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While Buffalo residents fume about missing the latest matchup between the Buffalo Sabres and Edmonton Oilers, the city of New York is pressuring Time Warner Cable to start compensating their subscribers for the loss of one of the most expensive channels on the basic cable dial.

New York City Comptroller John Liu has asked the Department of Information Technology and Telecommunications, which oversees cable franchise agreements for the city, to make certain Time Warner compensates customers for the loss of MSG and MSG Plus, both removed over a contract renewal dispute.

“Consumers deserve to be compensated for what they have gone through as a result of this dispute, plain and simple,” Mike Loughran, a spokesman for Liu, told Bloomberg News in an e-mail. Loughran said the comptroller’s office would discuss compensation plans with the Department of Information Technology and Telecommunications.

Time Warner says it has already effectively compensated impacted customers, primarily in New York State, with a free month of the company’s added-cost sports programming tier.  Time Warner has also replaced the two MSG networks with NBA TV and NHL Network, which are now likely to remain part of the basic package even if Time Warner reaches an agreement with MSG.  (Sorry football fans, NFL Network is still too costly to be deemed a suitable replacement network.)

Time Warner says there is no way they would pay MSG’s asking price for a renewed carriage contract, which the cable company says represented a 53% rate increase.

As Stop the Cap! reported earlier, the dispute is renewing rumblings about how pay television providers handle expensive sports programming.  An increasing number of cable executives are considering breaking sports networks out of the basic cable package and forcing interested sports fans to pay extra to receive them.  But sports remains a lightning rod issue for many pay TV companies, both among subscribers and politicians.  Disrupt a major sporting event at your peril — something Cablevision learned from an earlier dispute with Fox.

In Buffalo, some customers are dropping Time Warner Cable for Verizon FiOS, at least where that fiber to the home service is available.  Residents served by Frontier Communications or Verizon’s DSL have fewer choices — one of two satellite TV companies.

Verizon already carries a standard definition feed of MSG Networks.  AT&T announced this week it was adding MSG in HD to its U-verse lineup in Connecticut.  MSG has spent this week rubbing salt in Time Warner’s wounds, throwing MSG viewing parties in both Buffalo and New York City.  Now that the city of New York is pressuring Time Warner to cough up refunds as much as $4 or more a month for the loss of MSG, the dispute could prove increasingly expensive.  Some customers tell Stop the Cap! they are already receiving informal compensation for the loss of MSG after contacting the cable company by phone or e-mail to complain.

“I wrote Time Warner on their web contact form and a representative gave me a $5 courtesy credit for the loss of the channels after I explained I was shopping around for another provider,” writes Neil Thomowski who lives in Cheektowaga, near Buffalo.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WNLO Buffalo Sabres fans dismayed by cable dispute 1-3-12.mp4[/flv]

Buffalo Sabres fans who have Time Warner Cable were left in the dark Tuesday night and couldn’t watch the match-up between the Sabres and the Edmonton Oilers.  WNLO in Buffalo has the story.  (2 minutes)

Frontier Communications sees itself as more than just a landline provider.  The company has spent years grooming its customer support division into the lucrative business of “on-call technical support” for computer and technology neophytes.  When technical support staff are not helping Frontier’s broadband customers with a service problem, they might be assisting a customer trying to back up (or restore) files from their computer or help with virus or spyware issues.

It all comes at a price, of course — up to $12.99 a month for the “full package” of antivirus software, file backup, and “family-safe” web browsing.

Now Frontier is hoping some of their customers will gift the protection package this holiday season by offering gift cards.  Some 16 Kroger supermarkets in West Virginia will offer two versions — Frontier Secure at $25 for six months and $50 for one year of the company’s “Personal Security Bundle”— a 50 percent discount.

The core of Frontier’s security suite is F-Secure, a lesser-known security package that runs $59.99 a year (direct from their website), for up to three computers.  Substantial discounts can be found elsewhere.

Frontier does not limit the support suite to their customers — anyone can buy-in.  Customers who don’t have a free tech support “agent” in the form of a friend or family member may find the service useful, especially if they require considerable hand-holding.  Frontier certainly finds the product line profitable.  Many customers find themselves attached to at least one of Frontier’s support packages as part of a product bundle, locked in with a 1-3 year service agreement.  Since only a minority of customers may actually require online or telephone customer support, Frontier can book much of the monthly fee as easy revenue.

Your modem needs an expensive upgrade, even if you own your own.

Stop the Cap! reader Paul in Illinois e-mailed us (along with several other readers) sharing news that Frontier Communications intends to charge their DSL customers a minimum of $6.99 a month for the rental of a DSL-ready modem-router, even if customers purchased and use their own equipment for Frontier’s High Speed Internet service.  Even worse, some customers are being told the monthly combined rental fee for the company’s wireless-ready DSL equipment is a whopping $14 a month — just for the equipment.

The bad news arrived in the form of a postcard notifying customers that their current modem is “out of warranty” and a new “modem support and warranty fee of $6.99 a month will appear on your bill as of 1/12/12.”

Frontier’s alarming notice tries to scare customers, telling them their existing outdated equipment represents a potential security risk, and explains only with their new mandatory “modem support fee” will customers get “unlimited support” and a replacement modem, if necessary.

Eric, a Stop the Cap! reader and Frontier customer notes Frontier has been piling on price increases in the form of mandatory surcharges and fees this year, including a monthly $1.99 “High Speed Internet Surcharge.”

“Former Verizon customers are now being gouged an additional $9.00 per month or $108 dollars per year,” Eric notes, adding up just the cost of the modem rental and the surcharge.

Paul is especially upset because he purchased his DSL modem direct from Verizon just before the phone company sold its business in Illinois to Frontier.

“In fact, the Verizon modem is more ‘advanced’ than the Westell equipment they want to rent me,” Paul says. “The security is better on Verizon’s unit, and I got it as part of a $29.99 ‘Internet for life’ special offer Frontier now wants to renege on.”

“Frontier is running a scam from top to bottom, offering you l0wball Internet pricing that never includes the outrageous add-on fees that you only find out about on your next bill,” Paul says.

Other Frontier customers on Broadband Reports’ Frontier forum are reporting Frontier has been inconsistent explaining the fees, and some are finding promotions that were supposed to protect them from price increases do nothing of the sort.

Stop the Cap! reader Isabella in Indiana wrote us to say her contact with Frontier customer service was likely going to be her second to last.

“Not only do they intend to collect the $7 a month from customers with their own equipment, those of us with wireless are being told it will cost $14 a month for two of their wireless routers we have on their ‘double DSL line’ promotion,” says Isabella.  “The price for their 3Mbps Internet, on special, was $14.99 a month with a multi-year agreement.  The add-on fees they never tell you about are more than the advertised price of the service.”

Isabella calls her Frontier service “bait and switch Internet” and says when the company applies any additional fees to her account, she will terminate her contract and will refuse to pay a penalty, claiming Frontier unilaterally changed the terms.

“The only ‘price protection’ Frontier offers is for the benefit of their bottom line; Frontier representatives told me there was no way for me to avoid these new fees, even though I am supposed to be guaranteed no price increase for two years,” she says.

Paul also ran into a brick wall with customer service.

“They will not exempt you from the fees — for my ‘convenience’ they will be automatically added to my bill starting next month, with or without the new equipment,” Paul shares. “I am beyond outraged.”

“I am contacting my state Attorney General on Monday to file a formal complaint against Frontier for cheating customers on ‘price protection’ plans,” Paul says.

Modem rental fees offer a lucrative opportunity for broadband providers to raise prices while still advertising a low monthly price for the service alone.  Equipment rental fees often run extra and are typically only disclosed in the fine print.  But must providers will exempt customers who purchase and use their own equipment.  Frontier is apparently ending this policy, forcing some customers to pay the fee for equipment they neither need nor want.  Frontier’s $7 a month fee is particularly steep, especially for equipment that can easily be purchased new or used for prices averaging $50 or less.  Frontier will earn back the cost of the equipment within the first year, with the rest simply padding profits.

One of our readers notified us Frontier customer service agreed to “note their account” to not send the new equipment or charge the fee, despite the fact the representative repeatedly encouraged the customer to “upgrade their router.”  But the customer isn’t so sure he believes the company, telling us an earlier victory getting them to waive the “HSI Surcharge” was hollow: Frontier simply began charging it anyway, and refused to remove it despite the earlier agreement.

“What is next — special fees for reading e-mail and visiting web pages?” asks Paul.

Frontier Communications has launched a new discount program for active duty military and reservists that could save them up to $120 a year.

Military personnel can save $5 a month on double-play packages like telephone and broadband.  Customers also billed for Frontier FiOS TV or a satellite package on their phone bill get $10 a month, as long as they remain signed to a term commitment agreement Frontier calls its “price protection plan.”

“Frontier is instituting this additional discount to show our appreciation to those who serve our nation and protect our freedoms,” senior vice president and general manager for West Virginia Dana Waldo said in the news release. “As a company, Frontier has a proud history of supporting our troops. We entered into a Veteran Employment Partnership Program agreement with the U.S. Army Reserves and National Guard this past spring, and Frontier has a veteran employee base of nearly 10 percent, or 1,500.”

Frontier customers who serve in the U.S. Army, Air Force, Marine Corps, Navy, Coast Guard or National Guard — both active and reserves are eligible for the program, and the savings can be combined with other plan discounts some customers may already receive.

Frontier this month also embarked on a hiring program that targets those in service to our country in association with the Employer Partnership of the Armed Forces.

Interested applicants can visit Frontier’s Military Careers website to learn more about the company and available positions around the country.

“I believe that today Frontier does a solid job of re-employing returning reservists and other military personnel,” said Frontier CEO Maggie Wilderotter. “I want us to do even more, especially during these difficult economic and high-unemployment times. Our military men and women were there for us; it’s our turn to be here for them.”

To learn more about the military discount, call 1-877-462-8188.

Frontier Communications continues to lose access line customers at a rate of 8.5 percent overall, 9.8 percent in the former Verizon service areas they acquired more than a year ago.  The company’s third quarter results show lackluster performance as revenue declines of 30 percent impacted both their residential and business customer units.

Company officials spent most of the question and answer session responding to Wall Street concerns about revenue, spending, promotions, customer churn, the company’s pension fund, and the outright defection of Frontier FiOS TV customers away from the fiber network the phone company inherited from Verizon.

Mike McCormack of Nomura Securities suggest the weak figures should concern investors because it may show Frontier unable to compete effectively with cable companies, which also offer phone service.

Frontier CEO Maggie Wilderotter put her best face forward trying to promote the company’s successes, particularly bringing DSL broadband to former Verizon service areas:

“Our broadband expansion reached an additional 126,000 new homes in the acquired properties during the quarter, bringing our year-to-date total to 352,000 which is on track to reach our 2011 goal of increasing broadband availability to more than 400,000 additional homes. Broadband availability in the acquired properties is now 80%, a significant increase from the mid-60% range when we acquired them. As a result of our expansion and sales efforts, we had a very strong quarter for broadband growth, adding 16,900 total DSL subscribers, a 38% sequential increase from Q2. We also added 2,300 wireless data customers. This growth reflected the effectiveness of our local engagement model, as well as organic demand for broadband in both legacy and acquired properties.

“We have also largely completed our efforts to migrate middle mile congestion, which now gives us the ability to more effectively market higher speeds in markets that were already enabled.”

Frontier executives sought to portray West Virginia as their biggest success story.

Daniel J. McCarthy, Frontier’s chief operating officer and executive vice-president, claims Frontier’s installation of 12 integrated fiber rings throughout the state provides broadband capacity and integrated network capability beyond what is available anywhere else in the United States from a state-wide perspective.  McCarthy claims Frontier is on track to turn West Virginia from one of the least connected states in the nation to one of the most connected.

But Margaret Kings from MacArthur, W.V. says she’ll believe it when she sees it, and she hasn’t seen it yet.

“My extended family has experienced endless problems dealing with Frontier in this state, and I have relatives in the Panhandle to boot,” Kings says. “We have collectively won more than $300 in service credits for out of service broadband and phone service, slow speeds when it rains, and missed appointments, billing errors, sneaky charges, and contract disputes.”

Kings’ immediate family left Frontier for Suddenlink more than a year ago when she moved.

“Why pay Frontier more for phone service and 1.7Mbps broadband when I can pay Suddenlink less for their phone service and 10Mbps Internet access,” she asks.

Frontier hopes to win back former customers with new broadband services, such as their newly-introduced “Second Connect” service, which delivers a second DSL line for existing broadband homes for what the company claims is $14.99 a month.  Frontier says a few thousand customers have signed up for the service, which is now being pitched aggressively by Frontier’s call centers.

But some customers who have signed up for the service are accusing Frontier of billing fraud for wildly misleading customers about the true cost of the service.

The $14.99 price tag Frontier advertises omits modem rental fees, taxes, surcharges, and other fees customers first discover on their monthly bill.

Chris Photoni discovered, after five calls and a combined two hours on hold, the true out-the-door price for Frontier Second Connect is actually $48 for him.  The Broadband Reports reader elaborates:

Don’t waste your time. Even after the ‘corrections’ the Second Connect line cost around $48. I say ‘around,’ [because] I haven’t met a staff member yet that could correctly calculate tax. How convenient for you Frontier. Their computer system can calculate it for your bill, but is unable to calculate it when inquiring about the service.

The new ‘taxes’ come to $27.64!

Frontier is one of the worst phone companies. They have terrible customer service, and the wait times usually seem to be 20-30 minutes per call. Most issues take at least THREE calls to resolve. I’ve actually have been on hold for 25 minutes as I’m writing this.

Kings said she wouldn’t have bothered inquiring about Second Connect in the first place.

“Let me understand this,” she writes. “The same phone company that offers 1.7Mbps to my house wants another $15 a month to ‘double my speed?’  I could pay $100 a month to Frontier for 3Mbps broadband along with my phone line or pay Suddenlink $100 for 10Mbps broadband, phone and cable-TV service.”

Other highlights from the conference call:

• Frontier is getting into the home security business in a two state trial with ADT and Protection 1.  Customers will be strongly encouraged to bundle the home security service with other telecommunications products to hold them in contracts and provide discounts up to 15 percent;
• Frontier will begin to resell AT&T wireless voice and data services in bundles with existing products. Frontier plans to trial this service during the first half of 2012 before expanding it nationally.  This service is only going to be available to bundled service customers.  Why customers wouldn’t pursue an agreement with AT&T themselves, without the phone company’s involvement, isn’t well-explained;
• The company plans no significant high-value promotional offers for the 4th quarter.  They didn’t pitch any during the 3rd quarter either.  Customers with pre-existing promotions, including “free satellite TV for 2011” or “six months of free DSL” will find their bills rising considerably as those promotions expire in the next few months;
• Frontier’s pension plan is not in the best shape.  The company had to contribute $58 million of real estate to the plan fund to manage investment losses for the year;
• Frontier’s $500 FiOS installation fee has effectively kept new customers away from the fiber network.  Although the company claims it wants to maintain support for FiOS, video customers have left in droves and a smaller number of broadband customers have left as well, primarily for Comcast;
• Frontier plans to continue investment in its middle mile network to handle broadband traffic growth in 2012 and 2013.