Even after the financial meltdown and the Great Recession, Americans still trust their cable and telephone companies even less than bailed-out financial institutions, mortgage brokers, credit card issuers, insurance companies, and airlines.

Those are the findings of the Temkin Group, which polled 6,000 U.S. consumers who recently contacted the surveyed companies to obtain customer service, support, or to ask a question or resolve a billing issue.

Temkin asked, “to what degree do you trust that these companies will take care of your needs?”  Responses were scored on a scale of 1-7 — from “do not trust at all” to “completely trust.”

The results show there is plenty of room for improvement for phone, wireless, and Internet providers.

The top-10 scoring companies don’t sell Internet service:

1. USAA (insurance)
2. Amazon.com (retail)
3. Costco (retail)
4. Edward Jones (investment firm)
4. Hyatt (hotel chain)
4. Sam’s Club (retail)
4. TriCare (health plan)
8. Kohl’s (retail)
9. Walgreens (retail)
10. Vanguard (investments)

Lower-rated companies do.  Here’s a sampling of where many telecom companies ended up (from better to worse) with respect to Internet and wireless service:

54. MSN
60. Cox Communications
89. Verizon Wireless (wireless)
90. T-Mobile
93. Sprint
100. AT&T (wireless)
104. AOL
106. AT&T (Internet service)
109. Cablevision
113. Time Warner Cable/Road Runner (Internet service)
120. Qwest
122. Virgin Mobile
140. Comcast
142. Charter Communications

Charter scored dead last out of 143-rated companies.  Customers trashed both Charter’s Internet service (142) and their cable-TV service (143).

Temkin shows telecom companies rate dead last.

Frontier Communications customers may be owed refunds for their Internet service because, a new lawsuit alleges, the company deceptively billed customers fees the company is not entitled to receive.

Four Frontier customers — three in Minnesota and one in New York — are suing the company for add-on charges the company claims are required by the government, but in fact are pocketed by the phone company.

The lawsuit claims Frontier is guilty of fraud, breach of contract, deceptive practices, false advertising and violations of the Federal Communications Act and the Internet Tax Freedom Act.

The plaintiffs claim broadband customers are being billed for certain state and federal taxes, 911 surcharges, and Universal Service Fund fees, even though they don’t apply to broadband service.

“It is merely a junk fee that Frontier imposes on customers,” the lawsuit says.  “The fee bears no relationship to any governmentally-imposed fee or regulation, and is nothing other than an effort by Frontier to increase prices above the advertised price.”

Adding fuel to the fire, Frontier recently imposed a new “HSI Surcharge” on broadband customers, and as Stop the Cap! reported earlier, some company representatives have claimed that fee is government mandated as well.

In fact, federal law bans most taxes on Internet service under the Internet Tax Freedom Act.  Since broadband customers cannot dial 911 from a DSL modem, 911 surcharges should not apply either.  USF fees only apply to voice telephone service.  Frontier, the suit alleges, levies all of these fees on the broadband portion of customer bills.

Frontier has more than 7 million customers nationwide, although the company does not disclose how many of them purchase broadband service.  If the lawsuit achieves class action status, Frontier could be required to return the ill-gotten gains to customers if a judge agrees they were wrongly collected.  That could cost the company millions in retroactive refunds.

Fiber optic cable spool

For the most populated provinces in Canada, questions about when fiber-to-the-home service will become a reality are easy to answer:  Never, indefinitely.

Some of Canada’s largest telecommunications providers have their minds made up — fiber isn’t for consumers, it’s for their backbone and business networks.  For citizens of Toronto, Calgary, Montreal, and Vancouver coping with bandwidth shortages, providers have a much better answer: pay more, use less Internet.

Fiber broadband projects in Canada are hard to find, because providers refuse to invest in broadband upgrades to deliver the kinds of speeds and capacity Canadians increasingly demand.  Instead, companies like Bell, Shaw, and Rogers continue to hand out pithy upload speeds, throttled downloads, and often stingy usage caps.  Much of the country still relies on basic DSL service from Bell or Telus, and the most-promoted broadband expansion project in the country — Bell’s Fibe, is phoney baloney because it relies on existing copper telephone wires to deliver the last mile of service to customers.

Much like in the United States, the move to replace outdated copper phone lines and coaxial cable in favor of near-limitless capacity fiber remains stalled in most areas.  The reasons are simple: lack of competition to drive providers to invest in upgrades and the unwillingness to spend $1000 per home to install fiber when a 100GB usage cap and slower speeds will suffice.

The Toronto Globe & Mail reports that while 30-50 percent of homes in South Korea and Japan have fiber broadband, only 18 percent of Americans and less than 2 percent of Canadians have access to the networks that routinely deliver 100Mbps affordable broadband without rationed broadband usage plans.

In fact, the biggest fiber projects underway in Canada are being built in unexpected places that run contrary to the conventional wisdom that suggest fiber installs only make sense in large, population-dense, urban areas.

Manitoba’s MTS plans to spend $125-million over the next five years to launch its fiber to the home service, FiON.  By the end of 2015, MTS expects to deploy fiber to about 120,000 homes in close to 20 Manitoba communities.  In Saskatchewan, SaskTel is investing $199 million in its network in 2011 and approximately $670 million in a seven-year Next Generation Broadband Access Program (2011 – 2017). This program will deploy Fiber to the Premises (FTTP) and upgrade the broadband network in the nine largest urban centers in the province – Saskatoon, Regina, Moose Jaw, Weyburn, Estevan, Swift Current, Yorkton, North Battleford and Prince Albert.

“Saskatchewan continues to be a growing and dynamic place,” Minister responsible for SaskTel Bill Boyd said. “The deployment of FTTP will create the bandwidth capacity to allow SaskTel to deploy exciting new next generation technologies to better serve the people of Saskatchewan.”

But the largest fiber project of all will serve the unlikely provinces of Atlantic Canada, among the most economically challenged in the country.  Bell Aliant is targeting its FibreOP fiber to the home network to over 600,000 homes by the end of next year.  On that network, Bell Aliant plans to sell speeds up to 170/30Mbps to start.

In comparison, residents in larger provinces are making due with 3-10Mbps DSL service from Bell or Telus, or expensive usage-limited, speed-throttled cable broadband service from companies like Rogers, Shaw, and Videotron.

Bell Canada is trying to convince its customers it has the fiber optic network they want.  Its Fibe Internet service sure sounds like fiber, but the product fails truth-in-advertising because it isn’t an all-fiber-network at all. It’s similar to AT&T’s U-verse — relying on fiber to the neighborhood, using existing copper phone wires to finish the job.  Technically, that isn’t much different from today’s cable systems, which also use fiber to reach into individual neighborhoods.  Traditional coaxial cable handles the signal for the rest of the journey into subscriber homes.

A half-fiber network can do better than none at all.  In Ontario, Bell sells Fibe Internet packages at speeds up to 25Mbps, but even those speeds cannot compare to what true fiber networks can deliver.

Globe & Mail readers seemed to understand today’s broadband realities in the barely competitive broadband market. One reader’s take:

“The problem in Canada (and elsewhere) preventing wide scale deployment of FTTH isn’t the technology, nor the cost. It’s a lack of political vision and will, coupled with incumbent service providers doing whatever they can to hold on to a dysfunctional model that serves their interests at the expense of consumers.”

Another:

“The problem with incumbents is they only think in 2-3 year terms. If they can’t make their money back in that period of time, they’re not interested. Thinking 20, heck even 10 years ahead is not in their vocabulary.”

A Verizon Wireless 4G/LTE customer that managed to consume nearly 56GB of data over a two-week period has found he has temporarily lost his 4G privileges during peak usage times on Verizon’s network.

Droid Life reports Verizon’s speed throttle apparently also works on the company’s much-faster 4G network, because the customer found his 4G speeds reduced to dial-up during peak usage periods.  The throttle reduces speeds so much, even browsing web pages becomes a painful experience.  Remarkably, the customer tells Droid Life he still has regular speed access to Verizon’s more congested 3G network, which he now uses when his 4G speeds are reduced.

Verizon Wireless specifically exempts 4G customers from wholesale enforcement of their speed throttle, but the company’s standard Acceptable Use Policy still gives Verizon broad latitude to deal with customers who create an “adverse impact” on their network:

Network disruptions and unfriendly activity: Using the Services for any activity that adversely affects the ability of other people or systems to use either Verizon Wireless Services or other parties’ Internet-based resources. This specifically but without limitation includes excessive consumption of network or system resources whether intentional or unintentional. This also includes “denial of service” (DoS) attacks against another network host or individual user. Interference with or disruption of other network users, network services or network equipment is prohibited.

Such policies are commonplace at every Internet Service Provider, but they are typically enforced only in instances where a neighborhood or region is experiencing especially heavy traffic loads.  That seems to be the case with Droid Life‘s reader, because other customers report they have managed to rack up nearly 120GB in 4G usage over 10 days with no speed reductions.  Verizon reportedly told the throttled customer his speeds were reduced because his ‘excessive downloading’ was an “abuse of the network.”

To run up tens of gigabytes of usage over two weeks usually means the customer is using a tethering application or mobile hotspot app, services for which Verizon charges extra.  We don’t know if this customer is paying for those services or using one of the third-party apps Verizon frowns on.

The selective enforcement of speed throttles may be the result of an overeager Verizon employee subjectively cracking down.  It might also result from the subscriber using services on an especially congested cell site.  We cannot be certain, and Verizon isn’t commenting on the record.  The company officially claims it is standing by the terms of its original plans to throttle the top 5% of 3G users.

With the ongoing crackdowns on what providers deem to be “excessive usage,” it is safe to assume those attempting to use any wireless broadband plan as a home or office broadband replacement is risking the wrath of their providers who consider anything beyond 2-4GB of usage per month on an “unlimited data plan” to be “too much.”

CenturyLink has unveiled its own discounted Internet access program for the income-challenged, loaded with tricks and traps buried in the fine print.

Dubbed CenturyLink Internet Basics, the 1.5Mbps DSL service is available to those who currently qualify for Lifeline Affordable Telephone Service, a federal program that provides discounts on basic monthly telephone service to eligible low-income consumers.  The service sells for $9.95 a month, before taxes and fees.

But buried in the fine print are a number of surprises that deliver higher prices and some nasty surprises (underlining ours):

• Listed High-speed Internet rate of $9.95/mo. applies for first 12 months of service (after which the rate reverts to $14.95/mo. for the next 48 months of service), and requires a 12-month term agreement or 24-month term agreement (if purchasing Netbook);
• Customer must either lease a modem/router from CenturyLink for an additional monthly charge or purchase a modem/router from CenturyLink for a one-time charge, and a one-time High-Speed Internet activation fee applies;
• A one-time professional installation charge (if selected by customer) and a one-time shipping and handling fee applies to customer’s modem/router;
• Taxes, Fees, and Surcharges – Applicable taxes, fees, and surcharges include a carrier Universal Service charge, carrier cost recovery surcharges, state and local fees that vary by area and certain in-state surcharges. Cost recovery fees are not taxes or government-required charges for use (which means they are little more than bill padding junk fees). Taxes, fees, and surcharges apply based on standard monthly, not promotional, rates;
• The first bill will include charges for the first full month of service billed in advance, prorated charges for service from the date of installation to bill date, and one-time charges and fees described above.
• Netbook purchase must be paid in full to CenturyLink prior to shipment. Shipping and handling fees, and applicable taxes will apply. If customer purchases Netbook as part of the CenturyLink Internet Basic service, all warranty and support for the Netbook and accompanying equipment will be covered by the manufacturer or other identified third party, not CenturyLink.
• No software applications or wireless service are included with the Netbook.
• An early termination fee will apply based on the applicable monthly recurring service fee multiplied by the number of months remaining in the minimum service period, up to $200.

Unlike Comcast, CenturyLink claims it will provide equivalent discounts for faster speeds — an important consideration for those with school-age children at home who may need multimedia capability for research and studies.

CenturyLink also offers a netbook computer for an additional $150, plus shipping and taxes, at the time of enrollment in the program.  The service also includes educational training, a 30-day money back guarantee, Norton Security Suite, and parental controls.

“While the Internet has become part of daily life for most Americans, many still aren’t connected because the cost is beyond their reach. CenturyLink is pleased to introduce this new program that offers affordable High-Speed Internet service and computers to those who need help getting online,” said CenturyLink CEO and President Glen F. Post, III.

That and the fact the company was required to offer discounted Internet service as a condition for the approval of their acquisition of Savvis, a web hosting company, according to Broadband Reports.

Like Comcast, participation in the program requires meeting a number of terms and pre-conditions: