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Customers Flee Frontier FiOS: Company Loses A Stunning 10,000 Customers in 3rd Quarter

Phillip Dampier November 3, 2011 Broadband Speed, Competition, Data Caps, Frontier Comments Off on Customers Flee Frontier FiOS: Company Loses A Stunning 10,000 Customers in 3rd Quarter

Now selling for the "go away" price of $500 for installation.

Frontier Communications has proven it can successfully herd customers off the award-winning advanced fiber network it inherited from Verizon Communications just by increasingly gouging customers until they call and cancel.

The phone company reports success in ridding itself of 9,900 FiOS TV customers in the third quarter alone, and 3,100 FiOS Internet customers left with them in Indiana and Oregon.

Frontier CEO Maggie Wilderotter and other company executives made it known last spring that FiOS fiber optics was the unwanted stepchild best left forgotten when telling investors the company considered the fiber network unprofitable.  The company has since taken to hike rates and raised the price for service installation to as much as $500.  The combined increases have made the cable competition — Comcast — blush and look downright cheap by comparison.

Where did Frontier’s customers go?  Several left for Comcast, but others were persuaded to switch to an aggressively-priced satellite TV promotion, at least until it expires.  Frontier added 12,200 satellite subscriptions nationwide last quarter and 16,200 new DSL customers, many in ex-Verizon service areas that currently have no other choice for broadband.

Chanting “Verizon is Destroying the Middle Class,” Employees Join ‘Occupy’ Movement

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WBGH Binghamton Verizon Supports Occupy Binghamton 10-28-11.mp4[/flv]

Verizon employees in upstate New York are joining the “Occupy” movement that began protesting Wall Street, but has since broadened to include criticism of some of America’s largest corporations.  Company employees are arriving at “Occupy” protests holding signs attacking the company for “destroying the middle class” through job and benefit cuts.  The protests are also impacting cable operators.  Several arrests were made this week by protestors at Comcast headquarters in Philadelphia.  Most of the protestors are concerned about jobs and the pervasive influence corporate lobbyists have on American public policy.  WBNG in Binghamton covers the protests against Verizon.  (2 minutes)

Cable Cut Leaves Hundreds of Shaw Customers Waiting 4 Hours on Hold for Answers

Phillip Dampier November 3, 2011 Canada, Consumer News, Shaw 3 Comments

(Courtesy: Glasbergen)

Shaw Cable customers in Langley and Aldergrove, B.C., waited as long as four hours on hold to speak to a customer service representative trying to learn when their cable and broadband service would be restored after vandals cut a fiber line.

Days later, hundreds of customers were still without service… and answers.

“When I called [Shaw], I was told there was a four-hour wait to talk to customer service,” area resident Candace Hopkins told CBC News.

That four hour hold time was hardly an isolated case.  Several CBC viewers reported similar experiences, and many simply gave up calling even though their cable service was out for days.

Shaw Cable suspects the vandals were would-be copper thieves, unhappy to discover their efforts would only net them fiber optic cables which have almost no resale value.  But customers suspect the cable cuts have not been a priority for Shaw, leaving customers in the dark about when service would be restored.

CBC News called Shaw customer service and only managed to get a recording, which said nothing about how large the problem was or when it would be fixed, saying only that some service was restored and crews were working on the rest.

Other calls to Shaw’s media relations department from CBC News have not been returned.

Shaw customers are not amused, invading the company’s Twitter account with repeated complaints. Other outages have left customers with similar experiences.  One customer on the Outer Gulf Islands told he’d be waiting up to four hours for help managed to leave his number for a call back.

“The kicker is that after about four hours we received a call from something approximating Shaw,” the customer explains. “I believe that it was a call center in India. To add insult to injury, the voice on the other end of the phone line told me that everything was fine with my line. And, it was. Service had been restored 10 minutes before the call back. When I tried to explain this and asked what the earlier service disruption was about, the voice on the line simply kept repeating that everything was fine on my line.”

Shaw’s hold times are infamous in western Canada.  It is not uncommon to wait at least an hour to speak to a customer service representative as we reported back in September.  Some customers find it quicker to drive to the nearest cable office to arrange for service calls or manage their accounts.  So far, Canadian regulators have done little to pressure Shaw into making improvements.

When service was restored, some customers were brave enough to call Shaw to request outage credits.  “A big mistake,” shares one of our readers.

“The automated voice said there was a two hour hold time and when I finally got through, I was told I couldn’t get a credit because I didn’t report the outage during the outage,” says Stop the Cap! reader Jules who shared this story over his restored Internet service in Aldergrove.

“They didn’t seem to have a good answer when I suggested how difficult that would have been since it took out my Shaw telephone line as well. I got my credit.”

House Approves 5-Year Moratorium on New Wireless Taxes, But Existing Fees Will Remain

The House on Tuesday approved a five-year moratorium on new wireless taxes to keep states and localities from padding cell phone bills with new fees for wireless services.

The non-controversial measure easily won bipartisan support and passed quickly on a voice vote with just one member of Congress rising to oppose the measure.

The Wireless Tax Fairness Act, sponsored by Representative Zoe Lofgren, a California Democrat and Trent Franks, an Arizona Republican, was heavily backed by the wireless industry.  The legislation doesn’t stop local and state governments from imposing existing taxes, but would keep new taxes off cell phone bills if the measure becomes law.  AT&T and Verizon spent heavily to promote the bill, noting customers are cutting back their cell phone and data plans in response to increasing taxes which run as high as 23% in some states.

Historically, state and local governments have seen cell phones as a luxury item, and have targeted them with taxes to help sustain government budgets.  But as consumers increasingly turn to cell phones as landline replacements, the days of such technology being used mostly by the well-heeled are well past.  Lofgren sees the burden of cell phone taxes on Californians, who have dropped traditional landline services in favor of smartphones and wireless broadband.

“We need to encourage the development and adoption of wireless broadband, not tax it out of existence,” said Lofgren.

An identical Senate companion bill was introduced by Senators Ron Wyden (D-Ore.) and Olympia Snowe (R-Maine), where it also seems to be getting bipartisan support.

Taxes on wireless services now meet or exceed those charged for alcohol and tobacco in several states.

Rank State State-Local Wireless Rate State-Local Sales Tax Rate Federal Rate
(USF)
Combined Federal-State-Local-Rate
1 Nebraska 18.64% 7.00% 5.05% 23.69%
2 Washington 17.95% 9.00% 5.05% 23.00%
3 New York 17.78% 8.25% 5.05% 22.83%
4 Florida 16.57% 7.25% 5.05% 21.62%
5 Illinois 15.85% 9.00% 5.05% 20.90%
6 Rhode Island 14.62% 7.00% 5.05% 19.67%
7 Missouri 14.23% 7.23% 5.05% 19.28%
8 Pennsylvania 14.08% 7.00% 5.05% 19.13%
9 Kansas 13.34% 8.13% 5.05% 18.39%
10 Texas 12.43% 8.25% 5.05% 17.48%
11 Maryland 12.23% 6.00% 5.05% 17.28%
12 Utah 12.16% 6.80% 5.05% 17.21%
13 South Dakota 12.02% 5.96% 5.05% 17.07%
14 Arizona 11.97% 7.20% 5.05% 17.02%
15 DC 11.58% 5.75% 5.05% 16.63%
16 Tennessee 11.58% 9.25% 5.05% 16.63%
17 Arkansas 11.07% 8.38% 5.05% 16.12%
18 Oklahoma 10.74% 8.45% 5.05% 15.79%
19 North Dakota 10.68% 6.00% 5.05% 15.73%
20 California 10.67% 9.25% 5.05% 15.72%
21 New Mexico 10.52% 7.60% 5.05% 15.57%
22 Kentucky 10.42% 6.00% 5.05% 15.47%
23 Colorado 10.40% 7.56% 5.05% 15.45%
24 Indiana 9.84% 7.00% 5.05% 14.89%
25 South Carolina 9.52% 7.25% 5.05% 14.57%
26 North Carolina 9.43% 7.75% 5.05% 14.48%
27 Minnesota 9.38% 7.71% 5.05% 14.43%
28 Mississippi 9.08% 7.00% 5.05% 14.13%
29 New Jersey 8.87% 7.00% 5.05% 13.92%
30 Georgia 8.57% 7.50% 5.05% 13.62%
31 Vermont 8.50% 6.50% 5.05% 13.55%
32 Wisconsin 8.34% 5.55% 5.05% 13.39%
33 New Hampshire 8.18% 0.00% 5.05% 13.23%
34 Ohio 7.95% 7.13% 5.05% 13.00%
35 Wyoming 7.94% 5.50% 5.05% 12.99%
36 Iowa 7.91% 6.50% 5.05% 12.96%
37 Massachusetts 7.81% 6.25% 5.05% 12.86%
38 Hawaii 7.75% 4.00% 5.05% 12.80%
39 Alabama 7.45% 7.25% 5.05% 12.50%
40 Michigan 7.27% 6.00% 5.05% 12.32%
41 Maine 7.16% 5.00% 5.05% 12.21%
42 Connecticut 6.96% 6.00% 5.05% 12.01%
43 Alaska 6.69% 2.50% 5.05% 11.74%
44 Virginia 6.56% 5.00% 5.05% 11.61%
45 Louisiana 6.28% 9.00% 5.05% 11.33%
46 Delaware 6.25% 0.00% 5.05% 11.30%
47 West Virginia 6.23% 6.00% 5.05% 11.28%
48 Montana 6.03% 0.00% 5.05% 11.08%
49 Idaho 2.20% 6.00% 5.05% 7.25%
50 Nevada 2.08% 7.91% 5.05% 7.13%
51 Oregon 1.81% 0.00% 5.05% 6.86%
US Simple Average 9.87% 6.38% 5.05% 14.92%
US Weighted Average 11.21% 7.42% 5.05% 16.26%

[For flat monthly taxes and fees, average monthly consumer bill is estimated at $48.16 per month per CTIA – The Wireless Association.]

Source: Committee on State Taxation, 50-State Study and Report on Telecommunications Taxation, May 2005. Updated July 2010 by Scott Mackey, Kimbell Sherman Ellis LLP using state statutes and regulations.

The taxes levied are supposed to pay for everything from school funding to law enforcement to 911 services.  Some states impose 911 surcharges that local municipalities also charge themselves.  The free-for-all takes an even bigger bite as consumers adopt more expensive plans that include wireless data.

How much consumers would save with the passage of the legislation is unclear, because existing taxes are not impacted.  The measure also does nothing to stop the wireless industry from adding bill padding fees they conjure up themselves.

But the wireless industry still calls the House passage a “crucial step toward providing wireless subscribers with some much needed relief.”

[flv width=”520″ height=”308″]http://www.phillipdampier.com/video/Cell Phone Taxes 11-3-11.flv[/flv]

WKRG in Mobile, Ala. reports cell phone taxes are reaching an all-time high.  Nearby viewers in Pensacola, Fla. probably weren’t too happy to learn Florida is rated the 4th highest-taxed-state.  The Wireless Tax Fairness Act may prevent taxes from rising further, but it won’t stop existing fees.  Also included: Rep. Franks’ statement on the House floor introducing the bill and urging fellow members to support it.  (3 minutes)

Cox’s Usage Police Beefed Up: Spending More Money to Save Money

Phillip Dampier November 2, 2011 Broadband "Shortage", Cox, Data Caps 1 Comment

We are watching you.

Cox Cable has become so dedicated to bringing broadband usage under control, it has reportedly opened a new call center solely to deal with usage cap enforcement.

Cox Security has taken a hardline approach to usage cap violators — cutting off service once usage limits are exceeded, at least until customers call in for a lecture about their usage.  After customers humble themselves, their service is turned back on.  After three warnings, Cox tells customers, it reserves the right to terminate broadband service for good, although we haven’t seen it come to that just yet.

Jim Redmond, a Stop the Cap! reader in San Diego, called Cox to complain about usage meters and limits and got an earful from a customer service representative.

“They told me the only people violating their usage limits are copyright violators illegally downloading music, movies, and software and, in fact, they are doing us a favor by protecting us from ourselves,” Redmond says.  “I was shocked by the cavalier attitude from the employee, and while I haven’t gone over any of their limits, I am fairly close and wanted to know what I could do to raise my limit.”

Redmond says Cox wanted him to either upgrade his Internet service plan or simply stay off the Internet.

“I told them I’d consider staying off Cox altogether by switching to another provider,” Redmond responded. “That’s your choice, I was told.”

Remarkably, Internet Service Providers may be spending more money trying to control usage than that “excess” usage costs the provider.  Dedicating call center support staff to usage enforcement, requiring employees to unfreeze locked out accounts, and the cost to good customer relations are likely hurting Cox more than the “tiny minority of customers” Cox claims are “using too much Internet.”

Broadband Reports‘ readers heard one representative suggest overlimit fees are already in the works to charge customers for every gigabyte they exceed Cox’s arbitrary limits.

“They’ll never get one additional cent from me if they try it,” Redmond says. “I think it’s long past time for consumers to band together and send a message to the industry that this kind of Internet rationing is completely unacceptable.  It certainly worked with the banks who discovered consumers won’t accept a $5 monthly fee for a debit card to access their own money.  It’s time Cox customers rise up and let the company know how unacceptable this really is.”

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