Customers promised big savings from dropping their old Verizon plans found tricks, traps, and speed reductions.

Beware of telemarketers bearing gifts.

Frontier Communications has embarked on a sales push to convince customers adopted from Verizon Communications to “upgrade” their grandfathered Verizon broadband plans to new offerings from Frontier.

But Stop the Cap! has received more than a dozen complaints from customers who discovered their broadband speeds were slashed, sometimes significantly, after taking Frontier up on one of their offers.

“Whenever you call Frontier customer service, they always have an offer for you that they claim will save you money and I fell for it,” Tim Falston says.

Falston has been a Stop the Cap! reader since he learned Frontier Communications was buying out his Verizon landline in 2010.

“Frontier promised me nothing would change after they took over from Verizon, but of course a lot changed when I agreed to switch to a new bundled service package Frontier was offering for my phone and Internet service,” Falston writes.

Falston thought he was keeping his 8Mbps DSL service Verizon had been selling him for nearly five years, only now he would save at least $10 a month bundling some of Frontier’s other products into his package. A few days after signing up, he found his broadband speeds were lacking. It turned out Frontier reduced his speed to just under 3Mbps. A few days later, the company also mailed him a new DSL modem/router that he later learned came with a monthly fee that more than wiped out his “savings.”

“This was the worst decision I ever made, and Frontier never warned me the package I was signing up for cut my speeds more than half and stuck me with a modem I don’t want or need,” Falston said.

Unfortunately, when Falston called Frontier to switch back to his old plan, he was told it was no longer available and he had to choose from Frontier’s current services that came with higher prices and term contracts.

Surprise! Modem rental fee!

“It’s bait and switch and should be illegal,” Falston said. “I was told that everything about my service was to stay the same if I agreed to their bundle, and I think they figured most people have no idea about speeds and just accept what they are given, but I was never told about the modem or the rental fee that comes with it, and my old Verizon equipment worked just fine.”

Frontier won’t even sell Falston 8Mbps service, even though he had it for half a decade.

“They want to sell me 3Mbps and tell me that is all my line will support,” Falston complains. “That was after I finally convinced them to talk to me — the account is in the wife’s name and Frontier blocked me because of ‘security reasons’ until they spoke with her.”

Stop the Cap! recommended Falston schedule a service call and speak to a local technician about the problem. Experience shows employees on the ground far away from the customer service department can often cut through Frontier’s red tape. That worked for Falston who quickly got his old Verizon plan back after the technician made a few phone calls from Falston’s home.

“The tech shook his head and said he deals with these problems all day long and has managed to get customers back on old plans Frontier’s customer service says are long gone,” Falston said. “He told me specifically ‘do not change any plans you signed up for with Verizon — all of the offers from Frontier come at higher prices and fewer features.'”

So if Frontier has an offer you cannot refuse, refuse it anyway, at least if your old phone company was Verizon Communications. You are probably better off with what you have today.

Upgrade or else.

AT&T is now forcing some of their customers relying on the company’s traditional DSL service to upgrade to AT&T U-verse or face service suspension.

The latest customers impacted by AT&T’s forced upgrade are in parts of Connecticut.

“This is a reminder that within the next 30 days, your current service will change to AT&T U-verse High Speed Internet,” reads the letter mailed to customers facing the mandatory transition. Unfortunately, customers have to call AT&T to arrange for new equipment if they want their service to continue uninterrupted — existing DSL modems don’t work with U-verse.

Callers who dial the toll-free number in the letter get to order the U-verse equipment for free, but they routinely endure a hard sales pitch selling U-verse video and phone service as well, at a corresponding higher price. Customers are sent self-install kits at no charge and are offered the same rate they currently pay for DSL, sometimes with faster speeds on the U-verse network. But after one year, regular U-verse prices apply, and they are often significantly more expensive than traditional DSL service.

A Broadband Reports reader in Conn. shared a copy of the AT&T U-verse upgrade letter posted on that site's AT&T forum.

The promotional prices offered to Stop the Cap! reader Ralph were not as good as what he was currently paying for basic DSL on a promotion he purchased earlier.

“I am now paying $14.95 a month under the promotion I am on now and AT&T first tried to sell me a plan that cost $5 more,” Ralph writes. “They quickly agreed to keep my current promotional price after I told them about it, but what they will not tell me is what I will pay after the one year is up, nor can I find U-verse regular pricing on AT&T’s website.”

This special offer bundle comes with a surprise after the promotion ends -- a much higher bill.

AT&T is currently promoting Internet-only promotional pricing as follows: Basic Internet: $19.95, Express Internet: $19.95, Pro Internet: $19.95, Elite Internet: $24.95, Max Internet: $29.95, Max Plus Internet: $34.95, Max Turbo Internet: $44.95. We could not find a disclosure of what the regular prices would be after the one-year contract expired, and that bothers Ralph.

“I realize they are going to match my 3Mbps service on U-verse, but somehow I suspect the regular U-verse price is going to come higher than the DSL service I have been using,” he says.

Ralph’s intuition is correct. Stop the Cap! called AT&T at the number provided on the letter and spoke with a customer service representative at the AT&T Web Sales Center. Although AT&T will ship the required equipment (a wireless router/modem combo) at no charge, AT&T will eventually make that money back charging customers higher prices for Internet service.

Current regular pricing for Ralph’s DSL service after his promotion ends will cost him $24 a month for 3Mbps service.  U-verse charges $38 a month (off promotion) for the same speed service — a $14 monthly difference.

“That sucks,” Ralph said after we shared the news. “Why should I have to change what works fine right now?”

AT&T says keeping DSL in certain U-verse upgrade areas is not possible. In fact, AT&T’s letter warns, if customers do not call to arrange for the U-verse “upgrade” by a certain date, their broadband service will be suspended. That could be a problem for customers who also use their broadband account with an Internet-based phone line.

“There goes 911 or any other emergency calling,” Ralph reminds us. “Thanks, AT&T.”

Some customers who have completed their U-verse upgrade report AT&T messed up their subsequent billing, charging full price instead of an agreed-upon promotion. Slickdeals members report AT&T often requires constant reminding to fix billing errors that generally hand customers higher bills than they expected.

“I am trying real hard to figure out how this represents the ‘next evolution of communications’ AT&T writes about in their letter,” Ralph concludes. “All I am going to eventually get is a much higher bill for a service I don’t want or need. I guess it’s time to call the cable company again.”

Northern Minnesota's Paul Bunyan Communications is threatened by FCC reforms that they claim favor larger phone companies.

Northern Minnesotans will have to wait longer for broadband after a telephone co-op announced it was suspending its $19 million broadband expansion project because funding is being diverted to more powerful phone companies like AT&T and Verizon — neither of which have any concrete plans to improve rural wired broadband.

Bemidji-based Paul Bunyan Communications, which serves 28,000 hearty Minnesota customers, has been working on broadband expansion for several years, bringing broadband to customers who have known nothing except dial-up since the Internet age began. Only now the project is threatened because of well-intentioned plans by the Federal Communications Commission to expand rural broadband, but in ways that cater primarily to larger phone companies that lobbied heavily for the changes.

At issue is Universal Service Fund reform, which plans to divert an increasing share of the surcharge all telephone customers pay away from rural basic phone service and towards broadband expansion in rural America.

Paul Bunyan used their share of USF funding to scrap the company’s existing, antiquated copper-wire network in favor of fiber optics. Other phone companies have traditionally used the money to keep their existing networks running. Now the independent phone company says large phone companies like Verizon and AT&T have successfully changed the rules in their favor, and will now benefit from a larger share of those funds, ostensibly to expand broadband to their rural customers.

Bissonette (Courtesy: MPR)

But neither AT&T or Verizon have shown much interest in rural broadband upgrades. AT&T, which recently announced it concluded its U-verse rollout in larger cities, has also thrown up its hands about how to deal with the “rural broadband problem” and plans no substantial expansion of the company’s DSL service.

Verizon also announced it had largely completed the expansion of FiOS, a fiber to the home service. Verizon has also been discouraging customers from considering its DSL service by limiting it only to customers who also subscribe to landline phone service.

Verizon Wireless has introduced a wireless home broadband replacement that costs considerably more than traditional DSL, starting at $60 a month for up to 10GB of usage.

As a result of the funding changes, Paul Bunyan is reconsidering plans to expand its broadband, phone and television services to Kjenaas and about 4,000 other residents in rural Park Rapids and a township near Grand Rapids.

It may also have to cut workers.

“It’s kind of ironic,” Paul Bunyan’s Brian Bissonette tells Minnesota Public Radio. “The mantra of these changes is to create jobs. It’s killing jobs.”

Minnesota Public Radio explores how rural Minnesota broadband is being threatened by a telecom industry-influenced plan to divert funding to larger companies like AT&T and Verizon for rural broadband expansion those companies have no plans to deliver. (May 23, 2012) (4 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Verizon has a moratorium on further expansion of its fiber to the home service except in areas where it has existing agreements to deliver service.

Virtually every mayor in the urban centers of upstate New York is accusing Verizon Communications of redlining poor and minority communities when deciding where to provide its fiber-to-the-home service FiOS.

Now they are telling the Federal Communications Commission and Department of Justice to become more closely involved in reviewing a proposed anti-competitive marketing partnership between the phone company and some of the nation’s largest cable operators.

The mayors are upset that Verizon has chosen to target its limited FiOS network primarily on affluent suburbs surrounding upstate New York city centers.

“Verizon has not built its all-fiber FiOS network in any of our densely-populated cities. Not in Albany, Buffalo, Syracuse, Binghamton, Kingston, Elmira or Troy,” the mayors say. “Yet, Verizon has expanded its FiOS network to the suburbs ringing Buffalo, Albany, Troy, and Syracuse, as well as many places in the Hudson Valley, and most of downstate New York. As a result, the residents and businesses in our cities are disadvantaged relative to their more affluent suburban neighbors who have access to Verizon’s FiOS, providing competitive choice in high-speed broadband and video services.”

The mayors fear the reduced competition that will come from the marketing partnership between the phone and cable industry will eliminate any pressure on Verizon to expand its fiber optic network into more New York cities. The agreement allows Verizon Wireless customers to received significant bundled discounts when they sign up for cell phone service and a cable package from Comcast, Time Warner Cable, Cox, or Bright House Networks. No corresponding discount is available to a Verizon Wireless customer choosing to bundle Verizon FiOS, putting the fiber service at a competitive disadvantage.

“These commercial agreements appear to eliminate any incentive that Verizon might have had to expand its all-fiber network to our high-density urban centers,” the mayors say. “After all, Verizon Wireless, a subsidiary of Verizon Communications, will now be able to sell Time Warner’s video and broadband service as part of their bundled package in our communities.”

That leaves most with Verizon’s DSL service, a product Verizon has been marketing less and less to its customers. The company recently announced it would no longer sell standalone DSL broadband, another point of contention for the mayors.

The mayors are concerned that Verizon’s deteriorating landline network will have profound implications for city centers, where tele-medicine, education, business, and entertainment services will all be left lacking if the fiber network is not extended.

“As you are well aware, high-speed broadband is critical to economic development and job creation, as well as improvements in health care, education, public safety, and civic discourse which is so essential to communal life,” say the mayors. “The economic health of our cities and our upstate region depends upon access to the same first-rate communications infrastructure available to the New York City metropolitan region and the suburban communities that ring our cities.”

The nine mayors are also questioning whether Verizon executives misled them when they claimed Verizon’s strong financial performance would allow the company to reinvest profits into further expansion of its FiOS network. Verizon executives have since admitted the company is indefinitely finished with FiOS expansion, except in areas where it already committed to build the fiber network.

Signing the letter were:

• Byron W. Brown – Mayor, City of Buffalo
• Stephanie A. Miner – Mayor, City of Syracuse
• Gerald D. Jennings – Mayor, City of Albany
• Matthew T. Ryan – Mayor, City of Binghamton
• Shayne R. Gallo – Mayor, City of Kingston
• Susan Skidmore – Mayor, City of Elmira
• Brian Tobin – Mayor, City of Cortland
• Robert Palmieri – Mayor, City of Utica
• Lou Rosamilla – Mayor, City of Troy

(The city of Rochester is served by Frontier Communications, which has no plans to deliver a fiber to the home network within its local service area.)

The Russian Federation has now passed the United States in fiber broadband deployment, with more than 8% of Russians now able to subscribe to fiber Internet service delivered directly to their home or building.  The United States is effectively stalled at 8%, with most Americans getting fiber broadband from Verizon Communications, community-owned providers, or a rural phone company co-op. Those are the findings of DSL Prime.

The most aggressive fiber broadband network upgrades are in South Korea and Japan, where between 40-60 percent of homes subscribe to the service, which often delivers speeds of 100Mbps or greater to residential users. But eastern Europe and Russia are also becoming increasingly important targets for fiber broadband manufacturers and vendors, who are selling the glass-fiber cables and network equipment to private telecommunications companies that used to be state enterprises.

The Baltic state of Lithuania has achieved a leadership role in Europe, with almost 30 percent of homes wired for fiber and growing.

Much of the initial fiber broadband buildout in eastern Europe and Russia is ironically the product of former socialist state planning that existed during the Communist era.  A large number of urban residents in the region live in government-constructed multi-dwelling units, part of larger complexes. That infrastructure reduces the costs of wiring large numbers of potential customers, and some providers deploy fiber to the building and use existing copper phone wiring within to reach individual units.  The short distance of copper has little impact, with speeds commonly ranging from 50-100Mbps.

Much like in the United States, urban areas are much more likely to be targeted for fiber than rural ones, and Russia in particular also depends on robust wireless service in some cities with decrepit wired telecommunications infrastructure.

DSL Prime‘s Dave Burstein argues that fiber upgrades are a good idea in the long run, but appreciates technology improvements in both DSL and cable broadband are helping bring higher speeds to consumers as well, so long as providers continue to invest in upgrading their networks.

As uploading becomes more important, no other current technology delivers as much upstream performance as fiber broadband, which can often equal downstream speeds.