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Frontier Says Its New $500 Installation Fee Prices Customers “In,” Even As They Flee to Comcast

Phillip Dampier March 9, 2011 Comcast/Xfinity, Competition, Frontier No Comments

Stop the Cap! has learned Comcast has had to beef up its call center staff to process orders for new and returning customers fleeing Frontier Communication’s rate increases for its fiber optic FiOS service, acquired from Verizon as part of a sale of landlines.

A source inside Comcast tells us the company has been busy welcoming back many customers in the Pacific Northwest who are canceling their Frontier FiOS service after learning about $30 monthly rate hikes for its fiber television service.

“We are adding call positions, diverting some orders to other customer service centers, and trying to accommodate a  jam-packed schedule of upcoming service installations all over the region as Frontier customers’ contracts expire,” our source tells us.

Frontier officially introduced its $500 installation fee Monday which many would-be customers consider absurd.

“I couldn’t believe reports were true about the installation price, so I called Frontier myself and even the customer service agent was incredulous over it,” Cate writes from his home in Oregon.  “We were actually both laughing about how ludicrous a $500 installation fee was for cable service.”

Cate tells us Frontier’s customer service representative admitted the company wasn’t expecting much new business with a steep entry fee like that.

“What it looks like to me is that they’re trying to price people out,” Newberg City Manager Dan Danicic told the Newberg Graphic.

Steven Crosby, senior vice president for Frontier never misses an opportunity to put a positive spin on a negative story.  He told the newspaper — to the contrary — the all-new $500 installation fee will help “price Frontier in,” noting each hookup costs the company $800.

Comcast, on the other hand, normally installs service for $28-40, but our source tells us the company often waives the installation fee upon request.  DirecTV and Dish also offer free installation with a contract.

“Sitting inside Comcast, everyone is talking about Frontier’s bungling and wondering whether this company is purposely trying to drive themselves out of business,” says our source.  “Even if you are not a FiOS customer, would you do business with a company that raises rates 40 percent or more and instantly raises installation fees to $500?  What will they do to their other customers?”

“Frontier: Not a winner.  Duh.”

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