Your Money = Their Money

With the imposition of a 5GB monthly cap across their nationwide service area, consumers might find it useful to break down the cost of what different broadband services charge for service per gigabyte, and what kinds of profits companies can expect to receive from those charges.   The average cost of traffic for most national broadband providers amounts to pennies per gigabyte transferred.   But what will you pay?

Frontier offers different pricing across several promotions, ranging from $19.99-$49.99.   The lower priced tiers correspond with service contracts that require multi-year commitments, with a substantial penalty for early cancellation.   They also charge a monthly modem rental fee (MRF) of $3.99.   In some areas this fee is levied even if you wish to use your own DSL modem.   Since this fee is universally imposed in many areas, its cost has been included in the price breakdown.   Excluded from the review are additional taxes, surcharges, and fees which are imposed by various taxing authorities but are outside of Frontier’s control.

Frontier High Speed Internet Cost Review
(per  GB downloaded,  5GB per month)

Your Monthly Price      Per GB     Frontier Pays Per GB
$49.99 + $3.99 MRF      $10.80            less than 10c
$39.99 + $3.99 MRF      $ 8.80            less than 10c
$29.99 + $3.99 MRF      $ 6.00            less than 10c
$19.99 + $3.99 MRF      $ 4.00            less than 10c

The cost for watching an average 4GB high definition DVD quality movie over Frontier DSL is $43.20.   One DVD will be all you get, because any more than that puts you over the limit.  With a growing number of Americans using the Internet to access multimedia content online, exceeding 5GB of usage per month is easier than ever.

Stop the Cap! challenges Frontier to make public their own study which sources have told us show up to 40% of their existing customers already exceed 20GB of usage per month using Frontier DSL.   How does the company justify calling nearly half of their loyal customers bandwidth piggies and abusers?

Since low usage customers represent enormous profits for broadband providers, as the above chart illustrates, kneecapping the average user and beheading the high bandwidth customer with a draconian limit on monthly usage allows Frontier to vastly expand profits.   As their own financial reports to shareholders illustrate, Frontier’s investment in their network does not come close to corresponding with the massive profit taking a 5GB usage cap allows.

Cherry pick the weekend e-mailer and occasional web browser, throw everyone else under the nearest bus, and  high five one another all the way to the bank.   That’s the Frontier way.

Robb from Hillsboro, Oregon graciously gave permission to share his own research on what a 5GB cap means in the real world.   Some upset about the usage cap announced by Frontier have suggested that’s almost as bad as going back to dial-up.   But as Robb discovered, you would be better off with 56k dialup! That’s because an unlimited Frontier dial-up account can deliver more to you in a month than a crippled DSL account with a 5GB usage cap on it.

See the numbers for yourself:

Courtesy: Robb (a/k/a 'funchords'), Hillsboro, Oregon

Frontier Communications customer service representatives are now telling Frontier customers calling to inquire about the usage cap and/or to cancel service that:

• “I don’t know anything about that.   Where did you hear this?”
• “We aren’t actually doing that.”
• “Oh, that is just a guideline. We are not enforcing any cap at this time.”
• “I think you are talking about Road Runner, not our service.”

These are actual responses from customer service representatives at Frontier when queried about the 5GB usage cap being implemented across all of Frontier’s service areas.

It comes as no surprise that many Frontier representatives know nothing about the usage cap.   A lot of people working at Frontier had no idea.    An insider  tells me many of the technical support people learned about it only when customers asked, and they discovered the web page with the change.

In a new development today, I have learned that Frontier may also have a bandwidth problem created by lack of capacity.   Some service areas have experienced slow connections not due to line quality, but because there is a growing bottleneck in Frontier’s backbone.   As I reported earlier, Frontier’s investment in its infrastructure has not exactly been breathtaking in real dollars.   When a company is unwilling to make suitable investments to grow its business, the only other alternative is to reduce demand for the resources that exist today.   A 5GB cap does that.

In urban areas where competition exists, Frontier will lose a considerable number of customers once they discover the cap.   But in many rural areas where cable television is not available, it’s DSL from Frontier or a satellite company’s broadband service, which  can be expensive and  have not seen positive reviews.

Regardless of whether Frontier is currently enforcing their 5GB cap, as long as that change in language exists in their terms and conditions, it is your responsibility as a customer to take the steps mentioned in an earlier article to opt-out or cancel service within the 30 day window of opportunity provided under their contract.   If you simply trust their word they are not enforcing the cap, and that 30 days expires, if you are under one of those multi-year contracts, you will have no recourse to terminate service without incurring a cancellation fee because you will  have accepted the cap by default by not protecting your rights and opting out.

In another matter, I have invited Frontier to respond to several questions posed to them about the 5GB usage cap and its reasoning.   As of now, they have chosen not to respond.   I will be happy to provide their side of the story, in their own words, if it is forthcoming.

Citizens Communications is no more.

Citizens Communications is no more.   The parent company of Frontier Communications is dropping their old name and will just call themselves Frontier Communications going forward.

“By aligning our corporate name with the brand name used throughout our markets, we will increase the visibility of our company with shareholders, leverage the strength of the Frontier brand, and make the financial community more aware of our accomplishments in the communities we share,” said Maggie Wilderotter, chairwoman and CEO.

“Using the name Frontier Communications is appropriate for our company since 100 percent of our customer interactions involve that name,” she said.

The new identity of Frontier Communications, already familiar in areas like Rochester, N.Y., will now also appear in former Citizens territory.

Frontier Communications began when Rochester Telephone Corporation of Rochester, N.Y.  sought to disassociate itself with the identity of just being a telephone company, and rebranded itself as “Frontier Communications” to help market its data and experimental video products, as well as dropping the localism implied by Rochester – the company owned small independent telephone companies in several states around the country.

Frontier’s name  was  kept when the company  was acquired by Global Crossing, Ltd., Hamilton,  Bermuda. Global Crossing, Ltd., now a shadow of its former self after declaring bankruptcy in 2002, sold Frontier to Citizens Communications, which has run the company since.

Frontier’s identify online has been around since the earliest days the company got into the Internet Service Provider business, as Frontiernet.net.   Dial-up service continues under that name, but the company’s high speed DSL business operates  as Frontier High Speed Internet.