October 2, 2019 - Public Issue

ACA CONNECTS: KEY DEVELOPMENTS

ACA Connects Offers FCC Proposals To Maximize RDOF Support UtilizedBy Smaller Broadband Providers

ACA Connects, in Sept. 20 comments filed with theFederal Communications Commission, applauded theFCC for launching the $20.4 billion Rural DigitalOpportunity Fund (RDOF) and awarding support by usinga reverse auction.

However, ACA Connects explained the proposed rules forthe program would not maximize participation in theauction and therefore both waste scarce governmentsupport and fail to bring higher performance broadbandservices to unserved eligible areas.

ACA Connects recommended the FCC modify its weighting methodology to encourageproviders to bid to offer higher performance services. The FCC also can increaseparticipation by using individual census blocks as the minimum geographic area.

ACA Connects President and CEO Matthew M. Polka explained, “In proposing the RuralDigital Opportunity Fund, the FCC has ‘caught the broadband train.’ The RDOF has thepotential to bring high performance broadband services to unserved rural America andbest use limited government funds. But that will only occur if the FCC adopts rules thatencourage the maximum number of potential bidders to participate.” Read more.

ACA FILING (9/20): FCC Comments re Rural Digital Opportunity Fund andConnect America Fund

ACA CONNECTS' REGIONAL SHOW: KANSAS CITY, MO.

The ACA Connects public policy team hit the road this year to stage regional meetingsdesigned to ensure ACA Connects members are kept as current as possible ondevelopments in Washington, D.C. The fourth and final "Regional Roadshow" occurredWednesday, Sept. 25, in Kansas City, Mo. at the Kansas City Marriott. Opening remarkscame from ACA Connects Chairman Patricia Jo Boyers, a Missouri resident who saidher near term goal is the repeal of retransmission consent.

Mrs. Boyers pointed to the introduction of the Modern Television Act of 2019 as apotential legislative vehicle for achieving that goal. Other speakers included ACAConnects President and CEO Matthew M. Polka; ACA Connects EVP Member Services& Finance/Chief of Staff Robert Shema; ACA Connects Senior Vice President ofGovernment Affairs Ross Lieberman; and Alpine Group EVP Ansley Erdel. Additionalcomments came from Judy Meyka, NCTC's EVP of Programming, and Jared Baumann,NCTC's VP of Broadband Services.

Attendee registrants included: Sparklight; Waverly Utilities; Conway Corp; CitizensTelephone & Cablevision; Midco; ImOn Communications; EagleCommunications; Leverage Consulting; Allo Communications; Vast Broadband;Vyve Broadband; and Indianola Municipal Utilities.

ACA Connects Chairman PatriciaJo Boyers

ACA Connects President andCEO Matthew M. Polka

ACA CONNECTS AT THE MID-AMERICA SHOW

Following the ACA Connects' regional session, the Mid-America CableTelecommunications Association (MACTA) held its annual conference at the sameMarriott hotel in downtown Kansas City, Mo. The Sept. 26 MACTA event featured asitdown interview with Phil Spencer (right), with questioning led by ACA ConnectsPresident and CEO Matthew M. Polka. Spencer is CEO of Northland Communications &MegaBroadband Investments, which recently announced definitive agreements toacquire Vyve Broadband and Eagle Communications. Both transactions are scheduled toclose in Q4 2019.

Later in the program, Polka and ACA Connects EVP Member Services & Finance/Chiefof Staff Robert Shema were inducted into MACTA’s Pathfinder class of 2019. TheWendell Woody Pathfinder award was established in 1997 to recognize an elite group ofcable industry professionals who actively participated for at least 20 years and made asignificant impact on the industry during that time.

OTHER ACA CONNECTS FILINGS

ACA Connects has been actively representing independent cable in many other waysand on many issues in Washington, D.C. Those efforts are described in the filings,letters, and testimonies linked below for your review:

(9/25): FCC Ex Parte re Expanding Flexible Use of the 3.7 to 4.2 GHz Band w/Offices of Cmmsrs Carr, Rosenworcel, and Starks and WTB, IB, OET, and OEA.

(9/23): FCC Comments re Establishing the Digital Opportunity Data Collectionand Modernizing the FCC Form 477 Data Program

(9/20): FCC Comments re Review of EEO Compliance and Enforcement inBroadcast and Multichannel Video Programming Industries

ACA CONNECTS PODCASTS

What’s retransmission consent all about? Why will “free TV” cost consumers about $11billion in 2019? Why have TV stations blacked out their signals a record 230 times in2019? In this edition of DC2U, ACA Connects’ podcast and videocast, ACA Connects Presidentand CEO Matthew M. Polka explores these issues with three noted communicationspolicy experts. From left to right: Mike Chappell, Executive Director of the AmericanTelevision Alliance (ATVA); Trent Duffy, Partner with HDMK and ATVA spokesman; andJohn Simpson with Ride TV, an independent programmer. The podcast comes at a critical time with Congress in the process of reauthorizing theSatellite Television Extension and Localism Act Reauthorization Act of 2014 (STELAR),which not only requires TV stations to bargain for retrans in good faith but also preventsthem from signing exclusive retrans deals that would likely impede competition amongmultichannel video programming distributors (MVPDs). Congress is also taking a close look at the Modern Television Act (H.R.3994), abipartisan bill sponsored by Rep. Steve Scalise (R-La.) and Rep. Anna Eshoo (D-Calif.)that would abolish retransmission consent and establish other policy reforms. Thispodcast was recorded Sept. 4 in Washington, D.C. ACA Connects is an ATVA member. Stitcher: https://www.stitcher.com/podcast/aca-connects/dc2u?refid=stprSpotify: https://open.spotify.com/episode/0Ov1uKk7TH56PkblcmbeTnACA Connects The Hub: https://acaconnects.org/thehub/You Tube : https://www.youtube.com/watch?v=rs_Mv2AV1Ns&feature=youtu.be

ACA Connects DC2U Podcast/Videocast: 5G, C-Band Spectrum, and More RuralFiber Deployment – The Experts Discuss the “5G Plus Plan” and What It Meansfor America Want some real news from a few key D.C. policy insiders on the fate of the C-Bandspectrum? Then search no further than this edition of DC2U, ACA Connects’ podcastand videocast hosted by ACA Connects President and CEO Matthew M. Polka. To geta good idea of the underlying issues and policy alternatives related to clearing the C-Band, Polka turned to three policy experts: ACA Connects Senior Vice President ofGovernment Affairs Ross Lieberman, Charter Communications Vice President ofRegulatory Affairs Colleen King, and Competitive Carriers Association (CCA) SeniorVice President & General Counsel Alexi Maltas. ACA Connects, Charter, and CCA combined to craft a proposal that needs FederalCommunications Commission approval called the “5G Plus Plan.” The plan will free up alarge swath of C-Band airwaves via an FCC auction for use by mobile communicationsproviders planning to deploy 5G technology. The 5G Plus Plan will also generate billionsin revenue for the U.S. Treasury; some of the auction revenue will fund an extensive fibernetwork especially needed by smaller multichannel video programming distributors(MVPDs) that will no longer be able to rely on C-Band airwaves to receive satellite-delivered programming after the conclusion of the FCC’s C-Band auction. Complex and controversial with many parties at the table, the C-Band spectrum debatewill be one of the most important issues the FCC will attempt to resolve this year. To geta sense of where the FCC is headed – a vote is expected this November – this newDC2U podcast is a good place to start. The podcast was recorded Sept. 4 in WashingtonD.C.

Links: Spotify | iTunes | YouTube | Stitcher | ACA Connects: The Hub

Please find this podcast edition on other sites by searching (for now) ACAConnects or DC2U.

PREVIOUS PODCASTS:

Diane Christman: Senior Vice President and Chief Program Officer at the Cable Center

Podomatic: https://bit.ly/2knsXdFApple: https://podcasts.apple.com/us/podcast/aca-connects/id1349457640The Hub: https://acaconnects.org/thehub/

Duke Wimberly, a star of Ride TV’s “Cowgirls” series

Podomatic: https://bit.ly/2ML7o2Z

Apple: https://apple.co/2HyY9icThe Hub: https://acaconnects.org/thehub

Jay Thomson, CEO at the Canadian Communication Systems Alliance Inc. (CCSA).

Podomatic: https://bit.ly/2zeEm34Apple : https://podcasts.apple.com/us/podcast/aca-connects/id1349457640Website: https://acaconnects.org/thehub/

Todd F. Schurz, President and Chief Executive Officer of Schurz Communications inMishawaka, Ind., and Katherine Gessner, President of MCTV in Massillon, Oh.

Podomatic: https://bit.ly/2N6LAhVApple: https://podcasts.apple.com/us/podcast/aca-connects/id1349457640ACA Connects Website: https://acaconnects.org/thehub/

ACA CONNECTS: NEWS HEADLINES

BELD To Turn Off Cable TV On Dec. 2 (Telecompetitor, 9/24)BELD, a broadband provider in Braintree, Mass., owned by utility Braintree Electric LightDepartment, announced that it now offers gigabit service but will no longer offer cable TVservice as of December 2. The news illustrates a growing trend – broadband providersde-emphasizing video in favor of higher-speed broadband, which can support streamingvideo as an alternative to traditional pay TV. BELD is even helping customers findstreaming video cable replacement options. To support its new strategy, BELD puttogether some attention-getting and user-friendly online resources to advise customershow to make the shift away from cable. Sinclair CEO: Streaming Wars Will Be A ‘Sea Of Blood’ (Fierce Video, 9/26)Sinclair CEO Chris Ripley has looked out upon the incoming streaming wars, and hasseen a landscape where media conglomerates will struggle to strive. In an interview withNBC News, he said his company has focused on news and sports as a long-termsustainable business strategy, and consciously avoided wading into the SVOD marketwith Amazon and Netflix and soon Disney, Apple, WarnerMedia and NBCUniversal. “Wethink that’s going to be a sea of blood,” said Ripley. “It’s going to be losses for manyyears to come for many of those companies who are going to be engaged in a majorshare battle.”

Locast Files Counterclaims Against Broadcasters (Variety, 9/27)After getting sued by the major broadcast networks for alleged copyright infringement,TV streaming upstart Locast has responded with a counter-filing that claims the TVnetworks have colluded to prevent free access to broadcast TV, and strengthen theirretransmission business. “We believe the broadcasters’ lawsuit was brought withoutbasis as part of a larger plan to unlawfully limit the public’s right to access that freeprogramming,” said Locast founder David Goodfriend.

Ryvicker: Retrans Revenue At Risk In Long Term (TV NewsCheck, 9/27)Securities analyst Marci Ryvicker of Wolfe Research is generally bullish on the publiclytraded station groups that she follows, but she admitted to serious concerns.Retransmission consent revenue “could be a risk longer term,” she said. Retrans and itsderivative net retrans (retrans less reverse comp payment to broadcast networks) willgrow at healthy clips for the next few years, she said. Retrans will experience acompound annual growth of 12%, while net retrans climbs at a 5% rate. But starting in2024, by her reckoning, the rate of growth for retrans falls to 7% and net retrans goesflat.

FCC Approves Gray’s Top 4 Duop In Sioux Falls (TV NewsCheck, 9/24)It took 16 months but the FCC finally approved Gray Television’s purchase of Red RiverBroadcast’s NBC affiliate KDLT Sioux Falls, S.D., for $32.5 million, even though it alreadyhas another network affiliate, ABC affiliate KSFY, in the market. The action, in essence,constitutes a waiver of the FCC’s local ownership rules barring ownership of two stationsin small markets and of two top-rated stations (typically network affiliates) in all markets.

The FCC was undeterred by Monday’s decision by the U.S. Court of Appeal inPhiladelphia that vacated the FCC’s 2017 order relaxing the local ownership rules.

Fox Stations, Cable Nets Blacked Out On Dish (B&C, 9/26)Fox’s stations and cable networks were blacked out Sept. 26 on Dish Network in adispute over retransmission consent and carriage fees. The blackout affects stations in17 markets across 23 states and the District of Columbia. Subscribers to Dish and itsSling streaming services are also unable to receive Fox cable networks including FS1,FS2, Big Ten Network, Fox Soccer Plus and Fox Deportes. Fox News is under a separatedistribution agreement. Fox and Dish had been operating under an extension of theirprevious deal. Both sides pointed the finger at the other in terms of who pulled the plug.

OTT Device Pricing Being Driven To Zero, Analyst Says (Multichannel News,9.20)Shares of what had previously been hottest company in OTT, Roku, fell another 17%following a declaration from Pivotal Research Group analyst Jeffrey Wlodarczak thatdownward market pressure on OTT devices will soon drop prices to zero. Roku’s fast-growing revenue is now 67% generated by advertising. And in the second quarter, Rokustill drove a 24% year over year increase in device sales. “We see dramatically morecompetition emerging that will likely drive the cost of OTT devices to zero and putmaterial pressure on advertising revenue,” Wlodarczak told CNBC.

WGN-TV Says Goodbye To Wrigley Field After 71 Years (B&C, 9/21)WGN-TV in Chicago on Sept. 21 broadcast its last game from Wrigley Field as thestation’s 71-year relationship with the Chicago Cubs approaches its end. The station willbroadcast two more Cubs games before the season ends, one from Pittsburgh and onefrom St. Louis. Next season games will be televised locally exclusively on the MarqueeNetwork, the new regional sports channel being formed by the Cubs and SinclairBroadcast Group.

ACA CONNECTS: ACTION BRIEF TOP THREE

Most-Clicked Links From Sept. 5 ACA Connects Action \

Comcast Sues Maine To Stop A La Carte LawApple TV+ To Cost $4.99 A Month And Launch Nov. 1Fight! C-Band War Of Words Escalates

ABOUT ACA CONNECTSAcross this vast country, small and ruralmarkets participate in the digitalrevolution by receiving video, broadband,and phone services from more than 700small and medium-sized independentoperators represented by ACA Connects- America’s Communications Association.

ACA Connects' members -- cable, phone, and fiber-to-the-home operators andmunicipalities -- deliver affordable basic and advanced services to nearly 8 millionhouseholds and businesses. ACA Connects members operate in every state, offeringhigh-definition television, next generation Internet access, and digital phone service.

Access to advanced communications is not a luxury but a critical necessity for consumersand companies, schools and hospitals. America's economic prosperity in smaller marketsand rural areas depends on the growth and success of ACA Connects members, whobelieve a connected nation, is a united nation. ACA Connects asks lawmakers and regulators to ensure fair treatment so that small andmedium-sized independent operators may continue to supply affordable video,

broadband, and phone services to Main Street America. Through active participation inthe policymaking process, ACA Connects members and leaders advocate for theinterests of their customers, their companies, and their communities to help ensure thecontinued viability of their way of life in hometown America.

For more information, visit www.acaconnects.org, or contact:

Ross Lieberman, SVP Government Affairs202-494-5661 | rlieberman@acaconnects.org

Ted Hearn, VP Communications202-713-0826 | thearn@acaconnnects.org

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