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Frontier Boost Speeds in Fiber Markets While Its DSL Customers Suffer

Frontier can boost speeds on its acquired fiber to the home networks, which offer almost unlimited capacity upgrades.

Frontier Communications is America’s feast or famine broadband provider, today announcing speed upgrades for its acquired Frontier FiOS and Vantage Fiber service areas while the company continues to pile up hundreds of complaints about poor quality DSL service in the northern U.S. where fiber upgrades are unlikely to ever happen.

Frontier today announced gigabit service (1,000/1,000 Mbps) is now available in its FiOS (California, Texas, Florida, and parts of the Pacific Northwest and Indiana) and Vantage Fiber (primarily Connecticut) service areas. The company also unveiled new plans offering 200/200 and 300/300 Mbps speed options in Indiana, Oregon, and Washington.

“Frontier is pleased to now offer a 200/200 Mbps service, the fastest, most efficient introductory broadband service available in our markets, plus eye-popping speed and capacity with our FiOS Gigabit for the home,” said John Maduri, executive vice president and chief customer officer at Frontier Communications. “Speed and reliability are hallmarks of FiOS Fiber broadband service. Two-way speeds over our all-fiber network make Internet tasks faster and more efficient, regardless of the time of day, while also enabling the many connected devices and streaming services in the home to work simultaneously and smoothly.”

Frontier’s fiber networks are only found in certain regions of the country, including 1.4 million homes in the Tampa Bay/six-county region along the central west coast of Florida, parts of Southern California, Dallas, and individual communities in Indiana, Oregon, and Washington that used to be served by Verizon.

Frontier’s Vantage Fiber network was largely acquired from AT&T’s U-verse service area in Connecticut, with more recent limited rollouts in North Carolina and Minnesota. Life for the unfibered masses in the rest of Minnesota is less sunny, with nearly 500 complaints against Frontier filed by frustrated consumers stuck with a company they feel has forgotten about them.

City Pages notes no company affirms the notoriety of a bad phone company like Frontier Communications, which still relies on a deteriorating copper wire network in most of its original (a/k/a “legacy”) service areas. Complaints about mediocre internet access, missing in action repair crews, and Soviet era-like delays to get landline service installed are as common as country roads.

City Pages:

The grievances read like a cannonade of frustration. They speak of no-show repairmen. Endless waits on hold. Charges for services never rendered. Outages that last for days.

“I have never dealt with a more incompetent company than Frontier,” writes one customer on Google Reviews. “I have no other choice for internet or phone service in my area…. It took me over three months just for Frontier to get to my house to even connect my service…. They also canceled multiple times for installation without calling. They just didn’t show up.”

These maladies aren’t exclusive to the outbacks. They also extend to Watertown Township, in the exurbs of Carver County.

“Frontier Communications is my only option for internet,” Kathleen McCann wrote state regulators. “My internet service is worse than dial-up…. As a dentist, I am not able to email dental X-rays. It took me 47 minutes to upload one small photo to Facebook recently.”

Frontier vice president Javier Mendoza at least admits most rural Minnesotans will be waiting for upgrades forever.

“The economic reality is that upgrading broadband infrastructure in the more rural parts of the state is not economically viable,” he says.

That leaves customers hoping some other entity will step up and serve the critical digital needs of one of America’s most important agricultural states. If not, the future is dismal.

“Those people are screwed,” Christopher Mitchell of the Institute of Local Self-Reliance, a Minneapolis nonprofit, tells the newspaper. “People who make business or real estate decisions are not going to move to that area.”

With that bleak assessment, several rural Minnesota communities are doing something remarkable — building their own public broadband networks. Even more surprising is that many of those towns are led by hardcore Republican local governments that have very different views about municipal broadband than the national party.

Life is rougher for Frontier’s legacy customers that depend on the company’s decades-old copper wire networks.

Some have joked they could change the mind of big city Republicans that are openly hostile to the concept of public broadband by making them spend two weeks without adequate internet access.

In the Minnesota backcountry, in the heart of Trumpland, broadband is about as bipartisan an issue you can find. Ten cities and 17 townships in Renville and Sibley counties went all-out socialist for suitable, super high-speed fiber optic broadband. RS Fiber, the resulting co-op, delivers superior internet access with fewer complaints than the big phone and cable companies offer in Minneapolis-St. Paul.

Public broadband is no more a “big government” takeover than municipal co-ops were when they were formed to bring electric and phone service to rural farms during the days of FDR. Waiting for investor-owned utilities to find adequate profits before breaking ground came second to meeting the public need for reliable power and phone service.

Today, part of that need is still there, even with an incumbent phone company delivering something resembling service. Frontier DSL is internet access that time forgot, with customers comparing it to the days of dial-up. Speed tests often fail to break 1 Mbps. Cable companies won’t come anywhere near most of these communities, many inconveniently located between nothing and nowhere.

As long as Frontier remains “checked out” with make-due internet access, rural Minnesota won’t ever benefit from the kinds of fiber fast speeds Frontier is promoting on the fiber networks that other companies originally built. Frontier is not in the business of constructing large-scale fiber networks itself. It prefers to acquire them after they are built. That makes Frontier customers in legacy service areas still served with copper envious of the kind of speeds available in California, Texas, and Florida.

Investors continue to pressure Frontier to reduce spending and pay down its debts, piled up largely on the huge acquisitions of Verizon and AT&T landline customers Frontier effectively put on its corporate credit card. For Wall Street, the combination of debt repayments and necessary upgrade expenses are bad news for Frontier’s stock. The company already discontinued its all-important dividend, used for years to lure investors. A growing number of analysts suspect Frontier will face bankruptcy reorganization in the next five years, if only to restructure or walk away from its staggering debts.

Frontier Abdicates Basic Responsibilities in Minn.; One Resident Has Phone Cable Draped Over Propane Tank

Ceylon City Council Member John Gibeau shows this Frontier Communications cable intentionally laid across the customer’s propane tank. (Image courtesy: Mark Steil, MPR News)

Frontier Communications technicians decided it would be perfectly safe to drape their telephone lines on top of a propane tank, use overhead tree branches as makeshift telephone poles, and leave phone cables laying on the ground — in lawns, fields, and farms — for up to three years in southern Minnesota.

Minnesota Public Radio found a number of problems with Frontier Communications in a special report outlining years of complaints about the phone company’s performance — or lack thereof — in small communities around the state, including in the town of Ceylon in Martin County, located along the Minnesota-Iowa border.

John Gibeau, a city council member, might tell visitors to be careful of Frontier’s phone cables, some that have laid on the ground in parts of town for years.

“There’s three lines there, that are just laying across the ground,” Gibeau told MPR News. “And they run down for probably another 60 yards.”

Frontier laid out the phone cables sometime ago, but they have never seen a day attached to a utility pole.

In another part of town, a Frontier line technician thought nothing about draping a phone line across the top of a homeowner’s propane tank. At one address, there was no convenient utility pole in sight, so the technician used a few trees in the neighborhood as makeshift poles, distributing the line through the tree branches which help keep the cable above ground so vehicles do not drive over it. Gibeau said Frontier has left it that way for almost three years.

Ceylon, Minn.

Another resident deals with Frontier’s phone line each time he mows his lawn. That is because Frontier just dropped the cable on the grass and left it there. He relocated it to a nearby flower bed to avoid an accidental entanglement with the lawnmower. Other neighbors have done their part, attaching Frontier’s lines to the top of fences and fence poles — anything in sight that can get the cable off the ground where it can be ruined over time.

In all these cases, Frontier has refused to fix the problems, despite repeated calls. But that may be asking for too much. At a hearing recently in Slayton, Frontier customer Dale Burkhardt lost his phone and DSL service after a construction crew accidentally severed the phone cable that serves his farm. More than a year later, Frontier’s repair crews have never shown up to repair the line, regardless of the number of trouble tickets and calls to customer service.

“I still don’t have a landline, I don’t have an internet,” Burkhardt said. “I’m getting a little fed up.”

As Minnesota’s Public Utilities Commission continues a series of public hearings around the state to hear complaints concerning Frontier Communications, regulators are getting an earful. Nearly 400 people have turned out for the hearings so far. Many report Frontier has not fixed their problems, no matter how often customers complain.

Javier Mendoza, Frontier’s vice president of communications, told MPR the company is listening to customers.

“For us, one customer who is out of service is one customer too many,” Mendoza said. “So, we would thank our customers for their patience. We recognize that from time to time we experience service issues and delays. And for those customers that are affected, we apologize to them.”

Frontier Communications scatters its phone cables on residents’ lawns, across a propane tank, and through tree branches as makeshift utility poles, reports Minnesota Public Radio (3:56)

Comcast & Spectrum Open Up Free Wi-Fi Service in Georgia and the Carolinas

Hurricane Florence

Comcast and Charter Communications are providing free and open access to more than 12,000 Wi-Fi hotspots in Georgia and the Carolinas as Hurricane Florence begins impacting the three states.

“In response to Hurricane Florence, we have opened up more than 5,100 Spectrum Wi-Fi hotspots in North and South Carolina. These hotspots are open to all users until further notice in coastal communities like Wilmington, N.C., and Myrtle Beach, S.C., as well as inland to the Charlotte, Raleigh-Durham, Fayetteville and Greensboro areas,” Charter said in a statement.

To connect your device, look for the “SpectrumWiFi” network under your device’s WiFi settings in Charter service areas, “xfinitywifi” in Comcast country.

“It’s critical that impacted residents are able to communicate during challenging weather events such as Hurricane Florence,” said Doug Guthrie, regional senior vice president for Comcast.

As a result, Comcast is opening up almost 7,000 hotspots in Augusta and Savannah, Ga., and Charleston, S.C. Both cable companies are welcoming subscribers and non-subscribers alike.

Hurricane Florence, although currently downgraded to a Category 2 hurricane, remains a vast hurricane with a large wind field of hurricane force winds, and will likely pummel the region until Saturday. Combined with intense rainfall and catastrophic storm surges, devastation is likely along coastal regions of all three states. Duke Energy, which serves North and South Carolina, anticipates extended outages for at least three million customers during Hurricane Florence.

As of 5 p.m. ET Thursday, the center of Florence was 100 miles east-southeast of Wilmington, N.C. and 155 miles east of Myrtle Beach, S.C. The hurricane has slowed to just 5 mph.

Other states likely to be impacted by flooding rains, storm surge, and winds are Maryland and Virginia.

Actual landfall of Florence is not expected until at least Friday afternoon, according to Neil Jacobs at the National Oceanic and Atmospheric Administration (NOAA).

Cable outages are often a result of power outages. If electricity goes out in an area, cable services will go as well, and remain unavailable until power is restored. If cable infrastructure is also damaged, service won’t return when electricity does and outages should be reported to the cable company. Traditional landline service is powered independent of the electric grid. Report any service outages to the telephone company.

If infrastructure is severely damaged, it could take several weeks to restore electric, phone, and cable service after a major hurricane.

Verizon Switching Off Copper Network in Parts of NY, NJ, MA, PA, RI, and VA

Phillip Dampier September 5, 2018 Consumer News, Public Policy & Gov't, Verizon 2 Comments

Verizon is continuing efforts to gradually retire its copper-wire facilities in parts of six states, replacing existing copper wiring with a fiber to the home network.

Verizon has notified regulators the company intends to drop support for traditional landline service, replaced with Verizon’s fiber-powered internet and digital phone service.

“As a general matter, the retirement of copper facilities will not result in changes to rates, terms, and conditions in cases where the affected service is converted to a like-for-like service that is available on fiber facilities,” Verizon told regulators.

The central offices affected (click bold link to get copy of list of affected addresses):

Massachusetts

Dorchester, Hyde Park, Milton, Roxbury and West Roxbury (Nov. 30, 2018)

Dorchester, Hyde Park, Roxbury and West Roxbury (Phase 2 – March 9, 2019)

Dorchester, Hyde Park, Roxbury, and West Roxbury (Phase 3 – June 28, 2019)

New York

Bedford Village (Oct. 1, 2018)

South Staten Island + 58 wire centers in: Queens, Brooklyn, Astoria, Corona, Manhattan, Bronx, Flushing, Forest Hills, Long Island City, Newtown, Staten Island, and Richmond Hill (Nov. 30, 2018)

47 wire centers in Brooklyn, Astoria, Manhattan, Queens, Corona, Flushing, Forest Hills, Bronx, Long Island City, Newtown, and Richmond Hill (March 9, 2019)

60 wire centers in Brooklyn, Manhattan, Staten Island, Bronx, Richmond Hill, Queens, Newtown, Long Island City, JFK Airport, Forest Hills, Flushing, Corona, and Astoria (June 28, 2019)

Pennsylvania

Bethel Park, Camp Hill, Carnegie, East Liberty, Enola, Middletown, Oakland, Paxtonia and Steelton (Nov. 30, 2018)

Pottsdown (June 28, 2019)

Rhode Island

Riverside (Nov. 30, 2018)

New Jersey

Mays Landing (March 9, 2019)

Virginia

Second Avenue – Richmond (March 9, 2019)

Frontier’s Latest Salvation Plan Doesn’t Include Significant Broadband Upgrades

While celebrating its success at cutting $350 million in expenses, Frontier’s newest plan to keep the company from drifting towards bankruptcy is a $500 million increase in revenue (and hopefully profits) with a series of “revenue enhancements” and cost cutting.

Significant broadband upgrades in legacy DSL service areas are not on the table, as Frontier continues to spend most of its capital on matching Connect America Funds (CAF) and state grants to expand broadband into unserved and underserved rural areas.

“Approximately 80% of our capital program continues to focus on revenue generating and productivity enhancing projects,” said R. Perley McBride, Frontier’s outgoing chief financial officer. “The focus of our capital spending remains consistent. We continue to focus on our CAF builds, using both wired and wireless technologies.”

Frontier has been criticized by some for spending too much on its network and acquisitions and not enough on shareholder return. The company suspended its dividend in February, and the share price has remained below $6 a share since July. After announcing its latest quarterly results and a new $500 million EBITDA initiative on July 31, the average share price posted only modest gains of around $0.25 a share.

Frontier’s business remains troubled, with looming debt repayments in its future. The date to remember is Sept. 15, 2022 — the day Frontier needs to repay $2 billion in unsecured bonds to maintain its credibility in the credit markets. If it fails to pay, the company could find future financing difficult, which is often what triggers a trip to bankruptcy court.

The year 2022 is also very important to Californians. Frontier disclosed it planned to expand rural broadband service to 847,000 unserved/underserved rural residents by the end of 2022, with specific commitments in the next few years to upgrade 77,402 locations, in part with CAF funding, increase broadband speed for 250,000 households, and deploy newly available service to 100,000 homes.

Frontier’s own deployment goals in California — goals the company may not be honoring. (Image courtesy of: Steve Blum’s blog)

According to the California Emerging Technology Fund (CETF), Frontier has no intention of meeting its rural broadband commitments. In effect, similar to Charter Communications, it merely made the commitments to win approval of its acquisition of Verizon’s wireline and FiOS business in California.

A day of reckoning for the company’s alleged failure to meet its obligations is likely forthcoming. Steve Blum’s blog notes Frontier isn’t saying much:

In its formal response to CETF’s allegations, Frontier never actually says that it kept to that timetable. All it says is that “Frontier sent a letter to the Communication Division dated March 8, 2018 on its commitments that includes a confidential attachment reflecting completed locations through December 31, 2017”. It sent a letter, but doesn’t say what’s in the letter or even claim that the letter documents fulfillment of its obligations.

CETF told California regulators a disturbing story about Frontier’s failure to perform and other allegations in its filing with the California Public Utilities Commission, alleging Frontier is reneging on the deal it made with the state and various stakeholders in return for getting its acquisition approved. The group also accused Frontier of failing to deliver on its affordable broadband offering, because the company made signing up difficult and bundled extra fees and surcharges onto the bill.

“Frontier launched its existing affordable broadband offer in late August 2016 and to date only 9,173 adoptions have been achieved, a mere 4.5% of the 200,000 household adoption goal,” the CETF wrote. “Due to the initial Frontier eligibility requirement that Frontier customers be a telephone landline Lifeline subscriber and the total bundled cost, the affordable broadband offer has only attracted 7,452 low-income subscribers, which is 190,827 households short of the agreed-upon goal.”

Frontier has a employer turnover problem in California, evident from this filing by the CETF. (Courtesy: CETF)

The CETF said Frontier was “shirking” and should face the maximum fine of $50,000 a day retroactive to July 1, 2016 for failure to comply with its obligations. As of the end of July, 2018 that fine would amount to over $39 million.

To comply with existing obligations to California, Frontier could have to spend in excess of $1 billion in the next two years. But Frontier has told investors it planned to spend no more than $1.15 billion on capex in fiscal year 2018 across its entire national service area. This could explain why Frontier may be stalling on upgrades in California.

Also raining on Frontier’s parade is the muted reaction to Frontier’s latest money-raising scheme. Shareholders appear lukewarm, with some openly skeptical that Frontier can deliver what it promises.

The plan’s success depends on:

  • Frontier’s ability to raise rates and find other “revenue enhancements” of $150-200 million. Rate increases drive customers to competitors, reducing revenue.
  • Vague “operational improvements” are expected to bring $150-200 million.
  • Customer care and support savings are anticipated to generate $125-175 million in EBITDA benefit.

Outgoing CFO McBride relies heavily on opaque corporate-speak like this, with few specifics:

“In addition to the dedicated resources, we are utilizing a new approach that will significantly accelerate the benefits of both revenue and expense initiatives. This new approach involves utilization of external expertise to significantly reduce the time to successfully realize our objectives. This will allow us to execute more initiatives in parallel while still managing day to day requirements of the business.”

In short, this suggests Frontier will outsource a lot of initiatives they used to manage in-house. The company also plans to start limiting truck rolls to customer homes if the company determines the problem is likely elsewhere in their network. It also claims it is cutting customer hold times at their call centers, which are still frequently outsourced.

What Frontier has made clear, again, is their determination to keep a cap on spending, which means much of the money Frontier will spend each year will go towards network maintenance, not service upgrades. Therefore, customers can expect incremental upgrades, usually when a construction project requires Frontier to replace existing copper wire infrastructure with fiber optics or at a building site for a new housing development. Most customers in existing neighborhoods served by legacy copper wiring on the poles since the 1960s will continue to be serviced by those lines until they are torn down in a storm or stolen. Frontier has consistently shown no interest in wholesale network upgrades in its legacy service areas.

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