Verizon is introducing a new wireless home broadband service that will target customers that can get good cell phone reception from home but are stuck with slow speed DSL from the phone company, or no internet access at all.

Verizon’s new LTE Home Internet will offer customers speeds of 25-50 Mbps without data caps on Verizon’s already built 4G network. The service launched this week in Savannah, Ga., Springfield, Mo., and Tri-Cities, Tenn./Va./Ky. Starting today, Verizon says it will expand home internet access to customers outside of its existing Fios and millimeter-wave 5G Home footprints, primarily to reach rural customers.

“With LTE Home Internet, our most awarded 4G LTE network will provide internet connectivity for customers in more rural parts of America who may not have access to broadband internet service – a critical need, especially now, when so many are counting on reliable connectivity for remote work and educational needs,” said Frank Boulben, senior vice president of Consumer Marketing and Products at Verizon.

The service and equipment are sold at different prices depending on how much business you already do with Verizon:

LTE Home Internet Service Pricing

• If you do NOT have an active Verizon mobile plan and DO NOT WISH to enroll in paper-free billing and auto-pay, the service costs $70/month.
• If you do NOT have an active Verizon mobile plan or one that costs less than $30/month and ARE WILLING to enroll in paper-free billing and auto-pay, the service costs $60/month.
• If you DO have an active Verizon mobile plan that costs $30/month or more and DO NOT WISH to enroll in paper-free billing and auto-pay, the service costs $50/month.
• If you DO have an active Verizon mobile plan that costs $30/month or more and ARE WILLING to enroll in paper-free billing and auto-pay, the service costs $40/month.
• The required LTE router costs $240 or $10/month for 24 months (0% interest) on Verizon’s Device Payment Plan. If you order the router using “device payments,” you will receive a $10/month promotional credit for the next 24 months, making the router free of charge if you stay with the service for two years. If you cancel service early, the remaining payments will become due immediately.

Although the service cannot match the speeds offered by modern cable and fiber broadband networks, Verizon’s wireless speeds do appear to qualify as “broadband service” and for the first time on a 4G LTE network, do not include any data caps or sneaky speed throttling, making it a potentially respectable option for those in rural areas looking for something better than phone company DSL.

Verizon offers this coverage check tool to determine if service is available in your area. If not, you can leave your e-mail address and phone number and Verizon will contact you as the service expands.

This Verizon-provided video introduces the company’s new LTE Home Internet service, a wireless broadband option without data caps for those looking for rural access or something better than phone company DSL. (1:25)

(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)

Charter Communications will have to face a courtroom to answer accusations the cable company intentionally sold internet service at speeds it knew it could not provide to its customers in New York.

New York State Supreme Court Justice O. Peter Sherwood rejected a motion by the cable company to dismiss New York Attorney General Eric Schneiderman’s 2017 lawsuit accusing Time Warner Cable (now owned by Charter) of systematically shortchanging as many as 640,000 New York internet customers by falsely advertising internet speeds it knew it could not deliver, often with at least 900,000 outdated company-provided cable modems incapable of supporting the higher speeds the company promoted.

“Today’s decision by the New York Supreme Court marks a major victory for New York consumers — rejecting every single argument made by Charter-Spectrum in its attempts to block our lawsuit,” said Schneiderman. “This decision ensures that our office can continue to hold Charter-Spectrum to account for its failure to deliver the reliable internet speeds it promised consumers, ripping you off by promising internet speeds it simply could not deliver.”

Charter’s Defense: Spectrum’s Ad Claims for Fast Internet Service are: “Prototypical instances of non-actionable puffery.”

Charter’s lawyers attempted a variety of legal strategies to get Schneiderman’s lawsuit tossed, including undermining the cable company’s own marketing efforts. Lawyers argued the court should ignore Charter’s claims it sold a “blazing fast, super-reliable connection” that could “stream Netflix and Hulu movies and shows effortlessly” as nothing more than “prototypical instances of non-actionable puffery.”

Scheniderman’s office claimed it was much more than that.

N.Y. Attorney General Eric Schneiderman

“Spectrum-TWC failed to maintain enough network capacity in the form of interconnection ports to deliver this promised content to its subscribers without slowdowns, interruptions, and data loss,” stated Schneiderman. “It effectively ‘throttled’ access to Netflix and other content providers by allowing the ports through which its network interconnects with data coming from those providers to degrade, causing slowdowns. Spectrum-TWC then extracted payments from those content providers as a condition for upgrading the ports As a result, Spectrum-TWC’s subscribers could not reliably access the content they were promised, and instead were subjected to the buffering, slowdowns and other interruptions in service that they had been assured they would not encounter.”

Charter also claimed it was not legally responsible for meeting its own advertised speeds because the company only sold speeds “up to” a level, without guaranteeing customers would get the speeds it advertised.

Even if a judge found Charter lacking in its legal defense, lawyers for the company more broadly argued that under FCC Chairman Ajit Pai’s net neutrality order, state courts and regulators had no power to regulate or oversee broadband providers because “regulation of broadband internet access service should be governed principally by a uniform set of federal regulations, rather than by a patchwork of separate state and local requirements,” according to Charter’s attorney Christopher Clark.

Justice Sherwood uniformly rejected all of Charter’s arguments to dismiss the case:

• Improper state venue for the lawsuit: “Spectrum-TWC fails to identify any provision [of law] that preempts state anti-fraud or consumer-protection claims, or reflects any intention by Congress to make federal law the exclusive source of law protecting consumers from broadband providers’ deceptive conduct.”
• False advertising: “This court finds that, contrary to defendants’ contentions, the FCC’s goal of promoting competition through [the Internet Transparency Rule], the FCC stated that the rule was intended to ensure consumers had the “right to accurate information, so [they] can choose, monitor, and receive the broadband internet services they have been promised. New York’s Executive Law and Consumer Protection Act […] require that [providers] refrain from fraud, deception, and false advertising when communicating with New York consumers.
• Netflix/YouTube slowdowns: The issue of interconnection agreements between content providers and Spectrum-TWC are matters for the court to consider because it is not an attempt to regulate those agreements. “Rather, the complaint simply alleges that Spectrum-TWC misled subscribers by claiming that specific online content would be swiftly accessible through its network, while it was simultaneously deliberately allowing that service to degrade […] and failing to upgrade its network’s capacity to meet demand for this content.”
• “Up to” speeds: Spectrum-TWC claimed that advertising speeds “up to” a certain level was not misleading because consumers understood this to mean the maximum speed, not average speed. In Spectrum’s argument, it claimed “reasonable consumers understand this is not a promise of ‘minimum’ performance, but rather ‘maximum’ performance.” But the judge disagreed. “Defendant’s theory is contrary to New York law regarding ‘up to’ claims” when those speeds are “functionally unattainable as a result of the defendants’ knowing conduct.”

Schneiderman’s office is seeking civil fines and restitution from Spectrum-TWC for customers in New York.

Gov. Andrew Cuomo announcing rural broadband initiatives in New York.

It was called “Broadband for All” — New York Governor Andrew Cuomo’s commitment to bring high-speed internet service to every New York State resident. But it now appears the governor will break that promise and leave more than 72,000 rural New York residents with satellite-delivered internet that does not come close to meeting the broadband speed standard and is infamous for customer frustration, slow speeds, and low data caps.

Ensuring High-Speed Internet Access for Every New Yorker

In today’s world, internet connectivity is no longer a luxury—it is a necessity. Broadband is as vital a resource as running water and electricity to New York’s communities and is absolutely critical to the future of our economy, education, and safety.

In 2015, Governor Cuomo made the largest and most ambitious state broadband investment in the nation, $500 million, to achieve statewide broadband access by 2018. 

The New NY Broadband Program sets as its goal access to speeds of 100 Mbps for all New Yorkers, with 25 Mbps acceptable in the most remote and rural areas. The cost must not exceed $60 and there is a general prohibition of data caps. This goal exceeds requirements of the FCC’s Connect America Fund program and requires that projects be completed on a more accelerated timeline.

Today, the governor announced the state grant winners to split $209.7 million in the third and final round of awards to offer 122,285 additional homes, businesses, and institutions broadband internet service.

“These latest awards through Round III of the New NY Broadband Program will close the final gap and bring high-speed broadband to all New Yorkers in every corner of the state,” the governor’s office claimed.

Except it won’t.

Tucked in among the grant award winners is a $14,889,249 grant to Hughes Network Systems, LLC, targeting 72,163 rural New Yorkers, more than half of the total number of customers to be reached in the third round. Hughes operates the HughesNet satellite internet service, a technology derisively known as “satellite fraudband” for routinely failing to meet its advertised speed claims. It’s also known as “last resort internet” because it is slow, expensive, and heavily data capped.

Complaints about HughesNet are common on websites like Consumer Affairs:

“Extreme false advertising. Over the first 30 days with HughesNet Gen5, I averaged 3 Mbps download when advertised 25 Mbps. I canceled when they couldn’t answer why I used 20 GB of data in less than 24 hours. I am a 55 year old average internet user. No streaming. No music. No videos (YouTube). DO NOT GET THIS SERVICE EVEN IF NO OTHERS ARE AVAILABLE.” — Dennis, Tazewell, Tenn. (1/25/2018)

“HughesNet claims high speed internet in our region. Clearly not available here, 3 service calls, with exchange of equipment, 50 calls – recorded leaves us no choice, we demand that this contract be null/void without stealing $399 cancellation. A despicable Company, uninformed customer service, average speeds with a video; upload speed 0.62 Mbps, the download speed is 1.28 Mbps. Help!!!” — Jeffrey, Kerhonkson, NY (1/21/2018)

“Promised speeds of no less than 25 Mbps. Actual speed received was 5-9 Mbps. Unable to stream anything. Computer programs did not operate and did not update as required. We have cancelled HughesNet at great cost to us. Worst internet service ever.” — Jennifer, Hartsville, SC (1/12/2018)

Pat (last name withheld) lives 1.3 miles from the nearest Charter Communications customer in Niagara County, near Niagara Falls and is very disappointed with recent developments. Charter has quoted an installation fee of $50,000 to extend their cable service and Verizon has refused to provide DSL service, leaving Pat resorting to using an AT&T mobile data plan, which is expensive and gets throttled after using more than ~22 GB a month.

“This was a scam from Jump Street,” Pat said. “Phase 3 has 70,000 out of 120,000 homes getting satellite internet, a technology that was already available. It also gives $70 million to Verizon who declined funds in first place. Five years and $675 million later and still no internet for my kids.”

“This is a huge disappointment for us,” Pat added. “We were counting on this happening. Told numerous times it would. Now we have to debate moving, we can’t continue not having internet. My oldest son just graduated high school never having internet at home.”

“I have written and spoke with New York Broadband Program Office and it was clear to me from the beginning they didn’t understand the problems they faced, namely infrastructure costs,” said Pat. “They didn’t want to hear it. They wrongly assumed that telecoms would bid and everyone would have internet. I knew when announcements were delayed that the bids for last mile didn’t come in. Tragic really. I think they made a mistake accepting that money from the FCC. Satellite was never on the table until that happened.”

Stop the Cap! readers have told us satellite internet is the worst possible option for internet access, and many have reported better results relying on their mobile phone’s data plan. But New York’s solution for more than 70,000 of its rural citizens — many that believed the governor’s commitment of 100% coverage — is to saddle them with satellite internet access starting at $49.99 a month for a paltry 10 GB of usage per month. The top plan on offer costs $99.99 a month and is capped at 50 GB a month before a speed throttle kicks in and reduces speeds to dial-up levels. A 24-month contract is required with a very steep early cancellation penalty.

Another surprising winner is Verizon Communications, a company that originally refused to participate in rural broadband expansion efforts. Verizon will accept more than $70 million to expand its broadband service to 15,515 homes, businesses, and institutions in the Capital Region, central New York, the North Country, and Southern Tier. At press time, it is not known if Verizon will bring FiOS or DSL to these customers.

Because New York State relied on private companies to bid to cover unserved residents, it seems clear HughesNet is the default choice for those New Yorkers stranded without a telecom company bidder. Although that will allow Gov. Cuomo to claim his program reaches 99.99% of New Yorkers, the rural broadband problem remains unresolved for those who were depending the most on New York to help bring broadband to rural farms, homes in the smallest communities, and those simply unlucky enough to live in small neighborhoods deemed unprofitable to serve.

Warren (center) pictured with representatives of Charter Communications and PowerMyLearning (Photo courtesy of: PowerMyLearning)

The incumbent mayor of Rochester, N.Y., currently up for re-election, has decided to take indirect credit for a low-cost internet program loaded with tricks and traps from a cable company that is worsening the affordable internet problem in the United States.

Mayor Lovely Warren made the head-slapping mistake of teaming up with Charter Communications, already on track to being even more universally despised by its customers than its immediate predecessor Time Warner Cable. Casting political instincts to the wind, Warren decided to team up with an unpopular cable company that is gouging its regular customers while offering a token “low-cost” internet program designed to protect Charter’s internet profits more than offering low-income customers a break.

WHAM-TV:

New low-cost, high-speed broadband Internet service is being launched in Rochester, Mayor Lovely Warren announced Thursday.

PowerMyLearning and Charter Communications announced Spectrum Internet Assist (SIA) would offer the service to eligible low-income household customers in Rochester.

Broadband speeds of 30/4 Mbps are being offered for $14.99 per month by SIA, according to Mayor Warren.

“Lowering the cost barrier to Internet access for families is essential if we are to close the digital divide and help them rise out of poverty,” said Mayor Warren. “Internet access is increasingly essential for students to do homework, for jobs seekers to research and apply for jobs, pay bills and remain connected with society.”

We agree with the mayor that lowering the cost barrier is critical to making essential internet service available to every resident. Unfortunately, Charter Communications is making the problem worse, not better. Charter’s idea of charity doesn’t seem so magnanimous when you read the fine print.

Charter’s solution for affordable internet: Charge most customers more while a select few jump through hoops for a discount.

First, Spectrum Internet Assist is highly discriminatory and only available to families with school age children that qualify for the National School Lunch Program. Don’t have kids? Tough luck. When they leave school, no more affordable internet for you!

Second, if you are a senior citizen on a fixed income, you probably already have 20+ years under your belt dealing with relentless rate increases from the local cable company. Unless you are 65 or over and receive SSI benefits, you’ll keep on paying those rate increases because the only thing Charter has on offer for you is a bigger bill.

Third, and the most egregious insult of all to the most vulnerable members of our society is Charter’s cynical fear its fat internet profits will be cannibalized if they simply lowered the bills of customers that would otherwise qualify for this program. Spectrum Internet Assist is for new customers only (and if you are still on a Time Warner Cable plan, you aren’t a new customer).

Charter refuses to relent on its policy requiring current customers to disconnect internet service for a month before they can qualify for Charter’s “charity.” The company is worried it will lose money from customers downgrading to Spectrum Internet Assist who will pay a lot less for internet access. To prevent that, Charter makes the process of enrolling as difficult and inconvenient as possible. Imagine if RG&E or National Grid demanded poor residents go without heat for 30 days before qualifying for heating assistance or if your elderly grandparents had to disconnect telephone service for a month before qualifying for Lifeline.

While obsessing about whether its poorest customers are taking ‘unfair’ advantage of a money-saving deal, Charter has no problem splurging on fat bonuses and compensation packages for its top executives. In fact, the highest paid CEO in the United States in 2016 was Thomas Rutledge, top dog at Charter Communications, rewarded with a splendid $98.5 million compensation package for finding new ways to charge consumers even more for cable service. Charter can certainly afford to lighten up on its customers. Instead, it seeks to live up to the cable industry’s usual reputation of a modern-day reboot of Oliver Twist, this time starring Rutledge as Fagin. Since Warren wholeheartedly endorses Charter’s paltry efforts for the poor, perhaps residents can call her up and ask why they should be forced off the internet for a month just to qualify for Charter’s “charity.” Or maybe not, considering the fact she had nothing to do with Spectrum Internet Assist beyond having her picture taken at a press event.

As is too often the case, uninformed politicians are quick to take credit for programs they don’t understand and are nowhere to be found when the real problem-solving and hard work needs to be done. How can we say that? Because we were a registered and very involved party in the New York Public Service Commission’s review of the Charter-Time Warner Cable merger deal. Mayor Warren wasn’t. We fought for pro-consumer benefits if such a deal was to be approved. Mayor Warren didn’t. We understood from long experience the cynicism that separates the cable industry’s lofty words from its fine print. She doesn’t.

Spectrum Internet Assist does very little to resolve the problem of internet affordability. The program is a close cousin of Comcast’s much-criticized Internet Essentials program, which has similar eligibility requirements and has proven cumbersome to sign up for and leaves too many eligible families behind because of its onerous signup requirements. In 2016, Comcast itself admitted that since 2011 it has only enrolled 750,000 low-income households in its discounted internet program, although more than 2.6 million families were eligible to sign-up but never did.

Charter makes internet affordability worse.

Our research shows that Charter’s token efforts for the few are more than canceled out by the rate increases and reduced options made available to the rest of its customers.

Time Warner Cable used to offer lower-cost internet plans.

Time Warner Cable used to sell six different internet plans ranging from $14.99 to $64.99 for new customers (and practically anyone who ever complained about their cable bill) or $14.99 to $109.99 if you were in the tiny minority of customers who didn’t either bundle service or ask for a promotion. Charter Communications argues it is “better” for consumers to simplify Time Warner’s “complicated” plans and pricing with a one-size-fits-all alternative — 60Mbps for what sells today for $64.99 a month (they raised the price $5 a month back in February). But at least you won’t pay that modem rental fee (if you didn’t bother to avoid it by buying your own cable modem that would have paid for itself long ago.)

So which company makes internet affordability a bigger problem — Time Warner Cable, which sold less expensive internet service at prices of $14.99, $29.99, and $34.99, or Charter Communications which advertises only one internet plan on its website for much of western New York – 60Mbps for $64.99 ($44.99 if you are new to Charter and not a previous Time Warner Cable customer that still has cable service). Spectrum’s plan is more than four times more expensive than Time Warner Cable’s previously well-advertised $14.99 plan.

Regular TWC broadband-only pricing in 2016.

No organization worked harder than Stop the Cap! to keep Time Warner Cable’s $14.99 Everyday Low Price Internet tier as a condition of the merger. While not fast, it is affordable and available to every customer, not just the small percentage that will eventually manage to qualify for Spectrum Internet Assist. Fortunately, New York’s Public Service Commission agreed with us and insisted that option remain available in New York State for the next several years. But Charter has subsequently made that plan almost invisible, removing all mention of it from its website, telling some customers it was not available, and leaving a distinct impression they don’t want customers to sign up.

Charter’s one-size-fits all plan got more expensive in February.

The reason is simple. Revenue cannibalization. Thomas Rutledge has repeatedly stressed to Wall Street investors he intended to end the “Turkish bazaar” of Time Warner Cable’s former cavalcade of plans and promotions. When a customer called Time Warner to complain about their bill, there was always room for negotiation and a better deal. Customers calling Charter looking for a break are hitting a brick wall with “take it or leave it” pricing, and tens of thousands of customers are “leaving it” and Charter behind. In this area, we don’t have that luxury because the alternative is usually Frontier Communications’ dreadful DSL service, which almost never meets the FCC’s definition of broadband — at least 25Mbps.

To give you an idea of just how rapacious Charter’s broadband pricing is, consider local upstart competitor Greenlight, which offers fiber to the home service to a very small number of neighborhoods predominately on the east side of the Genesee River. It charges a no-nonsense $50 a month for 100Mbps internet — $15 less than what Charter charges for 60Mbps. If you want gigabit speed, Greenlight will sell you 1,000Mbps for $100 a month, which is $5 less than Charter’s unadvertised 100Mbps offer ($104.95/mo with a mandatory $199 setup fee). Ten times the speed for less. No wonder their Facebook page is filled with people begging them to expand.

Rochester, like other cities in the upstate region, continues to fall behind with inadequate and costly internet service, insufficient competition, and no sign of gigabit speeds arriving anytime soon, unless you are lucky enough to live in a Greenlight service area. Those kinds of 21st century internet speeds are years away if we continue to depend on the local cable and phone company.

Phillip Dampier: We can afford to do without Charter’s “charity.”

In the local mayor’s race, one candidate seems to understand this problem and has a credible solution that fixes it. Rachel Barnhart has a long history of advocating for a citywide public fiber broadband network that would wire every home in the city for an estimated $70 million. The costs would be shared by city residents, the Rochester City School District, and at least one private vendor that would likely be responsible for administering day-to-day operations.

“About forty percent of homes in the city – 35,000 households —  don’t have high-speed internet via cable or DSL,” Barnhart said. “Some of those households can only access the internet via smartphones. The Rochester City School District has estimated half of its students don’t have broadband at home.”

City taxpayers have already paid for a underutilized institutional dark fiber network. Barnhart proposes putting that network to work for the community, selling competitively priced gigabit service for residential and business customers that would effectively subsidize free, slower-speed service for the less-fortunate. Is it expensive? Perhaps. But is it out of line when one considers in one local suburb this year, taxpayers will spend $1 million dollars on a single traffic light and minor road widening project to better manage traffic. Considering how many communities need digital highway traffic improvements, this kind of investment is hardly audacious and isn’t just about giving people fast internet. Managing the local digital economy with the right infrastructure is essential in a community that has seen the loss of tens of thousands of manufacturing jobs and has been economically challenged for years. The alternative is what we have now — watching a mayor impotently smile at a manufactured press event declaring victory while the near-cable monopoly local residents have for broadband service throws *-laden scraps at the public and calls it a day.

Rochester, and other communities that are enduring a cable company that is rapidly turning out to be worse than Time Warner Cable, cannot afford Charter’s “generosity.”

Politicians would do well to remember the sage advice we’ve given consumers since 2008. When a cable company claims they have a better deal for you, watch your wallet. For Mayor Warren, she will have to learn the same lesson we taught city councilman Adam McFadden and Assemblyman Joe Morelle. With friends like Charter/Spectrum or Comcast, you don’t need any enemies.