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Audit Critical of NY Public Service Commission’s Performance Holding Telecom Companies Accountable

New York’s Public Service Commission (PSC) has come under fire in an audit by State Comptroller Thomas DiNapoli for “falling short” monitoring Charter Spectrum, Altice-Optimum, and Windstream, some of the state’s largest telecom companies.

“When New Yorkers flip on the lights, log in or make a call, they should be confident that someone is making sure these service providers are living up to their promises,” DiNapoli said. “My auditors found the state Public Service Commission was not doing enough to make sure utilities are holding up their end of the deal. PSC lacked critical equipment to do its job and rarely inflicted financial consequences when companies did not deliver. This has to change.”

The audit found that the regulator was often arbitrary in its orders, frequently failed to verify compliance of conditions imposed on providers, and quietly dropped compliance penalties including fines and merger revocation orders when the Commission faced pushback from companies.

Most of the audit’s criticism was directed at how the PSC managed the 2016 merger-acquisition of Time Warner Cable by Charter Communications (better known as Spectrum). The merger was approved after Charter agreed to ten deal conditions. But DiNapoli’s auditors found Charter failed to either complete four of these conditions or the PSC failed to verify they were completed. New York also lost the opportunity to collect $5 million from Charter’s failure to meet its rural broadband commitments. Instead, the PSC settled for $1 million and agreed to extend the deadline for Charter to expand its rural footprint, rewarding the company for its failure.

DiNapoli’s audit criticized the PSC’s verification procedures to determine if Charter adequately upgraded its cable systems to all-digital technology and raised broadband speeds by the end of 2018. Instead, the Comptroller found the Commission often took Charter’s word for it because it lacked the equipment and resources to independently verify Charter’s performance.

DiNapoli

The auditors also complained Charter offered scant evidence of compliance with two other terms of its merger approval agreement — wiring 50 community locations for free broadband service and investing at least $50 million to improve service quality for New York customers. The audit found no evidence Charter had wired any community locations for free broadband service, and the Commission failed to verify Charter made suitable investments in service improvements by its May 2018 deadline.

The Commission disagreed with several of the audit’s findings. The Commission claimed it held comprehensive proceedings to review the Charter acquisition of Time Warner Cable, imposed deadlines on the conditions, and eventually threatened to revoke Charter’s cable franchises for the company’s failure to comply with its orders.

“After pursuing escalating enforcement actions, the Commission in mid-2018, revoked the merger authorization,” the Commission responded. “This final enforcement action which revoked the company’s authorization to operate in in the state set an important precedent in New York — and across the nation — as this type of enforcement remedy had not been previously utilized in the regulatory community. Ultimately, the enforcement action was settled in a manner that resulted in a company commitment to expand its network entirely Upstate at an estimated cost of more than $600 million, more than twice the original estimate at the time of the merger approval, and $12 million paid by the company in lieu of penalty for additional network expansion work.”

The settlement effectively rendered the PSC’s fines against Charter for not meeting its rural broadband expansion deadlines moot. The Commission argued New Yorkers benefited more from Charter’s additional commitments to expand its cable footprint even further than originally envisioned.

“The Department utilizes penalty actions in a strategic manner to address violations,” the Commission explained. “It can be more beneficial to the state’s customers to obtain at shareholder expense expanded infrastructure, reductions in rates, or improvements in customer service rather than imposing financial penalties, and when that is the case, the [Commission] does indeed prefer the best response for customers.”

But DiNapoli’s audit noted that utilities are well aware of how to avoid paying fines by delaying their collection indefinitely through legal remedies. The audit slammed the PSC for walking away from collecting the fines owed, noting it “creates a lack of accountability and inspires little motivation to stay in compliance.” It also complained that regardless of what additional remedies the PSC extracted from Charter in a final settlement, tens of thousands of rural New Yorkers remain without the internet service they were promised, and will probably have to wait until as late as 2021 to get it.

“As it has been over three years since the merger was approved, network expansion should have already been provided to approximately 126,875 unserved or underserved premises based on the 2016 Commission Order approving the merger,” the audit found. “As of July 2019, Charter had only extended its network to 64,827 premises. Based on the original Order, 62,048 additional customers should have received access to these services. Charter now has until September 2021 to complete the network expansion of 145,000 premises previously scheduled to be completed by May 2020.”

The PSC also claimed it was distracted by legal actions it was taking surrounding the revocation of the merger’s approval, but after the case was settled, the Commission did undertake random speed testing to verify Charter had raised the broadband speeds as agreed in the merger agreement.

“Staff is confident that, in all areas field tested to date, the Charter network is capable of providing broadband service with download speed in excess of 300 Mbps, and the network itself has the potential to provide download speed beyond 1 Gbps. In fact, the company is marketing 1 Gbps service in much of the New York State service footprint,” the Commission argued.

The Commission confirmed Charter has not yet showed it is providing free broadband service to 50 community service locations, such as libraries, schools, or town halls. Charter initially refused to provide information about the service locations it selected for complimentary service “for privacy reasons.” But since the Commission placed no deadline on complying with this condition, it cannot penalize Charter for not meeting it on a timely basis.

“After multiple discussions, Charter finally provided a list of the 50 Anchor Institutions on July 17, 2019 and included bill copies and/or account screen shots demonstrating no charge for broadband service to these institutions,” the Commission responded. “Staff has been able to independently confirm that 33 of the 50 institutions are receiving broadband service from Charter at no charge. For the remaining institutions, Charter was asked to provide additional evidence that these institutions have been provided this complimentary service. If Charter cannot definitively demonstrate that the 17 institutions are receiving free service, Charter must select a replacement institution in order to fulfill this condition. Once Charter has provided this information, Staff will then begin its independent confirmation.”

The Commission also claims Charter met its obligation to invest at least $50 million in service improvements.

“In its May 2018 Annual Update, Charter provided a list of expenditures totaling over $90 million to comply with this condition. From that list, Staff identified completed projects totaling approximately $70 million that were dedicated to New York State. To verify these expenditures, Staff requested and analyzed actual invoices to determine whether the expenditures were made,” the Commission claimed.

The audit found some of these same issues also applied to two other telecom merger and acquisition deals impacting New York consumers. Altice’s acquisition of Cablevision’s Optimum cable service received approval with five deal conditions. The audit found the Commission failed to adequately verify compliance with three of those conditions, relating to internet speed and performance, free broadband service to 40 community institutions, and improvements to customer service requiring Altice to fix customer issues within two days. The Commission responded that its belated verification found no non-compliance, but the audit urged the Commission not to delay its verification procedures going forward.

FairPoint is now known under the name of its owner, Consolidated Communications.

FairPoint Communications offers telephone and internet service to 13,700 customers in a few rural communities in New York. Its new owner, Consolidated Communications, was required to implement eight deal conditions, and the audit found it failed to meet two of them. FairPoint was required to invest at least $4 million in network reliability and service quality improvements, including the expansion of internet access service to at least 300 additional locations. FairPoint submitted an expansion plan, and updated reports, including the number of locations completed which is claimed to be over 300.

But the audit found the Commission failed to verify these claims, citing inadequate staffing to visit FairPoint’s rural service areas to perform field inspections. The audit found the Commission didn’t bother to verify service improvements in any location. Another deal condition was designed to protect FairPoint’s “customer-facing” employees from layoffs. Soon after the merger, “FairPoint reclassified 9 of the 39 customer-facing positions and ultimately eliminated them, claiming they ‘duplicated work being performed in other work centers.'” The audit’s initial findings triggered an investigation by the PSC to determine if FairPoint violated the terms of its merger order. Ultimately, the Commission found it did not, but the audit warned the PSC was completely unaware of the employment changes until the audit discovered them.

The Comptroller’s Office made four recommendations the PSC should either implement or improve:

  1. Actively monitor all conditions listed in Orders to ensure all utilities are in compliance.
  2. Develop and issue Orders that include well-defined, measurable, and enforceable conditions. The Orders should also include the consequences for non-compliance, as appropriate.
  3. Verify the accuracy of data submitted by utilities that is used by the Commission or Department to evaluate or make decisions concerning the utilities. This includes data submitted for performance metrics, safety standards, and Utility Service Quality Reports.
  4. Develop policies and procedures that provide employees with standard monitoring steps to perform when overseeing compliance with merger or acquisition Orders, as well as steps addressing the auditing of data submitted in support of Utility Service Quality Reports.

DSL is Failing Rural America – Service Rarely Achieves FCC’s 25 Mbps Broadband Minimum

With the average speed of DSL service under 10 Mbps in rural counties across the United States, this legacy technology is disenfranchising a growing number of rural Americans and is largely responsible for dragging down overall U.S. internet speed scores. Only satellite internet offers overall lower speed and poor customer satisfaction, according to consumer surveys.

In some areas, customers cannot even get bad DSL service, despite the fact the Federal Communications Commission marks many of those addresses as well-served. According to a new report by the company Broadband Now, the FCC could be claiming at least 20 million Americans have access to robust internet service that, in fact, does not exist, especially in rural counties.

Citylab:

To get its estimate, the Broadband Now team manually ran 11,663 randomly selected addresses through the “check availability” tool of nine large internet service providers that claim to serve those areas. All in all, the team analyzed 20,000 provider-address combinations. A fifth of them indicated that no service was available, suggesting to the researchers that companies may be overstating their availability by 20%, said John Busby, the managing director of Broadband Now. The results also show that 13% of the addresses served by multiple providers didn’t actually have available service through any of them. They then applied these rates across the country to get their final estimate of 42 million people without broadband.

The disparity between their estimate and the FCC’s largely comes from the agency’s reliance on Form 477 reports, in which internet providers self-report the locations they serve. Providers can claim to serve the population of an entire census block if service is provided to just one household in that block. After the release of FCC’s May report, the agency’s Democratic commissioners dismissed the report, berating their colleagues for “blindly accepting incorrect data” and using the numbers to “clap its hands and pronounce our broadband job done.”

Across DSL-heavy rural Ohio, weary residents have nothing to clap about as they desperately look for something better than slow speed DSL from the local phone company.

“It’s a good day when Frontier DSL breaks 2 Mbps, although they advertise (and we pay for) 10 Mbps,” said Fred Phelps, a Frontier DSL customer for more than a decade. “In rural Ohio, it is take it or leave it internet access and we have no choice other than Frontier.”

Phelps has longed for Charter Spectrum to wire his area, next to a large farm operation, but the nearest Spectrum-connected home is a half-mile down the road. Phelps was lucky to get DSL at all. That aforementioned farm paid Frontier a handsome sum to extend its commercial DSL service to the farm’s office, putting Phelps in range for a residential DSL connection.

“It is always slow and frequently goes offline on rainy and snowy days because water is getting into the phone cable somewhere,” Phelps told Stop the Cap! “Service calls are a waste of time because the problem always disappears by the time the repair crew shows up.”

Cindy B (last name withheld at request) is in a similar situation in Ohio. She has a CenturyLink DSL line that averages 1 Mbps, although some of her relatives have managed to get almost 12 Mbps from CenturyLink closer to town.

Warren County, Ky.

“CenturyLink treats you like they are doing you a favor even offering DSL service in this part of Ohio. There is no cable TV service for at least 20 miles, so cable internet is out of the question,” Cindy tells us. “They have also made it crystal clear there are no plans to upgrade service in our area.”

She used to be a Viasat satellite internet customer but quickly canceled service.

“Satellite internet should be considered torture and banned as illegal,” Cindy said. “You can spend five minutes just trying to open an email, and the only time we could download a file was overnight, but even that failed all the time.”

Cindy and Fred are collateral damage of the country’s broadband dilemma. They are stuck with DSL, a service that often wildly over-claims advertised speed that it actually cannot deliver in rural areas. In much of rural Ohio, DSL speeds are usually under 6 Mbps, although companies often claim much faster speed on reports sent to the FCC.

“According to the FCC website, we should be getting 24 Mbps internet from Frontier and two other companies, but that simply does not exist,” said Phelps. “I really don’t understand how the FCC can rely on its own database for broadband speed that is not available and never has been.”

Cindy said her children cannot depend on their DSL line and have to do their homework at school or in the library, where a more dependable Wi-Fi connection exists.

“The problem is getting worse because websites are becoming more elaborate and are designed for people who have real internet connections, so often they won’t even load for us,” she said.

Warren Rural Electric Co-Op’s service area.

But according to the FCC, neither Cindy nor Fred live in a broadband-deprived area. For this reason, public funding to improve internet access is hard to come by because the FCC deems both areas well-served.

South of Ohio, in Warren County, Ky., a local rural electric co-op is not waiting for the State of Kentucky or the federal government to fix inaccurate data about broadband service in the rural exurbs around Bowling Green, usually stuck with slow DSL or no internet access at all. Warren Rural Electric Cooperative and Lafayette, Tenn.-based North Central Telephone Co-Op are working together to lay fiber optic cables to bring fiber to the home internet service to some broadband-deprived communities in the county. Warren RECC serves eight counties in south central Kentucky with over 5,700 miles of electric transmission and distribution lines, mostly in rural parts of the state. Two communities chosen for service as part of a pilot project — Boyce and September Lakes, are more than a little excited to get connected.

The Bowling Green Daily News reports that an informational meeting held in early February drew 300 residents (out of nearly 800) ready to hear more information about the project. Almost 150 signed up for future fiber service on the spot. Many more have subsequently signed up online. The new service will charge $64.95/mo for 100 Mbps service or $94.95 for 1,000 Mbps service. That is about $5 less than what Charter Spectrum charges city folks and is many times faster than what most phone companies are offering in rural Kentucky.

Results of Special Audit of Frontier in West Virginia Due Next Month As Thousands of Complaints Pour In

In West Virginia, thousands of complaints are rolling into the Public Service Commission regarding Frontier’s deteriorating phone and internet service. As the problems get worse, an ongoing state audit is documenting problems at Frontier as the state decides what it can do next. WCHS in Charleston reports that many West Virginians have only one choice for phone and internet service. (5:59)

Special Report: Multiple States Dealing With Dangerous Outages at Frontier Communications

Frontier’s office in Charleston, W.V.

Conditions within many Frontier Communications service areas are in a state of dangerous disrepair, with a growing number of disruptions to 911 services and a long wait for urgent repairs of Frontier’s deteriorating landline network that can now take over a month.

A growing number of states are documenting unprecedented service problems at Frontier Communications, the independent phone company providing phone and internet services to homes and businesses in 29 states. News reports predict that the company will be in bankruptcy court as early as March, hoping to discharge or refinance its staggering debts. But until then, some Frontier customers have been unable to reach 911 or rely on their rural landline service for remote medical monitoring, potentially putting their lives at risk.

One of the latest states to report serious deficiencies with Frontier’s service is Wisconsin. At a Dec. 20 public meeting in Mondovi to discuss the quality of service at Frontier, the city administrator heard harrowing tales of rural Wisconsin residents who frantically tried to call 911 and got nothing but a strange busy signal.

The Wisconsin State Journal reported that after Mike Wright’s shed collapsed on him under the weight of multiple feet of snow, his wife’s attempts to reach 911 from their Mondovi home failed again and again. A Frontier technician later admitted 911 was out of service for about eight hours that day. Frontier apparently did not notify customers or the media about the outage.

James Rud, a volunteer firefighter and the town’s street superintendent, told the meeting that was not an unusual situation. A few years earlier, a local dentist’s office repeatedly tried to reach 911 after a disabled girl choked on a piece of dental equipment. There was no answer.

“Everybody’s frantic because they’ve called five times and got a busy signal on 911,” Rud told the meeting, noting that when people call 911 and “nobody picks up, your anxiety level goes from a bad situation to a (really) bad situation.”

That day, 911 operators were waiting to take emergency calls. The calls failed to connect because of network problems at Frontier. Based on a review of state regulator complaints, the problems are growing in size and scope across multiple states served by Frontier. In Wisconsin alone, at least 93 serious complaints were filed with the state’s telecom regulator. The Department of Agriculture, Trade, and Consumer Protection received 405 pages of complaints between January 2019 through January 2020, mostly about poor quality phone and internet service in rural Wisconsin and very long wait times for often ineffective repairs. One complaint from Barneveld even included a physician’s letter emphasizing the urgent need for reliable landline service for a patient in poor medical condition.

There are indications Frontier satisfactorily handled some complaints… eventually, but many customers had to take extraordinary action to get the phone company’s attention about problems the company allegedly ignored for months.

One complainant turned out to be Marathon County IT director Gerald Klein, responsible for maintaining the county’s 911 system. He couldn’t get Frontier to respond to him either, eventually reaching out to Wisconsin state officials as a last resort. Klein complained Frontier was unresponsive “for months” to his county’s request to upgrade a crucial trunk line necessary to activate a new and improved 911 system. He had no idea who to appeal to next.

“Our 911 system is maintained by Frontier but the equipment is long since past end‐of‐life,” Klein wrote in a letter to the Wisconsin Public Service Commission on Dec. 27. “Can I file a complaint with the Wisconsin PSC or can you give me other advice on how to get Frontier’s attention? Is this something that should be given to the FCC?”

Lane

In West Virginia, perhaps the epicenter of Frontier’s epic problems, Public Service Commission chairperson Charlotte Lane, a former Kanawha County delegate, considers Frontier’s performance in her state to be unacceptable.

“Frontier has over 300,000 customers in our state,” Lane said, noting that for many West Virginians Frontier is their sole provider. “In 2019, we received nearly 2,000 complaints from Frontier customers about the company’s phone and internet service. We spend a lot of time responding to these complaints.”

Other media reports count the number of complaints regarding Frontier exceeding 4,000 “over the last couple of years.”

Lane is especially worried about the growing number of 911 outage incidents reported across West Virginia. There were at least a half-dozen high profile outages in 2019 that attracted media attention and scrutiny from local, county, and state legislators.

In July 2019, the PSC commissioned Schumaker and Company to perform an extensive management audit of Frontier Communications. Lane said the audit was critical because Frontier’s performance has been questionable since the company acquired Verizon Communications-owned landlines in the state back in 2010. Lane said Frontier has been cutting staff and maintenance workers in the state, but wanted a definitive report on the company so the PSC can intelligently oversee Frontier’s performance. That report is due to be released on March 19.

West Virginia “has a lot of power and we will exercise it,” Lane said.

The same may not be true in Wisconsin, where a well-funded deregulation campaign by AT&T and other phone companies in Wisconsin won bipartisan favor in 2011, with the full endorsement of then Gov. Scott Walker. One Republican state senator even promised that the new law would result in more than 50,000 new jobs and inspire telecom companies to invest in the state. In fact, AT&T, Frontier, and other phone companies have cut jobs over the last nine years and Frontier has invested little in upgrading its Wisconsin network to more reliable fiber optic technology. Telecom companies also claim deregulation frees them from having to deliver traditional copper-based landline service where most people are now using cell phones, and consumers can always exercise their choice by switching from a disappointing phone company to the local cable operator.

But rural residents in Wisconsin complain they often do not have the option of switching to cell phone or cable service, because there is no reliable cell coverage or local cable operator in many of the areas Frontier services. That has left them vulnerable to the consequences of ending universal landline service and a telecom industry that is investing in upgrades almost exclusively in urban areas.

Even Frontier officials now admit serving rural areas is becoming an unsustainable proposition for the phone company.

A statement from Frontier’s Javier Mendoza.

“Frontier serves only about ten percent of the state voice lines in its service area—and falling—but has 100 percent of the universal service obligation to serve the most rural and high-cost areas,” Frontier spokesperson Javier Mendoza said in a statement about its business in West Virginia in July 2019. “Our customer base continues to decline, while the cost of service per line has increased dramatically. This has resulted in an unsustainable model for providing service in rural and high-cost areas, manifesting in increased numbers of service complaints. We plan to reach out to the state’s leaders to collaboratively find solutions to this difficult challenge.”

West Virginia’s Public Service Commission is undertaking a comprehensive audit of Frontier Communications.

Deregulation in states like Wisconsin has allowed Frontier to escape some of the harsher consequences from regulators held responsible for ensuring customers have reliable access to basic phone service. That leaves many rural customers vulnerable to whatever goodwill exists at private telecommunications companies to continue offering service.

Observers suggest Chapter 11 bankruptcy will allow Frontier to shed its punishing level of debt many believe is responsible for Frontier’s ongoing lack of investment in network upgrades. But others believe Frontier is more likely to seek a sale of its rural service areas to focus on its more profitable urban service areas, especially in California, Texas, and Florida. Frontier has already announced a sale of its landline network in the Pacific Northwest to a regional telecommunications company promising to scrap much of Frontier’s copper wire infrastructure in favor of fiber optics.

In the meantime, problems at Frontier’s operations are ongoing. Last week, a “massive phone outage” in Cabell County, W.V. took down phone service across large parts of the county.

Earlier this month, Frontier officials were called to a meeting to address complaints about poor service in Tennessee. In attendance were Cumberland County Mayor Allen Foster, Crossville City Mayor James Mayberry, Senator Paul Bailey and U.S. Representative John Rose. The complaints were called “severe” by the public officials and dangerous to public safety.

“Frontier officials appeared to have no definitive answer to the complaints,” reported 3B Media.

Plumas County, Calif. officials are alarmed about reports of Frontier’s possible bankruptcy. District 2 Supervisor Kevin Goss said he is a Frontier customer that has experienced firsthand the issues he says all Indian Valley residents experience: paying for high speeds and experiencing low speeds in return. Goss said Frontier’s broadband service often works only intermittently for a few hours at a time. Incoming residents often cannot subscribe to broadband service at all, after Frontier allegedly placed a moratorium on adding new DSL customers in the area in 2018. Koss claims he has seen no evidence Frontier plans to invest in service expansion and the DSL moratorium remains in place two years later.

In Minnesota, the state’s Public Utility Commission recently reached a settlement with Frontier over its poor quality landline and broadband service, particularly in rural areas. But now the Minnesota Department of Commerce is launching a new investigation focusing on Frontier’s billing and customer service practices.

“We are concerned about Frontier’s practices when customers are signing up for service and the prospect that Minnesotans are being overcharged for their phone service,” said Commerce Commissioner Steve Kelley.

A broken Frontier telephone pole. (Left) Frontier phone cables left stretched against a tree (Right) Images: PUCO

The Minnesota Department of Commerce has just launched another investigation into Frontier Communications, focusing on the company’s billing and customer service practices. The primary issues under investigation include whether Frontier failed to inform customers of their service options and whether Frontier enrolled customers in long distance service plans that customers did not want or use.

“We are concerned about Frontier’s practices when customers are signing up for service and the prospect that Minnesotans are being overcharged for their phone service,” said Commerce Commissioner Steve Kelley.

In Ohio, state regulators are tangling with Frontier over network and infrastructure upkeep practices. The Ohio Department of Transportation (ODOT) is taking issue with Frontier’s attempts to ‘pass the buck’ on pole and infrastructure maintenance. Patricia Binkiewicz says her family is collateral damage in that battle, after her husband’s car was struck by a falling branch hanging over Route 43 in Carroll County — a branch Frontier should have dealt with over a year ago.

“If you drive, especially around here, you’re going to see these trees hanging over lines and they don’t realize no one is claiming responsibility, accountability, any liability or damages if a tree should fall down,” Binkiewicz said. Attempts to have Frontier Communications deal with overgrown trees and brush fell on deaf ears. The company claimed that was the responsibility of ODOT. No so fast, ODOT responds.

A Frontier installer draped a new line across this customer’s residential propane tank, and then left. (Image courtesy: Mark Steil, MPR News)

“Utilities that run in the state’s right of way are to be maintained by the utility company,” ODOT spokesperson Lauren Borell said. “So, what that means is if there’re trees there, the utility company is responsible for those trees.”

When the story made the local news, ODOT removed the offending tree, but there is no word how many other trees represent accidents waiting to happen. Local officials claim Frontier has shown a lack of interest in investment.

That lack of investment is also apparent in the state of Utah, where the Utah Public Service Commission is continuing its investigation into Frontier Communications as a result of complaints from Castle Valley and the nearby area that the company failed to provide reliable service to customers. Julie Price, a spokesperson for Utah’s Division of Public Utilities, said her agency is concerned about the “company’s level of investment in Utah.”

The consequences of deregulation of phone service in rural areas dependent on landlines may eventually include unnecessary deaths from an inability to reach emergency services due to a service outage or network problem. Observers note that cell phone service remains spotty, especially indoors, in large sections of rural America. Some wireless carriers like T-Mobile and Sprint barely provide any direct coverage in states like West Virginia, and AT&T and Verizon offer solid service primarily in larger cities.

It remains unlikely rural cell service will ever be ubiquitous in many rural areas, because there will not be enough customers to make such investments profitable. Instead, for over a century consumers have traditionally relied on universally available landline telephone service. But as deregulation efforts weaken or eliminate universal service requirements, local phone companies may eventually cease offering landline service. AT&T is already experimenting with eliminating legacy phone lines in favor of wireless service, with mixed results. An effort by Verizon to replace deteriorating rural landlines with a wireless landline replacement proved unpopular and unreliable.

What compelled local phone companies to provide universal, high quality landline service for decades was strong regulatory enforcement with stiff fines for non-compliance. Repairs were expected to be made in most cases within a day or two, not four to nine weeks. Public safety from overgrown trees and brush near telephone company-owned utility poles is also a growing and relatively recent problem. In some cases, deregulation has left regulators unable to police the condition of utility poles that present a safety risk, and that task has now fallen on local media that can embarrass a company into fixing problems.

Public policy advocates recommend Frontier be held accountable for the quality of their service and states should strongly consider rolling back deregulation, especially in rural areas.

N.Y. Gov. Andrew Cuomo Vetoes Public Rural Broadband Feasibility Study as the Unserved Struggle On

No service.

Despite New York Gov. Andrew Cuomo’s $500 million, 2015 Broadband for All initiative which guaranteed broadband service for anyone  that wanted home internet access, five years later rural broadband gaps continue to plague the state.

A bill that would set aside funds to complete a feasibility study to launch a state owned broadband provider of last resort was quietly vetoed by Cuomo at the end of 2019. Assembly member Aileen Gunther (D-Monticello) sponsored the bill after hearing scores of complaints about terrible or non-existent internet access from constituents in her district, which covers the parts of the rural Catskills region north of the Pennsylvania border.

Gunther complained that despite the governor’s broadband initiative, private phone and cable companies were still ignoring rural customers, leaving them with slow DSL service or no internet access at all. Gunther’s bill was a first step in potentially allowing the state to step in and provide service to New Yorkers unable to get broadband from any private provider.

New York has spent over $500 million on its Broadband for All program and made Charter Spectrum an integral part of its broadband expansion plans in return for approval of its 2016 acquisition of Time Warner Cable. But a growing number of the governor’s critics claim the program has failed to deliver on its mandate, stranding thousands of New Yorkers without internet service and tens of thousands more with just one option — unpopular satellite internet access.

Gunther

Gunther was upset to learn that New York was prepared to hand over more than a half billion dollars to large private telecom companies including Frontier Communications and Verizon while not being willing to spend a penny to fund projects to reach New Yorkers for-profit companies could not be dragged kicking and screaming to service.

“We’re all spending millions and millions of dollars on privately owned internet service providers,” said Gunther. “In return for promises, a lot of our communities do not have access to the internet, or if they do have access to the internet, it’s slow and these companies are not, I think, fulfilling the promises made.”

The rural broadband problem is not resolved in the Finger Lakes or Southern Tier regions of New York either. This week, Yates County announced it was joining an effort by Schuyler, Steuben, and Tioga counties, and the Southern Tier Network, to complete a broadband feasibility study to improve internet access in the four counties. Fujitsu Broadband will manage the study and hopes to have results by June. The study will target the pervasive problem of inadequate broadband service in the region, which includes crucial tourist, winery, and agricultural businesses vital to New York’s rural economy.

Gov. Andrew Cuomo announcing rural broadband initiatives in New York in 2015.

Gov. Cuomo has called such initiatives “well-intentioned” but was non committal about contributing more state funds to construct new networks or underwrite further expansion of existing ones. New York is about to begin its annual hard-fought budget negotiations in hopes of completing the state budget by April. Finding funding for such projects will probably require a powerful political advocate able to wrestle funding for further broadband improvements.

Even after spending $500 million, New York’s rural broadband problem has not been resolved. That offers insight into the merits of other state broadband programs, which often limit annual broadband expansion funding to under $30 million annually.

Those still without service are likely in high-cost service areas, where each customer could cost over $20,000 to reach. New York’s Broadband for All program relied on a reverse auction that required private companies to bid to service each unserved address. No wireline provider bid on any high-cost service areas, leaving Hughes Satellite as a subsidized satellite provider of last resort. But inadequate broadband mapping left scores of rural New Yorkers behind without even the option of subsidized satellite internet access.

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