“Frontier offers a level of suckage that cannot be proportionally compared with any other company in America. Stabbing yourself with knitting needles is less painful than their snail slow internet service and dealing with customer service agents that formerly served as prison guards at a Syrian detention camp.” — A deeply dissatisfied Frontier DSL customer in Ohio

Frontier Communications has achieved a new low in customer satisfaction, wrestling away the award for America’s worst ISP from perennial favorite Mediacom, in a newly released American Customer Satisfaction Index.

No internet service provider did particularly well in customer satisfaction, but Frontier managed to alienate more of their customers than any other this year, ranking poorly in speed, reliability, and customer service. Customers also complained about being given inaccurate information, inaccurate billing, and surprise charges on their bill.

Frontier’s worst performance is delivered in legacy DSL service areas, where its aging copper wire network is often incapable of delivering 21st century broadband speeds. In many areas, speeds drop well below 10 Mbps during peak usage. Even worse, company officials signaled that the company had few plans to improve its wireline network or service experience in 2019. As a result, many customers switched providers, if one was available. If Frontier is the only option, customers often have no options.

“For several years we have had no internet options except for Frontier. We receive 10 to 20% of the service we pay for time and time again,” wrote one customer in a complaint with the Better Business Bureau. “The service has even diminished over time, [and] whenever my work demands me to log online, I often have to leave my home at different times of the day or night to a location where I can get free Wi-Fi or drive 24 miles to my job. This is totally unacceptable. Every single weekend and every night my internet shuts off. I mean every night. Nothing has been done from a customer’s view to improve service.”

What seems to have driven Mediacom out of last place was not so much an improvement in their network or service.

“Mediacom has the second-lowest score among subscription TV services at 56, but has one of the highest-rated mobile apps, both in terms of quality and reliability,” the ACSI found.

Frontier has an improved website, but still offers many potential subscribers a severe disappointment when shopping for internet plans, and finding only one:

Although continued traffic growth would seem to indicate companies like AT&T and Verizon will need to continue major spending initiatives to keep up with demand, technological advancements and upgrade programs have made networks more efficient than ever, allowing AT&T and Verizon to report cost declines as much as 40% annually.

Wireless One’s Dave Burstein spoke with Andre Fuetsch, AT&T’s chief technology officer about current telco cost trends. Feutsch said a lot has changed with AT&T’s networks over the last several years.

“We’ve gone from 10 gigabits to 100 gigabits to now 400 gigabits on our fiber,” Feutsch told Burstein. “MIMO and massive MIMO are extremely productive. Yes, I think 40% per year is a reasonable estimate of how our costs are going down. AT&T’s leadership in open white box and SDN will continue to drive that number higher, which is needed as network demand increases.”

Burstein notes Verizon similarly estimated their costs were also falling about 40% annually.

“I have been able to confirm that the 40% Verizon efficiency savings figure is on target if not exact,” Burstein said. “You can replicate my thinking. Traffic has been growing 40% per year. Sales have been roughly flat for the similar time period. If productivity growth hadn’t been a similar 40%, profits likely would have trended down. In fact, they have been flat or slightly increasing.”

While AT&T has been embarked on a costly major fiber network buildout in its local phone service territory, Verizon has been focused on rebuilding and modernizing its core network. The “One Verizon” project is retiring a large percentage of the 200,000 legacy routers, switches, and other hardware in use across Verizon’s network and installing about 20,000 very efficient network box replacements. Verizon estimates its first year cost savings are about 50%.

Although network traffic growth, expansion, and upgrades come at a cost to carriers, technological improvements are covering much of those costs by making networks more efficient and capable of carrying much more data than ever before. When companies talk about their network investments in terms of justifying rate increases, that clearly does not tell the full story.

The average Comcast broadband customer now consumes over 200 GB of online data per month, an increase of 34% over just one year ago, according to Dave Watson, president and CEO of Comcast Cable Communications.

The increased usage accelerated during the last quarter of 2018, Watson told investors on a quarterly conference call.

What remains unchanged is Comcast’s data cap, which remains fixed at 1 TB per month for many customers. To avoid overlimit penalty fees of $10 for each additional 50 GB block of data consumed (up to $200 per month), Comcast is still pitching its unlimited data option — insurance against Comcast’s own overlimit penalties, which costs a growing number of customers an extra $50 a month.

Watson knows data usage over Comcast’s network is about to grow exponentially, mostly thanks to streaming video.

“I think that we start with the central view that streaming is going to happen, video over the internet is more friend than foe. and we wish every bit was our bit,” Watson told investors this morning. “If people consume more bits and video clearly does that, and 4K video does even more than that, that is the sweet spot of where this company is going to grow.”

Translation: We intend to make a killing on usage growth. Comcast can market you a faster internet package at a higher price, or as your usage approaches the data cap, scare you into buying overlimit insurance.

Remember that Comcast drops usage caps for some customers willing to rent their latest network gateway (available only in some areas at this time).

Amazon is planning to finance the launch of a new global satellite internet service, powered by a fleet of more than 3,000 low Earth-orbiting satellites that will deliver high-speed internet service to rural underserved and unserved communities, opening up the possibility of millions of potential new Amazon.com customers.

Known as Project Kuiper, named after a famous Dutch-American astronomer, the project is enthusiastically backed by Amazon founder Jeff Bezos, and will require billions of dollars in investment. The proposal claims Amazon will launch 3,236 small satellites into space in about a decade, which experts claim is plenty of time for the ambitious project to either flourish, be changed, or scrapped under pressure from Wall Street.

“Project Kuiper is a new initiative to launch a constellation of low Earth orbit satellites that will provide low-latency, high-speed broadband connectivity to unserved and underserved communities around the world,” an Amazon spokesperson said in an emailed statement. “This is a long-term project that envisions serving tens of millions of people who lack basic access to broadband internet. We look forward to partnering on this initiative with companies that share this common vision.”

Although the marketing focus of the project will be on reaching rural and unserved areas, the satellite broadband network would deliver data coverage anywhere within a range of 56 degrees north to 56 degrees south latitude, which would cover virtually every continent, except extreme South America, Antarctica, parts of far northern Russia, Alaska, and Canada. About 95 percent of the world’s population would be reached by Amazon’s satellite project. Most similar ventures promise much faster and more responsive service than traditional satellite internet service, at a much lower cost.

Kuiper

But CNBC reported the road to the next generation of satellite internet access “is littered with companies that tried, and failed, to pull off a coup in space-based internet.”

• 2015: Facebook scrapped plants to spend up to $1 billion on satellite internet access for Africa and other under-covered continents.
• 2002: Teledesic closed its doors after spending $9 billion on a similar low Earth-orbiting satellite project backed by Microsoft founder Bill Gates.

Amazon could have competition if any of the projects still in progress actually begin offering service.

• Elon Musk’s SpaceX launched two test satellites for its “Starlink” network last year, the first step toward its goal of a constellation of 4,425 satellites.
• In March 2019, Softbank-backed OneWeb launched the first six satellites of its network, which plans to begin with a constellation of 650 interconnected satellites.
• Boeing and Canadian satellite operator Telesat have their own plans for a satellite internet project.

Amazon has very deep pockets and has the financial capacity to fully fund the project, but not without likely protests from investors concerned about the cost and history of earlier flopped ventures. Additional details can be found in these three sets of filings made with the International Telecommunications Union last month by the Federal Communications Commission on behalf of the Amazon-backed venture.

Times up. Legacy devices like the GizmoPal watch will stop connecting to Verizon after the company shuts down its CDMA/3G network at the end of the year.

Customers with older phones and devices that are dependent on Verizon Wireless, take note: those devices may stop working at the end of this year as Verizon Wireless mothballs its legacy CDMA network and 3G mobile data. Verizon originally announced it was planning to shut down CDMA and 3G service last summer, and stopped activating new devices that did not support the current 4G LTE standard. Since that time, the company has been gradually replacing CDMA and 3G-dedicated frequencies to 4G LTE to relieve congestion.

As this transition continues, some customers with older basic phone are noticing call issues and a lack of adequate mobile data service. That happens when a tower has re-dedicated almost all of its available spectrum to 4G LTE service, and those using older devices share a quickly declining number of frequencies. Some smartphone owners are also affected, even if their device supports 4G LTE data, because it may still rely on Verizon’s CDMA network to make and receive phone calls.

One of the biggest impacts of the shutdown will be felt by General Motors’ OnStar customers driving vehicles made before 2015, which rely on Verizon CDMA and 3G technology to support GPS, crash detection, diagnostics, and voice calling. Starting with 2015 models, GM moved its OnStar platform in new vehicles to AT&T’s 4G LTE network. Some GM vehicle owners, but not all, have the option of upgrading to OnStar over AT&T’s 4G LTE network with a retrofit kit, which also supports an in-vehicle hotspot. If this option is not available, service is expected to sunset for older vehicles on Dec. 31, 2019.

Some medical monitoring devices that rely on Verizon’s legacy CDMA network will also cease working unless a retrofit or upgrade is made available by the manufacturer.

Affected devices include:

• CDMA (3G)-only devices, including 3G basic phones and 3G smartphones
• 4G LTE smartphones that do not support HD Voice
• Apple iPhone 5s or prior including the Apple iPhone 5c
• Connected devices with CDMA (e.g,, GizmoPal, GizmoPal2, GizmoGadget and some Hum + models).
• In-car telematics devices like GM’s OnStar on pre-2015 model year vehicles
• Certain medical monitoring devices

Verizon had originally planned to mothball its CDMA network in late 2021, but the carrier needed to repurpose existing spectrum to meet growing data demands on its network, so it moved the drop dead date forward to Dec. 31, 2019.