Suddenlink Seeking Retrans Aid
FCC to Intercede In W.Va. Dispute

By Mike Farrell
MultiChannel News

7/24/2006

http://www.multichannel.com/article/CA6355547.html


In this story:
MOUNTAIN STAGE
OFF-AIR OPTION
WEB SITE MISSIVES



The retransmission-consent dispute between Suddenlink Communications and 
two Charleston, W.Va., broadcast stations shifted to Washington, D.C., last 
week, with the Federal Communications Commission beginning the process of 
resolving the dispute.

The FCC wants both parties — cable company Suddenlink and Sinclair 
Broadcasting Group — to submit documents outlining any ex parte discussions 
they might have had with the commission. FCC spokeswoman Rebecca Fisher 
called that the first step in the agency’s review process.


MOUNTAIN STAGE

Suddenlink bought the Charleston systems, with about 240,000 subscribers, 
from Charter Communications Inc. for $800 million, closing the deal July 1.

Sinclair owns two TV stations in Charleston: Fox affiliate WVAH and ABC 
affiliate WCHS. It wants Suddenlink to accept retransmission-consent terms 
— a one-time $40 million upfront fee and $1 per month per subscriber — or 
to drop the stations.

Suddenlink hasn’t agreed to the terms and asked the Federal Communications 
Commission to force Sinclair to keep the stations on its cable properties 
at least until the July 27 end of the Nielsen Media Research sweeps period. 
FCC regulations bar cable companies from dropping broadcast channels during 
sweeps periods, when viewer ratings are used to calculate advertising rates.

Suddenlink also bought ad time on several local Charleston radio stations 
owned by the West Virginia Radio Corp. — including one called WCHS-AM but 
not affiliated with Sinclair — to spur customers to complain to the stations.

In one-minute ads, a deep-voiced announcer utters “40 million dollars” 
while the “cha-ching” sound of a ringing cash register echoes in the 
background. “That’s roughly what the Sinclair Broadcast Group wants to 
charge cable TV customers for the right to watch two Charleston TV stations.”

The announcer declares that Suddenlink is seeking alternative ways to 
provide ABC and Fox programming to customers in Charleston, without saying 
what those alternatives might be. Customers are urged to contact WCAH and 
WVAH to express concern.

Because of federal rules protecting local broadcasters, cable companies 
cannot import out-of-market broadcasters’ signals without obtaining 
retransmission-consent agreements and without following rules that mandate 
blacking out network and syndicated programming. Cable companies have 
lobbied to revise those rules, in part at least to match satellite-TV 
companies’ ability to import distant signals.


OFF-AIR OPTION

Suddenlink could provide customers with off-air antennas, although in the 
Charleston area the mountains might hamper reception.

Suddenlink vice president of government relations Pete Abel declined to 
comment on alternatives, but said Suddenlink would not do anything that’s 
not permitted by the FCC. He said the two Sinclair stations remain on 
Suddenlink’s Charleston system, but will be pulled off after the end of the 
July ratings sweeps (July 27) unless the FCC intervenes or an agreement is 
reached.

Sinclair is running a crawl during certain broadcasts, informing customers 
the stations might be unavailable soon and giving contact information for 
direct-broadcast satellite services DirecTV Inc. and Dish Network.


WEB SITE MISSIVES

WCHS and WVAH posted a letter to viewers on their Web sites, claiming the 
stations have tried to negotiate with Suddenlink, but any offers from the 
cable operator were inferior to existing deals Suddenlink has elsewhere 
with Sinclair.

“It is unfortunate that our viewers are stuck in the middle of this 
negotiation,” WVAH and WCHS general manager Harold Cooper said in the Web 
letter. “It is also unfortunate that Suddenlink doesn’t want to pay for an 
asset — the signals of WCHS and WVAH — which they want to use in order to 
sell their services to you. To solve this problem, Suddenlink needs to hear 
from you.”

Fisher declined to speculate when the FCC would make a decision on the 
matter, saying every dispute is different. Abel wouldn’t speculate on when 
the FCC might make a decision. “We are certainly asking the commission to 
be mindful of the current realities of the timing and to act accordingly as 
they are able to do so within their rules,” Abel said.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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