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Minnesota Regulators: Frontier is a Shoddy, Criminally Rogue Phone Company

(Image courtesy: Minnesota Public Radio)

Minnesota regulators slammed the performance of Frontier Communications in a highly critical 133-page report released Friday, describing a rogue phone company that appears to have knowingly violated at least 35 state laws and operating rules, while jeopardizing the lives and wellbeing of 100,000 Frontier customers in parts of northeastern and southern Minnesota and the Twin Cities metro area.

“Many of the issues reported by consumers show direct violations of Minnesota law and Commission rules, and indicate broad, systemic problems with Frontier’s service quality, recordkeeping and business operations,” the report concluded.

A year-long investigation by the Minnesota Commerce Department found ample evidence of Frontier’s terrible customer service, fraudulent billing, and its rapidly deteriorating and often decrepit landline network, sometimes left in disrepair for months or years with little regard for the safety of customers, workers, or the public.

As part of the investigation, seven public hearings were held last fall in Frontier’s Minnesota service area. The resulting report is based on more than 1,000 consumer complaints and statements, as well as Frontier’s responses to information requests by the Commerce Department.

In many cases, Frontier left health-compromised customers using landline-based health/safety monitoring services without phone service for over a month, putting cost-saving measures ahead of the safety of customers that need reliable phone service the most. The investigation also found “that orders for new telephone or internet access service, being a new source of revenue for Frontier, and a sales commission for the customer service representative, take priority over repairs of internet or phone.”

The report also blasted Frontier’s shoddy customer service department, described as “shocking” in the report. In dozens of complaints, customers reported correcting service problems was often a nightmare.

Decrepit Network Facilities Falling Off Poles and Drowned in Ditches

Frontier wireline pedestal in Kelsey, Minn., knocked over and submersed in ice water. (Image courtesy of: Mr. and Ms. Ulshafer)

Waterville, Minn. residents that have experienced frequent outages for years were given every excuse in the book by Frontier officials, at one point blaming a mouse in a central office for chewing through their phone lines. Frontier customer Harry Tolzman chronicled years of Frontier’s apparent ineptness in providing reliable phone and internet service to his rural part of Minnesota. His testimony to Minnesota regulators, reproduced in part below, explains a lot of what the report found wrong at Frontier Communications these days:

“[One day, Frontier] decided that they needed to rebury the telephone cable that was — that ran from Elysian to our rural route Waterville, so they contract[ed] with an outfit out of Indiana, Direct Line Communications Underground Burying, who in turn sublets to another company called Premier Underground. So one day these guys show up from Indiana and they needed to bore underneath State Highway 60 to get the cable from across the highway to our residence, which was on the north side of the highway. So they came out and they bored underneath the highway and they ran the cable and then they got into a big argument with the local technician as to where the cable was to run and so they got mad and left.

The next day another outfit, same, Premier Underground out of Indiana, shows up, and they were supposed to connect the cable from the highway down to the closest junction box, which is about 100 yards from my place to the road and it’s another 100 yards from the road to the nearest junction box. So they started in with their plow and they plowed up to the house and they hit some tree trunks and the plow would jump out of the ground.

Finally they got up to the house where I had decorative rock and they say, well, we can’t dig here so we’ll just lay it on top of the rock. And then wherever it jumped out of the ground because of a root, it’s buried about one inch below the ground, in other places it’s 8 or 10 inches, where it should be. So anyhow, they said that’s the best we can do. Then they went across the road to make the connection to the nearest junction box, and they went right down the shoulder of the road about three feet off the blacktop and they were going down the road with their plow. And lo and behold, the state highway department drove by and happened to see them going right down the shoulder of the road. And so they questioned them, and lo and behold they didn’t have a permit to bury this cable.

So the next day a guy shows up and he hooks up his pickup to the cable and he pulls it all out. And the local technician comes out and he lays a temporary line on top of the ground over to where they had plowed underneath the road, and he made the connection so we could get our telephone service back. And they said they would be back to re-bury it in the proper right-of-way position as soon as they had the proper permits. That was two and a half years ago. And this cable is laying in the road ditch, and meanwhile the state highway department came along and they mowed the road ditch and they cut the cable. So they replaced the cable again. And then another time a snowmobile took the cable out. So that cable still lies there strung between the sumac bushes so that they can’t mow it when they mow the road ditch.

And I keep calling these people to get this fixed and they keep telling me, well, they don’t have the permit yet. So I called the highway department in Mankato and they say there’s been no application for a permit to re-bury your cable. In the interim, I had opened up a complaint with the Federal Communications Commission, which is located in Washington, D.C., and they in turn responded to me. And Frontier had the gall to tell them that they had investigated the above statements and offered the following resolution. Upon the investigation, Frontier showed that the line was repaired as of August 11, 2017, Frontier will be burying the line on August 31, 2017. Frontier spoke with Mr. Tolzman and advised him of the above information. They had the gall to tell them it was fixed and that same problem is still there, the cable lies between the bushes. So whenever we have moisture or rain, we’ll be out of service for our landline phone. And it’s just very frustrating to have to call and get a customer service rep many states away that runs his routine check and tells you, well, the problem is not on their end, it’s in your house, and yet it’s never been a problem within the house.”

A Frontier installer draped a new line across this customer’s residential propane tank, and then left. (Image courtesy: (Image courtesy: Mark Steil, MPR News)

As Stop the Cap! reported in 2018, Frontier’s network infrastructure in Minnesota was literally falling off utility poles. Customers reported Frontier technicians used trees as makeshift utility poles, strung phone cables across yards and fields, unburied, and in one case, draped a phone cable over the customer’s propane tank. Despite months or years of complaints, Frontier repeatedly failed to repair infrastructure it knew or should have known was in disrepair, and in several documented cases, Frontier technicians dealt with the loudest complaining customers by swapping line pairs with a satisfied customer, silencing the complaining customer while giving their troublesome or failing line to another customer without their knowledge.

Company officials also lobbied Minnesota officials hard over the summer of 2018 to limit the scope of the investigation into its business practices in the state, claiming at one point that anything short of a gag order forbidding customers from complaining at public hearings about the performance of Frontier’s DSL service would “violate federal law” and “create false expectations and confusion for customers.”

“Holding public hearings directed to internet access service complaints would not be constructive because the Commission would be precluded from taking action concerning internet service rates or service quality using any information it may collect during the public hearings,” Frontier claimed.

Customer Service Hell

Elizabeth Mohr’s testimony described an experience typical of many Frontier complaints. When Mohr complained about the poor quality of her Frontier DSL service, which came nowhere near the 12 Mbps she was offered, Frontier unilaterally disconnected her service without notice, leaving her without phone service for 12 days. The company “lost” five of the six repair tickets assigned to Mohr’s disconnect complaint. Frontier later refused to reactivate her DSL service, claiming it had “no ports available,” despite the fact taxpayers helped subsidize the expansion of internet access in her neighborhood.

“We found it took us 47 of our hours on the phone with Frontier to get service, even though they sent us a flier that said you should be able to call and get it,” Mohr testified. “So 47 hours on the phone of our time, six tickets, five of which were closed with no answer. They never showed up.”

Frontier’s bad customer service isn’t a new experience for Mohr either.

“You can get better service from them but you have to be willing to put up a fight. I have been hung up on, probably in the last 13 years, probably 200 times,” Mohr said. “When I would call and say, I have an issue with your network, they wouldn’t believe me. Between my husband and myself, we have 20 years of network administration. We could ping to their system and tell them where the problem was failing and they wouldn’t believe us, and they would hang up on us. So clearly, Frontier has a problem.”

Shellie Metzler of Finlayson claimed she has to be placed on a waiting list to have her phone line repaired — something more in common with East Berlin in the 1970s than the United States in 2019. She waited over a year for repairs for her basic Frontier landline and DSL service, repeatedly being told in over 20 hours of phone calls with the company “there were no lines available.”

The wait was not worth it. After service was installed, Ms. Metzler reported, “I could not hear when on the phone because of the static. Also, each time the phone rang, the internet would go offline.”

Like many Minnesotans, Metzler is still paying for broadband internet service she is not receiving. Metzler was sold Frontier’s Broadband Ultra 12 Mbps DSL service.

“I am receiving, if lucky, 1.2 Mbps,” Metzler reported. “Last week within two days the internet dropped over 100 times. Dropped service and slow internet speeds are everyday occurrences. I should not be charged for the 12 Mbps because I have never had it. I should not be charged for the 6 Mbps because I do not get that either.”

The report also had little positive to say about Frontier’s customer service department:

Subscribers received inaccurate information and expressed great frustration when dealing with Frontier’s customer service personnel, even characterizing the service as being rude and/or unhelpful. Customers also said Frontier’s customer service representatives would often refuse to transfer the customer to a supervisor or the supervisor would fail to return their call as requested.

Many customers reported that contacting Frontier was anything but convenient, describing long hold times prior to speaking with a customer service representatives. Also, several consumers reported that they believed Frontier representatives were unqualified, untrained, or otherwise provided them with inaccurate information. In some cases, representatives yelled at customers and accused them of being rude or inappropriate.

Frontier’s Repairs: ‘Like Placing a Band-Aid on a Hemorrhage’

Frontier’s “High Speed” 21st Century Network fantasy claims extend back to 2010 when former CEO Maggie Wilderotter was telling customers Frontier was loaded with fiber.

The state investigation also uncovered evidence that Frontier often “repairs” poor service for a complaining customer by swapping the bad line pair with another customer with good service who is not likely to complain when their service suddenly deteriorates:

Frontier’s practice is that, when one customer is out of service [or is receiving impaired service] and requests repair, in order to restore service to that subscriber, Frontier disconnects, without notice, the service of another subscriber, and “swaps” the other subscriber’s working lines or cards for the non-working line or card of the subscriber whose service is being restored.

A typical example is the public comment of Debra Boldt of Glen, Minn., who lives on a lake with some summer residents. Ms. Boldt reported that to restore service to one neighbor, Frontier switches non-working lines with the working line of a summer resident who may not know their service is disconnected until they next visit; and, when that person complains, Frontier will then switch the working line from a different resident.

Similarly, Tom Grant testified at the Lakeville public hearing that Frontier technicians have told him, “they basically move cards or switches to be able to solve the problem for that individual customer, while knowing full well that that creates havoc for others that reside on that same node.”

Wayne Nierenhausen testified that technicians have told him: “[W]hen they get a complaint, there’s some kind of card within that box that’s a quarter-mile from my house that they will change to basically whoever made the complaint to get faster speed, but then when another call is made, they’ll switch that card out, put it to whoever made the complaint, and then put the old card back in.”

Customer service problems particularly affect the elderly and infirm, who are the most likely to still have landline service.

The report also heavily criticized Frontier for covering up problems by miscoding trouble reports and service outages to avoid drawing regulator attention. Outages impacting regulated basic phone service were frequently classified as unregulated internet outages, coded as being the fault of the customer, or trouble tickets were closed before repairs were completed. Closing trouble tickets prematurely also extends an extra benefit to Frontier — the company will not credit customers for extended outages if the original trouble ticket is closed.

As a last resort, if Frontier deems repairs too costly, customers are told to “live with it.”

Medically Necessary Phone Service Repairs Ignored

The report also found Frontier’s unwillingness to expedite repairs for customers with serious medical issues were “shocking” because customers were often not informed service representatives have no authority to request a medical-related expedited repair, and notes placed on customer accounts by those representatives are routinely ignored. The company admitted the only way a customer can be flagged a medical priority customer is if a doctor certifies annually, in writing, there is a medical need to maintain reliable phone service:

A letter/document must be received from the customer’s physician annually certifying that a medical emergency exists and that phone service is essential, and that the letter or document must contain the following:

  • State registration or license number of physician.
  • Name and address of seriously ill person.
  • Name, signature of licensed physician or public health official (nurse or physician’s assistant) certifying illness or medical emergency and date.
  • Optional – Any services beyond local exchange service that may be necessary to reach customer’s doctor and that absence of such services would be a serious risk of inaccessibility of emergency medical assistance.

Customers are instructed to mail or fax the documentation to:

Frontier Correspondence
PO Box 5166
Tampa, FL 33675
Fax: 1- 888-609-9919

Billing Controversies

Frontier used to mail checks refunding credit balances to departing customers. Today they mail gift cards, occasionally with no balance on them.

The report also found many “direct violations” of Minnesota law and rules from the company’s billing practices. Customers reported Frontier misrepresented its “vacation rate,” offering discounted phone service during seasonal disconnects at vacation properties. Instead, many customers report being billed normal rates and were refused credits, even when the company admitted the problem was theirs and would be fixed.

Customers also report steep late fees for online payments made before the due date, because Frontier reserves the right to take at least five days (and sometimes more) to process online payments, and does not always honor the date of payments initiated by customers. Many others reported Frontier continued to bill closed accounts for months despite cancelling service. One customer who refused to pay several hundred dollars in new charges on his closed account had his credit ruined after Frontier reported him delinquent. A subsequent agreement to pay off the outstanding bills on the closed account in return for getting negative information removed from his credit report was later refused by Frontier… after the company cashed his check.

Customers who pass away while being Frontier customers had better share their account passwords with surviving relatives. As Tabitha Odegaard discovered after her father in law passed away in November 2017, Frontier will not cancel service for deceased customers without a proper account password. Odegaard told regulators she was still paying for service on behalf of her father-in-law in 2018.

Customers that plan to cancel service might be better off removing auto-pay from their account and not paying their last bill until a final bill is generated. Receiving refunds for cancelled service is a hit-or-miss affair at Frontier, according to the report. Customers must wait at least 90 days for a refund to arrive. Most customers end up with a gift card covering any credit balances, but some report their gift card arrived with a zero balance, or did not arrive at all. In such cases, customers have to wait an additional two months before a replacement card will be issued. One customer reported his refund took seven months to arrive, after getting a gift card with no balance on it. Other customers report only getting a credit balance on their monthly bill for their closed account, with no refund, gradually depleted by ongoing billing fees, taxes and surcharges that accrue each month. The credit balance runs out while waiting for a refund that never arrives.

Report Recommends Fundamental Changes and Frontier Responds

The report recommends that Frontier be required to refund or credit customers for service outages and unauthorized charges; add staffing to improve customer service; and increase investments in infrastructure and equipment.

Frontier responded with a written statement, reading in part:

“Frontier strongly disagrees with the assertions in the Department of Commerce’s initial comments and is reviewing the Department’s filing with the Minnesota Public Utilities Commission. Frontier and its employees work hard to provide reliable, affordable telecommunications services to approximately 90,000 customers in Minnesota, many in rural communities where no other provider will invest in providing service. Frontier recognizes we experience service issues and delays from time-to-time with some of our customers. We are an ethical company committed to our customers and the Minnesota communities we serve. We take this matter seriously and will respond appropriately before the Public Utilities Commission.”

Minnesota Public Radio reported in October 2018 that Frontier has slashed its technical workforce by 50% in Minnesota over the last five years. (4:08)

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)

Frontier’s New Ad Campaign Criticizes Slow Broadband, Like What It Offers Its Own Customers

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)

Delrahim Suggests Justice Dept. Was Outgunned by CNN, Judge in AT&T-Time Warner Merger

Phillip Dampier June 27, 2018 AT&T, Audio, Competition, Public Policy & Gov't No Comments

Delrahim

The top antitrust regulator in the United States partly blames CNN for helping AT&T and Time Warner outmaneuver the Justice Department and win approval of their merger, despite antitrust objections.

“We have some of the best and most dedicated public servants who tried this case, but we don’t have the same resources available to us,” Makan Delrahim, assistant attorney general of the United States and chief of the Justice Department’s Antitrust Division told Marketplace Morning Report. “We don’t have a 24-hour dedicated news channel to go out and spin your case to the American public and judges and others as some merging parties might.”

CNN is owned by Turner Broadcasting System, Inc., a division of Time Warner, Inc.

Delrahim admitted the government “is often the underdog in a lot of these cases, and we’re still considering our next steps and whether or not the government will appeal.”

AT&T and Time Warner clearly do not believe the government will further pursue the case, treating the merger as a done deal as the two companies move forward on combining their assets.

Delrahim complained about the judge handling the case, whose ruling excoriated the government’s case and strongly urged the Justice Department to not contemplate an appeal. In Delrahim’s view, the judge gave favorable weight to evidence from the two companies and dismissed much of the evidence the government presented.

“I think eight out of 10 judges may have treated this case differently,” he concluded.

Delrahim expressed his general frustration with government antitrust regulators attempting to impose various deal conditions and limitations designed to mitigate a transaction’s anti-competitive harm in the marketplace.

“If there’s a substantial lessening of competition, that’s the legal test, then the transaction is illegal,” Delrahim said. Instead of that simple test, the antitrust division often tries to rescue troublesome transactions with deal conditions he calls “microengineering an industry which is dynamic,” and in his view, is contrary to the role Congress assigned to the Antitrust Division. “I think the role is you go in, if there’s problematic aspect of a transaction, you divest and you let the market decide what the prices are now.”

“So the idea is: the greater the competitive process, the better the price ultimately will be, or the better the products will be for the consumer. And that’s where you have fair competition in the marketplace,” he added. “Our job is to police that. It isn’t to keep companies from getting too big. If they’re better at what they do, if customers like what they do, more power to them. The free market system encourages that. And we shouldn’t punish them once they have reached a certain level of success. If they are too big though, they also got to be careful. They can’t take anti-competitive practices that harms competition, which ultimately harms consumers.”

New Law Would Tax ISPs and Websites Serving Kansas to Solve Rural Broadband Woes

Kansas House Bill 2563 would require content providers that sell products and services in Kansas to pay into the state’s rural broadband fund.

ISPs and any website that generates at least $500,000 in revenue from Kansas residents would be required to pay into a state fund to subsidize rural broadband, if a bill introduced by a Lawrence Republican becomes law.

Rep. Thomas Sloan’s House Bill 2563 — a bill requiring broadband and content providers to pay into the Kansas Universal Service Fund (KUSF), drew immediate fire from cable and telephone companies across the state, and Sprint Corp. told state officials the bill was illegal.

“Rural residents lack the same broadband opportunities as urban residents because of the high cost to serve low-population density areas,” Sloan said. “We have a classic case of rising customer expectations for capabilities delivered through a broadband communications system and a fiscally stressed telecommunications provider network’s ability to serve high-cost rural customers.”

As in many rural states, finding the funding to solve the rural broadband problem gets more difficult as those hardest to serve are also the most expensive to reach. Kansas currently spends about $40 million annually to reach homes and businesses that are still using dial-up or forced to invest in satellite internet service. Most KUSF money is given to incumbent rural telephone, wireless or cable providers to subsidize expansion, keeping costs in line with each company’s Return On Investment expectations.

But as demand for faster and more robust broadband accelerates, and as the definition of broadband itself has evolved, rural providers are increasingly challenged reaching both unserved customers and those now considered underserved because older technologies like DSL often do not meet the current FCC definition of broadband: 25/3 Mbps service.

Sloan said his bill is designed to address both problems by wiring unserved areas and improving access to reliable, high-speed internet service where only slower alternatives now exist. The bill would provide funding to more than 90 Kansas counties with a population density of less than 100 people per square mile (excepting the county seat). In an agricultural state like Kansas, that would directly inject cash for upgrades into large sections of the state. Sloan says his law would cover at least 40% of a provider’s wiring and upgrade costs.

Rep. Sloan

House Bill 2563 would fund a rural broadband project that:

  • is capable of minimum download speeds of 25 Mbps and minimum upload speeds of three megabits per second;
  • provides an average latency of less than 100 milliseconds to enable the use of real time communications; and
  • provides subscribers with a minimum monthly data allowance of 150 gigabytes per month.

“Poor connectivity to the internet undermines operation of businesses, filing of government documents, school research projects, viewing of entertainment and other day-to-day activities,” Sloan said.

ISPs would likely pass along the costs of the new broadband universal service fund charge to subscribers, which means urban Kansans will be contributing a portion of their monthly internet bill to benefit their rural neighbors.

Sloan’s bill would also take the unprecedented step of taxing internet content companies and for-profit websites that generate at least $500,000 in revenue attributable to Kansas customers and use the money for rural broadband expansion as well. Websites like Amazon.com, Netflix, and Hulu would certainly be liable, but so would thousands of other smaller website ventures, including porn websites and online publishers like newspapers.

Telecom industry lobbyists quickly descended on state lawmakers in Topeka to encourage them to kill Sloan’s bill:

  • Catherine Moyer, chief executive officer of Pioneer Communications in Ulysses, represents the interests of the State Independent Telephone Association for Kansas and the Kansas Rural Independent Telecommunications Coalition. She is strongly opposed to the bill because she claims it would weaken the current Kansas Universal Service Fund (KUSF) model that has given rural companies confidence and certainty their rural expansion investments will be backed with adequate state subsidies. Under Sloan’s bill, the disbursement formula and the areas entitled to receive state support would be expanded, potentially reducing funds that were payable to projects under the old KUSF subsidy system.
  • Patrick Fucik, national director of legislative affairs for Sprint Corp. in Overland Park, is concerned about broadening the universal service fund to tax content providers and other websites, claiming the state lacks the legal authority under federal law to impose such taxes.
  • John Idoux, a lobbyist with CenturyLink, which serves more than 100 Kansas communities with fewer than 1,000 residents, said the bill would likely make lawyers rich from the “prolonged” and inevitable legal challenges that will begin if the bill becomes law, “all while creating false hope of rural broadband availability.” Idoux also wants to make sure none of the KUSF money will be spent in areas already served by a fixed broadband provider (like CenturyLink). He does not want to see public money competing with private investment, even if it results in better service.

An audio-only hearing of the Committee on Energy, Utilities and Telecommunications of the Kansas State Legislature on HB2563, held Feb. 5, 2018. (35:53)

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  • Phillip Dampier: Wow... these LiveWave guys are lazy. I grabbed a screen capture in case they fix it, but if you visit: https://www.getlivewaveantenna.com/en/terms.htm...
  • Phillip Dampier: I am sorry to hear these scams are back. If you were ripped off and either not sent the product or did not get a refund after returning it, you can fi...
  • Nanci: I also was suckered into buying 3 of this company’s antennas and never received anything from them but emails giving me false dates for when they were...

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