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As Battery Backup and Generators Fail, New Telecom Outages Across Florida

Unattended generators that have run out of fuel and exhausted battery backup systems are causing additional service outages for telephone and wireless customers in Florida, Georgia, Alabama, Puerto Rico, and the U.S. Virgin Islands.

Although the last remnants of Hurricane Irma are now a mild rainmaker moving into the Ohio Valley, the impact of the storm at its peak is still being felt across the southeast, and some customers are surprised to discover new outages even as providers work to restore service in the region.

Data from the Federal Communications Commission and from impacted providers indicate that new cell towers are failing because backup generators have now run out of fuel. Technicians often cannot reach the cell tower sites to refill generator fuel tanks because of driving restrictions and inaccessible roads. The worst outages continue in rural parts of Florida, the Florida Keys, the U.S. Virgin Islands and parts of Puerto Rico.

Most of the telecommunications network failures are a result of power interruptions. Most cell towers are able to withstand hurricane force winds and short-term flooding, and underground fiber connectivity between the tower and the provider means failures from trees falling on utility poles is not usually a problem. In most cases, once power returns, cell towers will return to service almost immediately.

Wireline facilities in Florida are not faring as well, however.

911 Call Centers

Since yesterday, the FCC reports 29 emergency 911 call centers are down or compromised, up from 27 a day earlier:

In Florida:

Down with no re-routes: Homestead Air Force, Marathon County SO, and Ocean Reef

Up without Automatic Caller Location Information (ALI): Cape Coral PD, Collier County EOC, Ft. Myers Police Department, Hardee County Back Up, Hardee County Sheriff, Highlands County Sheriff, Lee County Emergency Dispatch Center EOC, Lee County Sheriff, and Okeechobee County Sheriff’s Department

911 Calls Re-routed with ALI: Atlantic Beach PD, Belle Glade PD, Broward County South Region, Indian River SO, Manalapan PD, Miami Beach PD, Neptune Beach PD, Sanibel Police Department, and St. Augustine PD

911 Calls Re-routed without ALI: Big Cypress Indian Reservation, Clewiston Police Department, Desoto County Sheriff, Glades County Sheriff, Glades County Sheriff Back Up, Hendry County Sheriff, Lee County Backup, and Naples PD

In the U.S. Virgin Islands, the 911 call centers in St. Croix and St. Thomas cannot locate callers and calls from Voice over IP phone lines do not provide the number the person is calling from.

Wireless

As of Sept. 12, the worst affected areas with cell towers out of service:

Cell tower on wheels

Alabama: Less than 1% of cell sites in the disaster area are out of service — two of the 87 cell sites in Henry County are offline.

Florida: 24.6% (down from 27.4% yesterday) of all cell sites in the state are out of service. The worst affected counties:

  • Collier: Out of 212 sites, 154 are out of service (72.6%)
  • Hendry: 36 of the county’s 46 cell sites are down (78.3%)
  • Highlands: 43 of 80 cell towers are out of service (53.8%)
  • Monroe: 89 of 108 cell towers are out of service (82.4%). Much of Monroe County is in the Florida Keys.
  • Union:  Seven of 13 cell sites are not functioning. (53.8%)

Georgia: 10.5% of cell sites in the designated disaster area are out of service. Wilkes County is hardest hit, with one of the county’s two sites out of service. Other significantly affected counties include: Glynn (26.2%), Camden (17.4%), Mitchell (14.7%), Brooks (14%), and Colquitt (12.2%).

Puerto Rico: Puerto Rico: 14.5% (down from 19.4% yesterday) of cell sites are out of service.

U.S. Virgin Islands: 53.8% (down from 55.1%) of cell sites are out of service.

Wireline (Cable and Telephone)

There are at least 7,184,909 (down from 7,597,945 yesterday) subscribers out of service in the affected areas in Alabama, Florida, and Georgia. This includes users who get service from cable or wireline providers.

A massive spike in landline central office failures was also documented yesterday, with service outages at switching centers up from 390 yesterday to 819 today in Florida.

Customer complaints are starting to rise based on early predictions that once power was restored, telecommunications services would quickly follow. That has not always been the case in South Florida, however.

Comcast’s Wi-Fi hotspots are all functioning normally, as long as there is internet service in the neighborhood. But home broadband outages are common, especially in coastal areas and in the Florida Keys. Where power is out, Comcast services go out with it. Getting service back requires first restoring power.

“As of Tuesday morning, we have been able to restore power to some but not all of the equipment that services customers in the Miami-metro area. We are working very closely with Florida Power and Light so they can prioritize these critical facilities and restore commercial power service to them as quickly as possible,” said Mindy Kramer, a Comcast spokesperson. “Our facilities in South Florida have been running on generators since the storm began and unfortunately everyone is need of the same fuel resources. We have been doing our best to refuel these generators so that our facilities are able to stay functioning without commercial power. We have teams deploying additional generators today in South Florida.”

Comcast has a website for customers to report storm impact issues: https://www.xfinity.com/florida.

AT&T U-verse customer Ron Dias in Southwest Miami-Dade lost his bundled services — TV, Internet and digital home phone — Saturday and they are all still out, even though his power was restored Monday. He wants answers.

“I wish they would tell us what is going on. This is the information age,” he told the Miami Herald.

AT&T is treating its outage and restoration information as a proprietary trade secret, much to the frustration of customers like Dias.

AT&T issued the same statement to media outlets:

“In Florida, South Carolina, Alabama and Georgia some [U-verse] customers may be experiencing issues with their service because of flooding and storm damage. Our technicians are working to restore service to affected areas as quickly and safely as conditions allow. Our Network Disaster Recovery team is deploying portable cell sites to the Florida Keys, Miami and Tallahassee. Additionally we are deploying an electronic communication vehicle, command center and a hazmat team to Miami. We have additional resources being staged for further deployment across the region. We are monitoring our network closely and are coordinating with emergency management officials and local utility companies.”

AT&T stages repair crews to deal with Hurricane Irma.

The newspaper quoted Reginald Andre, president of Ark Solvers, a company that manages computer services for condominiums and other businesses, who estimated about 80 percent of his 240 business customers are experiencing outages with either Atlantic Broadband — many of them Miami Beach condominiums — Comcast’s XFINITY or AT&T U-verse, he said. Many have their business’ phone services through the internet too. “If the internet is down, their phones are down.”

Atlantic Broadband, which serves some high-end gated communities, condos and exclusive enclaves in South Florida notes most of its customers lost service during the hurricane, but the company has already restored service to 25% of its customers.

“Atlantic Broadband’s restoration workforce is currently mobilized in Florida and our network and facilities are intact. We have assembled additional response teams from across all Atlantic Broadband operating locations to support these efforts. As commercial power is restored and downed drops are cleared, Atlantic Broadband will be moving briskly to restore services to its customers,” the company said in a written statement.

Frontier Communications, which serves some small Florida communities as well as former Verizon service areas in Florida, has said little about the storm or its recovery efforts, except to ask customers to call the company if their services are not working after power is restored.

Verizon has announced it is relieving itself of all liabilities for Hurricane Harvey and Irma-related outages:

We must also declare a Force Majeure event for Hurricanes Harvey and Irma to the extent that there is any delay or inability by Verizon or its vendors to provide services. Under Verizon’s Service Guide and customer contracts, this declaration relieves Verizon of liability that would otherwise result from any such delays or non-performance.

Verizon Wireless reports 90% of its cell towers in Florida and 97% in Georgia are in service.

Free text messages sent to AT&T and Verizon customers in storm-affected areas. Verizon has extended its offer until Sept. 15.

“Many of those cell sites are running on backup power as designed for reliability, and massive refueling operations are underway to ensure those sites without commercial power continue in service for our customers and first responders,” the company said on its website. “We continue to assess the impact across Florida, Georgia and South Carolina, and mobile equipment and personnel have been moved into impacted areas. This week we will begin deploying Unmanned Aerial Systems (drones) to survey sites and assess antennae and tower damage. Repairs to impacted network facilities are well underway, and in many cases already complete. We are in contact with federal, state and local emergency management teams and are coordinating communication needs and efforts with them.”

Verizon is also extending its “data relief” offer until Sept. 15 in storm-affected areas. The initial offer began just after midnight on Sept. 9. Verizon is giving postpaid customers talk, text and data overage relief while prepaid customers receive an extra 3GB of data. To see if you qualify, see: Postpaid customer list of qualifying counties or Prepaid customer list of qualifying counties.

Sprint claims: “Progress is being made to the Sprint network as commercial power is gradually restoring across Florida. Sprint has fixed generators at our sites which are helping to provide service to some customers. Additionally, our network crews continue to assess any damage, refuel generators, and work to restore wireless service to customers who may be impacted. As it becomes safe, we will continue to deploy more crews, portable generators and satellite trucks providing temporary wireless coverage across the area. We are reminding people to continue to use text messaging rather than voice calling to help relieve network resources.”

Sprint is waiving all text, call and data overage fees for Sprint, BoostMobile and Virgin Mobile customers in Florida through September 15, 2017, and extending the same previously announced waived overage fees for customers in Puerto Rico and U.S. Virgin Islands through September 15, 2017. Fees will be proactively waived during the specified timeframe. Customers on Unlimited plans will continue to enjoy their unlimited data, call and text benefits. The company will also waive all international call and text overage fees for Sprint, Boost Mobile and Virgin Mobile customers in the U.S. to the Bahamas, and roaming voice and text overage charges for Sprint customers in the Bahamas, effective today through September, 15, 2017. Customers can sign in to their My Sprint account to enable international calling before attempting to make a call. They can also chat with a Sprint International Representative. Customers may cancel international calling at any time following the effective period.

T-Mobile is making it free to call and text from the United States to the Bahamas and Turks and Caicos. T-Mobile will also waive roaming fees on calls and texts for customers in the Bahamas and Turks and Caicos. The offer is good until Sept. 15. T-Mobile also is offering free calling/texting, as well as unlimited data, for Florida customers not on T-Mobile ONE (customers on T-Mobile ONE always have unlimited calling/texting/data). The Florida offer applies to T-Mobile and MetroPCS customers in the following area codes until Sept. 15: 239, 305, 321, 352, 386, 407, 561, 689, 727, 754, 772, 786, 813, 850, 863, 904, 941, 954.

AT&T is automatically issuing credits and waiving additional fees to give unlimited data, talk and texts to AT&T wireless customers and unlimited talk and texts to AT&T PREPAID customers. This is effective beginning Sept. 8 across all of Florida and Sept. 12 in impacted Georgia counties and continuing through Sept. 17 for all impacted customers. AT&T is also extending payment dates for impacted AT&T PREPAID customers with voice and text service through Sept. 17. This applies to AT&T wireless customers with billing zip codes and AT&T PREPAID customers with billing phone numbers in all of Florida and in nearly 25 Georgia counties – Appling, Atkinson, Bacon, Brantley, Bryan, Bulloch, Camden, Candler, Charlton, Chatham, Clinch, Coffee, Effingham, Evans, Glynn, Jeff Davis, Liberty, Long, McIntosh, Pierce, Tattnall, Toombs, Ware and Wayne. Customers in these areas may still receive data alert notifications during these protected dates, but billing will reflect the correct data charges.

Broadcasters

TV Stations out of service: 9 (up one from yesterday)

  • Alabama: None
  • Florida: WVFW, WGCU, WSBS (up one from yesterday)
  • Georgia: None
  • Puerto Rico: WOST, WMEI, WQQZ, and WWKQ (same as yesterday)
  • U.S. Virgin Islands: WTJX-TV and W05AWD (same as yesterday)

Radio stations out of service: 51 (up from 25 yesterday)

  • Alabama: None
  • Florida: WMFM, WAXY, WDOZ, W227CP, W250BH, W274BB, W298BO, W300CL, WAQV, WFLJ, WJFH, W251BM, WROK, WAOA- FM, WHKR, WLZR, WIOD, WOLZ, WINZ, WBTT, WCKT, WZTA, WSVU, WSWN, WOTW, WMFQ, WXUS, WYGC, W240CI, W295BJ, W233AP, WMKO, WEAT, WMFL, WWFR, WJFR, WTIR, WMYR, WCNZ, W294AN, WNWF, WEJZ, WGNE-FM, and WJGO (up 19 from yesterday)
  • Georgia: WLFH, WHFX, WBGA, WGIG, WEKL and WGCO (all added since yesterday)
  • Puerto Rico: None
  • U.S. Virgin Islands: WTJF-FM (same as yesterday)

Boston Globe Joins Parade of Outlets Opposing Sinclair-Tribune Merger

Phillip Dampier September 5, 2017 Competition, Consumer News, Public Policy & Gov't Comments Off on Boston Globe Joins Parade of Outlets Opposing Sinclair-Tribune Merger

The Boston Globe has joined a parade of media outlets concerned about the future of local news that could be affected if Sinclair is successful in winning approval of its acquisition of Tribune Media’s 42 television stations, calling Sinclair a “behemoth” and the deal “a matter of urgent concern.”

Sinclair is already the largest owner of local television stations in the United States, and its proposed $3.9 billion purchase of Tribune would turn it into a behemoth, with access to more than 70 percent of American households.

An expansion of that size isn’t in the public interest, and federal regulators should move to block it. If they fail to act, state attorneys general should step up and attempt to stop the merger. Sinclair, which already has stations in Rhode Island and Maine and is looking to expand into Connecticut, has a history of slashing staff and requiring its stations to share content — reducing local news coverage in the process.

The network also requires its stations to air centrally produced, conservative-leaning segments. There are daily missives, for instance, from the “Terrorism Alert Desk” — including one piece on the French controversy over “burkinis,” apparently deemed a terrorism-related story simply because it involved Muslims. One election package suggested voters shouldn’t back Hillary Clinton, in part, because of the Democratic Party’s proslavery history. And Sinclair hired former Trump surrogate Boris Epshteyn as its chief political analyst.

[…] Sinclair’s expansion also raises classic anticompetitive concerns. A larger company will be able to demand bigger fees from cable providers retransmitting their broadcasts — costs that will eventually be passed on to consumers. […] There are other ways to prevent large cable companies from throwing their weight around. Unfortunately, the Trump administration’s Federal Communications Commission doesn’t seem interested in implementing them. Indeed, Trump’s FCC and Department of Justice don’t seem interested in much regulation at all.

The FCC docket asking for public comment on the transaction has attracted plenty of opposition to the deal from industry groups, lobbyists, competitors, consumer groups, and members of the public.

Copps (Image: Peretz Partensky)

“Sinclair has failed to explain how this multi-billion dollar merger could possibly be in the public interest,” said Computer & Communications Industry Association President Ed Black. “Even more, allowing this centrally controlled broadcast behemoth that has a history of cutting local news staff and adversely affect independent, local TV stations, would be detrimental. Anyone who values decentralized government control, states’ rights and independent voices should oppose this merger that would harm citizens and weaken our democracy. It’s a concern that a merger that would be so harmful to rural areas, independent news stations and citizens could even be considered. The FCC should reject this takeover proposal outright, and Congress needs to hold hearings to more thoroughly understand the media landscape and how critical independent local broadcast stations are in a democracy.”

“We believe this merger as proposed is unlawful, not in the public interest and should be rejected,” said Matthew Polka, CEO of the American Cable Association. The ACA represents over 700 small independent telecom companies, primarily serving suburban and rural communities.

“It would turn Sinclair into the nation’s largest broadcast conglomerate and lead to higher prices, more station blackouts, less choice, and less local news for millions of consumers,” said Dish Network in its petition to deny the merger.

Even a former FCC commissioner has spoken up against the deal.

Sinclair “comes with an ideology that is far more focused on conservative points of view than any sense of balance or any deep-dive journalism,” said Michael Copps, a former FCC commissioner and special adviser to Common Cause. “No one company should have such power over the news and information that citizens must have if they are going to cast intelligent votes and practice successfully the art of self-government.”

Democrats Quiz FCC’s Ajit Pai About Favorable Treatment of Sinclair Broadcasting

Phillip Dampier August 14, 2017 Public Policy & Gov't Comments Off on Democrats Quiz FCC’s Ajit Pai About Favorable Treatment of Sinclair Broadcasting

Sinclair’s deal with Tribune will make them by far the largest TV station ownership group in the country, owning 16% of the TV stations in the U.S. (Image: Mother Jones)

After a hard-hitting piece analyzing the close ties between President Donald J. Trump, FCC Chairman Ajit Pai, and Sinclair Broadcasting appeared in this morning’s New York Times, a group of leading House Democrats serving on the House Energy & Commerce Committee have written Mr. Pai asking for answers about his possible “favorable treatment” of Sinclair Broadcasting since becoming Chairman of the FCC.

These reports, according to the letter, raise two overarching questions:

  • Whether actions taken by the FCC under your leadership show a pattern of preferential treatment for Sinclair, and
  • Whether a series of interactions between your office, the Trump Campaign and Trump Administration, and Sinclair demonstrate inappropriate coordination.

The letter’s signers — all Democrats — are Rep. Frank Pallone, Jr. (ranking member of the full committee), Rep. Mike Doyle (ranking member of the Communications and Technology Subcommittee), and Rep. Diana DeGette (ranking member, Subcommittee on Oversight and Investigations).

The 12-page letter presents Pai with multiple examples of potential collusion and favorable treatment of a television station group that airs mandatory pro-Trump Administration commentaries on all of its local newscasts, employs a former Trump campaign aide, has sought private meetings with administration officials , and has made substantial campaign contributions.

The Times article appears to be the source for most of the concern expressed in the letter, which lays out multiple issues and seeks Mr. Pai’s comments and explanations.

At the beginning of the Trump Administration, the Democrats claim, Mr. Pai has undertaken a number of actions in his role as Chairman of the FCC that fall squarely in line with the corporate expansion agenda at Sinclair Broadcast Group. Among the most important was Mr. Pai’s sudden decision to bring a party-line vote to reinstate an archaic UHF Discount rule, which allows a company to downgrade the reach of its UHF stations for the purposes of determining if it is within the FCC’s limit of one station owner reaching no more than 39% of the country. This “discount” was established at a time when analog television signals on the UHF band (Channels 14+) were at a distinct coverage disadvantage over stations occupying the VHF (Channels 2-13) band. The discount was retired after the U.S. switched to digital television broadcasting, which largely eliminated this coverage disparity.

TV station owners saw a revival of the UHF Discount not as a way to deal with reception differences, but rather as a loophole to launch new acquisitions by discounting the coverage of their current stations. Only one company – Sinclair Broadcasting – stood to gain the most from the reinstatement of the UHF Discount. Almost on cue, two weeks after Pai brought this obscure rule up and reinstated it on a 2-1 vote, Sinclair announced a blockbuster merger with Tribune to acquire stations that will allow Sinclair to cover 70% of the United States, a number impossible to achieve without Pai’s support for the UHF Discount.

Democrats argue this was not what Congress intended, and it allows one station owner to own and control approximately double the number of stations the ownership cap would normally prohibit. They argue such a deal will reduce the diversity of media voices in communities across the country, especially in markets where Sinclair will own and operate more than one television station.

The New York Times provides this chart illustrating the vast expansion of stations if it wins control of Tribune Media.

The Democrats are also upset the FCC, under Pai’s leadership, appears to be in a hurry to get this deal reviewed and likely approved. It set a review window of just 30 days for public comment, considerably shorter than earlier, less controversial acquisition deals. Critics of the deal contend that the FCC is giving inadequate consideration of the deal’s lack of public interest benefits, and Sinclair’s application is vague and its claims are difficult to validate. Pai seems unconcerned, leading some to believe he intends to rubber stamp his approval with minimal conditions.

Ajit Pai, Chairman of U.S Federal Communications Commission. REUTERS/Eric Gaillard

Under Pai’s watch, the Democrats charge, Sinclair has already benefited from a ‘rush to approval’ mentality at the FCC. Sinclair’s earlier deal to acquire stations owned by the Bonten Media Group was also convenient, coming shortly after the FCC under Mr. Pai revoked guidance that would have required the FCC to closely scrutinize the transaction. The FCC granted the deal, despite the fact several of Bonten’s stations are in areas where Sinclair now holds operating agreements to manage other local stations. Large station groups have used these agreements as loopholes to effectively gain day-to-day control of stations without actually transferring their ownership.

The Democrats also argue that Sinclair is well positioned to be in the lead of Next Gen TV, ATSC 3.0 technology that will replace the current digital TV standard in the United States in the next few years. Sinclair is the biggest cheerleader of the new technology, and Mr. Pai coincidentally has put a rush on getting ATSC 3.0 approved and into the marketplace. ONE Media 3.0, a wholly owned subsidiary of Sinclair, just happens to own six critical patents essential for using the Next Gen TV standard. That means every station in the country moving to the next broadcast platform will have to pay royalties to Sinclair estimated in the billions.

As the Times reports, whenever Sinclair sought something from Washington as part of its corporate agenda, the FCC’s Mr. Pai quickly aligned himself and the FCC’s Republican majority to fulfill Sinclair’s wishes.

Rep. Frank Pallone, Jr. (D-N.J.) is ranking member of the House Energy & Commerce Committee.

The Democrats also question whether there is direct coordination between the Administration, Sinclair, and the FCC:

  • After the election, President Trump reportedly met with the Executive Chairman and former CEO of Sinclair and discussed changing FCC rules to help Sinclair. A news account stated that after the election, President Trump met with David Smith, Sinclair’s Executive Chairman and former CEO. According to this report, “potential FCC rule changes were discussed” after President Trump asked Mr. Smith, “What do you need to happen in your business?”

  • Before you became Chairman of the FCC, you reportedly met with then President-elect Trump in New York. Reports indicate that on January 16 of this year, you met with then-President-elect Trump in New York in a meeting that did not appear on your official calendar.

  • In March, shortly after you became Chairman of the FCC, you met with President Trump in the Oval Office. An FCC spokesperson confirmed that the meeting occurred, but did not indicate what was discussed during the meeting. When asked directly about your meetings with President Trump, you declined to disclose what you discussed, saying “I am not at liberty to say.”

  • The week after the election, you reportedly attended a company conference for Sinclair’s general managers, during which you met with Sinclair’s CEO. According to a Politico report, in January of this year, you met with Sinclair’s former CEO, David Smith, as well as the newly named Sinclair CEO, Chris Ripley.

  • The President’s campaign reportedly “struck a deal” with Sinclair to “secure better media coverage.” This arrangement came to light after the election, when Jared Kushner reportedly revealed that in exchange for access to then-candidate Trump and his campaign, “Sinclair would broadcast Trump interviews across the country without commentary.” Sinclair representatives have defended this arrangement by claiming that the Clinton campaign was offered the option for extended interviews with local anchors as well, but did not accept.

  • In April, Boris Epshteyn, who was “most recently Special Assistant to The President and Assistant Communications Director for Surrogate Operations for the Executive Office of President Trump,” and formerly a “senior advisor to the Trump campaign,” joined Sinclair to provide on-air political commentary. Epshteyn’s segments are “must-run” programming for Sinclair stations, with nine segments airing per week. One report has criticized the segments as “propaganda” and reporting on Sinclair’s selection of “must-run” programming has raised “suggestions that Sinclair pushed right-leaning views.”

The Democrats are requesting Mr. Pai answer their letter and provide additional information no later than Aug. 28.

FCC Planning to Allow Sweeping Mergermania for Local TV Stations

Phillip Dampier July 26, 2017 Competition, Consumer News, Public Policy & Gov't 1 Comment

(Image: Free Press)

Along with a new TV season starting this fall, the Federal Communications Commission plans to launch a new season of sweeping deregulation in the broadcasting industry, allowing a handful of companies to acquire masses of local TV stations as a result of easing ownership limits.

Bloomberg News reports FCC Chairman Ajit Pai, with likely support from fellow Republican commissioner Mike O’Rielly, will unveil new rules that will allow TV station owners like Nexstar, Tegna, E.W. Scripps, and Meredith to acquire dozens of local stations, even in cities where they already own stations.

The new rules, likely to pass on a party line vote, would allow companies to own two of the four most-viewed stations in a market, in addition to several other lesser-rated outlets. Broadcasters are also heavily lobbying Republicans to insert another new rule that would lift the current ban on owning both the local daily newspaper and a TV station.

Broadcasters have been itching to launch a sweeping wave of station ownership consolidation to boost advertising revenue, cut costs, and gain more leverage over cable and satellite companies as they continue to raise fees charged for consent to carry those stations on pay television lineups.

The Obama Administration not only supported existing rules designed to protect local media diversity, it also strengthened them. The former administration believed that allowing local stations to consolidate was stripping some cities of competing local newscasts, reducing diversity of voices on local stations, and shifting local broadcasting further away from its public service obligations.

Public policy groups have criticized deregulation efforts for decades, particularly the 1996 Telecom Act, signed into law by President Bill Clinton. That legislation lifted ownership limits on radio stations, triggering a sweeping consolidation tsunami that allowed companies like iHeartMedia (formerly Clear Channel Communications) to build an empire of more than 1,200 stations nationwide (as many as eight stations in a single market) after a $30 billion spending blitz.

As a result of its heavy indebtedness, the company has struggled to pay back its $20 billion outstanding debt and has committed to multiple rounds of slashing expenses at its stations, resulting in dramatic cuts in local service and staff, and turning many of its stations into automated music jukeboxes with no local announcers or staff. Listener ratings declined as a result and on April 20, the company warned investors that it may not survive the next 10 months without bankruptcy reorganization protection. These groups worry consolidation will have a similar effect on free over-the-air TV’s sense of localism.

Ironically, Sinclair Broadcasting, now attempting to acquire the station portfolio owned by Tribune Media, will not be able to participate in the next wave of consolidation because it arguably has already broken another long-standing FCC rule prohibiting one company from owning over-the-air TV stations that reach more than 39% of the U.S. audience. That rule would not be changed as a consequence of the current deregulation proposals, but it would surprise no one to see Mr. Pai and Mr. O’Rielly attempt to repeal or modify it next year.

Pai and O’Rielly have been extremely critical of ownership restrictions in general. Pai has thus far advocated loosening local-TV limits, but O’Rielly has gone further calling for their complete repeal, arguing it “defies belief” that over-the-air stations have limits while they compete with “literally hundreds of competitive pay TV channels and essentially unlimited competitive internet content”

The Obama Administration argued the difference between over the air broadcasting and pay TV networks was primarily in their public service obligations. As a license holder, TV stations are required to provide service in the public interest in return for being granted a license to use the publicly owned airwaves. Since pay television networks do not use public property, they are not required to meet those obligations. Local stations, particularly those with local newsrooms, also have a long tradition of being critically important in times of public emergencies. Without an in-house staff, stations airing little or no local programming would be unlikely to continue that tradition.

Large TV owner conglomerates are already arranging financing for the impending station roundup. John Janedis, an analyst with Jeffries, told Bloomberg all of the larger TV station owners are eager for the relaxation of ownership rules so they can purchase their peers.

“The reality is everyone is talking to everybody,” Janedis said. “There are a lot of buyers out there.”

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)

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