Advertisements for Road Runner Extreme, Time Warner Cable’s DOCSIS 3 “wideband” service, began running in Rochester, N.Y., this week despite the fact Time Warner Cable has no intention of providing the service in the area anytime soon.

The ad offers Road Runner subscribers the chance to obtain 30/5 Mbps service “for just $20 more per month” and invites viewers to “call now to order.”

So that’s what we did.

Time Warner Cable representatives in Buffalo confirmed the service is not available in Rochester, but figured if they were advertising it here it must be coming soon.  Even they were surprised with the answer they got ‘from upstairs’ when inquiring further.

“No, it’s not coming to Rochester anytime soon,” we were told.

We asked if there was any timetable to bring DOCSIS 3 upgrades to the area.  The response was both illuminating and candid:

“I wouldn’t hold your breath.  We’ve had some issues in the Rochester area and, for now, we feel comfortable offering the service only in the Buffalo area in western New York.”

When we asked why the company was now heavily advertising a product on Rochester TV screens that isn’t available here, we were told Time Warner Cable was increasingly consolidating its operations in western New York through its Buffalo office, which is where “most customer service” and “local advertising you see on cable channels” is now originating.  Since Road Runner Extreme is available in Buffalo, Rochester viewers are accidental witnesses to a service intended for residents of The City of Good Neighbors.

So what are “the issues” in the Rochester area?

Time Warner Cable bypassed Rochester for promised upgrades after the defeat of their proposed Internet Overcharging plan, which would have tripled broadband prices for an equivalent level of service.  Consumer outrage and political headaches combined to kill the experiment.

Meanwhile, Time Warner Cable isn’t compelled to hurry DOCSIS 3 into an area underserved by Frontier Communication’s slow speed DSL service.  Neighboring communities in Buffalo and Syracuse have access to Verizon’s fiber-to-the-home service FiOS, which has driven Time Warner to enhance services in both communities to avoid losing customers.

Despite the slow pace of upgrades, Time Warner Cable previously stated it intended to upgrade a significant number of its cable systems to DOCSIS 3 technology by the end of the year.  So it will eventually reach the area.  As Time Warner Cable recommends… just don’t hold your breath.

Click here to view the embedded video.

The closest residents of the Flower City will get to Road Runner Extreme is at the New York State Fair in Syracuse, at the Time Warner Cable booth.  (Their advertised ‘celebrity’ is Mike O’Malley.  Who???)  (1 minute)

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Almost two years to the day Frontier Communications quietly introduced language in its customer agreements providing a monthly broadband usage allowance of just 5GB per month, the company has quietly removed that language from its terms and conditions.

The 5GB usage allowance was deemed generous by Frontier CEO Maggie Wilderotter.  Frontier claimed most of its 559,300 broadband subscribers (2008 numbers) consumed less than 1.5 gigabytes per month.  But news of the cap angered customers anyway, particularly in their biggest service area — Rochester, N.Y.  In fact, Frontier’s usage cap was what sparked the launch of Stop the Cap! in the summer of 2008.

While never universally enforced against the company’s DSL customers, Frontier has used that portion of its acceptable use policy to demand up to $250 a month from some “heavy users” in Mound, Minn.

Frontier’s usage limit language also played a role in a major controversy in April, 2009 when Time Warner Cable planned usage limits of their own for western New York customers already faced with Frontier’s 5GB usage limit.

The phone company used Time Warner’s planned usage cap as a marketing tool to switch to Frontier DSL service.

Frontier used Time Warner Cable's usage cap experiment against them in this ad to attract new customers in the spring of 2009.

This website has pounded Frontier for two years over its continued use of the 5GB language as part of its broadband policies.  We raised the issue with several state regulatory bodies as part of Frontier’s purchase of Verizon landlines in several states.  Several state utility commissions raised the usage cap issue with Frontier as a result, deeming it negative for rural broadband customers who would effectively endure rationed broadband service from a de facto monopoly provider.

We also criticized Frontier for promoting its MyFitv service, little more than a website containing Google ads and embedded videos already available on Hulu, while not bothering to tell its customers use of that service on a regular basis would put them perilously close to their 5GB allowance.

In the end, Frontier itself denied they would strictly enforce the 5GB limit, making its continued presence in the company’s terms and conditions illogical.

Now, the company has returned to the earlier language it formerly used, reserving the right to shut you off if you use the service excessively or abusively.  This resembles similar language from most broadband providers.  While not absolute in defining those terms, Frontier doesn’t commit to a specific number either.  Today’s “generous usage allowance” is tomorrow’s “rationing.”

If Frontier cuts off customers for using only a handful of gigabytes a month, deeming it excessive, we want to know about it.

Stop the Cap! opposes all Internet Overcharging schemes like usage caps, speed throttles, and so-called “consumption billing.”  We believe such limits retard the growth and potential of broadband service and are unwarranted when considering the ongoing decline in costs to provide the service.  We do not oppose providers dealing with customers who create major problems on their networks, but believe those issues are best settled privately between the company and the individual customer.

Providers must also be honest in recognizing that broadband is a dynamic medium.  They have a responsibility to grow their networks to meet demand, especially at current pricing which provides major financial returns for those offering the service.  We also believe broadband tiers should be limited to speed, not consumption.  Customers with higher data demands will naturally gravitate towards higher-priced, faster-speed tiers, providing higher revenue to offset the minimal costs of moving data back and forth.

Broadband customers will be loyal to the providers that treat them right.  We applaud Frontier Communications for finally removing the last vestiges of its infamous 5GB usage allowance.  Hopefully, going forward, Frontier will spend its time, energy and money improving its broadband service instead of trying to convince customers to use less of it.

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Time Warner Cable is probably changing your channel lineup, or already has — removing several analog channels you used to receive as part of your Standard Service subscription and moving them to digital.

For customers with digital set top boxes, the change happens without most noticing the difference.  The formerly analog signal still shows up in the same place, only the transmission format has changed.

But customers without set top boxes will notice as channels disappear forever from their lineups, replaced with… nothing.  But their cable bills will remain exactly the same, despite the loss of channels.

For Stop the Cap! readers like Bev, today spelled the end of Animal Planet and The Travel Channel, among others.  For those in Rochester, N.Y., last night was the last chance to watch C-SPAN 2, The Travel Channel, TruTV, Discovery Health, and Shop NBC in analog.  In Buffalo, it was bye-bye to The Travel Channel, C-SPAN 2, TV Guide Channel, and CMT.

It some states, particularly Texas, Time Warner Cable is sticking it to Public Access, Educational, and Government channels, moving them all to digital.  In some cases, cable companies and AT&T U-verse have managed to forever bury these PEG channels in Digital Channel Siberia with channel numbers in the high hundreds or even thousands.  For many subscribers, a search and rescue team couldn’t find their new channel positions.

It’s all a part of a larger plan to slowly erode away analog channels in favor of digital service, which takes up far less bandwidth on Time Warner Cable systems.

As cable systems are nearing capacity and do not wish to spend millions to commit to further upgrades, switching out analog service in favor of digital can provide enormous new capacity to accommodate HD channels and forthcoming DOCSIS 3 cable modem service upgrades.

Unfortunately, these channel changes will irritate subscribers who do not want to pay for set top boxes and do not want them on their televisions.  If you are among this group of box-haters, Time Warner Cable will continue to slowly drop more and more of the channels you used to watch without bothering to reduce your bill for the channels you no longer get.  Eventually, virtually all analog channels will probably disappear, replaced by digital versions you will need a set top box to view.

In many areas of upstate New York, Time Warner is trying to placate angry subscribers by offering one set top box at no charge for one year.  But here comes the tricks and traps — Stop the Cap! confirmed with Time Warner Cable this evening that only those customers without any set top boxes in their home can take advantage of this free offer.  If you already have a box, you’ll continue to pay for it even though your neighbor is getting one free for a year.  After the year is up, pony up — each box costs $7.80 a month ($7.50 for the box, $0.30 for the remote).

At least Texans are getting a better deal from Time Warner Cable — Broadcast Basic subscribers will get their boxes free for five years, Standard Service customers will get them for one year.  But beware — if Time Warner needs to roll a truck to install your box in the San Antonio area, be prepared to cough up $39 for the service call.

For broadband customers, there is some good news.  Virtually all major Time Warner Cable service areas facing channel changes like this will receive DOCSIS 3 upgrades and the chance to obtain faster Internet service by the end of 2010, even those communities bypassed for earlier upgrades.  You will also get additional HD channels.  In western New York, for example, Time Warner Cable plans to add a large number of HD cable channels by mid-fall:

On or About September 2, 2010:
Style HD
BBC America HD

On or About September 9, 2010:
National Geographic Wild HD
MTV HD
Comedy Central HD
Nickelodeon HD
Spike HD

On or About September 16, 2010:
History Channel International HD
CMT HD
Hallmark HD
VH-1 HD
Cooking Channel HD
DIY HD
TWCSN HD
YNN HD

On or About October 1, 2010:
Womans Max HD
HBO Latino HD

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Another rate increase letter from Time Warner Cable (click to enlarge)

For the second time in a year, Time Warner Cable is jacking up the rates on its Road Runner broadband service for residents in western New York.

Stop the Cap! reader Patrick in Rochester sent word and a screen image of a letter he received notifying him Time Warner Cable was raising the price on standalone Road Runner service to $54.95 a month, effective September 1st.  Patrick, and other customers who are only interested in getting broadband service from the cable company, were paying just under $45 a month for Road Runner standalone service in early 2009.  Today, standalone service runs $49.99 a month, but the cable company is back looking for another $5 a month starting this fall.

July 30, 2010

Dear Road Runner Customer,

We are writing to inform you that effective September 1, 2010, we will be increasing the price of our Road Runner High-Speed Internet product from $49.99 to $54.95 per month for all Road Runner Standard only customers.

If you are currently receiving Road Runner High-Speed Internet products at a discounted rate, your current discounted rate will continue until the term of your promotion is complete.  Your rate will increase to the new retail rate noted above or the effective retail rates at that time.

This rate will also apply as of September 1, 2010 for those customers with two separate Time Warner Cable accounts at the same address.  Please contact us if you’d like to combine these accounts.

Keep in mind there are many packages available allowing you to bundle our video and phone products together with your Road Runner High-Speed Internet for substantial savings….

Time Warner Cable, like many cable providers, wants to discourage customers from taking only one of its products, so it gradually increases prices to drive customers to its “better value” bundled services.  As for broadband, Time Warner Cable executives have made it clear they can raise prices whenever they want.

Landel Hobbs, Chief Operating Officer for Time Warner Cable, told investors this past February consumers love their Road Runner service.

“Consumers like it so much that we have the ability to increase pricing around high-speed data,” Hobbs said.

At $55 a month, standalone Road Runner becomes increasingly difficult to justify for many consumers, but for residents in cities like Rochester, the only alternative is far slower DSL service from Frontier Communications, complete with its 5GB monthly usage allowance.

However, you can leap off the Time Warner Rate Increase Railroad by switching to Earthlink, which is running a promotion for six months of 10Mbps service for $29.95 per month.  Earthlink service is indistinguishable from Road Runner, except Earthlink speeds do not benefit from “Powerboost” — Time Warner Cable’s very temporary speed boost during the start of large file transfers.  Most customers will prefer the boost they receive from keeping the $25 difference in price in their wallets — $150 over the life of the promotion.  At the end of six months, you can hop back to Time Warner Cable’s Road Runner service on a new customer promotion at a significant discount.  No modem exchange is required — the switch to and from Earthlink can be done over the phone.  Billing is done by Time Warner Cable for both services.  Just be aware your Road Runner e-mail account will be closed when you change providers.

You can escape Time Warner Cable's Road Runner rate hike by switching to Earthlink service at a substantial discount.

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[The article was updated at 10:30am to include promotional and coverage information not available when the article was published late last night]

Clearwire today announced the launch of its 4G mobile broadband service for businesses and consumers in Rochester and Syracuse, New York.  Designed to deliver the Internet at speeds four times faster than 3G, CLEAR is priced comparably to many wireless broadband plans, but has no usage caps.

Pricing from their website offers customers stay-at-home and mobile service plans (or both).  Customers choosing month-to-month service have to buy the equipment up front, starting at $70 and pay a $35 activation fee.  Those who commit to a two-year service contract can lease the equipment for $4-6 a month and skip start-up fees.  Packages start at $40 a month for 6/1Mbps service.  At $55 a month, they take the speed limit off, providing occasional bursts of wireless speed up to 10Mbps.  Another $15 on top of that buys you nationwide 3G roaming.  Sales tax is not included.  Customers get a 14 day trial period to evaluate the service and can cancel within that window with no obligation, although our Jay Ovittore reports they’ll drag you through the cancellation process.

At $40 for unlimited use, CLEAR’s 4G service beats Cricket, which charges the same price for 3G speeds, but limits consumption to 5GB per month before they start throttling your speed to dial-up.  Other mobile broadband services typically charge up to $60 for 5GB of usage at 3G speeds.  Ironically, while 4G service from Clearwire is unlimited, the slower 3G speed service is not — there is a usage limit of 5GB per month on the 3G network, and then overlimit fees of five cents per megabyte kick in.

A statement from the company released early this morning talks up the fact CLEAR does not burden their 4G customers with Internet Overcharging schemes like other wireless broadband providers.

“Our residents now have a fast Internet connection that’s as mobile as they are,” said Jerry Brown, regional general manager for CLEAR. “And we’re thrilled to offer affordable rate plans with no limits on the amount of data customers use. No caps on usage, no penalties – our customers just use the Web as much as they want wherever they go – it’s that simple.”

Clearwire's coverage area in Rochester & Syracuse

In Rochester, CLEAR covers approximately 560 square miles and more than 600,000 people with service extending as far north as Lake Ontario, as far south as Canandaigua and Geneva (Ontario County), as far west as Spencerport, and as far east as Webster.

In Syracuse, CLEAR covers nearly 230 square miles and more than 265,000 people with service extending as far north as Brewerton, as far south as Nedrow, Auburn, and Cortland; as far west as Village Green, and as far east as Fayetteville and Manlius.

However, the company’s 4G coverage area is spotty in many areas in both cities.  Verifying coverage from their website is essential before considering CLEAR.  Anecdotal reports from some of our readers and others suggest 4G service from Clearwire is not nearly as robust as 3G service from some other providers, and dead zones and slow speeds have caused some to cancel service.  Here’s an example of their coverage in my part of the town of Brighton, just southeast of Rochester:

Clearwire's coverage of the 12 Corners/Elmwood Avenue area of Brighton, N.Y.

Some minor gaps in coverage are apparent near Commonwealth Drive, and if you were getting gas at the 12 Corners Mobil station or visiting Citizens Bank behind it, you’d be out of luck, but otherwise coverage looks fairly good to the west of Interstate 590.  However, a very strange gap pops up between Valley Road and South Grosvenor Road, also impacting a few apartment buildings at Elmwood Court Apartments, 3100 Elmwood Avenue.  That’s odd because although that part of Elmwood slopes slightly downwards, it’s still much higher than the homes on Valley Road or the apartments further back in the complex.  A major service gap opens up on Elmwood at Clovercrest Drive and extends into the very tony neighborhoods around Ambassador Drive and Clover Street.  But the country club set will do fine browsing away on the golf course at the Rochester Country Club further east.

In short, service can vary dramatically street by street, block by block, from nothing at all to full speed ahead.  Be sure to check your area before you commit to keeping the service, much less sign a two year contract for it.

For the rest of Rochester, if you live in the city or an inner-ring suburb, coverage is generally available.  Those further out in towns like Henrietta, North Chili, southern Pittsford, Honeoye Falls, Avon, Scottsville, Churchville, Brockport, Penfield and Perinton face significant gaps or no coverage at all.  Things improve dramatically in Ontario County in towns like Farmington and Victor and the cities of Canandaigua and Geneva.

For the greater Syracuse area, coverage pops up in Auburn and then disappears eastward until reaching Camillus.  Generally, coverage in Syracuse is not nearly as dense as in Rochester, with large gaps opening between suburbs and the city itself.  Mattydale is solidly covered, for instance, while Minoa isn’t.

Now that CLEAR has launched 4G service in Rochester and Syracuse, Road Runner Mobile, which is simply CLEAR rebranded as a Time Warner Cable service (they partly own Clearwire) will also soon be on the way.  Pricing in other Time Warner Cable cities wasn’t much different than from Clearwire direct, and some cable plans really push service contracts, which you really do not want on a service this new.  Do not commit to one unless you are satisfied with the service where you plan on using it.

Clearwire’s 4G Network in 2010

CLEAR 4G service is currently available in 44 markets across the United States, including: Syracuse and Rochester, N.Y.; Atlanta and Milledgeville, Ga.; Baltimore, Md.; Boise, Idaho; Chicago, Ill.; Las Vegas, Nev.; St. Louis and Kansas City, Mo.; Philadelphia, Harrisburg, Reading, Lancaster and York, Pa.; Charlotte, Raleigh, and Greensboro, NC; Honolulu and Maui, Hawaii; Seattle, Tri-Cities, Yakima and Bellingham, Wash.; Salem, Portland and Eugene, Ore.; Merced and Visalia; Calif.; Dallas/Ft. Worth, Houston, San Antonio, Austin, Abilene, Amarillo, Corpus Christi, Killeen/Temple, Lubbock, Midland/Odessa, Waco and Wichita Falls, Texas; central Washington, D.C.; Richmond, Va.; and Salt Lake City, Utah.

In the summer of 2010, CLEAR 4G will launch in Tampa, Orlando and Daytona, Fla.; Nashville, Tenn.; Modesto and Stockton, Calif.; Wilmington, Del.; and Grand Rapids, Mich. By the end of 2010, CLEAR 4G will also be available in major metropolitan areas such as New York City, Los Angeles, the San Francisco Bay Area, Boston, Denver, Minneapolis, Miami, Cincinnati, Cleveland and Pittsburgh.

You can read a company-provided tutorial about the service below the jump.

(The following information comes direct from Clearwire)

A CLEAR Difference

The CLEAR experience is similar to Wi-Fi but without the short-range limitations. CLEAR uses WiMAX, a wireless 4G technology that differs from Wi-Fi because it provides service areas measured in miles, not feet. CLEAR also offers average mobile download speeds of 3 to 6 mbps with bursts over 10 mbps.* Outside the CLEAR 4G service area, dual-mode 4G/3G modems keep users continually connected by leveraging Sprint’s 3G data network.

With CLEAR, people stay better connected and more productive. For example:

• A travelling business executive no longer needs to seek out Wi-Fi hotspots or be constrained by the speeds and limitations of 3G modem cards;
• A college student can now have affordable Internet service whether at home, on campus or on-the-go;
• A commuter can now work on large files or stream their favorite shows while riding the bus or train;
• A busy parent can now keep kids occupied studying or playing games in the back of the family minivan.

Unlike service plans from traditional wireless carriers which cap data usage, CLEAR offers unlimited 4G usage plans that do not require long-term service contracts. In most markets unlimited 4G coverage from CLEAR starts at $30 for the home while unlimited mobile plans start as low as $40. Bundled services such as Home and On-The-Go and Home and Voice plans start at $55 per month.

Simply Plug-In and Go

Clearwire offers several ways to connect to CLEAR 4G service – via a modem, mobile device, or a 4G-embedded laptop or netbook.

CLEAR 4G Mobile Hotspots: The CLEAR Spot 4G is a personal mobile hotspot allowing users to easily and securely share unlimited super fast Internet access anywhere CLEAR has coverage simultaneously with up to eight Wi-Fi-enabled devices including laptops, smartphones, and portable gaming devices. The CLEAR Spot 4G+ allows power users and road warriors to stay connected across the U.S. by automatically switching from 4G and connecting to Sprint’s 3G nationwide network outside the 4G coverage area. The CLEAR Spot 4G+ enables users to securely share the connection with up to five Wi-Fi-enabled devices at the same time. The CLEAR Spot 4G costs $99.99 or can be leased for $4.99 a month. The CLEAR Spot 4G+ costs $224.99 or can be leased for $5.99 per month. The CLEAR Spot products can be preordered at www.clear.com/spot and will available nationwide at CLEAR stores and authorized dealers later this month.

CLEAR 4G+ Mobile USB: Mobile users simply plug-in the compact CLEAR 4G+ Mobile USB into their laptop to get online. This dual-mode 4G/3G modem gives users access to the 4G network in the CLEAR coverage area and to 3G coverage nationwide. The CLEAR 4G+ Mobile USB costs $114.99 or can be leased monthly for $5.99.

Home Modems: For residential service, CLEAR offers customers a wireless high-speed modem, about the size of a small book. Customers simply plug the modem into a power outlet anywhere in their home or office and connect the modem to their PC or wireless router. This enables consumers and businesses to install high-speed Internet service without the need to schedule an appointment, drill holes in their walls, or otherwise disrupt their day. The CLEAR Home Modem can be purchased for $84.99 or leased for $4.99 monthly.

Embedded 4G WiMAX Laptops: CLEAR customers can also select from one of 32 different 4G-ready laptops and netbooks with Intel® CoreTM or AtomTM processors and the embedded Intel® wireless module Advanced-N + WiMAX from leading manufacturers including Dell, Lenovo, Samsung, and Toshiba. A detailed list of 4G-ready laptops and netbooks is available at www.clear.com. 4G-ready laptops can also be purchased at Best Buy stores nationwide.

CLEAR 4G products and services are available for purchase by going online at www.clear.com/new-york, calling 1-877-499-6681, or visiting a CLEAR retail store or other authorized CLEAR dealer. CLEAR service is also available from other outlets including Best Buy and Radio Shack.

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Time Warner Cable is back again with another offer to existing Frontier Communications customers trapped in multi-year service agreements.  If you dump your Frontier landline overboard for Time Warner Cable’s Digital Phone service, the cable company will send you a gift card worth $200 good towards defraying your early termination fee, if any.  If you don’t have such a fee, you pocket the $200.  A year ago on this date the company ran a similar promotion heavily promoted in local cable television ad spots.

Time Warner will provide free installation of the phone line including unlimited nationwide long distance for $24.95 a month for 12 months.  With the $200 gift card, that’s above and beyond their usual promotion.  The company is also extending a bundled discount if a customer also takes Road Runner broadband service with their “digital phone” service.

For Frontier customers looking for an early exit, this offers one opportunity.

Existing cable subscribers can take advantage of the offer.  There are terms and conditions to consider, starting with where the offer is available.  The following Time Warner Cable service areas qualify:

• TWC Western New York
• TWC Central New York
• TWC Albany, NY
• TWC New England
• TWC Dothan, AL
• TWC Enterprise, AL
• TWC Yuma, AZ
• TWC El Centro, CA
• TWC Gunnison, CO
• TWC Telluride, CO
• TWC Coeur d’Alene, ID
• TWC Moscow, ID
• TWC Madison, IN
• TWC Newburgh, IN
• TWC Terre Haute, IN
• TWC Ashland, KY
• TWC Owensboro, KY
• TWC Richmond, KY
• TWC Kansas City, MO
• TWC Lincoln, NE
• TWC Ironton, OH
• TWC Richlands, VA
• TWC Pullman, WA
• TWC Clarksburg, WV

Next, the offer is only good for residential customers switching from Frontier’s landline service.  Limit one gift card per customer.  Your final Frontier phone bill showing a disconnect request must be furnished to Time Warner Cable within 30 days to qualify.  Your name and address must match on both bills.  Offer is not available to customers with past due balances with Time Warner Cable, defined as any money owed in the past 30-60 days or customers who have been disconnected for non-payment in the twelve (12) month period preceding this offer.  Service must be ordered by Dec. 31, 2010, and installation must occur within thirty (30) days of order date.

If you’ve contemplated a change in providers but didn’t want to be subjected to a steep early cancellation fee, this isn’t a bad offer.  Although I don’t use Time Warner Cable Digital Phone myself, others in my family do and they are satisfied with the service, although there have been at least two serious outages so far this year that ran several hours.  Since most people also carry a cell phone, any cable outage or power interruption that also takes out your phone line isn’t as serious as it might have been in earlier years.

And, ahem, unlike Time Warner Cable’s attitude towards broadband, they really do provide unlimited calling with their “digital phone” service.

Time Warner Cable is mailing this letter to Frontier Communications customers in the Rochester, N.Y. market. (Click to enlarge)

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Tired of paying that high Verizon Wireless bill?  Verizon’s handsome profits can translate into some great benefits, if you’re an employee.

For western New Yorkers, here’s your chance.

Verizon Wireless is hiring 200 call center employees in Rochester this year to bolster its existing 1,200 employee customer service department.

“As our customer base grows and the devices and services they use become more sophisticated, providing an outstanding customer experience becomes even more important,” said Russ Preite, president of Verizon Wireless’ Upstate New York Region. “We’ve been fortunate to continue to find top-quality, highly skilled talent in the Rochester area. Today’s announcement further endorses our commitment to Rochester and to maintaining superior customer service for our customers.”

Verizon can afford to pay employees some nice benefits:

• competitive salaries
• health, dental and vision coverage that begin on the first day of employment
• a 401(k) program with a 6 percent company match of the employee’s contribution
• annual bonus program
• profit sharing
• merit increases
• tuition assistance
• adoption assistance
• an on-site health and wellness facility, and more.

You can apply online.  If you land a job there, why not take a portion of your paycheck and send Stop the Cap! a contribution.  We’ll put their money to good use.

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Rep. Dan Maffei (D-NY)

Rep. Dan Maffei (D-New York) has begun to worry broadband consumers in his western and central New York district.

In April 2009, when Time Warner Cable’s announced Internet Overcharging experiment was upsetting customers in Rochester, Maffei claimed he was concerned about limiting broadband usage for customers in the area.  But when former Rep. Eric Massa introduced legislation to ban unjustified usage caps and consumption billing, Maffei told his constituents he wasn’t interested in Massa’s approach:

Thank you for contacting me regarding H.R. 2902, the Broadband Internet Fairness Act. I appreciate hearing from you and welcome the opportunity to respond. The Broadband Internet Fairness Act was introduced by Representative Eric Massa (NY-29) on June 16, 2009, and was referred to the Committee on Energy and Commerce. The bill would authorize the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) to review volume usage service plans of major broadband internet service providers to ensure that such plans are fairly based on cost.

When Time Warner Cable announced in April that Rochester would be used as a test market for charging Internet users based upon consumption usage, I, along with Representative Massa, opposed this policy. We helped persuade Time Warner to abandon the plan in the area. At that time, Representative Massa also introduced the Broadband Internet Fairness Act.

Other utilities, like water or electricity, charge customers based on usage, but Internet users have traditionally been charged a flat fee for unlimited access to the web. The Broadband Internet Fairness Act would require Internet Service Providers that want to implement usage-based pricing plans to go through several traditional regulatory hurdles. While I share many of the goals of Representative Massa’s legislation, I do not believe passing this stand-alone bill is the right approach at this time.

Of course broadband is nothing like water or electric utilities.  In fact, Maffei’s inclusion of that reference is a classic talking point of the telecom industry.  Notice they, and Maffei, didn’t mention telephone service — the one utility that provides flat rate calling for most Americans.  It also happens to be the utility most comparable to broadband service!

New York's 25th Congressional District

But Maffei made a bad situation worse when he joined 72 other House Democrats co-signing a letter from Rep. Gene Green (D-AT&T), urging FCC Chairman Julius Genachowski not to fight a court decision overturning the agency’s ability to conduct broadband oversight.

The letter represented one giant talking point — the false premise that enforcing a fair, free, and open Internet with Net Neutrality would somehow stifle investment in broadband expansion.  Yet AT&T was required to honor the very same principles when it merged with SBC, and managed to remain a multi-billion dollar powerhouse well positioned to expand broadband service to additional customers in its ever-growing service areas.

The fact the broadband industry is a duopoly for most Americans — one that can threaten to pull back on service if it doesn’t get its way in Washington — is just one more reason the industry requires more oversight, not less.

Yet Rep. Maffei stood alone as the only member of the western New York Congressional delegation to sign his name to the agenda of big cable and phone companies.

Perhaps the congressman has forgotten these facts which trouble broadband consumers across western and central New York:

• Rochester, NY was the only city in the northeast where Time Warner sought to conduct an Internet Overcharging experiment, made possible because of limited competition in the Rochester market;
• Rochester’s other broadband provider, Frontier Communications, insists on a monthly usage allowance of just 5GB per month in its Acceptable Use Policy;
• Verizon FiOS has suspended expansion indefinitely and the service will never be available in most of the 585 area code where Frontier operates, and it will take years for most of the rest of his Syracuse district to see the service reach those areas;
• Time Warner Cable increased its broadband rates in 2010, as did Verizon;

Green’s letter dances around the real issue — telecommunications companies are spending millions to oppose pro-consumer reforms and stop a return of oversight authority the FCC lost after a recent court decision.  Without this authority, the FCC cannot implement the National Broadband Plan’s insistence that American providers not block or impede network traffic.  These Net Neutral policies preserve net freedom.  The FCC cannot even require that providers tell the truth about broadband speeds and include the company’s terms of service in plain English.

Western New York is a hotbed of consumer activism on broadband issues, particularly because we are actual victims of provider abuse.  No one knows more than we how critical 21st century broadband is to the transformation of this region’s perennially challenged economy.

Rep. Maffei needs a reminder this is a hot button issue for consumers from Irondequoit to Manlius.  Perhaps he just doesn’t fully understand what’s at stake here.  You need to remind him.

We’ve included a suggested letter you can use to help write your own.  For maximum effectiveness, include some of your own personal stories, challenges, and frustrations with your local broadband provider.  Feel free to share yours in the Comments section.

Dear Rep. Maffei:

I was extremely disappointed to discover you signed your name on a letter written by Rep. Gene Green urging FCC Chairman Julius Genachowski not to restore oversight authority over broadband.  While Rep. Green’s letter illustrates he’s mostly concerned about the well being of AT&T, Verizon, Time Warner Cable and Comcast, as a consumer I am more concerned about the broadband duopoly that exists in Rochester & Syracuse.

If the FCC does not regain its ability to oversee broadband by reclassifying it under Title II — as a telecommunications service (which it very clearly is), the FCC can effectively do nothing to stop broadband provider abuses, such as Comcast’s notorious speed throttle on customers using certain Internet websites and services. It took an FCC investigation to finally get the cable company to admit the truth — it was interfering with customers’ broadband speeds.  The oversight power the agency had was just what was needed to convince Comcast to stop.

Unfortunately, a DC Circuit Court recently disagreed it had that authority and effectively stripped it away.  Chairman Genachowski is simply seeking a return to the status quo before that court decision was handed down.  He’s not asking to regulate broadband anything like telephone service.  In fact, he’s insisted on a “light touch.”  That’s better than today’s court-imposed total-hands-off reality.

By signing Rep. Green’s letter, you effectively tell us you don’t support Net Neutrality protections that guarantee providers cannot censor or impede web traffic.  You also do nothing to protect consumers from other provider abuses.  Considering what residents of Rochester went through last year fighting a Time Warner Cable scheme that would have tripled broadband prices for the same level of service, I’m shocked you of all people would be a supporter of big telecom’s agenda.

Telecom companies are claiming that if regulations enforcing Net Neutrality are enacted, investment will suffer and broadband expansion will be slowed.  Yet AT&T was required, as part of its merger with SBC, to respect Net Neutrality for several years.  The company flourished, broadband was offered to more customers than ever, and investors liked what they saw.

The record in western New York is clear — Time Warner Cable was willing to limit its customers access to broadband service, Frontier already does in its terms and conditions, and Verizon FiOS deployment has been suspended indefinitely.  For too many of us, there are too few choices.  In fact, the only thing we can be assured of is higher pricing and a strengthened duopoly.

I strongly urge you to remove your signature from Rep. Green’s letter and get on board with consumers like myself in your district who believe deregulation and oversight failures have given us nothing but nightmares — from Wall Street to BP’s oil spill.  Let’s not make another mistake in handing cable and phone companies unfettered permission to abuse their customers.

Please get back in touch with me as soon as possible on this important matter.

Rep. Dan Maffei told constituents he was concerned about Time Warner Cable’s Internet Overcharging scheme proposed in April 2009.  At a town hall meeting in Irondequoit, New York, he admitted Time Warner Cable held near-monopoly power over consumers in Rochester.  What changed his tune when he signed on to Rep. Gene Green’s anti-consumer letter to the FCC? (April 9, 2009 — 2 minutes)

Rep. Dan Maffei’s Contact Information

Washington, D.C. Office
1630 Longworth HOB
Washington, DC 20515
Phone: (202) 225-3701
Fax: (202) 225-4042

Syracuse Office
P.O. Box 7306,
1340 Federal Building
Syracuse, NY 13261
Phone: (315) 423-5657
Fax: (315) 423-5669

Irondequoit/Rochester Office
1280 Titus Avenue
Rochester, NY 14617
Phone: (585) 336-7291
Fax: (585) 336-7274

[Update: 11:30pm EDT: Free Press reports Rep. Maffei accepted $29,000 in contributions from telecom companies, including Verizon, Comcast, and AT&T.]

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While several residents of Mound, Minnesota try to negotiate to keep their broadband service from Frontier Communications after the company sent them letters threatening to cut off their service, a Rochester, N.Y. television station handed over five minutes of airtime during its morning newscast that was little more than a promotion piece for Frontier’s broadband packages, right down to quoting inaccurate pricing, but no time to mention to viewers the company maintains a 5GB “appropriate usage limit” in its Acceptable Use Policy.

WHAM-TV ran a virtual infomercial (thanks to PreventCAPS for the tip) that was supposed to be about changing service providers, but devolved into a promotional puff piece for Frontier.  Among the services promoted were high bandwidth applications you can ostensibly use with Frontier DSL, despite the company’s continued insistence on defining an acceptable amount of usage at a level so low, you can’t possibly use those applications much and stay within the limits.

Michael Johns, from Frontier’s Network Operations Center misquoted Frontier’s own rates for DSL service, claiming the company sells service for between $18-26 a month, which seemed quite low.  We called Frontier Communications this morning to ask for those prices, telling the representative we saw them on WHAM’s sister CW Network station “CW16.”  The customer service representative in DeLand, Florida didn’t know what we were talking about.

In fact, we were quoted a far higher price for Frontier High-Speed Internet Lite – 768kbps service, with no term commitments starting at $39.99 a month. The representative claimed they could reduce the price, but only with a multi-year term commitment and a service bundle that included phone service. Even with those discounts, the price was still more than $20 a month. Considering Frontier’s term commitments carry a steep early disconnect penalty, there isn’t much value to be found here.

For standard 10Mbps DSL service, $26 a month isn’t going to get you far. In fact, Frontier wants around $45 a month for the service, not including a modem rental fee/equipment charge of $4 per month. Again, there were some discounts available for bundling, but they always carried those pesky term commitments and never brought the price down to what Johns claimed was available.

Michael Johns (left) from Frontier speaks with WHAM reporter Evan Dawson (right)

Also along for the ride was a hard sell for add on products like “anti-spam technology,” hard drive backup, technical support for your computer and Internet service — each carrying an additional monthly price.

Getting Frontier pinned down on prices is next to impossible as the representative kept coming back with new offers when I didn’t agree to “begin the sign up process today.” Apparently there is plenty of room for negotiation when signing up for Frontier service in a market where Time Warner Cable eats their DSL service for breakfast.

But the most fun came last when I asked about Frontier 5GB monthly usage allowance. The representative promised me “we don’t do that in your area so you can ignore that,” and “we’re never going to hold you to that. It’s there so we can control the pirate downloaders.” When I asked why Mound, Minnesota was apparently a hotbed of pirates (who knew?) the representative didn’t understand what I was talking about. When I explained, she put me on hold and came back apparently now acquainted with Frontier’s experimental hard capping in Mound, and asked me how I found out about that.

How did I, indeed.

If such experiments are deemed successful by the company, all of Frontier’s customers will find out about them soon enough.

Click here to view the embedded video.

On Monday, WHAM-TV’s sister station “CW16″ handed over five minutes of the morning news for an extended-length commercial for Frontier Communications.  Judge for yourself whether this story was about how to change providers or how to change to Frontier DSL.  (5 minutes)

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Ontario County, New York

Senator Charles Schumer (D-New York) visited Canandaigua Monday to promote Ontario County’s fiber optic broadband project, in hopes of securing federal funding to expand the fiber project into adjacent counties in the Rochester-Finger Lakes region.

Schumer likened fiber optic broadband development to other revolutionary transportation projects in New York’s past which transformed local economies, created jobs, and brought prestige to the region.

“One fact has proven true since the days of the Erie Canal: if you don’t have good infrastructure, you’re not gonna bring jobs, but when you do have good infrastructure, you are gonna bring jobs. And the fiber optic ring that we are talking about here in Ontario County is the Erie Canal of the 21st century. It’s that simple,” Schumer told an audience at the Center for Infotonics.

Ontario County began constructing a fiber ring more than a decade ago to improve connectivity across the often-rural county.  Bookmarked between high growth areas around Victor and Canandaigua to the east and Geneva to the west, large expanses of Ontario County are rural. Being a part of central New York’s Finger Lakes Region means the often hilly terrain and winding roads can make wiring expensive and difficult in certain areas.  But the prospect for 21st century connectivity has helped fuel growth — and jobs — into the region.

Sen. Schumer

Schumer wants FCC officials to visit Ontario County to explore the project as a potential blueprint for wiring other counties.

“We will not only put this region at the cutting edge of attracting new businesses that need high speed fiber optics, but we’ll do a service to the rest of the country by showing them how it can work,” said Schumer.

New York’s senior senator said he will aggressively pursue millions in federal funding to expand the project outside of Ontario County, and help complete the fiber optic network.

The senator may find some opposition to federal funding initiatives from incumbent providers Frontier Communications and Time Warner Cable, particularly if funds originate from broadband stimulus programs.  Both companies would likely object to federal spending on a fiber network that crosses areas both companies already serve.

Frontier Communications offers DSL service in many parts of Ontario County, and Time Warner Cable has wired most of the significant-sized towns and cities in the county.

The Ontario County project has been built without any federal stimulus money.

Click here to view the embedded video.

Sen. Schumer’s visit to Canandaigua, New York to promote Ontario County’s fiber project was covered in these three reports from YNN, WROC-TV, and WHAM-TV — all in Rochester, New York.  (6 minutes)

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Following Comcast’s lead, Time Warner Cable will begin shrinking western New York analog customers’ channel lineups to accommodate additional HD channels.  While in most cases customers with set top boxes or digital-ready televisions will be able to continue watching (the latter by rescanning the channels on their televisions), those with older televisions without a box are out of luck.

Customers will not receive a corresponding rate decrease based on the lost channels from their lineups.  Here is a rundown of those networks and customers affected:

Buffalo, New York Channel Lineup Changes (effective April 15)

Western New York Suburban-areas

• Style from Broadcast Basic Ch 98 to Digital Basic Ch 176 (digital equipment and a subscription to Digital Basic Cable will be required to view Style)
• TruTV Ch 35 to Ch 70 (digital box required)
• Oxygen Ch 68 to Ch 66 (digital box required)
• YES Ch 70 to Ch 65
• Versus Ch 71 to Ch 35
• Hallmark Ch 69 to Ch 63

City of Buffalo

• Style from Standard Cable Ch 65 to Digital Basic Ch 176 (digital equipment and a subscription to Digital Basic Cable will be required to view Style)
• TruTV Ch 48 to Ch 70 (digital box required)
• Oxygen will remain on Ch 66 (digital box required)
• YES Ch 70 to Ch 65
• Versus from Ch 71 to Ch 48

Dunkirk

• Style from Standard Cable Ch 96 to Digital Basic Ch 176 (digital equipment and a subscription to Digital Basic Cable will be required to view Style)
• TruTV Ch 31 to Ch 70 (digital box required)
• Oxygen Ch 62 to Ch 71 (digital box required)
• Versus Ch 71 to Ch 62
• Shop NBC from Ch 27 to Ch 73 (digital box required)
• SyFy Ch 69 to Ch 31

Westfield

• Style from Broadcast Basic Cable Ch 98 to  Digital Basic Ch 176 (digital equipment and a subscription to Digital Basic Cable will be required to view Style)
• TruTV Ch 35 to Ch 70 (digital box required)
• Oxygen Ch 66 to Ch 71 (digital box required)
• Shop NBC Ch 70 to Ch 73 (digital box required)
• MSG Ch 67 to Ch 35

Olean/Olean North/Wellsville

• Style from Standard Cable Ch 71 to Digital Basic Ch 176 (digital equipment and a subscription to Digital Basic Cable will be required to view Style)
• TruTV Ch 64 to Ch 70 (digital box required)
• Oxygen Ch 57 to Ch 66 (digital box required)
• YES Ch 70 to Ch 64
• Versus Ch 66 to Ch 57
• Shop NBC Ch 31 to Ch 73 (digital box required)
• Fox News Channel Ch 68 to Ch 31

Rochester, New York Channel Lineup Changes (unless otherwise noted, effective April 15)

Metropolitan Rochester Area

• National Geographic Wild will replace FOX Reality on Ch 453 and National Geographic Wild HD launches on Ch 1051 (Effective March 29)
• Speed Channel, Ch 210 will be moved from Digital Basic to CPST (standard cable). Speed will remain available in digital format only (Effective April 1)
• Speed Channel HD, Ch 1065, be moved from Digital Basic to CPST (standard cable). Speed will remain available in digital format only (Effective April 1)
• Oxygen will move from Ch 70 to Ch 75 (digital format only)
• Photoshow TV located on Chs 821 and 822 will no longer be available.
• Vutopia will be added to Ch 968
• Vutopia HD will be added to Ch 1149

Livingston/Southern Monroe County

• All of the above changes, plus:
• Versus will move from Channel 75 to Channel 51
• Shop NBC will be removed from Channel 7 and will remain on Channel 66

Genesee/Wyoming and Orleans/Niagara Counties

• All of the above changes, plus:
• Versus will move from Channel 75 to Channel 51

Erie County

• All of the above changes, plus:
• Versus will move from Channel 75 to Channel 51
• Shop NBC will be removed from Channel 20 and will remain on Channel 66

Wayne, Ontario, Seneca and Cayuga Counties

• All of the above changes, plus:
• Versus will move from Channel 75 to Channel 55

Yates/ Ontario and Steuben/Schuyler Counties

• All of the above changes, excluding Vutopia, plus:
• Versus will move from Channel 75 to Channel 55

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American Salt Company's salt pile in Hampton Corners, just south of Rochester, N.Y.

Faithful Stop the Cap! reader Lance dropped us a note this afternoon alerting us that Syracuse is the latest Time Warner Cable city getting the benefits of increased speed from Time Warner Cable’s DOCSIS 3 Wideband upgrade.

While those in the Salt City can now sign up for 50Mbps broadband service, Time Warner Cable tells residents of the Flower City to go pound salt — there are no upgrades for you!

Why?

Thank Frontier Communications anemic (read that barely-existent) competition against Time Warner Cable in Rochester.  While the rest of upstate New York is being wired for fiber-to-the-home service from Verizon, Frontier Communications is relying on decade-old DSL service… indefinitely.  For residents like myself, that topped out at a whopping 3.1Mbps. That fails the FCC’s newly-proposed minimum speed to even be considered “broadband.”

Buffalo has been Wideband ready since early this month, and New York City launched service last year.

The Rochester Democrat & Chronicle must have noticed nearby cities were getting speed increases, but Rochester was not, so they contacted Time Warner Cable to find out why:

While those DOCSIS 3.0 products — called Wideband and Road Runner Extreme — are being made available in Buffalo and Syracuse, the company “has just begun its national launch of this product across its entire footprint, but with no additional locations determined at this time,” said spokesman Jeff Unaitis.

The company, however, does plan to roll out a wireless broadband product for the Rochester market before the end of 2010, he said.

(*) - As long as you don't live in Rochester, N.Y.

That’s the nice way of saying Rochester isn’t getting the speed increases because there is no competitive reason to provide it.  With Rochester left off the upgrade list, and no real incentive to run to Frontier (which can’t beat Road Runner’s existing speeds), this community falls behind the rest of the state in broadband speed.

To think last April Time Warner Cable was promising dramatically upgraded service, if the community agreed to accept their Internet Overcharging usage-based billing scheme.  Apparently no other upstate city was required to commit to ripoff pricing, and speed upgrades came anyway.  The fact Rochester is bypassed this year proves our contention their pricing experiment came to Rochester only because they faced no real competitive threat from Frontier then, and they still do not today.

As for the wireless product coming to Rochester, that will come courtesy of rebranded Clearwire service, which has had very mixed reviews.  Time Warner Cable and Comcast are both major investors in Clearwire, and are using their service to provide a wireless add-on.  It won’t come cheap, however, if North Carolina’s pricing also applies here:

• Road Runner Mobile 4G National Elite gives unlimited access to both Time Warner Cable’s 4G Mobile Network and a national 3G network (Sprint, presumably), for use when traveling.
  o $79.95 per month for Road Runner Standard or Turbo customers.
• Road Runner Mobile 4G Elite gives customers unlimited access to the Time Warner Cable 4G Mobile Network.
  o $49.95 per month for Road Runner Standard or Turbo customers.
• Road Runner Mobile 4G Choice gives light users 2GB of service on the Time Warner Cable 4G network each month.
  o Available for $39.95 per month to customers of at least one other Time Warner Cable service.  Additional $5 off if you have a  bundled service package.

As for Wideband pricing, Syracuse residents should expect to pay:

• 30/5Mbps: $25 more than standard Road Runner service;
• 50/5Mbps: $99 per month, but ask about promotional pricing, which may be available.

In Syracuse, Road Runner speed now matches Verizon FiOS on the downstream side, although Verizon can deliver better upload speed at 20Mbps.  Formerly, Road Runner maxed out at 15Mbps in central New York.

About 30 percent of the central New York division of Time Warner Cable is now Wideband-ready, including the entire city of Syracuse.  By October, the company expects to have the faster service available in 70 percent of the central New York area.

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Rep. Eric Massa (D-NY) is expected to resign his seat Monday

Rep. Eric Massa (D-New York), author of the Broadband Internet Fairness Act (HR 2902) — legislation that would ban Internet Overcharging, announced he will resign his office Monday.

In a fast-moving series of events, Massa first announced he would not seek re-election because of health reasons — the congressman faces a renewed battle with cancer, but allegations of ethical violations also surfaced earlier this week which have gotten national news coverage.

Massa is a first term congressman in New York’s 29th Congressional district, which has traditionally elected Republican candidates to office.  But as the national Republican party has trended further to the right, northeastern Republicans have become an endangered species in Congress.  Former Rep. Randy Kuhl only held onto the seat for two terms before being defeated by Massa in 2008.  Kuhl himself replaced retired congressman Amo Houghton, a long-serving moderate Republican whose voting record often split with the national Republican party on major issues.

Massa’s decision not to run for re-election surprised voters in his district, which runs from suburban Rochester to the Pennsylvania border along the southern tier.  Friday’s sudden announcement he’ll also resign his office effective Monday shocked voters and started a scramble for who might assume Massa’s seat upon his resignation.

The loss of Eric Massa to the Stop the Cap! cause is a concern for broadband consumers.  Massa stepped up to protect consumers from an Internet Overcharging experiment proposed last April by Time Warner Cable, which serves most of his district.  Massa immediately blasted the cable company’s plan to test usage-based billing on residential customers in the Rochester area, which is the only major city in New York State not served by Verizon and its expanding fiber to the home FiOS system.

Massa’s proposed legislation would have banned such schemes unless a company could demonstrate a clear financial need to adopt consumption billing and usage limits.

Thankfully, New York senator Chuck Schumer (D-NY) remains in office, and is the only senator to protest Time Warner Cable’s experiment, and helped end it, not just for residents of western New York, but for residents of Texas and North Carolina as well.

As to the swirling of allegations surrounding Massa, I have no interest in expanding on them here.  You can get a detailed review of the congressman’s views on these issues by listening to a 90-minute radio show aired today on a WKPQ-FM in Hornell, New York.  Today’s show will probably break news because Massa expands in great detail what’s behind the allegations and the reasons for his retirement.

Eric Massa’s regular Sunday show on WKPQ-FM Hornell, NY today discussed his decision to resign his office in great detail. (90 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

As for his replacement, a number of Democrats from both the southern tier and Monroe County/Rochester are considering entering the race.  Massa’s already-campaigning Republican opponent, former Corning Mayor Tom Reed remains in the race.  The Republican county supervisor for Monroe County, Maggie Brooks, is also considering a run.  But so is the former Congressman Randy Kuhl.  “Randy the Dandy” would be the worst possible option.  His undistinguished record and contempt for his constituents makes my skin crawl.  In his last term, Kuhl refused to hold open town hall meetings, instead shepherding constituents in for ‘five minutes with Randy’ where someone took notes and another escorted you out when your time was up.  Nobody should have bothered to take notes — his ongoing lack of concern about what voters in his district thought helped him lose his seat in the first place.  His lack-of-listening tour would fit perfectly with certain cable companies who don’t listen to their customers.  Hopefully, voters will not contemplate a return of Randy Kuhl.  Four years was more than enough.

We’ll be looking for other members of Congress to take up where Eric Massa left off.  I would like to thank Congressman Massa for his hard work on behalf of our cause, as well as helping make a difference on so many other matters important to the voters in his district.  I wish him good health and best wishes.

Click here to view the embedded video.

Several television stations announced Rep. Massa’s decision to resign his office Friday in “breaking news” headlines.  This clip has three reports from WETM-TV Elmira, WHAM-TV Rochester, and WENY-TV Corning. (6 minutes)

Click here to view the embedded video.

Residents in the 29th congressional district react to Rep. Massa’s resignation announcement, and local politicians jockey for position to potentially run for Massa’s seat.  Three reports are included from WHAM-TV Rochester, WROC-TV Rochester, and WENY-TV Corning. (6 minutes)

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Frontier's headquarters in Rochester, N.Y.

Frontier Communications has dismissed the proposition of Google constructing a 1Gbps fiber-to-the-home network, telling readers of the Rochester Democrat & Chronicle that most users don’t need ultra-fast Internet access.

Ann Burr, chairman and general manager of Frontier Communications of Rochester made the remark in response to news that citizens and business leaders are excited about promoting Monroe County as a potential test location for Google’s fiber network experiment.

Frontier, which serves Rochester and most of the 585 area code, accused Google of having “a poor track record of following through on such proposals and that creating a fiber-optic network from scratch would be enormously expensive.”

Pot to kettle.  Frontier’s illusory promises for fiber optic connectivity in states like West Virginia, where it seeks to take over the majority of the state’s phone customers from Verizon, never seem to include specific assurances such projects will reach customer homes.

“If Google built its own network, we estimate it would cost $5,000 per household,” Burr told the newspaper.

That’s as exaggerated as Frontier’s DSL speed claims.

Verizon Communications, which is in the business of providing fiber connectivity to the home, disclosed the true costs are far lower than that, and continue to decline.  In the summer of 2008, Verizon’s Policy Blog noted:

Capital Costs
– We said our target per home passed was $700 by 2010, and we are ahead of plan to achieve that objective. In fact, we’ve already beaten the target.
– We said our target per home connected was $650 by 2010, and we’re on plan to hit that target.

No wonder Frontier doesn’t contemplate providing fiber service to customers.  It created its own sticker shock.

Still, the local phone company didn’t want to slam the door entirely on Google’s foot, suggesting it would be willing to talk about leasing space on Google’s network if it launched in the Flower City.

Frontier’s claim that customers don’t believe fast broadband service is important is a remarkable admission, particularly for a company that increasingly depends on broadband service to stop revenue loss from customers dropping traditional phone lines.  That philosophy should be carefully considered by state officials and utility commissions reviewing Frontier’s proposal to take over Verizon phone lines in several states.  Do communities want to receive broadband from a company that dismisses faster broadband speed as irrelevant for the majority of its customers?

Perhaps the remarks came with the understanding Frontier isn’t capable of delivering 21st century broadband speeds over its antique network of copper telephone wire anyway.

That’s the point Time Warner Cable has made repeatedly, especially in the Rochester metro area.  The cable operator routinely promotes its Road Runner cable modem service’s speed advantages over Frontier’s DSL product.  Frontier promises up to 10Mbps, but often manages far less (3.1Mbps was my personal experience with Frontier DSL last April.)  Time Warner Cable promises up to 15Mbps, and often exceeds that with its “PowerBoost” feature.  In rural areas, the phone company tops out at “up to 3Mbps.”  Time Warner Cable notes most of its new broadband customers come at the expense of phone companies like Frontier.  DSL customers switch because they do care about broadband speed.

Judging from the excitement in Rochester over Google’s proposal, Frontier’s dismissal of a fiber optic future seems out of touch, and potentially a drag on the local community’s economic future.

Rochester increasingly will become a broadband backwater because of anemic broadband competition from Frontier Communications.  Its reliance on ADSL technology, more than a decade old, to deliver distance-sensitive broadband service looks out of place compared with the rest of New York State.  Major cities throughout New York are being wired with fiber optic service by Verizon Communications.  Verizon FiOS delivers up to 50Mbps service.  Frontier maxes out at far lower speeds and defines an acceptable amount of broadband usage on its DSL service at just 5GB per month. Using Verizon’s FiOS fiber network, you’d exceed Frontier’s entire month’s ‘allowance’ in less than 15 minutes at Verizon’s speeds.

Rochester is one of many communities challenged by the transition away from a manufacturing economy towards a high technology future.  A world class fiber optic network doesn’t just benefit big business.  It spurs revolutionary growth in medicine, education, software development, telecommunications, and more.  That means good paying jobs.  For consumers with fiber to the home, it opens the door to telecommuting on a whole new level, distance learning opportunities, new ways to access information and entertainment, and allows home-based entrepreneurs to develop new businesses.

With Verizon FiOS unavailable to Rochester indefinitely, and Frontier unwilling to make appropriate investments to keep this city competitive with the rest of upstate New York, those jobs and economic benefits can go to Buffalo, Syracuse, Albany, Westchester County, and metropolitan New York City.  We’ll be held back on the frontier with Frontier and its ideas of rationed broadband service.

Click here to view the embedded video.

WROC-TV in Rochester reports that Ontario County, to the southeast of Rochester, may have a built-in advantage with an already-installed fiber loop covering much of the county.  The county has a team working on a formal application to Google to provide service in communities like Geneva and Canandaigua.  Frontier’s claims that consumers don’t care about fast broadband speed are belied by the excitement of residents of both counties. (2 minutes)

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Time Warner Cable Speed Test Results (Turbo)

The Rochester-Finger Lakes Division of Time Warner Cable has upgraded upload speed for Road Runner Standard service customers, up from 384kbps to 1Mbps effective over the weekend.  Stop the Cap! reader Sergey first noticed a change on Thursday evening, but it took the weekend for the upgrade to make its way across the region.  Standard service is now 10/1Mbps in Rochester, although the Powerboost feature, also included for all Road Runner customers, can create speed test results showing 20-25Mbps download speeds, at least at the start of a file transfer.

The upgrade may make Road Runner Turbo less valuable, as no corresponding increase in upload speed for that package has been noted.  Turbo provides Rochester Road Runner customers with 15/1Mbps service and remains at those speeds.

According to Time Warner Cable’s website, the increase brings Rochester closer to the speeds other nearby cities have.  Buffalo enjoys double the upload speed, however.

• Buffalo/Western NY:  Standard: 10/1Mbps   Turbo: 15/2Mbps
• Syracuse/Central NY: Standard: 10/1Mbps  Turbo: 15/1Mbps
• Albany: Standard: 10/1Mbps  Turbo: 15/1Mbps

If you are not receiving improved speeds yet, unplug your cable modem briefly and plug it back in.

Road Runner Customer Speed Test

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Apparently the “fight back” component of Time Warner Cable’s campaign against the high cost of cable has not been a stunning success because the nation’s second largest cable operator continues to roll over its subscribers with some striking rate hikes, this time across upstate New York.

The usual promotional brochure began appearing in mailboxes across the state, filled with glowing words about all of the wonderful things Time Warner Cable did for you since your last rate increase, and promises for more wonderful things to come… along with fine print language at the bottom subtly labeled “2010 Rates.”  They don’t even call it a rate increase anymore, although it will cost most video and broadband subscribers in Rochester an additional $7.70 a month — $92.40 a year, effective February 1st.

After the company complained back in April it “needed” to engage in Internet Overcharging experiments to use that revenue to upgrade networks, the additional $3 a month/$36 a year they will get from millions of Road Runner subscribers in New York alone should be more than enough to do just that.  Those on lower speed economy tiers are also facing rate hikes: $3 a month for Road Runner Lite and $4 a month for Road Runner Basic, reaching $22.95 and $29.95 a month in Rochester, respectively.

As a concession to Rochester, one of the last remaining cities in New York still stuck with 384kbps upload speeds, the company will increase the upload speed for the division’s Standard Road Runner service customers to 1Mbps sometime in 2010.  Those with Road Runner Turbo will probably see upload speed increasing to 2Mbps, accordingly.  But Rochester still isn’t on the upgrade list for DOCSIS 3, bypassed because of the very limited competition Frontier offers the cable company locally.  Verizon FiOS fiber to the home service is being provided in most other large New York cities.

You probably didn’t ask for it, but you’re going to get it anyway: NBA TV HD and the Sundance Channel was added today to the Rochester-area’s digital cable tier.

Time Warner Cable's new rates for the Rochester/Finger Lakes region of western New York become effective February 1st.

Meanwhile in the state capital Albany, news of the rate increase was particularly unwelcome in the hard hit upstate economy.  The Albany Times-Union called the rate increase “an insult” on hard-hit New Yorkers:

Your neighbor lost his job, the housing market is in the tank, and the economic recovery is nowhere in sight.

And now to add insult to injury, as other household costs rise, your cable TV bill is going up next year too — in some cases by nearly 10 percent.

Time Warner Cable sent a flier to local customers this month with the new prices. Except for the most basic package, all the rates are going up. The “basic with standard” TV package, which includes dozens of mainstay cable channels such as CNN, ESPN and Comedy Central in addition to local broadcast channels, will rise 9.7 percent to $61.95 a month from $56.45 currently.

The company’s “All the Best” package that combines TV with Internet and phone service will go from $139.95 a month to $146.95 a month, an increase of 7 percent.

Click here to view the embedded video.

WTEN-TV Albany reports that Time Warner Cable’s latest rate increase will cause many upstate New York residents to drop premium channels in even greater numbers to economize. (2 minutes)

Verizon FiOS, for now anyway, will be cheaper than most of Time Warner Cable’s packages in Syracuse.  The Salt City faces rate increases averaging six to eight percent.  Time Warner Cable spokesman Jim Gordon blamed the rate hikes on the same things cable always blames rate hikes on — increased programming costs.  From the Syracuse Post-Standard:

Time Warner spokesman Jim Gordon said there are two major reasons for the increase: higher prices charges by the providers of programs and the rising cost of doing business. Customers are using more services more often, Gordon said, and cable is becoming more important in people’s lives.

In 2009, the number of channels on which the “start over” feature is available rose from 45 to 90, and customers used the feature 10 million times, he said. Customers also watched 85 million videos on demand, he said. “People are staying home more, and they’re hunkering down and they’re utilizing these services,” he said.

Cable operators are free to raise rates on everything except the basic service of broadcast and educational channels, for which operators need permission of regulators.

Below is a list of popular packages and corresponding rate increases:
• Talk ‘n’ View package, of telephone and cable television service, will rise from $100.50 to $108.95 – an increase of about 8 percent.
• Surf ‘n’ View, a combination of Internet and cable television, will increase from $105.50 to $111.95, an increase of 6 percent.
• All the Best, which combines cable, internet and phone, will rise from $135.50 to $144.95, or 7 percent.

Prices are slightly lower with Verizon Communications Inc.’s FiOS, which recently entered the Central New York market and offers a basic package of telephone, Internet and cable television for $109.99 to $129.99.

Further north in Watertown, rates are also increasing by 6 to 8 percent starting February 1st, the second increase in the past 11 months. Time Warner last raised its rates in March.

Time Warner Cable spokesman Jim Gordon said the current increases are due to price increases by programmers and an increase in the company’s cost of doing business. Gordon also cited an increase in the use of the company’s features including “Start Over” and video on demand.

“People are staying home more because of the current economic situation, and customers are finding value in these enhancements,” Gordon said.  The Watertown Daily Times notes Gordon doesn’t think subscribers will mind enough to leave.

“Our goal in doing this is to enhance the customer experience,” Mr. Gordon said.

Mr. Gordon said he doesn’t think the rate increases will prompt many Time Warner Cable customers to switch to another provider, because of the local customer service the company offers.

“We’re more than ready to compete,” Mr. Gordon said.

Customers can expect to see the following increases on their cable bills this year:

• A combination of standard and basic cable service costs will increase from $62.50 to $67.75, an increase of about 8 percent.
• The Surf ‘n’ View package will increase from $105.50 to $111.95, an increase of about 8 percent.
• The Talk ‘n’ View package will increase from $100.50 to $108.95, an increase of about 8 percent.
• The All the Best package, including cable, phone and Internet service, will rise from $135.50 to $144.95, an increase of about 7 percent.

Verizon FiOS, a new cable provider in the area, has a basic package that includes cable, telephone and Internet service for $109.99 to $129.99.

Satellite television provider DirecTV also has announced rate increases of 3 percent to 5 percent, which also will take effect Feb. 1.

Watertown residents noted the irony of the company’s “Roll Over or Get Tough” campaign in light of today’s rate increase.

“Imagine if you went to the supermarket and they told you that you had to buy 100 items you didn’t want and would never use for ever item you actually wanted. This is how Time Warner Cable operates,” one writes.

A Raymondville resident remarks, “Isn’t it strange after Time Warner solicits its customers to support their get tough effort to fight with the Fox networks in negotiations over price increases for programming that they can institute one of their own? Is this the real reason that they lobbied all of their customers? Is this the beginning of setting things up so that we end up paying for every channel that we watch? If enough people push to get rid of the junk they give us, that we never watch, so we get a package we will? It almost sounds like a shell game in which the pea is not under any of the shells, a no win situation for subscribers no matter how it shakes out. New businesses have been created here ones in which someone has figured out how to get money from consumers without really doing anything to get it. The New American Way. Welcome to the new Millennium.”

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Some Frontier Communications customers in western New York have been receiving notification that effective October 15th, the rental price of the ADSL modem Frontier provides customers increased $3.00 per month, from $3.99 to $6.99 per month.

Customers on a “price protection agreement” should not have seen this rental fee increase.  If you have, please let us know in the comments.

Frontier’s modem rental fee can often be avoided if you purchase your own DSL modem, assuming its compatible with Frontier’s system, and have them provision it for service.  Several of these modems appear regularly on eBay, sold by customers who ended up owning them after their term contracts ended with other providers.

One of the problems with Frontier’s DSL service is that the “out the door” price is significantly higher after taxes, fees, surcharges, and modem rental costs are factored.

Always insist on obtaining a total price, including all taxes and fees, before committing yourself to any ISP, particularly if a long term contract is involved.

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Rochester, NY - New York's second largest economy on the shores of a broadband backwater

Broadband Reports this morning received word from an “insider” that Time Warner Cable is laying the groundwork to introduce “wideband” broadband service up to 50Mbps throughout New York State’s Verizon FiOS-wired communities.  According to the report, Time Warner Cable plans to launch faster DOCSIS 3.0 service in Buffalo in mid-November, Syracuse in December, and Albany in January.  The company introduced “wideband” service in metropolitan New York City a few weeks ago.

Omitted from the upgrade list is New York’s second largest economy and high tech capital of upstate New York — Rochester.  The city was in the news in April when Time Warner designated Rochester as one of the “test cities” for an Internet Overcharging experiment.  The plan was shelved when customers organized a mass revolt against the plan and two federal legislators intervened.

From a logical standpoint, it wouldn’t seem to make sense for a broadband provider to omit a region with more than one million residents, many who have been highly educated and work for the community’s largest employers – the University of Rochester/Strong Health, Eastman Kodak, Xerox, ViaHealth/Rochester General Hospital, Rochester Institute of Technology, Paychex, and ITT.

But from the all-important business standpoint, Time Warner Cable enjoys extraordinarily limited competition in the area, and the gap only widens in the coming future.  The area’s telephone provider, Frontier Communications, is known mostly for providing service in rural communities, and has so far offered lackluster plans for a 21st century broadband platform, preferring to rely on now-aging DSL technology while Verizon wires most comparably-sized cities in the rest of the state for advanced fiber-to-the-home FiOS service.

While Frontier can live comfortably in rural communities where cable television is not an option, customers who live and work in their largest service area continue to find disadvantages from a company business plan that these days seems more focused on mergers and acquisitions, and is content with language that defines an appropriate amount of monthly broadband usage at a ridiculously small 5 gigabytes per month.

Against a competitor like that, why would Time Warner Cable bother?

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The advancement of Net Neutrality by the Federal Communications Commission was the topic of this week’s Mixed Media, a feature from WXXI-AM, a public radio station in Rochester, New York.  Scott Fybush, who has been known to drop by Stop the Cap! from time to time, talked with WXXI’s Rachel Ward about Net Neutrality and the Stop the Cap! movement, and why Rochester is such an activist community when it comes to preserving reasonable and fair pricing for Internet access.

A Federal Communications Commissioner comes out strong for net neutrality. WXXI’s Rachel Ward and media and technology reporter Scott Fybush have more. (5 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

If you have any interest in radio or television, Scott’s Northeast Radio Watch is a must-read every week. WXXI’s Mixed Media does a good job of explaining technology stories and their impact on us in a way everyone can understand.

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Rottenchester, a Stop the Cap! regular reader, discovered an impenetrable recipe for comprehension disaster in an online essay entitled, The Government, Road Runner, and David Letterman: A Farce in Three Acts.  Written by Susan Edelman, who has a Ph.D. in Economics from Stanford University and was an economist at the Federal Communications Commission (FCC) and the Department of Defense, the essay remarkably tries to present a broader point about government involvement in broadband, Road Runner Internet Overcharging, outrage at David Letterman for his comments about Sarah Palin, and government intrusion in our lives.

It’s a taffy pull thesis I don’t have the courage to attempt, and I was left completely mystified about what the takeaway message was.

WHAT IT ALL COMES DOWN TO, AND ARE YOU SURE YOU WANT THIS?
The assertion that Americans having a right to reasonably priced Broadband service.  This might be a good idea, and is in accord with the treatment of other types of transmission lines.  But do not kid yourself:  this would be the creation of another government-enforced right.  Only government can create and enforce rights.  But isn’t government incompetent?  And doesn’t private business do everything right without government meddling?. (And while you are thinking about this, keep in mind that all Americans do not have the right to reasonably priced health care. )

Edelman rapidly risks losing her argument by default, because most readers are likely not to understand it.  Having been involved in the Road Runner Affair since it began in April, she has lost me, and I have lived and breathed this issue for months.  One potential interpretation of her argument might be is the apparent irony of many conservative Rochester residents calling out the Obama Administration in the pages of the local newspaper with reflexive government=bad and free market=good arguments.  Perhaps in her eyes, many of these same people called out in those same pages for regulatory government relief from abusive broadband pricing.

If so, two points:

1)  I honestly believe most people will not ponder her piece long enough to ferret out a takeaway message.

2) There is no evidence the “free marketeers” were the ones reacting with outrage over Time Warner Cable’s experiment gone wild (and then shelved for now.)  In fact, as soon as Senator Charles Schumer (D-NY) got involved, the editorial feedback pages in the local media from conservatives, along with some local conservative talk radio, rapidly turned the issue of Internet Overcharging into a Senator Schumer Bashing Party.  I have no doubt some of those not closely following the issue automatically adopted the opposite position Schumer had just because of their passionate dislike of him.

Most consumers, in my experience, rightly treated this issue as above the usual right-left tug of war.  That’s because overcharging for broadband isn’t a right or left issue.  It’s a consumer issue.  The conservative thinkers appreciate the strong push towards forcing additional competition in the marketplace.  Those with a politically liberal philosophy aren’t opposed to competition, but want the extra security of government oversight and/or regulation where competition does not exist.

It’s my personal view that telecommunications policy is complex enough without dragging David Letterman and Sarah Palin into it.

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Time Warner Cable’s Rochester, New York division has been playing hardball in Frontier Communications’ largest metropolitan service area for years, running ads that attack Frontier’s term contracts, inconsistent broadband speeds, hidden “extras”, and the fact customers might sign a contract today and be dissatisfied with the service tomorrow.

This morning, Time Warner Cable upped the ante with new ads, telling Frontier’s Rochester area customers who would prefer phone or broadband service from the cable company that they’ll cover up to $200 in fees Frontier charges for exiting a term contract early.

Click here to view the embedded video.

There is, of course, the fine print:

Offer expires 6/26/09.  Up to $200 one-time credit available to current Frontier phone and/or DSL customers in a contract with a disconnect penalty who provide their Frontier bill evidencing early disconnect charge.  Credit will be applied to Time Warner Cable account after customer is installed with Digital Phone Nationwide and/or Road Runner Standard Service and within two weeks after customer supplies copy of Frontier bill to TWC showing the applicable cancellation penalty.  Credit will be equal to the amount of the early disconnect charge, not to exceed $200.  One credit per qualified household.  Customer must keep TWC services for a minimum of 12 months or the up to $200 credit will be charged back to their TWC account.

What Time Warner Cable has just effectively done is to get the subscriber out of one term contract with Frontier, and into another… with them.

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Stop the Cap! reader Bob, who gave Frontier Communications another shot for his broadband needs, finally threw in the towel and went back to Time Warner Cable when he got his current bill.  B0b was happy enough with his DSL service, despite the nagging sense DSL is really losing the speed race, with an increasingly growing gap between the fastest speed Frontier can offer vs. Time Warner Cable’s Road Runner service.  But the final straw came in this month’s bill.  It was messed up, and it turned out Frontier’s DSL was more expensive than Time Warner’s Road Runner, once taxes and fees were counted.

A Frontier Billing Mystery Sherlock Holmes Couldn't Solve

Welcome to my world.  I’m still dealing with billing nightmares prompted from my own test run of Frontier’s DSL “High Speed Internet Max” product, which wasn’t “High Speed” (maximum speed here was 3.1Mbps) and “Max” in giving me headaches because of the need to make repeated calls to the company to straighten out service and billing problems, which still aren’t fixed.

Frontier just sent its employees another one of those taunt-0-gram e-mails at Time Warner Cable’s expense, telling employees:

Time Warner continues to execute a seriously customer-unfriendly strategy for managing the pressure they feel from their customers’ usage of broadband services.

More proof that Time Warner is just focused on how to add PRICE INCREASES to their High-Speed services; Frontier’s focus has never wavered – we ADD VALUE for our customers.

I actually agree with most of that, and would be on board except for the Excedrin-size headache created by Frontier’s customer service in DeLand, Florida.  They’re confused about their own products and services and are prone to making lots of mistakes processing orders and requests.

Before taking shots at TWC, let’s get one’s own house in order first.

Product Descriptions and Disclosures: Can Someone Get Them Right?

Frontier continues to have a big problem is providing consistent information to customers about what is required to participate in promotions, when price protection agreements apply and when they don’t (and allowing customers to opt out up front), and correctly disclosing the actual out the door pricing for products.

Both Bob and I discovered, to our chagrin, that the prices quoted by Customer Service Representatives didn’t correspond with the actual billed charges.  They never quote taxes and fees, which add substantially to the bottom line price.  They don’t routinely volunteer that there is a “modem rental fee” for DSL service that pads several dollars to your bill each month.  Credits often require a representative to manually apply them, and hope they actually go through.

In Bob’s case, he was quoted a monthly fee of $29.99 for his DSL service, but was billed $34.99, and after all of the taxes and fees were applied, it amounted to well over $40.00.  In fact, the final out the door price was literally higher than what TWC charged for Road Runner.

He was also billed for a $34.99 installation fee he was promised would be waived, among other mystery charges that a representative later told him were “in error.”

But after confusion like that, he had enough and elected to head back to Time Warner Cable.  Frontier didn’t like that news one bit:

She said that they might now have to bill me for the installation and I told her no way. I was told when I ordered the service that the installation would be removed from my first bill and it was once I called the person that I originally ordered the service from. I told the representative Monday that they had better not bill me for the install because I had a 30 day grace period and was never told that the installation would be charged to me if I did not then commit to a one year deal  (I had until June 10th to cancel.)

In my case, I was overbilled by more than $60.00 the month prior because promotions were incorrectly applied, and the person who processed our order ended up charging us a-la-carte for every phone feature on our account, instead of properly entering the correct “bundle” package.  It’s frightening getting a phone bill for $111.  Manual credits had to be applied for wi-fi, phone feature mis-billing, and random fees that were never supposed to be on the bill to begin with.

This month’s bill arrived yesterday, and it’s just as confounding as the month prior, with a $45.00 mystery “handling charges and taxes” fee on the bill.

After determining that 3.1Mbps for $40+ a month wasn’t my kind of “broadband,” I canceled my Internet service with Frontier. They relented quickly, considering my speed experience, and then had to figure out what telephone plan to put me on since my old plan, “Frontier Choices” had stopped being sold long ago.

I ended up on Frontier Essentials, which was $24.99 a month and offered 100 minutes of long distance and a healthy package of phone features.  Come to think of it, that $45 fee may be for a Dell Netbook that should have been cancelled the moment I dropped broadband service from Frontier.  I may have solved my own mystery.

Unfortunately, Sherlock Holmes couldn’t resolve the rest of my bill.  Frontier also attempted to apply a two year price protection agreement to the Frontier Essentials plan, which they never informed me about and one I will not accept.  After making the programming changes to properly set all of my phone features, they managed to mess them up.  No more caller ID on a call waiting call for me.

Attempts to check one’s Frontier bill online through their impenetrable website would task Bill Gates.  There is nothing intuitive or helpful about Frontier’s online account center, which needs a lot of work.  No matter, the information on the website I did manage to get about my account was completely different than what is on my bill anyway.

Using the customer service web form was comical as well.  Hitting the “enter” key within the body of their message form was treated as a request to send the message.  I wonder how many incomplete e-mail requests this company receives.  Regardless, they never responded to my multiple inquiries anyway.

Honestly, this is a mess.  Customers should not have to endure these kinds of billing errors, inconsistent information, and additional errors introduced when representatives attempt to repair the original mistakes.

Bob had advice for Frontier on his way out the door:

I told the representative who canceled my Frontier service for me that the people in sales should tell customers up front about the taxes and line fees, etc., when they order the service so that there are no surprises. They should have a list there for each state that they sell service in and list the appropriate taxes and fees for whatever state that customer resides in. (But of course, they won’t do that because after all, nobody would order the service then if they knew the real costs associated with it.)

Gross Revenue Surcharges, Disgusting Revenue Surcharges, Billing A Fee for Charging a Fee…

A major issue confronting telephone companies that don’t always affect cable operators are the piled-on taxes and fees, often mandated by federal, state, and local governments that get attached to one’s phone bill.  There is a fundamental unfairness about the disparity between fees that the telephone company must charge and collect for broadband service, that cable operators do not.

The correct answer, of course, is to demand governments stop imposing them altogether, not simply stick them on cable operators as well.

Frontier’s list of taxes and fees is staggering:

City Tax
A tax collected for City Governments from purchasers of products and users of telecommunication services, which may include equipment, installation, maintenance as well as local and long distance service.

Federal Excise Tax
The Federal excise tax is a tax on local telephone service that includes services and facilities sold in connection with local service. This tax is a percentage of the cost of your services and appears on the local phone portion of your bill. The percentage used to calculate the amount of the tax appears with the charge. For example, “Federal excise tax at 3%.” Frontier acts as a billing agent and collects these fees on behalf of the Internal Revenue Service (IRS). All monies collected for the Federal Excise Tax are paid directly to the IRS.

Additional State Taxes
Each state has the power to levy Additional State Taxes. In many cases, these charges are similar to those levied at the interstate level.

Federal Subscriber Line Charge
The Federal Subscriber Line Charge is a nationwide charge that is designed to recover a portion of local telephone companies’ costs associated with providing long distance carriers with access to the local phone network. Long distance carriers pay the remainder of the cost. This charge is regulated by the FCC.

Federal Universal Service Fund (USF) Charge
The Federal Universal Service Fund supports telecommunications services in schools, public libraries, and rural health-care facilities. The fund also subsidizes local service to high-cost areas and low-income customers. The FCC regulates this charge. Customers pay a monthly, per-line surcharge to recover local companies’ contributions to the Fund. This fee helps to keep local telephone rates affordable for all customers.

Gross Revenue Surcharge
Telephone companies must pay tax on total revenue. This funds the Public Utility Commissions and other state services. This charge represents each consumer’s portion of that tax on revenue.

Federal Carrier Cost Recovery Charge
The Federal Carrier Cost Recovery Charge recovers national costs associated with various federal regulatory fees and programs. Rates vary from company to company, as do the names given for this charge.

Emergency Service Fee for 911
The 911 Emergency Service Fee is a fee to cover the costs of local jurisdictions providing 911 emergency response services to its citizens. The fee is generally either an amount per telephone access line or a percentage of revenue. State law mandates the fee. Frontier collects this fee on behalf of the appropriate 911 jurisdictions within the state.

Telecommunication Relay Service/Hearing Impaired/Telecommunications Device for the Deaf
The Telecommunications Relay Service/Hearing impaired/Telecommunications devices for the Deaf surcharge is a fee for providing special needs equipment, facilities and services for people who are deaf to use the telecommunications network. This includes special phones, hearing devices, Braille pads, necessary network switching equipment and operation of a service center that the customer uses for specialized services. The requirements for collecting and remittance of the fees are state specific and established by state law, public utility commission rule or tariff filings.

Intrastate Access Charge
This is a state assessed charge. It partially reimburses telephone service providers for costs associated with routing long distance calls made by local customers. It is applied to all residential and business customers who have telephone lines, whether they make long distance calls or not.

Sales tax
A local, state or other sales tax may be applied to your telecommunications charges, just as it is for many other types of purchases.

Service Provider Number Portability
Federal law requires all local phone companies to provide “service provider number portability,” which allows customers to retain their phone number when switching companies to provide their local phone service. Federal law allows for the recovery of costs associated with the development, implementation, and operability of service provider number portability.

A few of those taxes are cleverly broken out and recovered by Frontier when they could simply be covered as a cost of doing business, but many are government mandated and don’t stay in Frontier’s bank accounts.

Where does it end?  At least we stopped paying for the Spanish-American War of 1898 as part of a federal excise tax a few years back.

Dealing With the Devil You Know Will At Least Get The Bill Right

In the end, Bob headed back to Time Warner Cable, who re-signed him to Road Runner service at a $29.95 monthly “welcome back” rate for the next year and had the self-install kit ready for him to pick up at his convenience.

I was happy with DSL here this time around for the most part, but sadly, I also realize that the best download speed belongs to Road Runner.  I asked the representative for TWC is if he was local and he said “why sure, right down here on Mt. Hope Avenue [in Rochester].”  (Frontier representatives are in DeLand, Florida.)  There are no hidden fees or taxes with Road Runner.  I know that my $29.95 a month Internet won’t run me over $40 a month or anywhere close to that.

At least as long as Cap ‘n Tier doesn’t return to haunt us in the future.

This remains the dilemma.  One really wants to cheer on competitors like Frontier to get it right and get it done.

Time Warner Cable, at least on the local level, is an incredibly well run company with excellent service and great employees.  The technology is up to date, the speeds are fast, and you always get the sense things are moving forward. The corporate side in New York is another matter entirely, bordering on unmitigated evil with out of touch executives who want to gouge every last cent and don’t listen to the needs and concerns of customers unless they are forced into doing so.  Cap ‘n Tier is the most recent egregious example.  At least for broadband, it has always been easy to be a loyal Time Warner Cable customer.  If Cap ‘n Tier comes back, it will take about five minutes to cancel and head for the exit.  It really is that much of an insult.

Doing business with Frontier feels like dealing with a company trying to keep the lights on as their primary copper wire telephone business is slowly slipping away.  Cost savings at all costs seem to be the order of the day, and one just senses the willingness to spend money to earn money by building a 21st century distribution platform just isn’t in our future.  Too often, gimmicks, games, and contract traps try to grasp and hold customers from leaving even faster, at least in cities like Rochester.  Perhaps expectations have been lower in more rural communities, but they aren’t here, and I frankly don’t know any college student or 20-something that actually has Frontier wired telephone service.

It’s not too late.  Buying up Verizon castoffs may not be the best allocation of revenue when your core business is slowly bleeding away.  Invest in a real overhaul of your network to compete with Time Warner Cable, among others, with a consistently fast broadband product.  Overhaul the website to provide a much easier, and more modern looking interface to get customers the information they need.  Respond to customer service inquiries made online.  Publish your product lists and pricing online.  Retrain customer service representatives to make sure they are providing a consistent message about product promotions and pricing and, crucially, avoid making the kinds of billing errors that make customers want to simply head elsewhere.

I fear for what turmoil Frontier and their customers will go through trying to digest millions of displaced Verizon customers.  After watching the nightmare from FairPoint, I, among millions of others, will not want to see a repeat performance.  After what I’ve gone through the last two months, I’m not exactly confident about that.

Come Monday, if my own bill isn’t straightened out, my 23 year history with Rochester Telephone and Frontier Communications which replaced it will end and I’ll be getting phone service from Time Warner Cable, much as I hate giving them more of my money at a time like this.

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Frontier Essentially Accuses Time Warner Cable of Being a Shakedown Artist

Frontier Communications has continued its aggressive campaign to hit back against its cable competition, most notably Time Warner Cable.  In its most recent advertising in the Rochester area, Frontier compared Time Warner Cable’s broadband usage caps and rate hikes “the Cable shakedown.”  Wow.  Even we don’t go that far.

Frontier has gotten aggressive since Time Warner Cable made Rochester, Frontier’s largest service area, a test market for its Cap ‘n Tier program, temporarily shelved.  Frontier doesn’t believe for a second that Time Warner Cable is done with metered billing in this community, and neither do we.  So they are going to spend the summer continuing efforts to poach Time Warner’s customers.

Meanwhile, Frontier CEO and Chairwoman Maggie Wilderotter has penned an e-mail being sent to every Frontier customer commenting on the economy and calling out cable for annual rate increases:

Dear Frontier Customer,

We are in tough economic times. As you look for ways to save money, I want to assure you Frontier is dedicated to providing you with robust, value-added voice, high-speed data and video products.

Now, more than ever, Frontier is committed to the communities we serve. As a significant employer and a major taxpayer, Frontier takes pride in our active role in our markets. Our local managers and front line employees are highly visible and involved in many community organizations and events. They stand ready to suggest ways to use our services and resources wisely.

We provide innovative solutions and products for all types of communications needs. Fast, reliable communications technology, especially broadband, has never been more important. Customers tell me that as their budgets get smaller, the value of using our services in the home increases. Many families rely on Frontier products for their jobs, education and entertainment. Whether it’s Digital Voice, Data, or Video, we are here to help you explore different product and pricing options. Just visit any Frontier location or give us a call at 800-921-8101 and our customer care representatives will help you.

Despite recessionary times, Frontier continues to invest in the technology that gives you the power to connect at home, in the office or on the go with speed and reliability. We are committed to your complete satisfaction. Unlike our Cable Operator competitors, we don’t depend upon an annual rate increase; in fact, Frontier provides price protection plans so you know what to expect during your agreement term. We are proud to offer the best products at the best prices in our markets – with unparalleled service to make the customer experience the best it can be. Frontier is local, financially solid, and optimistic about the future.

Although none of us know when it will happen, I do believe better times are ahead. We have been tested before and emerged stronger. We will get through this, and Frontier is here for you in good times and challenging times.

Thank you again for your business and support. We take it seriously and all of us at Frontier will continue to work hard to provide you with the best communications products and services.

Sincerely,
Maggie Wilderotter
Chairman and CEO
Frontier Communications
frontier@frontiercorp.com
I can help you!

Now if only their DSL product could deliver consistent results no matter where their customers might live (and they keep their own 5GB ‘acceptable use’ stuff unmonitored and unenforced.)

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For your convenience, I have compiled a package of media on the 1st Quarter Results for Frontier Communications, including audio from this morning’s investor conference call, and copies of the reports for your review. You must remain on this page to stream audio clips.

A cue sheet is referenced below for the different audio actualities. The complete conference call is available for download as an MP3 file.

Audio Actualities

Cut 1: Frontier Communications CEO Maggie Wilderotter discussing the company’s “Rolling Thunder” promotion & Frontier’s results during the 1st quarter (5:29 minutes)

You can download the clip and listen later.

Cut 2: Frontier Communications CFO Donald R. Shassian discusses the growing revenue earned from broadband services. (2:01 minutes)

You can download the clip and listen later.

Cut 3: Q&A – Maggie Wilderotter comments on promotional results and the possibility of DSL “churn.” (3:25 minutes)

You can download the clip and listen later.

Cut 4: Q&A – Maggie Wilderotter claims Frontier “owns the market” in Elk Grove, California despite fiber to the home. (0:33 minutes)

You can download the clip and listen later.

Cut 5: Q&A – Maggie Wilderotter discusses new DSL/Satellite box Frontier can use to deliver video via IP/broadband. (0:56 minutes)

You can download the clip and listen later.

Cut 6: Q&A – Maggie Wilderotter answers questions about how Frontier will leverage broadband stimulus money. (1:37 minutes)

You can download the clip and listen later.

Cut 7: Q&A – Answering questions about “mergers and acquisitions” and consumer telephone line loss (Shasian & Wilderotter). (5:23 minutes)

You can download the clip and listen later.

Cut 8: Q&A – What is the revenue potential of Frontier wi-fi service/naked DSL service (Shasian & Wilderotter). (3:27 minutes)

You can download the clip and listen later.

Entire Event: 1st Quarter 2009 Frontier Communications Investor Conference Call (47:55 minutes)

You can download the clip and listen later.

Frontier Communications Documents

Frontier Investor Relations Website

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Frontier Communications reported its 1st quarter 2009 results this morning, demonstrating a growing proportion of its overall business is coming from data products and services.  Frontier is an independent telephone company serving rural and suburban communities across the United States, with its largest market being Rochester, New York.

CEO Maggie Wilderotter put a positive spin on an otherwise lackluster report, showing the company’s revenue had declined when compared with last year’s same quarter results.

“I am very pleased with Frontier Communication’s 2009 first quarter results bolstered by our “Rolling Thunder” promotional campaign,” said Maggie Wilderotter, Frontier Communications Chairman and CEO.

“Frontier surpassed 600,000 High-Speed Internet customers and as of today has surpassed 150,000 DISH Network video customers. Our first quarter High-Speed growth was the best since the first quarter of 2008 and our first quarter DISH video growth was equal to all video subscribers added during the entire year of 2008. We took market share from our cable competition and we improved our customer churn. Access line losses improved for the third consecutive quarter, Wilderotter reported.”

Revenue for the first quarter of 2009 was $538.0 million compared to $569.2 million in the first quarter of 2008, a 5 percent decrease. Revenue declined primarily as a result of customers disconnecting wired telephone lines, partially offset by a 7 percent increase in data and internet services revenue. The company has been increasingly relying on data products and services to make up for the steady loss in wired telephone customers.

Frontier Communications relies on copper wiring for telephone and data services, and a satellite reseller agreement with DISH Network to deliver video programming.  In Rochester, the company continues to be an also-ran for high speed data and video products, as many consumers prefer higher speeds available from Time Warner’s Road Runner product, and don’t want satellite equipment on or near their home.  But Frontier retains a healthy advantage in serving telephone customers, particularly among older residents.  Frontier’s challenge remains the changing demographics of their customer base.  Younger residents are accelerating their reliance on cellular phones or Voice Over IP services for telephone calls, and are not subscribing to traditional wired telephone service.

Frontier’s ongoing erosion of their core business – providing wired phone lines, has become a constant theme in their financial reports over the past several years.  Company officials attempt to spin the problem by noting that line erosion, or service disconnects, is decelerating.  They also blame economic conditions and foreclosures for some of their disconnects, something many treat skeptically.  Frontier executives recognize their survival depends on a broadening of their product lines to stay relevant in the telecommunications marketplace.

Frontier embarked on a strong promotion earlier in the quarter internally dubbed “Rolling Thunder.”  Customers in many Frontier service areas received mailers promoting one year of DISH Network service for $9.99 per month, a wired telephone line with unlimited long distance calling bundled with popular phone features, high speed Internet DSL service, free access to Frontier’s wi-fi network, and a free Dell netbook in return for a two year service contract and a discounted bundle price.  The package was popular among lower and middle income residents in Rochester seeking the netbook promotion, and also a less expensive video package, at least for the first 12 months.

Wilderotter called the promotion the most effective the company had ever run, with limited “retailiatory” marketing from Time Warner or other competing providers.

Frontier’s conference call to investors also touched on the company’s plans to apply for broadband stimulus money to build out their data network in more rural service areas, to continue to leverage their wi-fi product, which is now being included at no additional charge for all Frontier high speed Internet customers, and to test and deploy new set top boxes to combine DSL and DISH Network to deliver video content to subscribers’ television sets.

That last point is ironic, considering the company continues to insist in its Acceptable Use Policy that 5GB of broadband usage per month is the right amount subscribers should avoid exceeding.  They will assuredly do just that playing just one or two on-demand movies delivered by the DSL-DISH Network set top box.  It’s another rhetorical nail in the coffin for any usage cap argument coming from Frontier, particularly when the company’s claims that network growth may impede its ability to serve its customers will be challenged like never before from this box!

Audio from this morning’s conference call, along with individual clips of interest, will be forthcoming shortly.

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