StoptheCap! has learned that Frontier Communications will officially pull the rug out from under Time Warner and announce it will not be imposing any usage caps or rationing plans in the metropolitan Rochester (area code 585) service area, giving the DSL provider a potential competitive advantage in the area.  The company still reserves the right to revisit the matter should their network be completely overwhelmed, but company officials also stated that they are fully equipped to handle the traffic they are getting now.

A well informed source within Frontier told StoptheCap! a company memo is being circulated to educate customer service representatives about the decision and answer questions from potential customers switching from Road Runner. This may have come in response to a bonanza of new subscribers Frontier is picking up this week from customers canceling Road Runner service. Company officials are internally considering a new marketing campaign to blitz Rochester area residents with information about Road Runner’s punitive caps, and that Frontier will not be imposing those caps on its customers.

There has been speculation that one of the reasons Rochester was chosen as a “test city” for the Road Runner rationing plan was because of last summer’s attempt by Frontier to impose its own usage cap, of just 5GB per month. Rochester is the only major city in New York that is not being wired by Verizon for its FIOS – fiber to the home broadband service, which does not have any usage caps. Time Warner officials may have presumed that with their draconian usage caps, Frontier would be free to reintroduce their own still leaving Time Warner with a market advantage. Frontier’s decision to the contrary is a potential game changer in the Flower City.

But in a move that StoptheCap! applauds, Frontier Communications has decided this opens a unique opportunity for the company to not only regain a stronger position in the local broadband market, but also bring back its important traditional telephone line business. Frontier has reported a growing number of people disconnecting traditional telephone service in favor of voice-over-IP services like Vonage or Time Warner’s Digital Phone service. Most customers who sign up with Frontier for multiple services choose a bundled package including telephone and broadband. The company will also continue to promote its Price Protection Agreement, which guarantees no usage caps or price increases for a term of two or three years, at the customer’s choice.

Frontier has also distributed a memo to employees that the company no longer feels their network is being challenged by ‘overuse,’ but continues to express concern about the potential for deteriorating customer broadband experience in the future. We understand that, and suggest Frontier educate their customers about the impact certain applications might have on their network, such as running torrent servers 24/7, trying to run commercial web servers on a residential account, etc. However, company officials must also be aware that with a flood of new customers will naturally come increasing demand, so they need to prepare now for the potential exodus from Time Warner. It also remains the responsibility of every ISP to recognize the revolutionary growth of the Internet, and continue to make investments in new technology which can deliver more bandwidth.  The cost for that bandwidth continues to decline, so punitive rate hikes and caps are simply not justified. Hopefully, Frontier will make their customers partners in their decision-making, and treat us with the respect Time Warner can’t be bothered with.

Some pertinent FAQ information Frontier has now released to their customer service representatives:

Q: Does Frontier charge for internet consumption?
A: No, Frontier does not charge for usage. Customers pay a flat fee per month that provides them a true High-Speed Internet Connection, up to 10 MB in Rochester.

Q: When does the Time Warner Network Consumption Pricing begin?
A: Like you, we only have knowledge based upon the recent press.

Q: Does this apply to Residential Only, or does it include Commercial?
A: We have not heard them say that anyone was excluded.

Q: What is a “bandwidth cap” and what does it mean for me?
A: Caps are thresholds placed by Time Warner so their Customers will be charged at different levels of usage on their network. Bandwidth caps generally track the total amount of GigaByte usage that is downloaded and uploaded to the Internet by a household during a specific period of time, like a billing cycle. Press reports indicate that Time Warner will charge $1 for every GB above their cap.

Q: Has Frontier changed its Acceptable Usage Policy this year?
A: No.

Q: If I buy my Internet service from Frontier, will the Price Protection include consumption pricing?
A: At this time, Frontier has no plan to provide consumption pricing.

Some answers to questions Frontier doesn’t know the answers to: The official start date for the Time Warner Rationing Plan is November 1, 2009 in Rochester, N.Y.  Prior to that date, you will not be charged for excessive use.  This plan only impacts residential customers.  Business customers are not being metered.  Frontier is legally hedging their bets in the wording of their statements here.  So a few words here and there might appear to be “weasel words” that leave the door open, but that will be for legal reasons.  We will continue to monitor Frontier and keep them honest.  They have had a track record of changing their minds on things.  But if caps are your primary concern, the current best protection you have against them is a Frontier DSL account with a Price Protection Agreement in place.  Please review our article on choosing an alternative provider for more specifics.