Small Texas City Losing Cable TV, Keeping Internet after Network Sale

WASHINGTON, September 3, 2024 – A small Texas city is finding out what it's like when the cable TV company cuts the cord.

Alpine, Texas (pop. 6,000) will soon experience a shift in its media landscape as TDS Telecom plans to discontinue its cable TV service there by Sept. 26.

The move comes as part of a broader agreement in which TDS Telecom, headquartered in Madison, Wisconsin, has sold its cable systems in Alpine and four other Texas locations. The transaction is expected to close by the fourth quarter of 2024.

Under the agreement’s terms, Alpine’s cable system and a second system in Fort Stockton will be acquired by Nevill Holdings Inc., the parent company of Big Bend Telephone Co., while other systems in Seminole, Seagraves, and Denver City will be transferred to Poka Lambro Telecommunications Ltd. 

Despite the acquisition, neither Nevill Holdings nor Poka Lambro will continue to offer cable TV, leaving Alpine residents needing to transition to satellite TV or streaming services in just a few weeks. Alpine isn’t alone: the same will be true for TDS customers in the other Texas communities that TDS is exiting.

Alpine Mayor Catherine Eaves expressed surprise at the lack of direct communication from TDS and the acquiring companies.

"I was made aware of the sale when I received a notice in the mail from TDS indicating the upcoming changes," Mayor Eaves told Broadband Breakfast. "To my knowledge, the city was not made aware directly by either TDS or Big Bend Telephone Co."

The city of Alpine itself relies on TDS for cable services in certain facilities, and Mayor Eaves noted that they will need to evaluate alternative options moving forward.

In an email to Broadband Breakfast, Andrew Petersen, senior vice president of corporate affairs at TDS Telecom, confirmed that 166 video subscribers in Alpine will be affected by the shutdown.

Petersen explained that while broadband and VOIP customers will be absorbed by Big Bend Telecom and Poka Lambro, the new providers have chosen not to continue offering terrestrial video services. Similar impacts will be felt in Fort Stockton, with 341 cable TV subscribers, and Seminole, with 342 cable subscribers.

According to documents filed with the Federal Communications Commission, TDS notified affected residents on August 21 that they needed to find alternative TV service providers, such as Dish Network, DirecTV, or various streaming platforms.

In the notice, TDS reassured customers that their internet and phone services would remain uninterrupted, even as cable TV services are phased out.

The discontinuation of cable TV in Alpine reflects a larger national trend, where traditional pay TV services are rapidly losing subscribers in favor of internet-based streaming. 

In 2023, the proportion of U.S. households subscribed to pay TV dropped below 50% for the first time, raising questions about the future of cable TV in rural communities like Alpine, which has about 6,000 residents.

For Alpine residents, especially those in areas with limited internet access, who may have relied on cable for news, entertainment, and local programming, the transition away from cable TV could be stressful. The shift to digital platforms may pose additional challenges for those less familiar with new technology.

However, according to Mayor Catherine Eaves, the initial absence of significant complaints from Alpine residents so far might suggest that cable TV is no longer a priority for many, signaling a broader shift in consumer preferences – even in small towns.

As cord-cutting becomes the new norm, the demand for reliable high-speed broadband and alternative media options has become increasingly critical.

Both Poka Lambro and Big Bend Telephone Co. have deep roots in West Texas, providing essential telecommunications services across the region. Poka Lambro serves 4,000 square miles of the South Plains with fiber-to-the-premise facilities. 

Similarly, Big Bend Telephone Co. has been connecting rural communities in West Texas for over 60 years, offering high-speed fiber internet, voice, and data center solutions.

This story was updated at 4:30 p.m. on Sept. 3 to include new information from a TDS executive.