Sprint will have majority ownership in Clearwire, including its lucrative wireless spectrum.

Sprint-Nextel will gain majority control over its beleaguered wireless partner Clearwire with the $100 million acquisition of Craig McCaw’s stake in the wireless company he co-founded.

Sprint already controlled 48 percent of Clearwire, which provides many Sprint customers with 4G WiMAX service, but today’s purchase will give Sprint more control over Clearwire’s considerable wireless spectrum holdings.

Jeff Kagan, an independent telecommunications analyst this morning told Bloomberg News Sprint’s acquisition will make a Sprint-Clearwire combination more attractive to Softbank, which is buying a controlling interest in Sprint and wants firm ground in the U.S. market.

“It gives the combined company much more spectrum, much more ability to deliver services,” Kagan said.

But Sprint denied it was seeking a complete acquisition of Clearwire, which still has Intel and cable operator Comcast as part-owners.

Clearwire’s planned 4G TD-LTE network upgrade due to launch in 2013 is also a comfortable fit for Sprint’s new partner — Tokyo-based Softbank, which uses the same technology on its own 4G network in Japan. Softbank last week announced it would pay $20.1 billion for a controlling interest in Sprint-Nextel.

[flv]http://www.phillipdampier.com/video/CNBC Faber Report Sprint Gains Control of Clearwire 10-18-12.flv[/flv]

CNBC covers Sprint’s announced acquisition of a controlling interest in beleaguered Clearwire, and what impact the acquisition will likely have on Sprint shareholders. (3 minutes)

[flv]http://www.phillipdampier.com/video/CNBC Verizon Wants More Consolidation 10-18-12.flv[/flv]

Lowell McAdam, chairman & CEO of Verizon Communications, is back on CNBC in this exclusive interview calling for additional wireless industry consolidation. McAdam also discusses Verizon’s huge earnings after its wireless plan changes, Verizon’s latest union contract, and the current state of the U.S. economy. (8 minutes)

A very frustrated employee of Frontier Communications working in one of their Ohio offices sent Stop the Cap! a detailed report on some of Frontier’s problems with customer service, unfair fees, and other horror stories. Over the next several days, we will present excerpts of this very long and detailed open letter, starting with what it is like to work in a Frontier customer service center dealing with customers unhappy with Frontier’s way of doing business. (Stop the Cap’s comments appear in italics.)

I work for a company that I am, quite frankly, frustrated with. The company is Frontier Communications.

I am currently an employee in the Marion, Ohio office/call center, and I am a customer service representative. I handle everything in terms of selling services, troubleshooting issues with telephone service, writing orders, setting up payment arrangements, etc. We occasionally refer to ourselves as universal service representatives. The latter title would admittedly sound better on a resume if my company were to ever find out that I had wrote this and fired me. So, after spending a long while working for this company I have learned a lot. I have taken every type of call that there is to take out there, ranging from a simple billing issue to someone getting absolutely screwed because of a mistake one our other representatives made.

I understand that when you have a customer base of three million residential accounts that you will take some angry calls, statistically speaking. It happens. I imagine that happens with every company out there, whether it sells phone service or a t-shirts. You will eventually run into a dissatisfied customer. I feel with Frontier, it happens way too often.

First off, before I go any further, I would like to say my supervisor and director are very knowledgeable individuals, and in no way am I implicating them in this open letter. They do their best to curb ignorance and poor customer service. I feel that the company limits their abilities to do even more to make customer service at Frontier a much more honest experience. Even the director of our call center still has to take orders from someone.

Frontier’s Shock and Awe:  The $200 Early Termination Fee for a Two-Year Contract Customers Never Realized They Had

Frontier’s early termination fees and contracts often come as a surprise to customers who had no idea they signed up.

I have noticed a lot of people calling in (and leaving comments on numerous review sites, as well as our Facebook page) voicing their displeasure about suddenly finding out that they were in a two-year contract, unable to cancel their services without incurring a 200 dollar early termination fee (ETF). This is something that I hate to deal with, as there are almost always no notes on any of these accounts left by previous representatives indicating they informed the customer of an ETF. Unless it is a special circumstance, we are supposed to tell you that you are notified on every billing statement that you are in a contract, and there is nothing that we can do to waive your fees. Most of the time, if a customer is persistent, they can actually escape and have these fees credited.

Firstly, the systems we use to write orders (Salesforce and DPI — yes, we have two different and completely redundant systems that serve the same function — one just looks prettier) both automatically default to the option of a 1 year contract with the option of automatically renewing that contact indefinitely. Frontier does offer a no-contract plan, but then you will fail to receive any sort of promotional pricing. So, a rep will write an order, complete it, and most of the time fail to review with the customer they are agreeing to a one year contract. We get a LOT of these types of calls, the majority originating from orders written by our service center in DeLand, Fla. What frustrates me is the lack of protocol that makes sure a rep notifies the customer that they are indeed being put on a contract. The calls are recorded and could be reviewed, but there are still too many of these people who fly under the radar and get stuck with a fee when it is too late to opt out.

It sucks to no end to have to tell somebody that they will have to spend an extra $200 to cancel their phone and Internet service, and many are left bewildered over the fee. It is always  hard to tell who has really been screwed and who is trying to dodge an ETF. So we handle it with our gut. That’s the best we can do.

Once a Frontier Customer, Always a Frontier Customer… Unless You Pay and Pray

Frontier works hard at holding onto the customers they have, either with long term contracts with heavy early termination penalties or other tricks and traps that can make departing Frontier a difficult and costly ordeal. In addition to term contracts, Frontier heavily markets extra services they claim will protect your account from mischief, but in reality makes it much more difficult to switch phone companies or terminate landline service.

Locking your phone number from third party transfers also buys you a headache if you want to switch providers.

When a Frontier rep asks you to put a free service on your account that will make sure nobody else can steal it without your permission, most people agree to it. This is called a Primary Local Exchange Carrier Freeze. Representatives have an incentive to push this free service, winning a $3 bonus to our commission if you let us add it to your account.

This service makes sure any third party companies cannot port your service over to theirs without your permission. Even with your permission, they still can’t do it until a Frontier rep removes the freeze. That requires customers to call in and speak with us. This gives us a very valuable opportunity to rescue your business and get you to change your mind. Customer retention is vital, which is why Frontier pays us extra to push a service that costs you nothing.

If a customer insists on “porting out” — keeping their current phone number but moving service to a new provider — we will remove the freeze on your account, but you will pay us for doing it.

It does not cost Frontier anything to remove the freeze, but we now charge customers a $1 fee to change your provider. Want local service with one company and long distance service with another? We charge $1 for each.

When customers accept our offer to place a freeze on unauthorized third parties messing with your phone service without your permission, we are required to obtain third party verification of your desire to have this service. Frontier uses an independent verification company that is god-awful and treats customers rudely, even yelling at some who do not follow the precise verification procedure. If they don’t like your answers, the order will not go through.

Their treatment of our customers reflects poorly on Frontier, especially when a customer’s order to obtain service never gets beyond the verification process.

I’ve heard these reps rip into customers for not answering with a “yes” or “no.” In one case, a gentleman from South Carolina had simply wanted to make sure that telemarketing calls would not screw with his phone bill/service, so I offered a freeze to ease his mind. I was absolutely appalled when he was asked by the third party verifier if he authorized the changes and he replied with the usual southern-accented “ya” and the woman on the other end literally yelled at him for not answering “yes.” The customer was completely taken aback and abruptly hung up. I would have too.

As a result, I often do not bother to include line freezes on larger orders, fearing the unprofessional attitude customers might endure could sabotage my commission and the customer’s scheduled service date. I wish Frontier would utilize a different company to process and verify orders.

So You Are Leaving? Do Exactly What We Say or Lose Your Phone Number

Listen very carefully

Oh boy, do I LOVE number porting. Of course that is absolute sarcasm. So, a port-in/out on paper sounds like a rock solid type of deal. The customer can retain his or her phone number, and check out the grass on the other side, greener or browner.

The process for handling a port-in is also fairly simple, and you would think that this would not be an issue for the customer to worry about. Of course, I wouldn’t be venting about it if this were always the case.

One big mistake routinely made by Frontier and other companies is cancelling your existing telephone service before the number port is complete. Some customers want to hurry the divorce and take it upon themselves to terminate service with their old provider as soon as the new service is turned on.

Under no circumstances should you do this, as it will absolutely screw you out of keeping your phone number. This is basic knowledge instilled in every Frontier rep during training, yet screw-ups still happen when one of our reps cuts off service before the other company has taken ownership of your phone number. That means your number is gone. Sometimes the porting process takes as long as 60 days to go through, so please be patient.

Unfortunately, with no system in place to prevent ignorant reps from screwing things up, numbers get lost. Sometimes it is our fault, sometimes it is with the customer, other times the new company created the problem. But we are often the ones left to explain to a customer the phone number they have had for 40 years is gone for good.

But it can get worse once someone else randomly grabs your old number. Imagine what happens when a grandmother’s lost number is reassigned to a porn smut peddler. Now some porn shop down the way has grandma’s number. This actually happened to a customer of a major cable provider. Imagine her friends and family trying to get her only to reach these people instead. It’s not a fun mess to clean up.

Coming Up: Wheel of Installation & Modem Fees, Adventures With Missed Appointments & Lost Trouble Tickets, and Big Trouble in Little DeLand

Plateau Wireless customers can expect to be eventually herded to Verizon Wireless’ all or nothing plans as early as 2013.

Verizon Wireless this week announced the acquisition of another regional wireless carrier — Plateau Wireless — formerly owned by the Eastern New Mexico Rural Telephone Cooperative. At risk are the co-op’s innovative and inexpensive calling and unlimited smartphone data plans for customers in communities like Roswell, Carlsbad, Artesia, and Hobbs.

Verizon’s purchase includes the co-op’s cellular, PCS, and AWS wireless spectrum that covers more than 26,000 square miles in eastern New Mexico.

“We are excited to expand our presence and coverage in rural New Mexico and to welcome Plateau Wireless’ customers to the nation’s most reliable network. We believe the strength of our network enables people to live better and stronger lives,” said Andres Irlando, president of Verizon Wireless’ southwest region.

Customers’ bank accounts may not have the strength to withstand the pricing and technology changes Verizon has in store as early as 2013. Plateau’s current GSM network will be dismantled as Verizon converts the network to CDMA for voice service and EV-DO (3G) and LTE (4G) for data services, leaving customers’ current smartphones and handsets useless. Verizon has not said whether it will provide free replacement equipment to Plateau customers at the time of the network conversion.

More importantly, Plateau Wireless’ current service plans, which include numerous options for customers on tight budgets — are destined for the scrap heap as the company unleashes its all-or-nothing contract service plans.

Plateau Wireless was a co-op owned regional wireless provider serving southeastern New Mexico.

The most important service at risk is Plateau’s unlimited data plan. The company charges customers $29.99 a month for unlimited smartphone data when inside Plateau’s home coverage area. Customers on family plans have an even better deal. They can extend unlimited data to every other phone on the account for a flat additional fee of $10/month. For just under $40 a month total, four family members each with their own smartphones or other wireless devices can have unlimited data when bundled with a calling plan starting at $19.99 a month ($9.99 for each additional line).

The same data plan under Verizon Wireless’ Share Everything Plan costs $220 a month for four phones, but it is not unlimited. All four users have to share a collective allowance of just 2GB of data per month.

Remember when your cell phone company offered you calling plans that fit your budget instead of their desired bottom line? Plateau Wireless still does, for the moment:

All Plateau Wireless Plans are eligible for the Family Plan and Data Features. Unlimited text messaging is $4.95 a month. Carryover of unused minutes to future months and free loyal customer minutes available. 

Plateau Wireless’ customers will have to decide for themselves whether Verizon’s acquisition is good or bad news for them.

Earlier this month, the Federal Communications Commission awarded nearly $9.5 million to Plateau to expand 3G and 4G service in central and southeastern New Mexico over the next three years. Verizon Wireless can use the funds to effectively expand their network in the area at taxpayer expense.

Wants $4.95 a month in some states to keep your number out of their phone directories.

In a case of shooting itself in the proverbial foot, Verizon’s argument its $4.95 monthly fee to keep your landline number out of their directory is justified has revealed a way to avoid paying it at all, saving $60 a year in unnecessary fees.

The company acknowledged that customers who drop their landline in favor of a cell phone will have an unlisted number at no additional charge.

A Network World columnist asked Verizon why it costs so much to do so little.

“Why do you charge me $4.95 per month just so that I can keep my phone number unpublished? Please do not merely tell me that you are allowed to charge me this fee because I already know that. What I want to know is WHY do you do it? What cost are you passing along? … I would appreciate as much specificity in your reply as possible.”

Here’s the reply from a media relations spokesman, who first consulted with “a key member of product management with oversight for (unpublished) numbers”:

“The cost charged to offer unlisted phone numbers is chiefly systems and IT based. Specifically, the costs we incur and factor into the monthly charge involve three things: quality control, data integrity and the interface we have with other carriers and directory publishers. These activities help us protect the feed of customer information we have, and must protect, when customers request that their telephone number remains private when requested.”

Stop the Cap! decided to pose our own follow-up to Verizon’s customer service department:

“If we were to drop our landline and choose a cell phone instead, would our number be listed or unlisted?” we asked.

Verizon’s reply:

“Cell phone numbers are not listed in our directories and are not available from directory assistance unless you pay an additional fee for our listings service. The rates vary by state.”

Customers switching landline providers with the intent of keeping their currently listed phone number may, however, remain in the telephone directory if Verizon forgets to remove the listing after the customer disconnects service. But there should be no charge to remind Verizon you disconnected service and want the listing deleted.

As a consequence of deregulation, many states no longer keep tabs on ancillary fees charged by Verizon for these services, which are largely based on what the market will bear.