Comcast has dropped sports network beIN Sports off the lineup after its contract with the cable company expired July 31.
Customers who tune to the channel will find a series of rotating on-screen messages explaining the network was switched off because the renewal price was too high:
Have you heard about a disagreement between beIn Sports and Comcast?
Every month Comcast has to pay networks to bring their programming to you. That’s right, we pay the network. Not the other way around.
Now beIN sports is asking for a major increase in fees for the channel you already have, which could have a big impact on your bill.
beIN Sports won’t allow Comcast to carry its channels until this is resolved.
beIN Media Group, a spinoff of Al Jazeera Media Network, owns the network and has already filed a complaint against Comcast for violation of the deal conditions imposed by the FCC after approving the merger of Comcast and NBCUniversal. The complaint alleges Comcast is giving preferential treatment to its own sports networks, a violation of program carriage rules. That complaint remains pending.
“We are deeply disappointed that despite our best efforts over the last year to resolve the situation, millions of Comcast XFINITY subscribers have lost access to the content they love. We are happy to extend existing terms while we continue to negotiate, but unfortunately Comcast would rather continue to charge the same while taking away valuable and loved content from customers,” said Antonio Briceño, beIN Sports’ deputy managing director for the U.S. and Canada. “The truth is, we face a disheartening trend of media consolidation, where the big get bigger and innovative brands like ours that serve diverse audiences get pushed-out. This is almost always to the detriment of consumers who end up paying the price. We hope it stops now.”
Earlier this month, a standing room only crowd packed the offices of Rockwood Electric Utility (REU) in Rockwood, Tenn., despite the fact the meeting was held at 10 a.m. on a Friday morning.
Local residents were there on a work day to listen to area providers and local officials discuss rural broadband access. Most wanted to know exactly when the local phone or cable company planned to expand to bring internet access to the far corners of the region between Knoxville and Chattanooga in east Tennessee.
Comcast, Charter, and AT&T told Roane County Commissioners Ron Berry and Darryl Meadows, State Sen. Ken Yager (R-Kingston), and the crowd they all had a long wait because the companies couldn’t profit offering rural broadband service to the county.
“That is what our shareholders expect and the way we operate in a capitalistic society,” declared Andy Macke, vice president of external affairs at Comcast.
“The biggest challenge for all of you in this room is what they call the last mile,” said Alan L. Hill, the regional director of external and legislative affairs at AT&T Tennessee. “It is a challenge. We all face these challenges.”
In short, nothing much had changed in Roane County, or other rural counties in southeastern Tennessee, to convince service providers to spend money to bring internet service to the region. Until that changed, AT&T, Comcast and others should not be expected to be on the front lines addressing rural internet access. Successive governors of Tennessee have long complained about the rural broadband problem, but the state legislature remains cool to the idea of the state government intervening to help resolve it.
Gov. Haslam
In 2017, Tennessee Gov. Bill Haslam noted Tennessee currently ranked 29th in the U.S. for broadband access, with 34 percent of rural Tennessee residents lacking access at recognized minimum standards. In splashy news releases and media events, Haslam sold his solution to the problem — the Broadband Accessibility Act, offering up to $45 million over three years to assist making broadband available to unserved homes and businesses.
In reality, the law authorized spending no more than $9.5 million annually on rural broadband grants over the next three years. It also slashed the FCC’s broadband standard from 25/3 Mbps to 10/1 Mbps, presumably a gift to the phone companies who prefer to offer less-capable DSL service in rural areas. In the first year of awards, 13 Tennessee counties, none in the southeastern region where Roane County lies, divided the money, diluting the impact to almost homeopathic strength.
The demand for rural broadband financial assistance is obvious from the $66 million in requests received from 71 different utilities, co-ops, and communications companies in the first year of the program, all seeking state funding to expand rural broadband. Only a small fraction of those requests were approved. AT&T applied for money targeting Roane County and was turned down. AT&T’s Hill expressed sympathy for the county’s school children who need to complete homework assignments by borrowing Wi-Fi access from fast food establishments, area businesses, and larger libraries. But AT&T’s sympathy will not solve Roane County’s broadband problems.
What might is Rockwood Electric Utility, the municipal power company that sponsored the broadband event.
REU is a not-for-profit, municipally owned utility that has successfully served portions of Roane, Cumberland, and Morgan counties since 1939. By itself, the community-owned utility is no threat to companies like Comcast, because it offers service in places the cable company won’t. But if REU partnered with other municipal providers and offered internet service in larger nearby towns and communities to achieve economy of scale and a more secure financial position, that is a competitive threat apparently so perilous that the telecom industry spent millions of lobbying dollars on state legislatures like the one in Tennessee to ghost-write legislation to discourage utilities like REU from getting into the broadband business, much less dare to compete directly with them. AT&T, Charter, and Comcast also fear how they will compete against municipal utilities that have successfully delivered electric service and maintained an excellent reputation in the community for decades.
Tennessee law is decidedly stacked in favor of AT&T, Charter, and Comcast and against municipal utilities. Although the state allows municipal providers to supply broadband, it can come only after satisfying a series of regulatory rules designed to protect commercial cable and phone companies. It also prohibits municipal providers from offering service outside of existing service areas. That leaves communities served by a for-profit, investor-owned utility out of luck, as well as residents in areas where a rural utility lacked adequate resources to supply broadband service on its own.
Haslam’s Broadband Accessibility Act cynically retained these restrictions and blockades, hampering the rural broadband expansion the law was supposed to address.
For several years, Sen. Janice Bowling (R-Coffee, Franklin, Grundy, Marion, Sequatchie, Van Buren and Warren Counties), has tried to cut one section of Tennessee’s broadband-related laws that prohibits municipal providers from offering service outside of their existing utility service area. Her proposed legislation would authorize municipalities to provide telecommunication service, including broadband service, either on its own or by joint venture or other business relationship with one or more third parties and in geographical areas that are inside and outside the electric plant’s service area.
In her sprawling State Senate District 16, a municipal provider already offers fiber broadband service, but Tennessee’s current protectionist laws prohibit LightTUBe from offering service to nearby towns where service is absent or severely lacking. That has left homes and businesses in her district at a major disadvantage economically.
Sen. Janice Bowling (R-Tenn.) discusses rural broadband challenges in her 16th district south of Nashville and her bill to help municipal utilities provide broadband service. (4:20)
“In rural Tennessee, if we have what is called an industrial park, and we have electricity, you have running water, you have some paved roads, but if you do not have access to fiber at this point, what you have is an electrified cow pasture with running water and walking trails. It is not an industrial park,” she complained, noting that the only reason her bill is prevented from becoming law is lobbying by the state’s cable and phone companies. “We can no longer leave the people of Tennessee hostage to profit margins of large corporations. We appreciate what they’re doing. We appreciate where they do it, but in rural Tennessee we will never meet their profit margins and so we can no longer be held hostage when we have the ability to help ourselves.”
Sen. Yager
Her sentiment in shared by many other Tennessee legislators who serve rural districts, and her Senate bill (and House companion bill) routinely receive little, if any, public opposition. But private lobbying by telecom industry lobbyists makes sure the bill never reaches the governor’s desk, usually dying in an obscure committee unlikely to attract media attention.
That reality is why residents of Roane County were meeting in a crowded room to get answers about why broadband still remained elusive after several years, despite the high-profile attention it seems to get in the legislature and governor’s office.
“‘It is a critical issue as I said. It is not a luxury. It is a necessity. I certainly understand your frustration,” responded Sen. Ken Yager. “This problem is so big I don’t think one person can do it alone, one entity. It’s going to have to have partnerships. One thing this bill encourages is for your co-ops to partner with one another to bring broadband in.”
The bill Sen. Yager refers to and endorsed at the meeting was written by Sen. Bowling. Sen. Yager must be very familiar with Bowling’s proposals, because she has appeared before the Senate Commerce & Labor Committee he belongs to year after year to promote it. On March 3, 2018, the bill failed again in a 4-3 vote. But unbeknownst to those in attendance at the public meeting, Sen. Yager himself delivered the fourth “no” vote that killed the bill.
Undeterred, Bowling promises to be back next year with the same bill language as before. Perhaps next time, voters will know who their friends are in the legislature, and who actually represents the interests of big corporate cable and phone companies.
Customers in several midwestern states around Chicago have today reported to Stop the Cap! Comcast has provisioned a speed change on their internet accounts with no advance warning or notice, raising download speeds from 100 Mbps to 150 Mbps but cutting upload speeds in half — from 10 Mbps before to 5 Mbps.
The changes seem to impact customers on the midwestern region Blast plan, which was sold in many areas around Chicago with speeds of 100/10 Mbps. Some customers logging into their accounts today see a unilateral plan change there as well — one they never asked for, reflecting the changed speeds:
Comcast has yet to respond to our inquiry about the confusion. Some customers are being told the plan change is in error, at least with respect to upload speeds. It would be unprecedented for Comcast to reduce customer speeds when making speed adjustments. If you are in the midwest and subscribe to this tier, what speeds are you getting today and what does your account profile show with respect to your current internet plan?
Updated 9:01pm EDT — Comcast has responded: “We plan to increase speeds in our central division next month and will share more details soon. It’s important to note that upload speeds will not change as part of that announcement.”
We remain uncertain why current speeds seem to have declined in some areas, which was not addressed.
Updated 9:15pm EDT — Some of the speed changes appear to be related to soft-launched speed upgrades in the Central U.S. division (Alabama, Arkansas, Florida, Georgia, Indiana, Illinois, Kentucky, Louisiana, Michigan, Mississippi, South Carolina, and Tennessee). The Performance tier that used to be 100/10 Mbps is increasing to 150/10 Mbps and the Extreme tier which was 150/20 Mbps previously is upgraded to 250/20 Mbps. You may need to briefly unplug your modem/gateway to receive the new speeds.
Updated June 27 11:10am EDT — Comcast has officially confirmed the upload speed reductions were in error. Customers that still find their upload speeds reduced should reset their modem, and upload speeds of at least 10 Mbps should be restored. The company’s forthcoming speed increases will maintain current upload speeds.
21st Century Fox has accepted an improved $71.3 billion bid from Walt Disney Co. to acquire its entertainment division, outbidding Comcast’s all-cash $65 billion bid for Fox’s content companies.
Rupert Murdoch and shareholders will walk away from the majority of Fox’s media empire well compensated from a short-term bidding war between Disney and Comcast, which has raised the acquisition price substantially above Disney’s original offer in December.
Disney CEO Bob Iger’s current offer is being seen as “very aggressive” by Wall Street and designed to deter Comcast from responding with a better bid of its own. Comcast was already planning to load up on debt to finance the deal, and was unwilling to include shares of its stock as part of the transaction. Disney itself is putting a huge amount of money on the line to acquire Fox. After including Fox’s current debt load, Disney’s latest offer means the total transaction is expected to exceed $85 billion.
Disney’s decision to postpone an important meeting to discuss Comcast’s bid could be a signal Comcast is preparing a counteroffer.
Whatever company ultimately wins control of Fox will own and control the majority, but not all of Fox’s media assets.
21st Century Fox Assets to be Acquired by Disney (or Comcast if it returns with an even higher bid):
Fox Entertainment Group:
20th Century Fox Fox Searchlight Pictures Blue Sky Studios Fox Star Studios Fox Networks Group Fox Sports Networks
FX Cable Networks National Geographic Partners (Nat Geo suite of cable networks and National Geographic Films) (73%) Star TV (Asian satellite TV service) Hulu (United States) (Fox’s 30% stake, giving either buyer 60% ownership and control of the service) Sky (39.14%) (United Kingdom satellite TV service and content producer) Endemol Shine Group (50%) (Producer of reality TV shows including Big Brother, MasterChef, The Biggest Loser and Hunted.)
21st Century Fox Assets to Be Spun Off to “New Fox” — an independent company owned by current 21st Century Fox shareholders
Fox Broadcasting Company – The Fox Television Network Fox Television Stations Group (28 local TV stations) Fox Television Station Productions Movies! (a digital subchannel network run as a joint venture with Weigel Broadcasting and seen on around 75 local stations around the country) MyNetworkTV Fox News Channel and Fox Business Network Fox Sports:
Big Ten Network (51% owned in joint venture with Big Ten Conference) Fox Deportes Fox Sports 1 Fox Sports 2 Fox Soccer Plus Fox College Sports Fox Sports International
The 20th Century Fox studio lot (to be leased by Disney)
A battle is still raging for control of Sky, the United Kingdom’s biggest satellite TV provider. Fox originally sought to acquire the portion of Sky it did not already own, but was derailed by a sweeping 2011 phone hacking scandal after news emerged Murdoch-employed reporters illegally hacked into the private voicemail boxes of celebrities to help fuel new story ideas and substantiate personal scandals. When it was revealed reporters listened to the messages of a murdered schoolgirl, allowing her parents to mistakenly believe she was still alive, the scandal went viral and prompted both criminal and regulatory probes of Murdoch’s operations in the United Kingdom. It also led to the closure of the country’s largest tabloid newspaper, the Murdoch-owned News of the World. The scandal has been widely blamed for Murdoch’s inability to convince regulators to approve his bid for full ownership of Sky Television. Murdoch is now cutting his losses and selling the entire operation to either Disney or Comcast.
If Comcast’s $65 billion all-cash offer for 21st Century Fox is accepted, America’s largest cable operator will also be among the world’s largest corporate debtors, owing $170 billion in all.
Comcast will borrow as much as $85 billion to cover the acquisition of Fox, plus an additional $27.5 billion to cover the buyout of the United Kingdom’s satellite operator Sky.
Excluding banks, Comcast will be the world’s second most-buried-in-debt corporation, outdone only by AT&T, according to Moody’s.
Comcast’s all-cash offer to snatch Fox away from its corporate arch-enemy Disney, also bidding for Fox, is remarkable for a company with only $6 billion of cash on hand. Comcast will have to borrow most of the money for the buyout, in addition to covering Fox’s existing $20 billion in debt. The result will be a 1980s style leveraged buyout that is likely to result in a significant downgrade of Comcast’s credit rating. Moody’s has already warned the company of exactly that.
Some Wall Street analysts see the transaction as particularly unusual for Comcast, a company that has avoided massive debt. Some suspect the generous cash offer for Fox is being driven by personal animosity between Comcast CEO Brian Roberts and Disney CEO Robert Iger, originating more than a decade earlier when Comcast attempted a hostile takeover of Disney, and failed.
Many investors are clearly worried about the growing debt levels of several large telecommunications companies, which remind some of two spectacular corporate failures at the end of the dot.com boom, when MCI-Worldcom and Global Crossing were both brought down by accounting scandals and bankruptcy in an effort to hide their debts.
There are fears that a decade of unprecedented low-interest rates, business-friendly regulatory policies, and a stabilized economy have allowed companies to grow complacent about the risks of debts from blockbuster mergers that are now bigger and more expensive than ever. Companies may be overconfident that their huge, debt-financed deals can be managed with low interest loans and frequent refinancing and bond sales to until debts can be paid down. But some analysts warn that if there is a downturn in the economy, easy credit will be hard to get, and interest rates will be significantly higher. Because highly leveraged companies are bigger credit risks, bondholders will likely demand a better deal for themselves.
The Wall Street Journalreports global corporate debt (excluding financial institutions) now stands at $11 trillion, and those companies are now 30% more leveraged than they were just before the start of the financial crisis of 2007. Wall Street expects several additional merger deals in the telecommunications and media sectors this year, which will likely raise debt levels even higher.
The unprecedented level of debt has not escaped the notice of the Federal Reserve. Asked whether the United States is in a “credit bubble,” Fed chief Jerome Powell said last week that officials are “watching” elevated levels of corporate leverage.
AT&T and Comcast officials told the Journal any fears are unwarranted; they are different from most companies because their respective debts are expected to be repaid quickly with higher levels of cash generated by their businesses. AT&T claims it could apply the $8-10 billion of its anticipated free cash flow from the merger with Time Warner to reduce debts, although that could threaten shareholder perks like dividend payouts and share buybacks, as well as customer-focused network upgrades.
Investors that used to treat AT&T and Comcast stock as a safe haven are not anymore.
“We are getting a lot of calls,” Allyn Arden, a telecom and cable analyst at S&P Global Ratings, told the Journal after both S&P and Moody’s cut their respective ratings on AT&T bonds last week to a level just two notches above the junk-debt category.
AT&T CEO Randall Stephenson downplayed the concerns of Wall Street over the additional debt.
“This thing delivers quickly,” he told CNBC. “Within four years, we’ll be back to our normal levels of debt.”
Where will AT&T and Comcast get the money to pay down their debts? Captive customers could be one source. Both AT&T and Comcast are planning to continue raising rates, particularly on internet customers, providing a lucrative shot of extra revenue. By gaining control of deep content libraries, both Comcast and AT&T will be able to hike licensing fees on that content as well.
Be Sure to Read Part One: Astroturf Overload — Broadband for America = One Giant Industry Front Group for an important introduction to what this super-sized industry front group is all about. Members of Broadband for America Red: A company or group actively engaging in anti-consumer lobbying, opposes Net Neutrality, supports Internet Overcharging, belongs to […]
Astroturf: One of the underhanded tactics increasingly being used by telecom companies is “Astroturf lobbying” – creating front groups that try to mimic true grassroots, but that are all about corporate money, not citizen power. Astroturf lobbying is hardly a new approach. Senator Lloyd Bentsen is credited with coining the term in the 1980s to […]
Hong Kong remains bullish on broadband. Despite the economic downturn, City Telecom continues to invest millions in constructing one of Hong Kong’s largest fiber optic broadband networks, providing fiber to the home connections to residents. City Telecom’s HK Broadband service relies on an all-fiber optic network, and has been dubbed “the Verizon FiOS of Hong […]
BendBroadband, a small provider serving central Oregon, breathlessly announced the imminent launch of new higher speed broadband service for its customers after completing an upgrade to DOCSIS 3. Along with the launch announcement came a new logo of a sprinting dog the company attaches its new tagline to: “We’re the local dog. We better be […]
Stop the Cap! reader Rick has been educating me about some of the new-found aggression by Shaw Communications, one of western Canada’s largest telecommunications companies, in expanding its business reach across Canada. Woe to those who get in the way. Novus Entertainment is already familiar with this story. As Stop the Cap! reported previously, Shaw […]
The Canadian Radio-television Telecommunications Commission, the Canadian equivalent of the Federal Communications Commission in Washington, may be forced to consider American broadband policy before defining Net Neutrality and its role in Canadian broadband, according to an article published today in The Globe & Mail. [FCC Chairman Julius Genachowski’s] proposal – to codify and enforce some […]
In March 2000, two cable magnates sat down for the cable industry equivalent of My Dinner With Andre. Fine wine, beautiful table linens, an exquisite meal, and a Monopoly board with pieces swapped back and forth representing hundreds of thousands of Canadian consumers. Ted Rogers and Jim Shaw drew a line on the western Ontario […]
Just like FairPoint Communications, the Towering Inferno of phone companies haunting New England, Frontier Communications is making a whole lot of promises to state regulators and consumers, if they’ll only support the deal to transfer ownership of phone service from Verizon to them. This time, Frontier is issuing a self-serving press release touting their investment […]
I see it took all of five minutes for George Ou and his friends at Digital Society to be swayed by the tunnel vision myopia of last week’s latest effort to justify Internet Overcharging schemes. Until recently, I’ve always rationalized my distain for smaller usage caps by ignoring the fact that I’m being subsidized by […]
In 2007, we took our first major trip away from western New York in 20 years and spent two weeks an hour away from Calgary, Alberta. After two weeks in Kananaskis Country, Banff, Calgary, and other spots all over southern Alberta, we came away with the Good, the Bad, and the Ugly: The Good Alberta […]
A federal appeals court in Washington has struck down, for a second time, a rulemaking by the Federal Communications Commission to limit the size of the nation’s largest cable operators to 30% of the nation’s pay television marketplace, calling the rule “arbitrary and capricious.” The 30% rule, designed to keep no single company from controlling […]
Less than half of Americans surveyed by PC Magazine report they are very satisfied with the broadband speed delivered by their Internet service provider. PC Magazine released a comprehensive study this month on speed, provider satisfaction, and consumer opinions about the state of broadband in their community. The publisher sampled more than 17,000 participants, checking […]