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WOW inundated with calls after CableVision pulls the plug on local TV channels

WOW CEO Stanley Wright

WORLD on Wireless (WOW) has been "inundated" with calls from disgruntled customers of competitor CableVision after this week's "game of chicken" left viewers locked out of their favourite channels.

On Wednesday night CableVision pulled the plug on ZFB and ZBM, the local channels carrying ABC and CBS networks.

The ongoing television war between Bermuda's largest cable company, CableVision, and Bermuda Broadcasting Company, left customers unable to tune into Oprah and the season premiere of the popular ABC show Lost. Instead, they got a message with CableVision's regrets.

The island has been buzzing with livid customers lighting up the phones at CableVision, Bermuda Broadcasting, the popular social networking site Facebook and on the local radio talk shows.

One Facebook user stated: "Cannot believe she can't watch Lost . . . devastated. Cancelling my account with CableVision tomorrow."

Responding to the outcry, Government filed an application yesterday afternoon for an injunction with the goal of reinstating the two channels for a period of time so the two parties can negotiate.

American-owned CableVision has refused to pay the fee of $1.50 per channel, per subscriber to Bermuda Broadcasting, arguing that since viewers can access ZBM and ZFB for free via "rabbit ears", it should not have to pay a fee for the same service.

According to one source, the debate has been "a game of chicken" and that CableVision "didn't blink, they didn't back down".

Bermuda Broadcasting CEO Bill Craig, however, said CableVision's decision to pull the channels at 5 p.m. on Wednesday night was intentional.

"Taking the channels off the air at 5 p.m. was designed to increase their customers' and advertisers' aggravation," he said.

Meanwhile, WOW, which according to its CEO Stanley Wright, currently enjoys around ten per cent of the cable market share, has been reaping the benefits from the fallout.

"We've been inundated with calls and sign-ups," Stanley Wright, president and CEO of WOW, said. "When I came in this morning at 7.30 a.m., we already had five sign-up forms on the fax machine."

The company has been so overwhelmed that Mr. Wright had to join his sales team in answering the phones.

"The phone has been ringing off the hook," he said. "I've actually started fielding some calls myself due to the high volume of sign ups. While this situation is certainly not good for the community at large, it's been fantastic for us. We're going to take advantage of the opportunity, as any company would."

WOW, which opened its doors in 2004, still carries the ZBM and ZFB channels ands has no plans to drop the channels.

"We still carry Bermuda Broadcasting and we have no reason to drop them. It's just not in the community's best interest," Mr. Wright said.

While WOW carries a slightly smaller schedule of shows, the only notable difference is that WOW does not carry pay-per-view channels.

CableVision customers, however, might be hesitant to move over if they have their Internet services bundled with their cable and at this point WOW does not offer that capability.

"While we don't offer Internet service at this time, we are planning to do so and are currently in discussions," he said.

Meanwhile, loyal customers of CableVision may have to go without ZBM and ZFB for the time being as one industry insider says the fight will rage on.

"Essentially, what Bermuda Broadcasting is asking for is for CableVision to pay for their local news and local programming," he said. "Cable companies aren't going to pay a dime for local broadcasting, would you?"

Mr. Craig, however, said that while his company is prepared to discuss the $1.50 per channel, per subscriber fee, CableVision has essentially tuned them out.

"They have shown incredible arrogance in this situation," he said.

"We would be interested in talking to them but we can't even get them to the table."

"What we are asking them to pay isn't a large sum of money," he added.

"We are asking for a rate of $1.50 per channel, per subscriber. ZFB and ZBM are the most popular channels in Bermuda, more popular than HBO, A&E and CNN. CableVision pays ESPN, the most popular imported station, $4 per subscriber. But they have no issue with them and we're a third of the price."

By comparison, VSB does not charge the cable companies for programming.

Those who don't want to wait until the dispute has been settled can head over to WOW.

The company is currently offering a special package that it will most likely extend which includes all programming, including equipment and installation for $110.

"We have all the movie channels, HBO, Showtime and all the popular family, education, news channels viewers could want," Mr. Wright said.