An endangered species?

[Update: 7pm ET — Shortly after we went to press with this story, The Oregonian published its version confirming our story — the install fee is up from $79 to $500.]

A Frontier customer service representative e-mailed Stop the Cap! yesterday informing us Frontier has plans to boost the installation fee for Frontier FiOS TV service to a whopping $500 per household.

“If that’s not a big enough shock, they were originally not even going to tell customers about it,” the source tell us. “They were trying to get this started on March 1st but the legal department has put a kibosh on the whole ‘not notifying the customer thing’.”

Now, the installation fee has been pushed back pending appropriate customer notification.

Stop the Cap! contacted Frontier yesterday and today looking for a statement regarding this, but we’ve received no response from representatives in the midwest and western regions despite multiple requests.

A Google search for Frontier FiOS instead turns up Frontier's paid advertising for free satellite TV.

Frontier’s FiOS service, adopted from the sale of Verizon landlines last year, has certainly seen a dramatic decline in visibility over the past several weeks.  Google users searching for “Frontier FIOS” will find paid advertising from Frontier directing them instead to a free satellite dish offer.

Frontier’s website buries all mentions of FiOS in fine print at the bottom of web pages promoting DirecTV instead.  In fact, we cannot find any Frontier FiOS website or an invitation to order the service directly from Frontier.

Slapping an enormous installation fee on customers would be one way to discourage customers from signing up for the service, which was rocked by a $30 monthly rate increase announcement earlier this year.  Frontier officials claim to remain undecided about how they intend to handle the fiber-to-the-home service as late as last week’s 4th quarter earnings conference call.

But should a $500 installation fee become reality, it’s clear the company doesn’t want customers beating down their doors to sign up.

Frontier officials have noted the number of customers served is too small for the company to earn volume discount pricing.

Can’t get enough Jersey Shore?

Customers of Verizon FiOS can now watch selected full length episodes of that, and several other MTV series free of charge on a new online video website for authenticated cable/satellite customers.

MTVNow delivers at least a handful of episodes of their regular series — mostly reality shows.

“It’s clear that today’s consumers want to access their video programming anytime, any place, and Verizon continues to make that possible with online programming from partners like MTV Networks,” said Terry Denson, vice president of content strategy and acquisition for Verizon.

FiOS TV customers will also get access to MTV Networks’ Comedy Central and Nickelodeon online soon.

Verizon customers will be authenticated by using their registered Verizon Online user names and passwords that verify they are existing pay-television subscribers.  If a customer only receives Verizon’s broadband service, they will not be able to access the service.

It’s part of the industry’s TV Everywhere project designed to stop customers from cord cutting their cable/satellite television packages.  By locking out access to popular shows, providers hope to avoid losing customers to a broadband environment where television shows are available free for watching.

But Verizon still faces licensing restrictions that limit the number of shows available to viewers at any one time.  Only about seven episodes of Jersey Shore, for example, were available.  Other series were limited to the last month of programming — a very familiar experience for Hulu visitors.  So are the commercials.

In addition to “Jersey Shore” and “Teen Mom 2,” Verizon and MTV Networks are providing FiOS TV customers with online access to MTV shows like ” Teen Cribs,” “True Life,” “The Real World: New Orleans” and “I Used To Be Fat.”  MTV will make additional shows available online soon including “The Hard Times of RJ Berger,” “Cribs,” “The Real World: Las Vegas” and “Rob Dyrdek’s Fantasy Factory.”

Verizon customers who subscribe to FiOS TV are able to watch the MTV shows on their personal computers or laptops – at home or away – using any broadband connection.  Using their Verizon Online user names and passwords, FiOS customers can access the online programming at either www.verizon.com/fiostvonline or www.mtv.com/tve.

"Too rich for my blood."

How do you cushion the blow of a 46-percent rate increase for your fiber-optic television service that will cause consumers to flee?  Don’t tell them about it.

Regulators in the Pacific Northwest are beside themselves over news that their new local phone company, Frontier Communications, is going to raise rates $30 or more for its FiOS cable television service.  The company earlier promised no rate increases as a result of its purchase of landlines from Verizon.

But the only way customers in Oregon know about the impending rate hike is from The Oregonian newspaper; Frontier has yet to formally notify subscribers of the dramatic price hike.

The newspaper reports the higher rates were supposed to take effect at the beginning of the year for new customers, and Feb. 18 for current customers with expiring contracts.

But Frontier has not yet notified its customers of the rate increases.  Spokeswoman Stephanie Beasly told the paper the company was working on “specific messaging.”  Namely, how does Frontier tell customers their bills are going up $30 and still have them as customers after that.

Until the deck chairs can be re-arranged, the rate increase will not take effect.  But Beasly emphasized it eventually will.

Washington County regulators (in Oregon state) are questioning Frontier’s justification for the rate hikes, namely “increased programming costs,” noting their competitors are charging far less for the same type of service:

Bend Broadband, an Oregon system providing a similar level of programming and services as Frontier, is able to manage its costs and keep subscriber rates at or below the range of large cable operators and significantly below those that Frontier has announced.

Some regulators are wondering if they were deceived by the company’s earlier promises to deliver “competitive prices” in the region.  Metropolitan Area Communications Commission administrator Bruce Crest wrote the company suggesting they are not living up to their end of the deal:

However, Frontier’s recent decision to place a significant and unjustified rate increase on its customers, along with the incongruity of Frontier’s justification for that increase against the statements made in 2009 and 2010, makes us question whether Frontier has, or ever had, a good faith commitment to fulfill the terms of the franchise.

Frontier responded to the Commission’s inquiry by essentially telling them to bug off — they have no authority to question Frontier’s prices. Company vice-president Steven Crosby waved-off MACC’s concerns:

While Frontier recognizes that the MACC is interested in any Frontier FiOS video price increases and alternative offerings Frontier provides to its customers, Frontier respectfully notes that the MACC does not have authority to regulate the rates Frontier may charge for FiOS video service, nor does the MACC have authority to regulate Frontier’s commercial relationships with content providers. Accordingly, Frontier reserves the right to decline to respond to inquiries directed to topics that are beyond the MACC’s jurisdiction and may be competitively sensitive. Furthermore, Frontier objects to the MACC’s letter of January 20th to the extent that it contains characterizations and questions that misstate facts and conclusions or are otherwise misleading.

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MACC Letter to Frontier FiOS

Sibley County's fiber future?

It takes a lot of chutzpah to vilify a community’s proposed fiber to the home network when you’ve managed to completely screw up the one you’ve acquired from another company, but Frontier Communications tries anyway.

Instead of relying on Frontier’s overpriced (and soon to be rationed) slow speed DSL from an earlier era, Sibley County, Minnesota is proposing a municipally owned fiber project that will bring much needed connectivity to area businesses, homes, and farms.  Community Broadband Networks found a certain phone company in strong opposition.  Frontier warned county officials not to make the mistake of delivering better service than they can provide themselves:

As a provider of telephone, internet, and video services to our customers in the Green Isle, Arlington, and Henderson areas, Frontier Communications is obviously interested in the “fiber to the home” proposal that has been presented. As a nationwide provider, Frontier is aware of other efforts by municipalities of various types to build and operate their own telecommunications network. While these proposals are always painted in rosy tones, it is important for officials to carefully review the underlying assumptions and projections that consultants make when presenting these projects. Unfortunately, history tells us that the actual performance of most of these projects is significantly less positive than the promises. Often times, these projects end up costing municipalities huge amounts of money, and negatively impact their financial status and credit ratings.

Frontier even “runs the numbers” on the county proposal.  But Sibley County should carefully consider the source.  This is the same company that couldn’t manage its fiber to home network it acquired with landline purchases from Verizon Communications.  Instead, this month it dumped $30 rate increases on its fiber customers in the Pacific Northwest and Indiana.

Frontier has a vested interest in maintaining the status quo, which means leaving many rural Minnesotans with one choice for broadband: Frontier.

Of course the company opposes the county’s fiber project — they would be crazy not to, considering it will cost them many of their customers.

Cherry-picking a small percentage of the municipally-owned networks facing difficulties is just a scare tactic, and doesn’t prove their case.  County officials should consider the growing number of projects that are a breath of fresh air for the communities they serve, all at no risk to taxpayers: projects like EPB in Chattanooga, Greenlight in Wilson, or Fibrant in Salisbury — both North Carolina.

Or DSL past?

Those projects all faced the same provider-financed campfire scary stories, too — just because incumbent cable and phone companies didn’t want the competition.

When wild claims about failing projects don’t work, Frontier officials hilariously offered up this absurdity in a story in the Arlington Enterprise that ran Dec. 16.

“What we can do is provide the same speed of service as fiber can provide,” said Todd Van Epps, Frontier’s regional manager.

Really, on Frontier’s pre-existing, decades-old copper wire network?  The same one that Frontier currently sells “blazing fast/up to” 3Mbps DSL service on for $50 a month?

In comparison, the fiber network proposed for Sibley County would deliver at least 20/20Mbps service for less than $50 a month.  That fiber network is infinitely upgradable as well, with service up to 1 gigabit per second if a customer needed that much.

Our advice when dealing with Frontier’s promises: get them in writing.

When a company tells customers to throw away their Frontier FiOS fiber and switch to a competitor’s satellite television service or else pay $30 more per month for basic cable, their helpful advice about how to manage the fiber business should be taken with a grain of salt.

Time Warner Cable customers in the Albany, N.Y. area are complaining about the cable company’s latest rate increase which will cost most bundled customers at least $7 a month more in 2011.

Time Warner blamed the rate increases on investment and upgrades to their facilities and increased programming costs.

The company’s heavily marketed $99 promotion is also coming under fire in the area, because many customers don’t qualify for it.

The Albany Times-Union reports many area residents were invited to call the company “to see how they could lower their bill.”  Time Warner has marketed a one year promotional offer providing the company’s triple-play bundle of phone, Internet and cable-TV service for around $33 for each service, or $99 a month.  But when customers called the company, they were told they don’t qualify for the promotion.

Michael Malachowski, a Delmar resident, learned the hard way that winning a promotional offer from the cable company wasn’t going to be as easy as he thought.

Malachowski currently has a bundle of services with the company and spends around $140 a month.  But he learned he can’t qualify for Time Warner’s $99 offer  — it is available only to new customers or those with a single service.

Other area customers shared similar stories with the newspaper.

One way around the roadblock is to threaten to cancel.

Albany customers are getting some additional powers to negotiate with the imminent arrival of Verizon FiOS TV, coming to Bethlehem, Scotia, and Colonie.  A similar bundle of services from Verizon is a lot cheaper than Time Warner’s $140 a month.  The fiber to the home network offers an online promotion for all three services for $84.99 a month for at least the first year.

Even if FiOS is not an option, Time Warner bends the rules when customers are on the verge of cutting their cord.