a detailed questionnaire, to which the company responded, taking care to disclaim some of the upgrade benefits many of Frontier’s own press releases seem to imply:

Question: How many customers does Frontier service in the following counties: Buncombe, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, Mitchell, McDowell, Polk, Rutherford, Swain, Transylvania, Yancey? Answer: I’m not familiar enough with cities in counties etc. We have customers in the following towns: Andrews, Bryson City, Buncombe, Cashiers, Cherokee, Cullowhee, Fontana, Franklin, Garden City, Glenwood, Hayesville, Highlands, Madison, McDowell, Mitchell, Murphy, Robbinsville, Suit, Sylva, Weaverville and Yancey. Of those we serve, some are only telephone customers, some internet only customers and still others both phone and internet customers. While we do not provide market specific customer counts in any of our operating areas for competitive reasons, it is fair to say that our customer count in the areas I referenced is in the tens of thousands.

Question: How is Frontier using the Connect America Funds in western North Carolina? What’s being done to upgrade or add service? How is the money being spent? Answer: Frontier is installing fiber into network support buildings or units in western North Carolina to enable more capacity over our existing copper network.

Question: How many new customers has Frontier been able to provide service to, as a result of Connect America funds? Are the funds being used more for acquiring new customers or is it more upgrading service for existing customers and in that case, what have the service improvements been like? Answer: It starts with upgrading the network to provide a minimum of 10 Mbps service identified as CAF households to meet the requirements of the CAF Fund as established by the FCC. Customers along the path of these improvements, both existing and those who are currently not customers, can take advantage of new broadband upgrades though not necessarily at the 10 Mbps threshold. However, it is not designed to extend the network to different operating areas.

Question: How much funding has Frontier received in Connect America funds for upgrades to broadband service in those western North Carolina counties? Answer: As of 2016, Frontier began receiving approximately $3.6 million a year from the CAF to expand and upgrade the company’s network to more than 11,000 locations in North Carolina by the end of 2020, to include areas in western NC. In total, Frontier has accepted the FCC’s CAF II offer of over $330 million annually across 29 states during the six-year program, and must meet annual benchmarks for each state beginning in 2017 for passing a specified percentage of designated households.

Question: In which counties has Frontier received funds and is using them to improve or add service? Answer: We have previously used CAF II funds in Macon, Clay, Jackson and Swain counties.

Question: What projects/upgrades have been completed to date, since Frontier started receiving Connect America funds? Answer: In addition to the counties referenced above, representative counties in this latest round in 2017 included households in Cashiers, Cherokee, Franklin and Hayesville. By the of this phase of CAF II funding the intention is to have touched all of the counties we serve in Western NC, barring anything unexpected.

Question: Has Frontier over-promised service in areas in any of the above mentioned counties? If service has been over-promised, what problems is that creating and what is the remedy for solving that problem? Answer: I’m not sure what this question is asking. I would say that copper-based internet service is difficult to represent consistently as it is subject to distance limitations. That is why it is sold as offering “up to” a specified speed. However, CAF funding should have a positive impact on the end user experience.

Question: What is the best way customers who feel they’re being underserved or not getting the service that they’ve paid for can reach out to report a problem? Answer: They should call 1-800-921-8101.

Question: Has the state of North Carolina, through the state’s Attorney General office or Consumer Protection Division reached out to Frontier over service issues, failing to deliver on service promises made by the company and if so, what’s been the response back to the state? Answer: We receive individual customer complaints from these agencies, usually revolving around availability of service or insufficient internet speeds. Our marketing for internet service and our terms of service recognize that some customers may not have the same experience as others, largely because of the distance limitations of DSL service or congestion in the network. We are attempting to address both of these issues through a combination of normal capital budgets and the additional CAF II funding.

Question: What are some of the issues Frontier runs into in expanding or improving broadband service or internet access and speed issues in western North Carolina? Answer: Mostly there are geographic challenges. However, customer density is also a challenge, or lack thereof. Balancing the significant cost of expanding broadband availability in rural areas versus the potential return on that investment is always a challenge. However, we are grateful for the Connect America Fund to help spur some of that investment and know that those customers who have been impacted by the expanded capacity appreciate the service.

Question: Anything you would like to add about the Connect America funds? Answer: We are fortunate to be a participant in the CAF funding process and grateful to the FCC for making it possible. Our hope is that customers in Western NC will have better internet connectivity experiences as we move along toward the culmination of this funding in 2020.

If you live in North Carolina and want to file a complaint about your internet service with the Attorney General’s Office click here.

WLOS-TV in Asheville, N.C. aired this special investigative report about Frontier Communications’ performance problems in western North Carolina. (5:03)

Comcast Laid Off Hundreds Before Christmas and Kept it Quiet With Non-Disclosure Agreements

Phillip Dampier January 4, 2018 Comcast/Xfinity, Public Policy & Gov't 6 Comments

Two weeks before Christmas and on the cusp of passage of the Republican-sponsored corporate tax cuts that promised better pay and more jobs for workers, Comcast fired at least 500 door-to-door sales employees and required them to sign non-disclosure agreements in return for a severance package.

Managers, supervisors, and direct sales staff in Chicago, Florida, and across Comcast’s Central division — including the midwest and southeastern U.S., were abruptly terminated around Dec. 15, according to documents obtained by the Philadelphia Inquirer.

Most of the workers trudged door to door in neighborhoods and apartment complexes selling Comcast services to residential customers. Comcast has attempted to keep the layoffs quiet by requiring laid off workers to sign a non-disclosure agreement if they want a severance package. After being confronted by the newspaper, a Comcast spokesperson confirmed the layoffs.

“The Central Division is creating a new territory-based sales model that will connect more closely with residential prospects and customers in their communities,” Comcast spokeswoman Jennifer Moyer said Thursday. “By giving highly trained sales professionals direct responsibility for entire neighborhoods, we can provide a better experience for those who are interested in our services, during and after the sale.”

Because the layoffs only affect some of Comcast’s regional divisions, additional job cuts could be forthcoming if the company adopts its new sales model nationwide.

The Philadelphia Inquirer could not identify affected employees because Comcast required laid-off workers to sign Non Disclosure Agreements (NDAs).

Embittered employees are upset having to remain anonymous talking about their jobs disappearing just before Christmas. Comcast also gets to avoid paying the fired workers its heavily promoted $1,000 bonus because Comcast conveniently eliminated their positions shortly before announcing the bonus.

The Trump Administration promoted the corporate tax cut as a Christmas gift to the middle class, claiming it would inspire companies to add jobs and boost worker pay. At Comcast, the tax cut will provide hundreds of millions in tax savings annually that are expected to be mostly returned to shareholders. Corporate executives are also expected to benefit through significantly higher bonuses tied to the increased cash on hand from tax savings and the higher value of Comcast’s stock. Comcast has made no commitments about hiring new workers, but did claim it would invest up to $50 billion in its company’s operations, which is roughly comparable to what Comcast traditionally spent before the tax cuts were announced.

According to the newspaper, it seems Comcast treated its shocked workers with about as much sensitivity as it gives its customers:

Rumors of an employee cutback among the sales people at Comcast had been percolating for weeks. But the disclosure of the terminations came as a shock when the employees were called into a company meeting in the southeastern U.S. in mid-December.

They were told that a new Comcast direct sales system requires fewer bodies “and as of today everyone in this room does not have a job anymore,” the terminated Comcast employee said.

One employee kept holding his head and saying “I can’t believe it. I can’t believe it.” Another worried about how to find new health-care coverage. A third employee was close to purchasing a new home and feared the personal income hit.

Comcast direct sales employees earned $50,000 to $100,000 through a low base salary and commissions, the terminated employee said. The commissions ranged between roughly $75 for a new Internet Plus customer to $350 for a new customer who ordered a triple-play package with home security, the former employee said.

“I don’t know how you do this right before Christmas.”

Mother Of All Service Outages: Liberty Cable Promises Puerto Rico Full Restoration in Mid-2018

Liberty Cablevision of Puerto Rico has estimated it will take as long as June of this year to fully restore cable and broadband service to Puerto Rico.

It has been over 100 days since Hurricane Maria devastated Puerto Rico and the U.S. Virgin Islands. At least 45% of Puerto Rico remains without any electricity, and the U.S. Army Corps of Engineers estimates it will take until May to fully restore power — eight months after the hurricane hit.

The island’s well-publicized power scandal with a politically-connected contractor also involves a decrepit utility, likely corruption in contract awards, incompetent management, and political interference from conservative groups who want to privatize the island’s utility and sell off its assets to corporate interests and entrepreneurs competing to turn the island into an experimental laboratory for renewable energy sources. All contribute to a slowdown in power recovery because no plan has adequate backing and sufficient resources to quickly bring power back online. Instead, mutual aid assistance from U.S. utilities is gradually rebuilding and strengthening the island’s existing power grid.

Liberty Cable’s original service area.

Liberty Cablevision claims many of its outages are power-related. When power is restored, their service will return as well. But many of their former customers will not. More than 140,000 Puerto Ricans have left since the storm hit Sept. 20 and some experts estimate more than 300,000 more could leave in the next two years. That’s on top of a similar number that have already left over the last decade as a result of the perpetual economic crisis on the U.S. island territory of 3.4 million.

Liberty is rebuilding significant parts of their network, spending millions to replace damaged coaxial cable with fiber optics, especially in areas closest to the eye of the hurricane where damage was greatest.

Liberty Global, controlled in part by cable magnate John Malone, this week completed spinning off Liberty Cablevision of Puerto Rico to Liberty Latin America, a new independent, publicly traded company. Included in the spinoff are Cable & Wireless Communications, a familiar telecom company serving Caribbean islands, parts of Latin America and the African island nation of the Seychelles, and VTR – Chile’s largest cable company.

A portable cell site

Cellular/Cable/Telephone

As of Dec. 29, 11.0% of Puerto Rico’s cell sites remain out of service. One county, Vieques, has greater than 50% of its cell sites out of service.

Satellite Cells on Light Trucks (COLTs) have been deployed in Aguadilla, Arecibo, Cayey, Coamo Sur, Fajardo, Guayama, Manati, Mayaguez Mesa, San German, Vega Baja, and Yauco and Terrestrial Cells on Wheels (COWs)/COLTs in Humacao, Quebradillas, Rio Grande, and Utuado.

U.S. Virgin Islands: Overall, 20.5% of cell sites are out of service. 50% of cell sites in St. John are out of service.

The FCC has received reports that large percentages of consumers are without either cable services or wireline service. While the companies have been actively restoring service, the majority of their customers do not have service because commercial power is not yet available in their respective areas. In Puerto Rico, there are no major telecom switches still affected.

Broadcast Stations

When broadcast stations are listed as “suspected to be out of service,” the statement is based on field scanning of relevant bands. Stations listed may be operating on reduced power or on a reduced schedule.

Television

Puerto Rico

  • 5 TV stations are confirmed operational (WKAQ, WIPR, WNJX, WTIN, WORO)
  • 2 TV stations are suspected to be out of service (WIPM, WELU)
  • 70 TV stations have been issued Special Temporary Authority to be offline
  • 30 TV stations have unconfirmed status

U.S. Virgin Islands

  • 14 TV stations have been issued Special Temporary Authority to be offline
  • 2 TV stations have unconfirmed status

AM Radio

Puerto Rico

  • 42 AM radio stations are confirmed operational (WA2X, WABA, WALO, WAPA, WBMJ, WCMN, WCGB, WCPR, WDEP, WENA, WEXS, WGDL, WI2X, WI2X, WI3X, WIAC, WIPR, WISO, WKAQ, WKFE, WKJB, WKUM, WLEO, WLEY, WMDD, WMNT, WMSW, WOIZ, WOQI, WORA, WPAB, WPPC, WPRA, WPRP, WSKN, WSOL, WTIL, WUNO, WUPR, WVJP, WXEW, WYEL)
  • 8 AM radio stations are suspected to be out of service (W227, WJDZ, WNVE, WVQR, WYAS, WZCA, WZMT, WZOL)
  • 21 AM radio stations are confirmed out of service by the Puerto Rican Broadcast Association (WBQN, WCMA, WDNO, WEGA, WFAB, WGIT, WHOY, WIBS, WIDA, WISA, WIVV, WJIT, WKVM, WLRP, WNEL, WNIK, WOLA, WOSO, WQBS, WRSJ, WUKQ)
  • 1 AM radio station has unconfirmed status
  • 2 AM radio stations have been issued Special Temporary Authority to be offline

U.S. Virgin Islands

  • 2 AM radio stations are confirmed operational (WSTA, WUVI)
  • 2 AM radio stations are suspected to be out of service (WDHP, WSTX)
  • 1 AM radio station has unconfirmed status

FM Radio

Puerto Rico

  • 55 FM radio stations are confirmed operational (WAEL-FM, WCAD, WCMN-FM, WCMNFM3, WCMN-FM6, WEGM, WERR, WERR-FM1, WERR-FM2, WERR-FM3, WFDT, WFID, WIDI, WIRI, WIVA-FM, WKAQ-FM, WKAQ-FM1, WKAQ-FM2, WLUZ, WMAA-LP, WMEG, WMIO, WNNV, WNRT, WNRT-FM1, WNRT-FM2, WNVM, WODA, WORO, WOYE, WPRM-FM, WPUC-FM, WPUC-FM1, WQML, WRIO, WRRH, WRTU, WRXD, WTOK-FM, WTOKFM2, WTPM, WTPM-FM1, WVDJ-LP, WVIE, WVIS, WVJP-FM, WVJP-FM2, WXYX, WXYXFM1, WXYX-FM2, WZAR, WZIN, WZNT, WZNT-FM1, WZOL)
  • 8 FM radio stations are suspected to be out of service (W227CV, WJDZ, WNVE, WVQR, WYAS, WZCA, WZMT, WZOL-FM3)
  • 17 FM radio stations are confirmed out of service by the Puerto Rican Broadcast Association (WCAD-FM1, WCAD-FM2, WCRP, WELX, WIDA-FM, WIOA, WIOA-FM1, WIOC, WNIK-FM, WQBS-FM, WQBS-FM1, WUKQ-FM, WUKQ-FM1, WXHD, WXLX, WYQE, WZET)
  • 3 FM stations have been issued Special Temporary Authority to be offline
  • 28 FM radio stations have unconfirmed status

U.S. Virgin Islands

  • 2 FM radio stations are confirmed operational (WVIE, WZIN)
  • 1 FM radio station is suspected to be out of service (WVIZ)
  • 1 FM radio station has been issued Special Temporary Authority to be offline
  • 19 FM radio stations have unconfirmed status

Fierce Cable Predicts 2018 Will Be A Year of Big Cable Mergers

While giant cable company mergers unexpectedly took a breather in 2017, Fierce Cable predicts this year isn’t likely to be a repeat of last year.

“With polls showing Democrats poised to begin sweeping back into power with the 2018 midterm elections, look for cable operators to make hay on the current regulatory climate and start turning their rivals into that most precious of resources: scale,” writes Daniel Frankel.

With time for large cable operators to get easy approval of merger deals from deregulation-minded Republicans potentially running out, 2018 could bring dramatic consolidation in the cable industry, with Comcast a likely buyer and Charter Communications a potential seller… if the offer is good enough.

Many industry observers expected the first year of the Trump Administration to be a banner year for cable mergers, especially with the entry of Altice, a European cable conglomerate known for its willingness to overpay to acquire cable operators. Altice has since run into significant financial challenges and investor blowback, forcing the company to shelve acquisition plans for now and focus on debt reduction and developing a stronger business plan to operate its ailing cable and wireless properties in Europe. Altice USA, which owns Suddenlink and Cablevision, has not shelved its plans to upgrade many of its customers to fiber to the home service, but is also no longer seen as an immediate bidder for Charter, Cable One, or WideOpenWest.

Fierce Cable expects Comcast to respond to AT&T’s merger with Time Warner, Inc., assuming the deal successfully overcomes Department of Justice objections in court, and 21st Century Fox’s asset sales to Disney. Both transactions threaten to consolidate programming production and distribution around an even smaller group of media giants, which could challenge Comcast’s NBCUniversal unit as well as the cost of cable programming networks. Comcast has shied away from acquisitions after an embarrassing failure of its attempt to buy Time Warner Cable a few years ago.

If Comcast wants to build scale, it would naturally target an acquisition of Charter Communications, the second largest cable company in the country. The deal would give Comcast dominance over the New York and Los Angeles media markets and broadband service provision across most major American cities. Comcast could also seek a less controversial acquisition of Cox Communications, one of the few major independent cable companies left. But Comcast could also seek acquisitions in Hollywood to bolster its production capabilities.

Most other cable acquisition options would be considered scraps by the largest operators. Altice could be persuaded to prematurely exit the American market and sell Cablevision and Suddenlink if convinced it has no chance of building adequate scale to stand with Comcast and Charter. Beyond that are smaller rural and regional operators including Mediacom, Midco, WOW!, GTT, RCN, and many others that serve fewer than one million customers.

Company executives may be hoping the objections to the AT&T/Time Warner deal are an anomaly for the Trump Administration. But it’s clear that whatever smooth waters exist for upcoming mergers will get choppy as the midterm elections approach. Should Democrats win back the House and/or Senate, life will get considerably more difficult for future media consolidation deals.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!