Christmas comes early for Comcast and AT&T, thanks to Ersatz Santa, FCC Chairman Ajit Pai.

In the view of FCC Chairman Ajit Pai and his Republican colleagues serving as members of the Federal Communications Commission, Monday – June 11, 2018 is Internet Freedom Day, marking the official end of net neutrality. Republican FCC commissioners, working hand-in-hand with the nation’s largest telecommunications companies, successfully abolished a pro-consumer rule that ensured all internet traffic was treated equally by your internet service provider, with a ban on paid fast lanes and other types of traffic discrimination. 

The FCC website has a new look today, one that discourages consumers from bringing internet-related complaints to an agency that has invited consumers to reach out about unresolved internet problems since the earliest days of internet access.

While much of the country is focused on the Republicans’ successful repeal of open internet protections, many might have missed the fact the FCC also intends to ‘pass the buck’ on your internet problems to the Federal Trade Commission (FTC), an agency that can take a year or more to bring action against companies suspected of violating the law.

Consumers who visit the FCC’s Consumer Complaint Center will find a stripped down resource that now primarily exists to forward consumer complaints to another federal agency. Chairman Pai has made certain the experience is as discouraging as possible for those who manage to find their way to the FCC’s complaint department (emphasis ours):

If you choose to file an informal complaint with the FCC about an Internet-related issue, we will share the information you provide, including your name and contact information, with the Federal Trade Commission (FTC). Your complaint may be used to investigate cases or in a legal proceeding.

Before proceeding with your submission, please note that an informal consumer complaint should only be filed at the FCC if you have a specific issue with your provider.

If you are interested in submitting an informal complaint about an Internet-related issue, please complete this form.

The old form made no mention of the FTC, which is central to Pai’s new “hands off” policy at the FCC.

This morning, Pai told CBS that the Federal Trade Commission will now work to prevent such cases of “bad apples in the internet economy” from ripping off consumers.

“We’ve empowered the FTC to take action against any company that might act in any anti-competitive way,” said Pai. “The consumer is going to be protected and we preserve the incentive for companies to build out better, faster, and cheaper internet access. Consumers need to be protected and the FTC is the only one under current law that can do that.”

But Pai’s claims don’t ring true to Gigi Sohn, who served as a counselor to former FCC Chairman Thomas Wheeler.

Sohn

“Should consumers or innovators have a complaint about fraudulent, discriminatory, privacy violating or predatory pricing practices of broadband ISPs, the FCC won’t answer their call,” Sohn said. “For the first time since the creation of broadband, the agency will not take responsibility for protecting consumers or competition.”

Neither will the FTC, which warns would-be complainants upfront on its website: “The FTC cannot resolve individual complaints, but we can provide information about what next steps to take,” which is equivalent to calling the fire department because your house is on fire and receiving a booklet that explains how to acquire and use a hose to put the fire out yourself.

ISP’s no longer need fear having a federal agency like the FCC following every consumer complaint. The FTC claims it may share your complaint with local, state, federal, and foreign law enforcement partners, or may be used to investigate cases or hold a legal proceeding. But unlike the guidelines the FCC answered to under the Obama Administration, there is no requirement to force a provider to quickly respond to you, no easy access to statistics detailing received internet-related complaints (such as the tens of thousands of complaints about data caps, throttling, and net neutrality collected by the FCC under the last administration), and no significant likelihood of action. Want an example? The FTC has been charged with ending the scourge of automated robocalls that generated more than 275,000 complaints last year… from the state of Ohio alone. In the last two years, the FTC issued press releases touting cases brought against a total of three alleged telemarketers. Has your phone stopped ringing?

Under the Trump Administration’s FCC, it is open season on consumers, and the complaint department is now closed.

Rep. Trujillo — a friend of CenturyLink

Rep. Carl Trujillo (D-Santa Fe), a New Mexico legislator embroiled in a hotly contested primary for New Mexico’s state legislature, is accused of violating the state’s campaign finance laws by concealing contributions from companies including CenturyLink, the single biggest contributor to his campaign during his last race in 2016.

Denie Cordova of Alcade filed a formal complaint with the New Mexico Secretary of State on Monday.

“Mr. Trujillo failed to disclose thousands of dollars on his campaign finance reports from donors related to CenturyLink and the oil and gas industry, which is against the law,” Cordova said. “Because his failure to disclose these contributions relate to these two industries solely, I believe his failure to disclose was willful.”

Cordova tracked where Trujillo’s campaign funds originated and discovered CenturyLink, along with several companies in the oil and gas industry, may be secretly funneling campaign money to Trujillo with the help of Rep. Patricio Ruilobo, a fellow Democrat who has contributed thousands of dollars to Cordova’s campaign.

“Unopposed again this year, Mr. Ruilobo has suddenly raised over $17,000, or a third of the amount he has raised since being initially elected,” Cordova wrote. “Mr. Ruilobo has received numerous contributions from businesses who have never donated to his campaign, but are contributors to Mr. Trujillo, such as Occidental Petroleum ($2,500), Chevron ($1,000); and Encana ($1,000). Did Mr. Trujillo funnel contributions from oil and gas through Mr. Ruilobo’s campaign account? These ‘pass-through’ contributions are illegal in the state of New Mexico.”

The complaint also alleges CenturyLink’s lobbyist, Johnny Montoya, gave Trujillo free baseball tickets that were never reported on disclosure forms. But in a more serious allegation, Cordova claims both CenturyLink and Trujillo violated New Mexico law by accepting money from the telecommunications company above the corporate limit.

Trujillo’s defense of CenturyLink’s contributions also raised eyebrows.

“One campaign contribution came from a telecommunications PAC [affiliated with CenturyLink], the other came from a telecommunications [company – CenturyTel], therefore, there is no violation,” Trujillo said. “She is claiming that they are from the same company, ($500 from CenturyLink, $2,500 from CenturyLink lobbyist Katherine Martinez) and that is completely untrue.”

CenturyTel is the old corporate name for what is now known as CenturyLink. Although the two entities still exist for business and regulatory reasons, they are both essentially the same company. Corporations often skirt campaign contribution laws by making multiple donations as an individual company, through an affiliated Political Action Committee (PAC), and through personal contributions from corporate executives and occasionally employees. While each distinct contribution is reported individually on disclosure forms, politicians do the math and understand where the combined contributions are coming from.

As for the baseball tickets, Trujillo waived them off.

“That is not a campaign contribution, there is no place to amend my report, it’s all within the limits of the Campaign Finance Act, so there’s no violation there,” he told the Los Alamos Monitor.

Trujillo has been criticized by some in his district, which covers a largely rural area from Santa Fe to the northern half of the county, for being too corporate friendly, a charge Trujillo strongly disputes.

Montoya

“I am probably the number one representative or senator in the state that receives the vast majority, 90 percent of my contributions, from grassroots organizations, individuals and small businesses,” he told the newspaper. “I raised a lot of money from many small businesses and individuals within the district. Those characteristics of my campaign funding are completely untrue.”

But at least some of Cordova’s charges seem to be accurate, particularly regarding large donations from energy companies like Encana Gas and Oil, which Trujillo had to send back.

“I sent many contributions back throughout my tenure as a legislator. I have probably sent 30 to 40 contributions back,” Trujillo said. When asked why he has had to return so many corporate contributions, Trujillo answered, “Because of what we’re dealing with now. Campaigns that have nothing to grab onto make desperate attempts to make somebody look bad. People refuse to run for office because of tactics like this.”

Trujillo also turned the spotlight back on Cordova and her complaint, which he called “suspicious,” noting it was a very detailed add filed by someone who lives outside his district. A Facebook page for Ms. Cordova reveals no political leanings or obvious interest in politics.

His opponent in the primary, Andrea Romero, has herself been the subject of some controversy. In February, a complaint filed by Northern New Mexico Protects claimed Romero spent over $1,850 on a single dinner, not including $307 for alcohol and baseball tickets, during a lobbying trip to Washington, D.C. Romero is also under investigation in her role as former executive director of the Regional Coalition of LANL Communities — a group of towns that have banded together to deal with issues surrounding the Los Alamos National Laboratory. New Mexico’s state auditor is currently auditing the books of the coalition over financial irregularities relating to travel expenses.

Romero accused her complainant of having political connections to Trujillo and claimed the entire affair was politically motivated. Trujillo claims essentially the same, but has not directly accused Romero by name.

The larger issue for ethics in government observers is the money laundering of political campaign contributions to skirt campaign finance laws. The fact that many of Trujillo’s donors suddenly began making contributions to an Albuquerque legislator that has faced no significant opposition and has raised very little money in the past was intriguing. When that money turned into a legislator to legislator campaign contribution from Ruilobo to Trujillo, it looked suspicious.

Campaign finance reform advocates call it a shell game and a way to undermine campaign finance limits. But they admit in New Mexico it is both legal and common.

The wireless industry’s largest lobbying group, CTIA-The Wireless Association, filed suit in a Utah federal court Wednesday to stop the state from imposing a 36 cent surcharge wireless carriers like AT&T, Sprint, and Verizon Wireless cannot easily pass on to their customers.

The new fee, retroactively charged from the beginning of 2018, applies to all telephone lines other than prepaid wireless phones, and represents the chief funding mechanism for Utah’s Universal Public Telecommunications Service Support Fund, which supports providing service in high cost rural areas of Utah and the expenses attributed to Utah’s participation in the federal Telephone Lifeline program, which provides subsidized telephone service to the poor.

The CTIA is upset because its member companies will have to assess the surcharge on almost every customer with a landline or wireless postpaid phone in the state, including customers getting free wireless service through the federal Lifeline program. The CTIA argues that puts an unfair burden on companies, especially those asked to either eat the cost of the surcharge or attempt to collect 36¢ a month from Lifeline customers that currently do not receive bills from their providers.

The lobbying group called its options “a Hobson’s choice” between two bad ideas. Because wireless carriers don’t want to absorb the surcharge and pay for it out of current revenue, the alternatives are to either pass along the cost to customers or raise rates. CTIA’s complaint predominately focuses on what it calls the “absurd real world results” of wireless companies struggling to get paid back the 36¢ monthly surcharge:

Participants in these [Lifeline] programs are frequently members of “unbanked” communities, and even a monthly rate of $0.36 may prove an insurmountable obstacle to participation in the Lifeline program. Those without bank accounts or a credit card have no effective means to remit a surcharge of $0.36. If they choose to mail cash, they would have to spend more on postage than on the surcharge itself. Or they may need to purchase a money order, if such are available in increments of $0.36, and pay both the charges applicable to obtaining a money order and the cost of postage – all well in excess of the $0.36 due under the PSC Rule.

[…] The PSC Rule has a chilling effect on the introduction of service offers in the market today. Carriers that have an interest in introducing innovative service plans that have or are likely to have intrastate revenues near, at, or below $0.36 will have to determine whether to select a collection method illegally imposed on them under the PSC Rule or to not offer such service plans at all.

[…] Further, requiring the underlying wireless carrier to pay the required $0.36 per month UUSF surcharge in such third-party retail prepaid situations would not cure this discrimination, as the wireless carrier generally has no billing relationship with the end-user customer, and therefore no ability to pass the charge through to the end-user customer. Requiring wireless carriers to remit the UUSF surcharge in those situations, notwithstanding their inability to pass the surcharge through to the end-user customer, is equally discriminatory vis-à-vis service providers who can pass through the UUSF surcharge to customers.

The CTIA doesn’t dwell on the real world impact of its member companies, with revenues well into the billions of dollars, simply absorbing the 36¢ a month charged to their Utah customers as a cost of doing business. Instead, the lawsuit argues Utah cannot apply USF surcharges in a way that is “inconsistent with the requirements related to the federal universal service Lifeline program.”

CTIA argues the surcharge, when applied to Lifeline customers, unfairly increases rates for the most-needy. But the lobbying group was equally concerned the charges would not apply to competing prepaid wireless providers, because the Utah Public Service Commission lacks statutory authority to impose surcharges on those providers. The CTIA argues the surcharge is discriminatory and not competitively neutral, because the it allows third-party retailers of prepaid wireless telecommunications services like Tracfone to avoid the surcharge.

The CTIA is seeking a permanent injunction to stop the surcharges and has asked the court to order the defendants — essentially Utah’s taxpayers — to pay its court costs.

A growing number of Frontier Communications employees are sharing their dissatisfaction working at a phone company that continues its decline with nearly $2 billion in losses and more than a half-million customers departing in 2017. Employees who find themselves in such challenging situations may explore legal remedies for hostile work environments.

According to Perelson, using proactive communication in the workplace increases the productivity of your staff and helps you stay ahead of potential speed bumps that can impede project completion.

Workers describe a deteriorating workplace with increasingly hostile and disappointed customers that want to take their business elsewhere, and employees that are increasingly frustrated and predict the company is headed towards bankruptcy.

“This is a company in a long-term decline, which is good and bad for workers and customers,” said ‘Geoff,’ a Frontier employee in California who wished to remain anonymous for obvious reasons. “It’s good because you know there is still some time left in case of a miraculous turnaround, but bad because like a glider slowly descending toward the ground, it is inevitably going to land or crash at some point in the not-too-distant future.”

Geoff was formerly employed by Verizon Communications before Frontier completed an acquisition of Verizon’s landline, fiber, and wireline networks in California in 2016. Now he’s employed full-time as a network engineer for Frontier.

“The trouble started almost immediately, because Verizon’s methodical, if not bureaucratic way of doing business was replaced with Frontier’s never ending chaos,” Geoff told Stop the Cap! “We were warned by techs in Connecticut, Indiana and West Virginia that Frontier’s management was very uneven, changes direction on various executive whims, and is very disconnected from mainline workers, and boy were they right.”

Geoff and his team, responsible for managing Verizon’s FiOS fiber network in Southern California, were split up after Frontier took over and put under severe budget restraints, which have grown tighter and tighter as Frontier’s economic condition deteriorates.

“Under good leadership, cost cutting can be an effective way to deal with wasteful, creeping spending that sometimes happens at large companies when budgets still reflect the priorities of several years ago, but Frontier just wants costs cut willy-nilly, including investments that actually save the company a lot of money, time, and frustration,” said Geoff. “Those cuts are also responsible for the deteriorating infrastructure and increasing failures customers are experiencing.”

“As a network engineer, I can see each day what Frontier’s network looks like and I talk to many other engineers at this company who are seeing much the same thing in their areas,” Geoff said. “If you live in an area where Verizon upgraded its network to fiber before selling it to Frontier, you will probably experience the least number of service problems, although the company’s billing systems are still troublesome. If you live in what Frontier calls its legacy (copper) markets, it’s a real mess and things are not getting better near fast enough, and customers are going elsewhere.”

Geoff’s views are shared by a growing number of hostile employee reviews being left on websites like Glassdoor. When cumulatively examined, those reviews show common points of complaint:

• Customers are treated to aggressive sales tactics, offered products and services they cannot use, while rushed off the phone when reporting service problems.
• Management is out of touch with employees and issue directives for new policies and services that cannot be easily managed from antiquated software and systems still in use at the company.
• Because company is performing poorly, managers can be very protective of their employee teams and attempt to keep them independent and insulated from management chaos. New employees perceive this as ‘cliquish’ and they often do not do well when assigned to one of those teams, as they are viewed with suspicion.
• Major cuts in training budgets have left employees with inadequate knowledge of Frontier’s own systems. In sales, this results in customers being sold plans they cannot actually get in their areas, incomplete orders, misrepresentation of pricing and product information, and customer trouble tickets being accidentally erased or left incomplete. Constant process changes are expected to be implemented by employees not trained to implement or manage them.
• No significant upgrades are coming, but employees are trained to tell customers to be patient for better service that is unlikely to be forthcoming.

Many employees share the view, “we’re all in the same boat, except that boat is sinking.”

The Better Business Bureau offers this advisory about Frontier Communications, which received a grade of “F” from the consumer organization.

“Sally,” who works at a Frontier internet support call center, tells Stop the Cap! she has noticed customers are getting increasingly hostile towards the company.

“The frustration level is enormous for customers and those of us tasked to help them,” Sally said. “Frontier markets itself as a solutions company and we sell a lot of ‘Peace of Mind’ support services for technology products, including our own, but sometimes the only answer to a problem has to come from the company investing in its facilities and not making excuses for why things are not working.”

Sally explains many Frontier customers do not have much experience troubleshooting technology problems.

“Most of my calls come from our rural customers who don’t have a choice in internet providers or are from lower and fixed income customers that cannot afford the cable company’s prices for internet access,” Sally said. “They know what they want to do with their internet connections but call us when they can’t seem to do it, whether that is sending email or watching video or using an internet video calling application to see their grandkids. You can only imagine what they feel when we tell them their DSL connection is unstable or their speed is too slow to support the application they want to use. We end up disappointing a lot of people because the internet and technology is moving much faster than Frontier is and our network just cannot keep up.”

Sally has been on the receiving end of profanity and a lot of slammed down phones, but there is little she can do.

“We can send a repair crew out but considering some of our lines are decades old, there isn’t much they can do about it,” Sally said. “This is a problem only management can solve and they’ve been distracted trying to deal with shareholders, acquisitions, and if you don’t mind me saying, being very preoccupied with their performance bonuses. We always know when another bad quarter is coming because of last-minute directives from top management designed to really push sales and hold on to customers to limit the damage. That is also around the time they start taking perks away from us in various cost-cutting plans. My co-workers are starting to leave because they don’t feel valued and do not want to work for a company in a long-term decline.”

“It seems like Frontier has just given up trying to compete with cable companies for internet services and now just sells internet to rural customers it can reach with the help of government subsidies,” adds Geoff. “It’s easy to do business with customers who don’t have any other choice for internet access.”

Bad results for Frontier DSL in Nevada. (Source: Elko Residential Broadband Survey)

Only six Frontier Communications customers surveyed in Elko, Nev. gave the phone company an “A” for its DSL service, while 42% flunked Frontier for what they considered unacceptable internet service.

The Elko Broadband Action Team has surveyed residential and business customers about broadband performance and found widespread dissatisfaction with Frontier Communications over slow connections and service interruptions.

“I’m pretty disappointed in them,” said Elko councilman John Patrick Rice.

Businesses and residential customers were in close agreement with each other rating Frontier’s service, with nearly 87% complaining they endure buffering delays or slowdowns, especially when watching streaming video. When browsing web pages, nearly three-quarters of surveyed customers still found service lacking.

Among the complaints (Res)-Residential (Bus)-Business:

• Service interruptions: 74.43% (Res)/79.69% (Bus)
• Too slow/not receiving advertised speed: 72.16% (Res)/65.75% (Bus)
• Price: 63.64% (Res)/37.5% (Bus)
• Customer Service: 38.07% (Res)/45.31% (Bus)

The Nevada Attorney General’s Bureau of Consumer Protection received a steady stream of complaints about Frontier’s DSL service in the state over the past year.

Answering the survey question, “would you be interested in faster download and upload speeds at prices that are somewhat comparable to what you are paying now?” 97.87 percent of residential respondents said yes.

Frontier representatives responded to the survey results at a March 27 Elko City Council meeting.

“Frontier did recognize it could improve upstream and downstream flow and educated the council and the public on some of the issues,” Elko assistant city manager Scott Wilkinson said.