Hawaiian Telcom Lobs New Accusations Against Nexstar

On June 30, the retransmission consent agreement between the nation’s No. 1 owner of broadcast TV stations and MVPD Hawaiian Telcom expired. This led the MVPD, by law, to prevent its customers on O’ahu from receiving FOX affiliate KHON-2, a dual FOX/The CW station; KHII-9, the MyNetwork TV station acquired in 2019 that was formerly KFVE; digital multicast networks Grit and Rewind TV; and the nationally distributed NewsNation cable TV channel.

It is now known that an agreement apparently reached in principle between Hawaiian Telcom and Nexstar Media Group was not finalized because, the MVPD says, it was presented “with new demands — to waive its claims that Nexstar acted in bad faith.”

That new information became known on Tuesday afternoon, with Hawaiian Telcom revealing that it had paperwork in hand that would have ended the “blackout” of the Nexstar-owned stations just in time to bring Tropical Storm Calvin coverage to all that rely on the MVPD for receiving the station. With a fierce competitive battle against Gray Television’s “Hawaii News Now” and Allen Media Group’s KITV-4 “Island News,” returning the Nexstar stations would become not only a fight for ad dollars but also a matter of public safety.

It didn’t happen, as Hawaiian Telcom alleges the new demands include withdrawing its verified retransmission consent complaint with the FCC. 

There’s more: the MVPD claims that, had it signed the accord, it would have waived the right “to file future actions against Nexstar.”

These terms arrived on July 12, as Hawaiian Telcom notes that, “understanding the parties had resolved all open issues with the agreement at hand and retransmission of the Nexstar stations would resume, Hawaiian Telcom was presented with new demands.”

With little surprise, Hawaiian Telcom responded by informing Nexstar that it will not release its claims, withdraw the Initial Complaint with the FCC or waive any right to file future actions against Nexstar. “Nexstar’s continued assertion of these requirements is inconsistent with its obligation to negotiate in good faith,” Hawaiian Telcom said in an amended verified retransmission consent complaint submitted to the Commission on Monday (7/17). “Therefore, prompt [FCC] action is necessary to stop Nexstar from unlawfully continuing to hold restoration of retransmission consent hostage in bad faith.”

And, Hawaiian Telcom argues, all that’s needed to end the “blackout” is the FCC to agree with its “bad faith” claims. “Because all other issues between the parties have been
resolved, Commission action would pave the way to restore delivery of the stations to the residents of Hawaii, many of whom cannot receive the Nexstar stations off-air because of topography.”

Indeed, that is the case given Hawaiian Telcom’s footprint, mountains that separate Honolulu from North Shore O’ahu communities, and coverage gaps with other TV service providers. While Charter Communications’ Spectrum is the major MVPD across the state, Hawaiian Telcom remains a key player in locales ranging from Hale’iwa Beach on the north shore to neighborhoods in the shadow of Diamondhead.

Assisting Hawaiian Telcom Chief Legal Officer Mary Talbott, who is based in Cincinnati as the MVPD is a subsidiary of Cincinnati Bell, are attorneys at Washington, D.C.-based Breisach Cordell PLLC.