Home » Competition »Consumer News »Frontier »Internet Overcharging »Rural Broadband » Currently Reading:

Frontier Adds New $1.50 Surcharge to Broadband Bills; Customers Told It Will Improve Service

Phillip Dampier August 23, 2011 Competition, Consumer News, Frontier, Internet Overcharging, Rural Broadband 8 Comments

Frontier Communications is adding a new $1.50 monthly surcharge for broadband customers not currently enrolled in a “price protection agreement.”  Labeled the HSI Surcharge, the new fee started showing up on customer bills this month, with only a vague explanation buried inside the bill:

Courtesy: Manmaniac

Frontier's Fast One.

Customers attempting to get an explanation of what this charge was all about got a myriad of answers from Frontier customer service representatives:

  • It’s a broadband tax;
  • It’s a surcharge to help pay for network improvements;
  • It’s a charge for customers who refuse to take a price protection plan;
  • It’s a rate increase.

Stop the Cap! called Frontier this afternoon and was told it was designed to collect additional revenue to fund network expansion and was, effectively a rate increase.  Even customers on 1-3 year price protection agreements will eventually pay the “surcharge” as their agreements expire.  It is not a government-mandated charge or tax.

Effectively, this rate increase allows the company to advertise their Internet service at a deceptively low price, until customers discover Frontier’s modem rental fees and surcharges.  In 2009, during Stop the Cap!‘s flirtation with Frontier DSL, we found the “out the door” price for their 3.1Mbps service was actually higher than that charged by Time Warner Cable’s 10Mbps Road Runner service.

Currently there are 8 comments on this Article:

  1. Elena says:

    We have to stop these stealing as Frontier will continue to do so in the future!!!

  2. Annie says:

    And even if you have what you think is a price protection plan, they can add this surcharge to your bill. Two and half years ago I signed up for an internet package with a price guaranteed for life, but because of the fine print that says the guaranteed price doesn’t include taxes or surcharges, Frontier effectively raised the cost of my service. I know Frontier/Verizon was losing money on FIOS — is this their way of recouping some of that?

  3. Dave says:

    Thanks for this article, STC. I’ve been in an exchange of views with Frontier’s office at 41st St. in Everett, WA.

    Here’s the fifth excuse for the HSI surcharge: “The official reason is this: This pass thru surcharge on High Speed Internet service is due to increased costs brought on by the rapid volume growth of services like internet video.” That’s an exact quote from someone in the Customer Relations/GM Partnership Team, who also offered up a ‘but we’re not as bad as Comcast’ argument. Great way to make the sale, eh?

    $1.50 times unknown tens of thousands of customers is substantial. I won’t have it. My account is set to close in several days. Until people are prepared to 1) close their accounts and 2) do so in cooperation as publicly as possible, this will continue. I’ll be checking for follow-up comments, in case there’s an appetite for a larger response.

  4. Dave says:

    The class-action lawsuit is in Minnesota. Here’s the link.
    http://enterpriseitexperts.com/customers-sue-frontier-over-broadband-surcharge/

  5. Julia says:

    We have to stop this junk fee. If we don’t, frontier will continue to charge more under the name “state taxes and other charges”!!

  6. john says:

    I know its an all post but it is the current top list for “hsi surcharge” searches.

    Just talked to a frontier rep “it is a federal fee mandatory for all internet subscribers”
    The modem rental fee is mandatory from Frontier regardless if you have your own modem or use theirs.

    • They are wrong. There is no federally mandated HSI surcharge. In fact, the only federally mandated fee is the one that funds the Universal Service Fund, which is now being reformed to help divert money to rural broadband.

      Frontier is charging just another bill-padding junk fee on their customers, just like the always-increasing “modem rental fee.”

      It is why I don’t recommend Frontier products to my friends and family. They deliver lower speeds and charge higher out the door prices than the local cable company. It just makes so sense to do business with them.

Search This Site:

Contributions:

Recent Comments:

  • James R Curry: No guarantee at all. But, as there's no contract commitment, you can at least cancel if they gut the line-up....
  • Required: Much more expensive than Hulu or Netflix, doesn't let you time-shift (VOD) all the shows/movies,, and doesn't solve the local news/sports problem, rea...
  • JayS: Looks like the era of the CVNO (CableTv Virtual Network Operator) has arrived. MVNO's have been terrific for the Mobile-phone consumer. We now have nu...
  • Gregory Blajian: A quick analysis for my wife and my entertainment situation is below. Getting Starz and MLB Network plus the A&E and Viacom family of channels mig...
  • Elbert Davis: Your last paragraph is exactly why Armstrong Cable cord-cutters cannot have this--200GB a month is all we're allowed to have until we have to pay Arms...
  • ANgela Hill: Did you get anywhere with this? I am about to do the same thing myself. My bill is $170 month, and I cannot do it any longer....
  • Paul A Houle: Frontier is not going to be a competitor. Verizon will sell their copper to Frontier. Frontier can't afford to upgrade their networks but they can a...
  • Limboaz: Trump has named David Higbee and Joshua Wright to his transition team. I guess we can assume they will be involved in anti-trust enforcement since tha...
  • Chad: If you're in NY, and you think you've been charged unfairly by TWC, you should submit a claim with David. It takes 5 minutes and they'll fight for a r...
  • Abraham Long: I have standard internet here in Rochester, NY. The intro price is $34.99 and recently it went up to $44.99 for the second year. All I had to do was m...
  • Lee: Switched to Earthlink internet and PlayStation Vue and couldnt be happier. How did I not figure this out before?!?!?! Its worth a peek....
  • Disgruntled Employee: I work for this company and this is the most spot-on article I've read about what's truly going on in this company. The guys at the top only care abo...

Your Account: