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Funding Cutbacks and Politics Trigger Closure of Multiple Public TV Stations

Phillip Dampier April 2, 2018 Competition, Consumer News, Online Video, Public Policy & Gov't Comments Off on Funding Cutbacks and Politics Trigger Closure of Multiple Public TV Stations

PBS TV stations in smaller communities and secondary PBS affiliates and public stations in large ones are ending their free, over-the-air television broadcasts after decades of service because of politics, budget cuts and repacking the TV dial to give up more spectrum for wireless providers.

The most significant trigger for the impending closedown of several stations, especially those run from universities, is the FCC’s spectrum auction and reallocation plan, repacking UHF stations into a much smaller number of available channels, requiring stations to buy new transmitting equipment many cannot afford.

The original plan to repack television stations reassured affected broadcasters that the auction proceeds from the wireless industry auctions would cover the costs of the necessary new equipment.

KNCT’s coverage partly overlaps other nearby public stations.

Then Central Texas College, which owns and operates PBS affiliate KNCT in Belton, Tex., learned Republicans in Congress might appropriate only enough funding to cover 60% of the transition costs. The trustees that oversee KNCT, which serves central Texas, realized they would have to find roughly half of the $4.5 million needed to change their channel from 46 to 17 as part of the “station repack” and hope Congress would change its mind and reimburse the station.

That was money the trustees ultimately decided could not be found, especially as annual deficits at the station now average $500,000 — costs covered by the college.

KNCT general manager Max Rudolph, who has been in charge of KNCT for most of its 38 year history, said the station will now have to leave the airwaves.

“The board had to make a tough decision, but repacking was only the tip of the iceberg,” Rudolph said. “It’s economics — dollars and cents.”

KNCT operates with a staff of 15 — including five part-time employees, that take care of both the PBS TV station and KNCT-FM, which will continue on the air. The annual budget for the TV station was about $1 million, half spent on PBS membership and programming. Donors also provided around $160,000 a year.

KNCT-TV serves the Belton/Killeen/Temple/Waco, Tex. market, although KNCT’s signal struggles to reach into the northeastern part of its service area near Waco, where public TV station KAMU-TV in more distant College Station strangely provides a better signal.

The station hopes to continue operations through online streaming and on-demand shows kept on its website, but both require a subscription to internet service. For parts of central Texas, it represents the end of free PBS over-the-air programming.

Last year, Central Michigan University decided to accept a $14 million offer for satellite PBS station WCMZ-TV in Flint to vacate its current UHF channel and close down for good April 23, 2018. WCMZ-TV’s signal reaches as far away as Port Huron, Detroit and Lansing. But its intended market was Flint, which lacked local PBS service when the station signed on more than 30 years ago. Today, Central Michigan University still operates its primary station WCMU in Mount Pleasant, along with WCMV, which serves Cadillac and Traverse City, WCML, serving Alpena, Petoskey, Cheboygan and the Straits of Mackinac, and WCMW, which broadcasts to the Lake Michigan communities of Manistee, Ludington and Pentwater.

CMU officials are pulling the plug on WCMZ because, they claim, 99 percent of viewers live in areas that are now served by other public broadcasting stations. While cord cutters may miss WCMZ, cable and other pay television customers likely won’t because the service is expected to continue uninterrupted on cable and possibly satellite.

KMTP, San Francisco’s youngest multicultural public television station, is looking for a new home after selling its spectrum for $87.8 million in last year’s FCC auction. KMTP is licensed to Minority Television Project, Inc., a not-for-profit corporation, and serves the San Francisco Bay Area with non-commercial public television. KMTP broadcasts international programming in multiple languages including English and is not affiliated with PBS.

Its best chance to survive is dependent on an acquisition or arrangement with Poquito Mas Communications LLC, the licensee of low-power KCNZ in San Francisco, which is best known for carrying Creation TV, a Chinese language religious network. KMTP can either occupy several of KCNZ’s subchannels, or potentially buy the station outright. As a low power outlet, KMTP can hope to keep carriage on cable television, giving it perfect reception in areas where KCNZ’s low-power UHF transmitter cannot reach. But that means cord-cutters may have no access to the channel unless they live near the transmitter.

WUSF-TV, on the air in Tampa for 51 years, signed off late last year after the University of South Florida decided to liquidate the station for $18.8 million in auction proceeds from the FCC’s spectrum auction. The area’s larger PBS station, WEDU, has absorbed most of the programming that used to appear on WUSF, which now appears as a virtual subchannel on WEDU — unofficially called WEDQ.

Today, WEDU carries six different signals on its over the air digital channel: WEDU/PBS HD, PBS World, PBS Kids, WEDU+, Florida Channel, and Create TV. Many of these services are also available on cable television. But the original competing voice from WUSF is now gone.

WYCC in Chicago was the city’s second PBS affiliate, behind the larger and better known WTTW. Licensed by City Colleges of Chicago, the trustees decided to liquidate WYCC last year for cash as part of the FCC’s spectrum auction.

WYCC began its operations in 1983 with a message from President Ronald Reagan, congratulating the station for producing adult learning programming lacking on commercial television. WYCC first ended its PBS affiliation in 2017 and had one sole program provider, MHz Networks’ WorldView, when it ceased broadcasting on Nov. 27, 2017.

WTTW has sought to claim WYCC’s remaining assets and intends to place WorldView on one of its subchannels in the future. It already grabbed two Australian shows WYCC used to air:  “Miss Fisher’s Murder Mysteries” and “The Doctor Blake Mysteries.” All that will remain of WYCC are its “call letters,” which could possibly reappear when WTTW launches WorldView.

Troubled Frontier Suspends Shareholder Dividend, Loses $1.01 Billion in the Last Quarter

Phillip Dampier February 27, 2018 Consumer News, Frontier, Rural Broadband 2 Comments

Despite the massive amount of extra money from the Trump Administration’s corporate tax cuts generating huge revenue spikes for America’s telecom companies, Frontier Communications disappointed investors with today’s news it was suspending its quarterly cash dividend to shareholders after reporting a net loss of $1.03 billion on revenue of $2.2 billion during the fourth quarter of 2017, despite a $830 million tax benefit resulting from the reduction in federal tax rates.

Frontier saw revenue declines across almost every product category: Data and Internet services, $939 million (down 7.3%); Voice services, $687 million (down 11.2%); Video services, $310 million (down 15.1%), but the company slightly improved its churn rate (customers coming and going) to 1.83% for Frontier Legacy service areas (areas not acquired from Verizon or AT&T) and 2.22% for customers in California, Texas, and Florida acquired from Verizon (compared with 1.92% and 2.33% respectively in the third quarter of 2017).

The losses are attributable to:

  • Frontier DSL is not competitive with cable broadband in most Frontier Legacy service areas. Cable companies continue to steal customers away with better value broadband packages at much faster speeds;
  • Frontier FiOS delivers much better internet speeds, but customers in former Verizon service areas are upset about poor customer service and on-time repair visits and billing errors;
  • Frontier landline customers have been disconnecting for years, especially in copper-only service areas.
  • Frontier FiOS TV customers are getting better pricing and promotional deals from competing cable and satellite providers, or are cutting the cord entirely.

The average Frontier Legacy customer pays $65.11 a month. Customers with Frontier FiOS in California, Texas, and Florida pay an average of $107.35 a month.

Despite the anemic results, Frontier CEO Daniel McCarthy was optimistic.

“Our fourth quarter results highlight the ongoing progress on our key initiatives to improve customer retention, enhance the customer experience, and align our cost structure,” McCarthy said in a press release. “We are pleased with continued improvement in subscriber trends and churn in our California, Texas and Florida (CTF) markets, and the continued operating efficiencies achieved in the fourth quarter.”

But McCarthy rattled investors with news Frontier’s board of directors had voted to suspend the company’s dividend payout to shareholders, one of the key reasons investors buy Frontier common stock. Frontier intends to use the $250 million it would have handed shareholders to pay down the company’s massive debts.

In 2018, Frontier will pay more in interest on its outstanding debt ($1.5 billion) than it will spend on network upgrades and other capital expenditures ($1.0 billion to $1.15 billion). Most of the company’s debt comes from Frontier’s aggressive history of acquisitions, buying landline service areas from Verizon and AT&T.

Despite predictions by Frontier’s executives that its $10+ billion acquisition of Verizon service areas in California, Texas and Florida would deliver dramatically better results for Frontier and its shareholders, a botched transition and ongoing complaints about poor customer service and billing errors alienated Frontier’s adopted customers. Many canceled service and have no plans to return.

With Frontier’s financial condition concerning some financial analysts, Frontier is considering selling off its newest service areas to raise money.

AT&T’s Contractors Burning Down, Damaging Homes in Texas Fiber Build

Phillip Dampier February 19, 2018 AT&T, Consumer News, Public Policy & Gov't, Video 1 Comment

Some residents in Houston and Dallas are furious at AT&T and its contractors for causing major damage to homeowners’ property, in one case burning down a Houston family home after accidentally hitting a natural gas line that resulted in a fire.

Joyce Skala’s home in Cypress was seriously damaged in a fire just before Thanksgiving 2017 and almost three months later, Skala says AT&T and its contractors won’t talk to her about the damages and who will pay for them.

“Everything you look at when you leave your house in the morning, it was gone,” Skala told KPRC News after the Nov. 14 fire. “I have not heard from a soul — not one. Not even a representative of a representative.”

The damage was not an isolated incident. KPRC noted two days later, AT&T’s contractors damaged an electric line in Shelli Moore’s yard in a different neighborhood, causing a power outage. Repairing the damage will cost her almost $2,000, and so far, Moore appears to be left holding the bill.

“That would break me,” she said. “I have no idea where I would come up with that kind of money, but we have to have lights and heat,” Moore said.

Joyce Skala’s home, destroyed by fire after an AT&T contractor hit a natural gas line (Image: KTRK)

In the Dallas-Ft. Worth area, utility workers made themselves right at home at Norma Logan’s home, using her back patio as a dining area and completely “trashing” her backyard.

Logan came home to find AT&T digging a deep trench along her back fence, damaging sections of it, as well as destroying her personal property. Then they left without a word.

“They broke many things out there,” Logan told KTVT. “They broke the fence. They broke the statue. They broke some of the things that I use to decorate the flower bed.”

A day later, the workers returned unannounced, this time with heavy equipment that continued to tear up her yard. But before getting to work, they spent a leisurely breakfast at her patio table just outside her back door. They didn’t bother to clean up after they finished.

The subcontractor responsible in these cases was NX Utilities, which has piled up a number of complaints against it since last fall. But AT&T appears to still be using the company to construct its fiber to the home network in both cities.

Contractors left evidence of their presence behind. (Image: Logan)

Anni Shugart’s Cypress home was damaged by an electric surge, and AT&T didn’t want to talk to her about the damage to her home either.

“I couldn’t get anywhere with AT&T,” Shugart said.

Shugart, like others, was left holding the bill after AT&T denied her claim, suggesting they are not responsible for the damages. They pointed her to NX Utilities, but that didn’t make much difference either so she called her insurance company, which is covering her repairs, except for the $4,500 deductible she is paying out of pocket.

“Well, I hope I’ll get it back eventually,” she said. “It’s a lot of money.”

Two days later, contractors hit another gas line. Four days after that they cut another underground power line.

“People in my neighborhood are mad at AT&T,” homeowner Pam Grossman told KPRC.

AT&T claims that it is not directly responsible for the damage, because it was caused by its third-party contractor NX Utilities. In fact, NX is just one of several layers of contractors working on AT&T’s fiber project, and in the event of a problem, the contractors are excellent at pointing fingers at one another.

KPRC reports when the fire marshal turned up to investigate the fires, the report included claims from contractors blamed each other while holding themselves harmless.

“There was no way that his company was involved in the fire,” said the owner of Connect Links in the fire marshal’s report.

KPRC in Houston reviews the damage being done in the Houston area by AT&T’s subcontractors managing the company’s fiber buildout. (3:58)

AT&T contractor NX Utilities allegedly damaged Norma Logan’s fence in the Dallas-Ft. Worth area. (Image: KTVT)

AT&T won’t say how many damage reports about it or its contractors have been filed in Houston and Dallas-Ft. Worth. But AT&T did say it was doing both cities a big favor by enabling them for gigabit fiber internet, and regrets the problems that have developed along the way.

“Our goal is to minimize impact on residents before, during and after construction and to keep them informed through a variety of means throughout the network expansion process,” AT&T said in a statement. “If construction-related issues do occur, we work quickly to resolve and restore any impacts from our work.”

The key emphasis is “our work” and AT&T feels its subcontractors are responsible for fixing their own problems.

“Whether large or small, these damages impact the public and that is not lost on us,” AT&T said. “We track damages and other issues and review performance with our contractors performing the work. As we identify poor performers, we cull those out. Damage can occur for a number of reasons, from contractor error to locates not being accurate. Before we begin a project, we talk with locating firms to provide them with some high-level visibility into where we anticipate completing work on a regular basis. Furthermore, as a part of the large project locate process, we typically provide 30-60 days’ notice versus the minimum 10 days.”

Logan discovered utility workers dug this trench in her backyard along the fence line. (Image: KTVT)

AT&T says projects of this large size and scope require careful planning and implementation, and the company has gotten significant experience managing fiber upgrades in a number of cities where it provides telephone and broadband service.

“We have dozens of supervisors and inspectors in the field to ensure our contractors are performing to our standard,” said AT&T. “We work closely with city officials to ensure our work is done in a timely and orderly fashion. Our contractors are trained to obtain proper permitting, closely follow local construction codes, and abide by rules governing rights-of-way and property easements.”

But many homeowners report they never got any advance notification about the construction work and even less often understood how it would impact on their property.

Logan said she received no notification, despite claims by NX it placed fliers on her door. But those fliers said nothing about heavy construction equipment being brought in, driven over grass and into a cramped backyard to dig. Logan was incensed as she watched equipment dig a trench several feet deep along her backyard fence line, ruining some of her lawn ornaments and damaging her fence.

A second day of empty coffee cups and fast food wrappers left on her patio table was also an unpleasant reminder of their presence.

NX later claimed they reprimanded their workers, not for the damage done to her property, but for not cleaning up their trash as they left.

The sudden arrival of heavy equipment attempting to navigate into Logan’s backyard only upset her further. (Image: KTVT)

AT&T is not the only telecom company that receives criticism for property damage while installing fiber cables. Google Fiber generated “hundreds of complaints” in the Austin area for construction mishaps, including alleged flooding from backed up storm drains that damaged multiple properties. In Charlotte, N.C., Google was accused of causing damage to water wells and allegedly struck a sanitary sewer, flooding a home with raw sewage.

Since September 2015, Charlotte city officials have cited contractors for ordinance violations more than 40 times for $21,300, data show. That included $14,200 in general violations and $6,700 for closing a portion of a right-of-way without the proper traffic control. Fines ranged from $100 to $1,800. Ansco, a contractor for AT&T, was cited the most: 17 times for $8,400. Bechtel, which does work for Google, was cited six times for $2,100, including fines that also mentioned another subcontractor.

How to protect yourself

If a company is performing work involving installation of underground cables, that carries the greatest risk of potential damage to property or other utilities. Many mishaps are caused by inaccurate maps that purport to show where other underground utilities are installed. In some areas, those maps are incomplete or wrong. In the United States, these problems are so serious that there is a nationwide free hotline – 811 – available to consumers and contractors for free on-site location flagging of where underground utilities are actually located.

AT&T is installing fiber optics in several Texas cities.

You can request your own site survey at no charge and photograph the results for your records.

Here is how to request a site survey:

  • Call 811 from anywhere in the country at least two days before digging and your call will automatically be routed to your local one call center. Visit the 811 service state map to see if your local one call center accepts online requests.
  • Give the operator information about how to contact you, approximately where you or a contractor will likely dig, and what type of work will be done. If you don’t know all the details, that is okay. Request a general assessment of where utilities have placed their cables on or near your property and let 811 know a contractor hired by the telecom company will be doing the work independently.
  • Utility companies who have potential facilities involved will be notified of the imminent arrival of a contractor preparing to dig on or near your property.
  • Each affected utility company will send a location team to mark the approximate location of underground utility lines. Sometimes they spray paint the location on grass or pavement in different colors reflecting the service. In other cases, they plant small plastic flags in a line where the cabling is located. This typically occurs within 2-3 working days, but some states may have different rules.  To access specific information about your state, visit the 811 state map.

Contractors are usually required by ordinance to notify you in advance of any utility work that is done on or near your property. This notice is usually in writing and can be a mailed or placed flier or a doorhanger card. Retain this notification until the work is complete. It will generally include contact information about the company doing the work and what to do in case a problem arises, and most importantly, who to contact.

Prior to the arrival of the construction crews, photograph your yard to document its current condition. Make sure to get clear photos along property lines or easements, documenting the condition of fencing, landscaping, and any pre-existing structures. If damage occurs, you will have before and after photos to show the contractor, town officials, and/or your attorney.

If possible, stay home on the day work is being done. Making your presence known will greatly reduce the chance utility workers will be careless with your personal property or how they conduct themselves. Document any suspicious or disturbing activity by taking video on your cell phone. Watch for workers attempting to access areas of your property unaffected by the work. They do not have the right to use your outdoor furniture for lounging or eating. They also do not have the right to relieve themselves in your yard.

Buried wire flags

In every case, they are responsible for reasonably restoring your property to the same condition it was in before they arrived. That means repairing ruts or reseeding disturbed portions of your lawn, repairing or replacing damaged items like fencing, lawn ornaments, buildings, and other personal property. If they damage or kill a tree, they are responsible for removing and replacing it, if it was located on your property and not in an easement (in those cases, contact your local town or city officials and ask how to proceed.)

If you discover damage to another company’s infrastructure (or public utilities), call the affected company or public utility right away. They will need to document the damage and arrange for repairs. If a utility power line is knocked down or damaged between the pole or yard pedestal and your home, some companies may require you to hire a private contractor to replace the line. You will want to notify the contractor that did the damage about the incident and begin documenting the process to receive reimbursement.

It is not your responsibility to navigate a company’s complex maze of contractors and subcontractors. Contact the telecom company doing the work and insist they identify the contractor involved and agree to liaison with you to get the matter resolved quickly to your satisfaction. They cannot walk away from their responsibility to correct damage just because they chose to hire an independent company to perform work on their behalf.

When an AT&T contractor hit a utility line, it caused a power surge damaging homeowners’ utility boxes and outside walls. (Image: KPRC)

KPRC asked Texas real estate attorney Nikolas Spencer about who is responsible in these cases according to Texas state law.

“All of them are,” he said. “If they know that this particular subcontractor is routinely causing fires at people’s houses, or even just nicking the lines themselves, that’s a repeated and dangerous situation that AT&T is on notice as happening. They’re responsible for that.”

Your municipality may be willing to share violation details about contractors performing work in your area. If you can document repeated instances of careless work or violations, that can be strong evidence to prove AT&T was aware of the situation, yet continued to use an offending contractor.

KPRC recommends hiring an attorney if severe damage is caused by a utility. For minor property damage, you may get fast results asking for a supervisor or filing a complaint with the Better Business Bureau or a state Attorney General’s office. Those complaints are generally forwarded to a senior customer service manager better empowered to get quick results.

Having a fiber optic upgrade is almost always a good thing, and can increase the value of your home in a sale. But for many homeowners, it has been decades since major utility construction work was done in older neighborhoods and people can forget the disruption, noise, inconvenience, and occasional damage that can be done along the way. Those best prepared in advance to fight for their interests are the most likely to win quick resolution and satisfaction from utility companies that do damage and may not have adequate resources (or interest) in correcting the problem before you give up in frustration and go away.

KTVT in Dallas reports AT&T’s fiber construction crews have damaged personal property and inconvenienced customers. (2:03)

Bloomberg: Frontier Preparing to Sell Its Florida, Texas, and California Service Areas

Phillip Dampier February 5, 2018 Consumer News, Frontier 7 Comments

Frontier Communications, mired in $18 billion in debt, is preparing to sell a package of landline assets in California, Texas, and Florida the company acquired just two years ago in a $10.5 billion deal.

A Bloomberg News report indicated the sale is part of an effort to boost available funds and repair a damaged business plan that has left the company with a massive debt load and an ongoing departure of customers unhappy with Frontier’s products and services.

Frontier has posted falling revenue for the last five consecutive quarters and the company has spent much of 2017 attempting to borrow more money and refinance the debt it already has, accumulated in part from its acquisitions of sold-off wireline assets owned by AT&T (Connecticut) and Verizon (multiple states).

Frontier has a poor record of successfully transferring customers to the company’s billing and backend systems, which has often caused service disruptions and billing errors. Bad publicity followed Frontier in Texas, Florida and California where the company acquired 3.7 million new voice lines, 2.2 million broadband customers, and 1.2 million FiOS accounts.

What makes Frontier’s properties in those three states valuable is the widespread availability of fiber-to-the-home service. Potential buyers, including private equity firms and other non-traditional bidders, see a future in providing valuable fiber backhaul connectivity to forthcoming 5G wireless networks, which require fiber connections deep into neighborhoods to connect small cell technology with the provider’s network.

Bloomberg reports the assets are likely to be split up and sold in parts, instead of a single package. That could mean Frontier will sell off each state independently or the split could be based on technology, with fiber assets sold separately from Frontier’s acquired copper wire networks in the three states. Frontier may have trouble finding buyers for legacy copper service areas that have never been upgraded with fiber optic service. Frontier is also increasingly unlikely to upgrade those areas itself.

DNS Server Problems Wipe Out Spectrum Internet in Large Parts of Texas

Phillip Dampier November 2, 2017 Charter Spectrum, Consumer News 4 Comments

A DNS failure took out internet service for more than 15 hours for many Charter Communications broadband customers in Texas.

Outages were first reported Wednesday evening from customers unable to reach web pages or other internet services. The outages primarily affected former Time Warner Cable customers in Dallas-Ft. Worth, San Antonio, and Austin.

A Charter spokesperson admitted there was a widespread outage last evening that extended into this morning. At 8:38am, the company suggested rebooting your cable modem to restore service, but as of lunchtime, admitted problems are ongoing in certain areas.

The outage affected the company’s broadband service and its Spectrum TV app, which relies on the internet for video streaming its cable TV service.

Some customers exploring the outage discovered the problem was with Charter’s DNS servers, which manage website addresses. All customers needed to do to restore service was to stop relying on the cable company’s DNS servers and use another provider like Google instead. (If interested, instructions are here.)

Customers were miffed that it took more than half a day to resolve the problem. Those without service can get a service credit for the outage by visiting the cable company’s website and using its online chat function to request credit.

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