With friends like these…

In an effort to attract new business, Frontier Communications has launched a new nationwide brand platform it claims will help customers “facing challenges and frustrations navigating today’s internet services market.”

The “Don’t Go it Alone” campaign advertises Frontier as your friend on the digital frontier.

In one ad, a balladeer laments customers trying to use a home internet connection that is too slow and unreliable to depend on for working from home. The ad shows customers flocking to nearby coffee shops “looking for bandwidth” they do not have at home.

While the ads claim Frontier’s FiOS network is faster than its competitor — Charter Spectrum, many Frontier customers living outside of a FiOS service area will likely find Frontier’s ads ironic. That is because Frontier has a poor track record achieving the promised speeds it advertises to its large base of DSL customers. The 2016 FCC Report, “Measuring Fixed Broadband” (the annual reports were discontinued by the Trump Administration’s FCC in early 2017), found Frontier a poor performer. Even its fiber network Frontier FiOS was measured losing ground in delivering advertised speeds and performance.

Minnesota Public Radio reports hundreds of complaints about Frontier Communications have prompted statewide public hearings about the company’s alleged poor performance. MPR shares the stories of two frustrated Frontier DSL customers paying for service they do not get. (3:28)

“Our internet here is horrible, our provider is Frontier,” Monica King Von Holtum of Worthington in southwest Minnesota, told Minnesota Public Radio. “It’s infuriating.”

Her service is so bad, she can tell if a neighbor starts using the internet or another family member starts browsing.

“If I’m literally the only person using the internet, it’s fine,” said King Von Holtum. “As soon as we have one or more people using different devices it just tanks and we can’t get anything done.”

She is hardly alone. In Minnesota, the Public Utility Commission has received more than 400 complaints and comments about Frontier’s frustrating performance. Customers report service interruptions lasting up to a week and internet speeds slower than dial-up.

One customer said Frontier lacks “common decency” because of the way it treats its customers, often stuck with only one choice for internet access in their rural service areas.

A speed test showing 0.4 Mbps from 2013 shows this is an ongoing problem.

King Von Houltum showed MPR the results of a speed test while being interviewed.

“We have 0.4 megabits per second,” said King Von Holtum, who pays Frontier for 6 Mbps service. “And our upload is pretty much nonexistent.”

Melody Webster’s family makes regular 5-mile trips into the town of Cannon Falls to use their local library’s Wi-Fi service. It is the only way her children can complete their school assignments, because Frontier’s DSL struggles to open web pages. Webster has called Frontier again and again about the speed problems, but told the public radio station she gets “lied to or pretty much laughed at.”

That’s a story Frontier’s balladeer is not likely to put to song.

Frontier spent an undisclosed amount hiring the ad agency responsible for the new advertising.

“A brand campaign must be creative and memorable. It also has to drive a client’s business forward,” said Lance Jensen, chief creative officer of Hill Holliday, which created the campaign. “The Balladeer is a fun and accessible character who brings humanity and humor to the frustrating experience of dealing with internet and TV service. We can’t wait to put him to work for the Frontier brand.”

The campaign launches this week in Frontier markets nationally and includes broadcast, radio, online video, out of home, digital and social components.

An “affable balladeer” sings about the frustrations of internet users who do not get the internet service they paid for, in this new 30-second ad from Frontier Communications. Ironically, slow speed is the most common complaint about Frontier’s own DSL service. (0:30)

This week, the FCC announced bidding has finished for the latest Connect America Fund (CAF) broadband subsidies auction.

Once again, the FCC gave first priority to incumbent phone companies to bid for the subsidies, which defray the cost of expanding internet access to homes and businesses otherwise unprofitable to serve. Nearly $2 billion was left on the table by disinterested phone companies after the first round of bidding was complete, so the FCC’s second round opened up the leftover money to other telecom companies.

Winning bidders will receive their portion of $198 million annually in 120 monthly installments over the next ten years to build out rural networks. In return, providers must promise to deliver one broadband and voice service product at rates comparable to what urban residents pay for service. The winning bids, still to be publicly announced, will come from rural electric and phone cooperatives, satellite internet providers, fixed wireless companies, and possibly a handful of cable operators. But much of the money overall will be spent by independent phone companies rolling out slow, copper-based, DSL service.

Because the total committed will take a decade to reach providers, rural Americans will likely face a long wait before what purports to be “broadband” actually reaches their homes and businesses.

While many co-ops will spend the money to expand their own homegrown fiber-to-the-home services, most for-profit providers will rely on wireless or copper networks to deliver service.

Telefónica Spain

Overseas, broadband expansion is headed in another direction — expansion of fiber-to-the-home service, with little interest in investing significant sums on furthering old technology copper wire based DSL and fixed wireless services. The expansion is moving so quickly, Verizon made certain to sign long-term contracts with optical fiber suppliers like Corning in 2017 to guarantee they will not be affected by expected shortages in optical fiber some providers are already starting to experience.

Virtually everywhere in developed countries (except the United States), fiber broadband is quickly crowding out other technologies, despite the significant cost of replacing copper networks with new optical fiber cables. If a provider is brave enough to discount investor demand for quick returns and staying away from big budget upgrade efforts, the rewards include happier customers and a clear path to increased revenue and business success.

Not every Wall Street bank is reluctant to support fiber upgrades. Credit Suisse sees a need for optical fiber today, not tomorrow among incumbent phone and cable companies.

“The cost of building fiber is less than the cost of not building fiber,” the bank advised its clients. The reason is protecting market share and revenue. Phone companies that refuse to upgrade or move at a snail’s pace to improve their broadband product (typically DSL offering 2-12 Mbps) have lost significant market share, and those losses are accelerating. Ditching copper also saves companies millions in maintenance and repair costs.

Canada’s Telus is a case in point. Its CEO, Darren Entwistle, reports Telus’ effort to expand fiber optics across its western Canada service area is already paying off.

“We see churn rates on fiber that are 25% lower than copper,” Entwistle said. “35% lower in high-speed internet access, and 15% lower on TV — 25% lower on average. We’re seeing a reduction in repair volumes to the tune of 40%. We’re seeing a nice improvement in revenue per home of close to 10%.”

Telus promotes its fiber to the home initiative in western Canada as a boost to medical care, education, the economy, and the Canadian communities it serves. (1:31)

Telus’ chief competitor is Shaw Communications, western Canada’s largest cable company. Fiber optics allows Telus to vastly expand internet speeds and reliability, an improvement over distance sensitive DSL. Shaw Cable has boosted its own broadband speeds and offers product bundles that have been largely responsible for Telus’ lost customers, until its fiber network was switched on.

In economically challenged regions, fiber optic expansion is also growing, despite the cost. In Spain, Telefónica already provides service to 20 million Spaniards, roughly 70% of the country, and plans to continue reaching an additional two million homes and businesses a year until the country is completely wired with optical fiber. In Brazil, seven million customers will have access to fiber to the home service this year, expanding to ten million by 2020.

Verizon and AT&T regularly ring alarm bells in Congress that China is outpacing the United States in 5G wireless development, but are strangely silent about China’s vast and fast expansion into fiber optic broadband that companies like Verizon stopped significantly expanding almost a decade ago. China already has 328 million homes and businesses wired for fiber and added another five million homes in the month of June alone. AT&T will take a year to bring the same number of its own customers to its fiber to the home network.

The three countries that are most closely aligned with the mentality of most U.S. providers — the United Kingdom, Australia, and Germany — are changing their collective minds about past arguments that fiber to the home service is too costly and isn’t necessary.

The government of Martin Turnbull’s cost concerns forced a modification of the ambitious proposal by the previous government to deploy fiber to the home service to most homes and businesses in the country. That decision to spend less is coming back to haunt the country after Anne Hurley, a former chief executive of the Communications Alliance involved in the National Broadband Network (NBN), admitted the cheaper NBN will face an expensive, large-scale replacement within a decade.

ABC Australia reports on findings that the country’s slimmed-down National Broadband Network is inadequate, and parts will have to be scrapped within 5-10 years (1:37)

Turnbull’s government advocated for less expensive fiber to the neighborhood technology that would still rely on a significant amount of copper wiring installed decades ago. The result, according to figures provided to a Senate committee, found only a quarter of Australians will be able to get 100 Mbps service from the NBN, with most getting top speeds between 25-50 Mbps.

Despite claims of technical advancements in DSL technology which have claimed dramatic speed improvements, Hurley was unimpressed with performance tests in the field and declared large swaths of the remaining copper network will have to be ripped up and replaced with optical fiber in just 5-10 years.

“If you look around the world other nations are not embracing fiber-to-the-[neighborhood] and copper … so yes, it’s all going to have to go and have to be replaced,” she said.

In the United Kingdom, austerity measures from a Conservative government and a reluctant phone company proved ruinous to the government’s promise to deliver “superfast broadband” (at least 24 Mbps) over a fiber to the neighborhood network critics called inadequate from the moment it was switched on in 2012. The government had no interest in financing a fiber to the home network across the UK, and BT Openreach saw little upside from spending billions upgrading the nation’s phone lines it now was responsible for maintaining as a spun-off entity from BT. In 2015, BT Openreach’s chief technology officer called fiber to the home service in Britain “impossible” and too expensive.

Two years later, while the rest of Europe was accelerating deployment of fiber to the home service, the government was embarrassed to report its broadband initiative was a flop in comparison, and broke a key promise made in 2012 that the UK would have the fastest broadband in Europe by 2015. Instead, the UK has dropped in global speed rankings, and is now in mediocre 35th place, behind the United States and over a dozen poorer members of the EU.

What was “impossible” two years ago is now essential today. The latest government commitment is to promote optical fiber broadband using a mix of targeted direct funding, “incentives” for private companies to wire fiber without the government’s help, and a voucher program defraying costs for enterprising villages and communities that develop their own innovative broadband enhancements. The best the government is willing to promise is that by 2033 — 15 years from now — every home in the UK will have fiber broadband.

Deutsche Telekom echoed BT Openreach with claims it was impossible to deliver fiber optic broadband throughout an entire country.

Deutsche Telekom’s dependence on broadband-enhancements-on-the-cheap — namely speed improvements by using vectoring and bonded DSL are increasingly unpopular for offering too little, too late in the country. Deutsche Telekom applauded itself for supplying more than 2.5 million new households with VDSL service in 2017, bringing the total number served by copper wire DSL in Germany to around 30 million. The company, which handles landline, broadband and wireless phone services, is slowly being dragged into fiber broadband expansion, but on a much smaller scale.

In March, Telekom announced a fiber to the home project in north-east Germany’s Western Pomerania/Rügen district for 40,000 homes and businesses. The network will offer speeds up to 1 Gbps. In July, Telekom was back with another announcement it was building a fiber optic network for Stuttgart and five surrounding districts Böblingen, Esslingen, Göppingen, Ludwigsburg, and Rems-Murr, encompassing 179 cities and municipalities. But most of the work will focus on wiring business parks. Residents will have a 50% chance of getting fiber to the home service by 2025, with the rest by 2030.

In contrast, the chances of getting fiber optic broadband in the U.S. is largely dependent on which provider(s) offer service. In the northeast, Verizon and Altice/Cablevision will go head to head competing with all-fiber networks. Customers serviced by AT&T also have a good chance of getting fiber to the home service… eventually, if they live in an urban or suburban community. Overbuilders and community broadband networks generally offer fiber service as an alternative to incumbent phone and cable companies, but many consumers don’t know about these under-advertised competitors. The chances for fiber optic service are much lower if you live in an area served by a legacy independent phone company like Frontier, Consolidated, Windstream, or CenturyLink. Their cable competitors face little pressure to rush upgrades to compete with companies that still sell DSL service offering speeds below 6 Mbps.

CAF funding from the FCC offers some rural areas a practical path to upgrades with the help of public funding, but with limited funds, a significant amount will be spent on yesterday’s technology. In just a few short years, residents will be faced with a choice of costly upgrades or a dramatic increase in the number of underserved Americans stuck with inadequate broadband. Policymakers should not repeat the costly mistakes of the United Kingdom and Australia, which resulted in penny wise-pound foolish decisions that will cost taxpayers significant sums and further delay necessary upgrades for the 21st century digital economy. The time for fiber upgrades is now, not in the distant future.

AT&T does not expect to see much initial growth of FirstNet, the government-sponsored first responder wireless network built by AT&T with $6 billion in taxpayer dollars.

FirstNet relies on AT&T’s wireless network, bolstered by taxpayer-financed upgrades that will prioritize public safety users during emergencies, but allow any AT&T customer to use the enhanced network the rest of the time. FirstNet has just 110,000 subscribers as of this summer — about a year after launch. AT&T will be expanding FirstNet over the next four years, adding new cell towers, frequencies and bandwidth.

First envisioned after the events of Sept. 11, 2001, the network was designed to allow interoperability between all types of first responders, including law enforcement, fire departments, and ambulance crews. A major complaint after 9/11 was that different public safety agencies could not communicate with each other on the ground because of incompatible radio equipment. FirstNet allows agencies to deploy voice communications and data services on site, without the risk of congestion that occurs on publicly-available cell towers. All FirstNet users are given priority access, and during emergencies, the network will not allow public users to use FirstNet’s network resources.

Seventeen years later, the network is finally launching, but that is proving to be just the first hurdle. To use FirstNet, public safety agencies have to adopt AT&T as their communications provider, sign new contracts, and usually buy new equipment. A surprisingly large number of agencies are balking at changing providers, either because they dislike AT&T, its coverage, the cost, or require a rigorous bidding and procurement process.

AT&T FirstNet rate plans

Rural departments often favor Verizon Wireless, perceived to have better 4G LTE coverage and better performance in rural areas than AT&T. Ray Lehr, formerly with the Baltimore City Fire Department, is now a paid consultant for FirstNet, and admitted AT&T’s rural coverage isn’t as robust as it will be five years from now.

“Over the next five years, they have to have up to 99 percent rural coverage,” Lehr said. “There’s no reason why another carrier would do that. It just doesn’t make sense.”

For a lot of rural departments, there are coverage gaps with every wireless carrier and places where there is no coverage from any carrier. Those departments rely primarily on their existing radios for fireground communications and talking with dispatchers.

AT&T is relying on federal dollars to expand FirstNet in places where its own investment dollars are likely not being spent. AT&T also separately receives taxpayer support to build rural fixed wireless networks for consumers out of reach of traditional DSL and cable broadband.

Wall Street, which would ordinarily attack rural investment with no significant return on investment, has had little reaction to AT&T FirstNet, primarily because AT&T will be reimbursed by taxpayers for much of the construction costs, even though AT&T and its retail customers will benefit from the increased coverage and capacity FirstNet will offer most of the time.

“Investors aren’t expecting much, other than the reimbursement for the capital expenditure required to deploy the network,” Jonathan Chaplin, an analyst at New Street Research, told Communications Daily (sub. req’d.). “If public safety usage is low and AT&T can use the capacity for their core mobile users, that is probably fine.”

Other analysts agree, noting AT&T will get all the benefits offering government-paid FirstNet capacity to its retail customers, with none of the risk of losses if first responders do not flock to the new network, because it was not built with AT&T’s money.

Google may be considering renewing expansion of its fiber to the home networks with a new technology that can extend network distances and cut costs.

Telecompetitor reports Google’s “SuperPON” architecture can support up to 1,024 customers over a distance of as much as 50 kilometers, dramatically reducing the costs to lay fiber and build central switching offices to manage connections across a metro area.

Current passive optical networks (PON) can support only 64 customers over a distance of up to 20 kilometers, which means companies have to lay cables with a larger bundle of optical fibers and construct as many as 16 central offices in each metro area to support its operations. If Google can manage to reduce the size of the cable, as it can using SuperPON technology, the company can bury fiber cables using microtrenching, which costs much less than traditional buried conduit.

As a result of improved amplification technology, Google can reach many more customers over a much larger distance using a            single strand of fiber, and offer each customer as much as 10 Gbps broadband. The SuperPON technology appears to be based on Google’s Go-Long network concept, introduced in 2017.

Claudio DeSanti, an architect for Google, told an audience at the Adtran Connect conference that Google has already deployed its SuperPON technology in one unspecified Google Fiber market, and the cost savings achieved could allow Google to return to fiber broadband buildouts. Google effectively paused its fiber expansion effort in late 2016 after examining the costs and the competitive impact of cable and phone company incumbents upgrading their own services to compete with Google. To be economically feasible, a new entrant must capture a certain percentage of market share to pay off network construction costs and be seen as economically viable. Google can either grow market share or reduce the costs of network construction to keep Google Fiber tenable.

DeSanti claims reducing cable size is not only less costly, it also results in higher reliability and an easier ability to repair damaged cables. Construction and labor expenses would also be slashed because Google’s SuperPON technology only needs an average of three central offices in a metro area, down from 16 or more using traditional PON technology. DeSanti hopes the SuperPON architecture will become an industry standard, which would reduce costs further through mass production of cables and construction equipment.

After Google pulled back from its fiber expansion project, the company turned towards fixed wireless services in urban areas and multi-dwelling units, which is ongoing.

Criminals are supposedly having a field day robbing cell phone stores in Canada after regulators ordered all cell phones to be sold unlocked, allowing customers to bring their devices to other carriers.

“There have been multiple instances of armed robberies at our stores targeting unlocked, new devices,” Bell Canada complained in a letter to the Canadian Radio-television and Telecommunications Commission (CRTC). “We believe this trend is attributable to the availability of unlocked devices [that are] more desirable to fraudsters and thieves.”

Because Canada’s three major carrier-cell phone marketplace is seen as less competitive and more expensive than the United States, the CRTC has tried to keep wireless service costs under control by regulating some of the practices of the barely competitive Canadian market. One such initiative is the ban on charging unlock fees on devices, which carriers used to deter customers from changing providers. As of last December, carriers could no longer collect an average of $50 to unlock each device, and new devices had to be sold to customers in an unlocked state, allowing them to be used on any compatible wireless provider’s network.

Rogers, which runs Canada’s largest cable operator and has a major market share of Canada’s wireless market, claims the unintended consequence of the CRTC’s unlock policy is a 100% increase in cell phone thievery during the last six months the policy has been in effect. Rogers reports thieves are stealing brand new cell phones in the mail or off a customer’s front step after the shipper drops the package off. Brazen armed robberies of cell phone stores have been more common in the United States, but providers claim criminal gangs are now taking their business north of the border, holding up stores and running off with dozens of valuable phones.

Both Bell and Rogers warned the CRTC last year thievery would be the likely result of providing unlocked phones. Consumer groups claim both providers have a vested interest complaining about the new unlock policies. In 2016, Canadian telecom companies made $37.7 million from fees related to unlocking smartphones. That was a 75 percent increase in fee revenue since 2014.

Canadian consumers called unlock charges “ransom fees,” and were particularly upset paying fees after they paid off the device.

“You should be able to unlock it [for free] at the very least once you’ve paid off the device. You own it,” John Lawford, executive director with the Public Interest Advocacy Centre in Ottawa told the CBC.

Lawford calls unlock fees an intended consequence of the industry’s own policies. Cell phone companies sell devices manufacturers have to lock at the behest of carriers, and then consumers face fees paid to the same carriers to undo the lock.

Canada’s providers often point to examples of armed robberies and truck hijacking south of the Canadian border as a reason to be concerned about employee and customer safety. In the view of some, an unlocked smartphone worth more than $500 is an invitation to steal.

Bell told regulators things are certain to get worse in Canada.

“It appears that illegal activity may have shifted from the U.S. to Canada as some [American] carriers have begun to lock devices,” Bell officials told the CRTC.

Bell was referring to Verizon’s unilateral announcement it began relocking smartphones in February, despite its agreement not to as part of an acquisition of 700 MHz spectrum in 2008. That prime spectrum came with strings attached, including a requirement not to disable or restrict devices that use the spectrum, something locked phones do. Verizon previously tested the waters on reintroducing locked cell phones during the second term of the Obama Administration, but the idea met immediate resistance from FCC Chairman Thomas Wheeler.

In 2018, Verizon found a much more receptive audience from the Republican-dominated FCC under Chairman Ajit Pai, and has gradually returned to locking down devices on Verizon’s network. Last spring, Verizon began locking all smartphones sent to stores, to be unlocked after purchase. Verizon argued this would deter armed gangs from hijacking deliveries or raiding stores to steal phones by the dozens, to be resold to the eager black market.

After meeting little resistance, Verizon announced it would start locking phones for an arbitrary amount of time after purchase, defined in terms of “months, not years.”

If thieves obtain a stolen, locked phone, it cannot generally be activated by the customer unless taken to an authorized retailer. This theoretically leaves thieves stuck with worthless phones, which is why Canadian carriers claim the country’s unlocked phone policy will draw American thieves north. But critics suspect financial motives hold more sway. In addition to charging lucrative fees for unlocking phones, customers unable to take their device with them to a new carrier can effectively deter a provider change, especially for family accounts where multiple devices would need to be moved.

Others claim locking phones is not the best way to deter thieves, because an unscrupulous Verizon employee or reseller can still unlock them for thieves.

The wireless industry already claims to have a voluntary, industry-led initiative to dramatically reduce theft — a national database of stolen/lost phones. Under this system, a would-be customer is denied activation if their device’s unique ID appears on a list of stolen or lost phones.

CBC Calgary reports Canadians no longer face unlock fees on their smartphones and other wireless devices. (3:55)