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Another Fine Mess: Ex-Verizon Customers Still Complaining About Frontier

frontierThe 24-hour emergency hotline at Alcoholics Anonymous in Ventura County, Calif., rang only sporadically back in April and it wasn’t because Simi Valley, Ojai, and Thousand Oaks were overrun with teetotalers.  The director of the center blamed Frontier Communications for phone outages, which began right after it took over phone service for Verizon.

In Garland, Tex., Carolyn Crawford has had nothing but excuses about her service outage, which began April 11.

“When you call you receive scripted responses and when you send a message on Facebook you receive robotic responses,” Crawford told the Dallas Morning News.

In Florida, the Sarasota Tribune put an online form up to collect complaints about Frontier and had 662 registered over just one weekend. One complaint:

“It’s our seventh day with no phone, no Internet and no answers,” said Howard Duff of Bradenton.

He said he had spent 45 minutes to an hour on a cell phone before getting through to someone, then spent hours for several days with Frontier tech support, disconnecting and reconnecting equipment and relaying information about lights. On Thursday, when he reached a Frontier technician who wanted him to begin the same checks, Duff refused to go through it all again. Instead, he was given a repair ticket number and was told someone would contact him. He was still waiting Monday afternoon.

“They really don’t care about the people in Florida,” Duff said. “Who can we call? What can we do?”

txcaflmap

Frontier’s latest acquisition involves Verizon’s wireline networks in Texas, Florida, and California.

Back in late April, more than 11,000 comments from Frontier customers around the country have been posted to its Facebook page, mostly to complain about service problems. They affect both residential and business customers.

Michael Camp of Parker, Tex. says Frontier’s reliability has killed his business’ ability to make international business calls.

“It’s like trying to work in a Third World country,” he said.

The first challenge Frontier customers with service problems face is a dreaded interaction with Frontier’s customer service. The challenges can start right away, such as trying to prove to the phone company you actually are one of their customers.

At S.O.S Resale Boutique and Veteran’s Communication Center in Palm Desert, Calif., the non-profit group spent days trying to get Frontier to restore their phone and Internet service.

“The most frustrating part of the ordeal was that every time you would call, they would say you are not a customer and that you don’t have an account. I would keep arguing that we do,” Erica Stone, founding director of S.O.S., told KESQ-TV. Either way, Frontier didn’t bother to show up for a scheduled appointment anyway.

Mary Harmon, in Long Beach,  was told (after four calls) that a repair technician would come to her house on April 15. That date was changed to Monday, April 18 with a 10-hour window. She told the Long Beach Press Telegram she wasn’t holding her breath.

“I don’t have any faith in them,” Harmon said. I’m so fed up with everything that’s been going on.”

Harmon spent all day Monday at home waiting, only to get a call at 5:25pm that her appointment was rescheduled one week later to April 25.

Considering the onslaught of stories from readers like Harmon, that newspaper has taken to calling Frontier customers “victims.”

But it wasn’t all bad news.

“No Internet or cable,” wrote one customer on Twitter. “But the bill arrived on time.”

What Problems? Frontier Living in Denial

laurel and hardyThousands of complaints later, it is evident Frontier has gotten itself into another fine mess, one predicted in advance by Stop the Cap! each time Frontier decides it wants to buy up some more landlines. No matter how bad things actually got, the company regularly tells its shareholders tall tales that all went well, the problems were small, and the resolutions easy.

Just look at what Daniel McCarthy, Frontier’s CEO, told a Wall Street audience at the recent JPMorgan Global Technology, Media, and Telecom Conference.

“Two months into the integration, and I would describe this integration as, by and large, it has gone better than any one that we’ve done before,” McCarthy said. “If you look at the billing systems, the ERP, payroll, HR, every part of the integration has gone exceptionally well. We’ve actually got through all of our billing, and out the door, we’re back on normal cycles with customers. And we’ve moved to the point now where we’re moving forward with a normal business rhythm around trouble tickets and service orders in the market.”

Frontier customers are unconvinced Frontier’s Rhythm Method is working for them. Elizabeth Galvan of North Hills has another name for it: “a nightmare.” She has had continuous problems with her landline, including Internet outages, since Frontier took over.

Many Stop the Cap! readers also continue to share their grief over outages, billing problems, and the less than sympathetic customer service representatives they encounter.

“We were on hold with Frontier for two hours on Friday and they swore to us they’d be out Wednesday and fix things,” wrote Wanda from Sarasota, Fla. “If the good Lord Jesus himself told them they’d be sent to hell for lying, Frontier already has 1st Class tickets. My ex-husband lied less than this phone company. They told me ‘Miss Wanda, we are sorry we could not get out there but we called you to let you know.’ Oh really? On what phone, the one that hasn’t worked for two weeks? Then he thinks he puts me on hold to reschedule while he tells his friend now I have more time to get my hair done.”

Back in Dallas, Jeffrey Weiss from the Morning News pressed Frontier for a reality check on how bad the problems were.

Bright House is targeting disgruntled Frontier customers in Florida with special promotions.

Bright House is targeting disgruntled Frontier customers in Florida with special promotions.

“There are currently no widespread outages,” came the response from Frontier. “The isolated issues currently being addressed include either individual customer issues from the conversion or the day to day service issues that arise when operating a complex network. In addition, the recent extreme weather in the north Texas area may have impacted some customers’ service, while Frontier allocated resources to repair any damaged equipment in the path of the storm. The customer experience is always at the forefront of our company, and we are committed to each customer’s satisfaction. We are addressing service orders as quickly as possible, prioritizing repairs over new installations and coordinating both customer availability and the management of our ongoing queue of orders. In all cases, that means the next best available time.”

At that time, the Texas Public Utility Commission had collected at least 100 complaints about Frontier, reports spokesman Terry Hadley. Melinda White, Frontier’s regional president for the western region characterized the 2,500 service disruptions suffered by Californians as evidence things were going “relatively well.”

In Florida, the problems were substantial and widespread enough for competing cable operator Bright House to offer customers up to $240 to switch away from Frontier with a special promotion. But before customers sign up, they should be aware despite the ongoing issues, Frontier has no intention of letting anyone out of their contracts.

Frontier spokesman Bob Elek told the Tampa Bay Times, “While all customers will be eligible for service credits on a case-by-case basis, contracts will remain in force.”

That’s ironic, considering Frontier’s marketing pitch for the last several years assured customers there were no contracts or early termination fees. But Verizon had both, and Elek apparently feels if it is fair to give customers promotional pricing, it is fair to penalize them if they disconnect early, even if the service doesn’t work as advertised.

Fast forward more than a month and the problems… and Frontier’s excuses keep on coming.

[flv]http://www.phillipdampier.com/video/KNBC Los Angeles Frontier Official Apologies For Service Outages 5-24-2016.flv[/flv]

Frontier’s Melinda White, regional president for the company’s western region, finally showed up on KNBC Los Angeles to apologize for weeks of frustration and service problems. (2:56)

Blame Verizon

Nearly two weeks ago, Frontier executives were grilled at an Assembly Informational Hearing called by Mike Gatto (D-Los Angeles), when he had a spare moment in-between shilling for AT&T’s universal service/landline abdication bill making its way through the California legislature.

Finger-pointing-225x3002Ironically, Gatto was upset with Frontier — a company that wants to stay in the landline/DSL business — because it couldn’t do the job, while earlier applauding AT&T for being willing to cut the phone lines of rural Californians and have them risk AT&T’s “one-bar” rural wireless service instead.

Members at the Assembly Informational Hearing implored Frontier to fix at least a month of problems the company has consistently denied was that big of a deal. A meeting of the minds between the politicians and Frontier seemed unlikely until Melinda White, Frontier West’s regional president found what she hoped would be a “Get Out of the Hot Seat Free” excuse card.

White told the Los Angeles Times that one reason for all the trouble is Verizon sent them “corrupted” or “incomplete” data on an unspecified number of remotely addressable items like network terminal boxes, modems, and those “interface” devices they slap on the sides of most homes and businesses. Frontier claims it sent initialization messages to those devices that were rejected, and unilaterally shut down in response, causing the large service outages Frontier claimed a few weeks earlier didn’t happen.

“We are sincerely sorry,” White said during the hearing. “Even one customer out of service is one too many.”

Even worse, Frontier claims it found those scamps at Verizon messed up another database containing serial numbers identifying older network terminal boxes, including hundreds located in Long Beach. You know what came next — more outages.

But wait, there’s more. The same phone company that proudly boasts it uses American workers to handle customer service matters had to admit it hired a call center in the Philippines to handle customer transition issues. It was instantly overwhelmed and the call takers were as bewildered as customers trying to deal with Frontier about service outages.

call center“Unfortunately, that did not work out — to our dismay,” White said.

Like a lot of things coming from Frontier, that is an understatement. Just ask countless customers who reserved repair appointments through this same call center that often forgot or couldn’t pass them on to the U.S. based technicians that were supposed to show up and fix the problems. Result: missed service calls and even angrier customers.

Knowing this, one would assume Frontier would quickly pull the plug on overseas call centers and hire — at attractive wages if needed — more U.S. based employees to get things moving sooner rather than later. White told the Los Angeles Times it would phase those foreign call centers out… later… by the end of July.

The Lawmaker and Regulator CYA Cakewalk

The Frontier buyout and takeover of Verizon landlines didn’t just happen at the behest of the two phone companies. In a state regularly accused of over-regulating business, California regulators and lawmakers both had direct influence on the Frontier-Verizon transaction. It got approved without much effort and only came back to haunt officials when it all went wrong.

Assembly member Jay Obernolte (R-Hesperia) claimed, “These issues have set a record for constituent calls.”

Exactly who is responsible requires the time-honored practice of finger-pointing that always extends outwards, never inwards.

approved-rubber-stampThe committee chairman, Mr. Gatto, and vice chairman, Assemblyman Jim Patterson, (R-Fresno), blamed the California Public Utilities Commission (CPUC) as much as Frontier because they approved the takeover deal.

But as California consumers just saw in an embarrassing capitulation to approve the Charter-Time Warner Cable-Bright House merger with deal conditions even worse than what the FCC got, there are questions whether the CPUC could properly vet a Dollar Menu at a McDonalds drive-thru, much less a multi-billion dollar Big Telecom merger:

“Hi, welcome to McDonalds, what can I get the CPUC today?”

“We’ll let you decide, whatever you think is best. We trust you!”

“Okay, drive through to the second window.”

CPUC executive director Tim Sullivan casually mentioned the possibility of an official investigation and the highly-improbable-to-believe possible reconsideration of the buyout. That comes a little late.

While they hold hearings in California, the complaints keep rolling in even into the Memorial Day holiday weekend.

If This is the New Frontier, We Prefer the Old One

30+ years of a dedicated customer relationship destroyed in less than three weeks with Frontier.

30+ years of a dedicated customer relationship that started around the time Back to the Future hit theaters was destroyed after about a month with Frontier.

Lynn Peterson in Sacramento has kept her phone service with Verizon (and its predecessors) since around the year Back to the Future arrived in movie theaters (July 3, 1985 for trivia fans). After a month or so with Frontier at the helm, she abandoned ship last week.

“My service just kept going out over and over again ever since Frontier became my provider,” Peterson told the Santa Monica Mirror. “Whenever I called customer service they seemed completely indifferent. I have now switched to Time Warner Cable.”

Abby Arnold also severed a bad relationship with Frontier last week, and like a clingy ex in breakup denial, they won’t let it go.

“After a month of trying to resolve issues, I left Verizon/Frontier and signed up with Time Warner,” Arnold wrote. “At least I can watch the Dodgers. One of the many issues in my saga is that I cannot get Frontier to acknowledge that I am no longer their customer. ‘Our system won’t let me cancel your account.’ Argh.”

Customers will have another opportunity to bring their complaints about Frontier to the CPUC’s attention this Wednesday from 4-6pm at a public hearing at Long Beach City Hall.

Texas Mops Up

Some of the worst damage done to Frontier’s reputation was in Texas. Some experts predict Frontier’s name will be mud in that state for months to years.

“My opinion is that Frontier’s brand, reputation, and trust will suffer in the short to medium term (months to years),” David Lei, associate professor of strategy at SMU’s Cox School of Business told the Dallas Business Journal. “The longer the problems persist in any situation for any business or service provider, the greater the customer anger. However, even a good communications/PR strategy remains insufficient in the wake of the scale of disruptions and the seemingly ‘easy’ task of scheduling technicians to houses within the promised time frame. Strategy execution always occurs at the customer level – dealing with each customer truthfully and forthrightly. Yet, it is probably difficult for Frontier’s management to openly acknowledge just how complex the integration task will remain for quite some time.”

Our Recommendations

Frontier has a long history of transition problems whenever it acquires landline networks from other providers, whether Verizon or AT&T. In some cases, these may prove to be nothing more than self-correcting minor inconveniences. But in states like West Virginia, Connecticut, and now Texas, Florida, and California, long outages got painful and expensive for customers, and in some cases could have been life-threatening. With each transition, Frontier claimed it learned how to improve on the process to better reassure customers problems would be few and isolated. But the evidence is overwhelming these problems are bigger than Frontier seems ready to admit. Frontier refuses to release outage statistics broken down by state. Are these transition outages comparable to the day-to-day experiences of a big independent phone company? Allowing the public to see outage numbers for Florida and compare them with West Virginia or New York, for example, would be illuminating.

Regulators can also give Frontier some added incentives to guarantee the transition experience goes “exceptionally well” in the real world, not just in company press releases. Those incentives come in the form of stiff fines and guaranteed, automatic rebates for any customer affected by a service disruption. Right now, Frontier still requires most customers to personally apply for service credits for outages and other disruptions. That is a real hassle if you’ve ever called Frontier by phone and waited on hold, sometimes for an hour or more. Being promised a credit does not guarantee it will actually appear on your bill either.

Consider the experience of Lake Elsinore resident Kristi Coy. Her husband can’t sell video conferencing equipment online because Frontier’s Internet is too slow.

Coy was offered a service credit, but only after the problem was fixed. After the visit, she called Frontier and waited on hold 90 minutes before finally hanging up.

“How much are they going to give me, $20?” she said. “How long will I have to stay on hold? An hour and a half to get a $20 refund? It’s not even worth the time.”

Frontier should have a regulator-reviewed transition plan with contingencies in place for unexpected problems. That plan should prioritize returning customers to service, even if it means backing out of a system transition. Maintaining reliable service should be the first priority, not cost-savings or convenience for the companies involved. A full audit of exactly what Frontier bought from Verizon could have uncovered the discrepancies and corrupted data White blamed for the outages before the transition began. But that costs time and money. The prospect of a regulator-imposed fine costing even more delivers the cost/benefit formula customers (and Frontier, apparently) needs to assure customer protection.

Regulators need to start scrutinizing these consolidation transactions much more carefully, and reject those from companies that have a significant record of failing their customers. Frontier’s disastrous transition in West Virginia in 2010 led to months of news coverage and a number of very serious outages. More than five years later, service complaints are still coming in, mostly focused on poor broadband service. In Connecticut, Frontier had to cough up costly service credits and promotions to stop a flood of customers headed for the exits over Frontier’s messy transition from AT&T. Suspiciously familiar problems including service outages, billing issues, and missed service calls plagued Connecticut in 2015 just as they do in 2016 in Texas, Florida, and California.

We warned regulators in each instance that Frontier’s repeated poor performance should give them pause. We recommended regulators either impose extra requirements as part of any approval agreement or reject these types of deals outright. They chose to believe Frontier instead. So while Frontier executives and shareholders enjoy the proceeds of enhanced revenue and their regular dividend payouts, customers that depend on Frontier, especially small businesses, are in trouble. Dagwoods Pizza Parlor in Santa Monica is just one example.

Dagwoods manager Mark Peters said Frontier’s lousy performance in Southern California “has the potential to destroy small businesses” like his. This past Memorial Day weekend was a partial bust for Dagwoods because their Frontier-supplied phone and Internet service was down again until Frontier finally showed up to fix it.

“It’s a bad situation,” Peters told the Santa Monica Observer. “We can’t take orders, and this is our big night of the week. We’re really bummed out about the whole situation.”

The time for excuses and explanations has come and gone. The time for action, fines, and automatic service credits is overdue, but better late than never.

[flv]http://www.phillipdampier.com/video/WTVT Tampa Frontier Official Apologies For Service Outages 5-10-16.mp4[/flv]

WTVT in Tampa reports Florida Attorney General Pam Bondi is now taking a hard look at Frontier’s performance in the state. (2:41)

Spring 2016: An Update and Progress Report for Our Members

stcDear Members,

We have had a very busy winter and spring here at Stop the Cap! and we thought it important to update you on our efforts.

You may have noticed a drop in new content online over the last few months, and we’ve had some inquiries about it. The primary reason for this is the additional time and energy being spent to directly connect with legislators and regulators about the issues we are concerned about. Someone recently asked me why we spend a lot of time and energy writing exposés to an audience that almost certainly already agrees with us. If supporters were the only readers here, they would have a point. Stop the Cap! is followed regularly by legislators, regulators, public policy lobbyists, consumer groups, telecom executives, and members of the media. Our content is regularly cited in books, articles, regulatory filings, and in media reports. That is why we spend a lot of time and energy documenting our positions about data caps, usage billing, Net Neutrality, and the state of broadband in the United States and Canada.

A lengthy piece appearing here can easily take more than eight hours (sometimes longer) to put together from research to final publication. We feel it is critical to make sure this information gets into the hands of those that can help make a difference, whether they visit us on the web or not. So we have made an extra effort to inform, educate, and persuade decision-makers and reporters towards our point of view, helping to counter the well-funded propaganda campaigns of Big Telecom companies that regularly distort the issues and defend the indefensible.

Four issues have gotten most of our attention over the last six months:

  1. The Charter/Time Warner Cable/Bright House merger;
  2. Data cap traps and trials (especially those from Comcast, Blue Ridge, Cox, and Suddenlink);
  3. Cablevision/Altice merger;
  4. Frontier’s acquisition of Verizon landlines and that phone company’s upgrade plans for existing customers.

We’ve been successful raising important issues about the scarcity of benefits from telecom company mergers. In short, there are none of significance, unless you happen to be a Wall Street banker, a shareholder, or a company executive. The last thing an already-concentrated marketplace needs is more telecom mergers. We’re also continuing to expose just how nonsensical data caps and usage-based billing is for 21st century broadband providers. Despite claims of “fairness,” data caps are nothing more than cable-TV protectionism and the further exploitation of a broadband duopoly that makes it easy for Wall Street analysts to argue “there is room for broadband rate hikes” in North America. Stop the Cap! will continue to coordinate with other consumer groups to fight this issue, and we’ve successfully convinced at least some at the FCC that the excuses offered for data caps don’t hold water.

Dampier

Dampier

FCC chairman Tom Wheeler’s broadening of Charter’s voluntary three-year moratorium on data caps to a compulsory term as long as seven years sent a clear message to broadband providers that the jig is up — data caps are a direct threat to the emerging online video marketplace that might finally deliver serious competition to the current bloated and overpriced cable television package.

Wheeler’s actions were directly responsible for Comcast’s sudden generosity in more than tripling the usage allowance it has imposed on several markets across the south and midwest. But we won’t be happy until those compulsory data caps are gone for good.

More than 10,000 Comcast customers have already told the FCC in customer complaints that Comcast’s data caps are egregious and unfair. Considering how unresponsive Comcast has been towards its own customers that despise data caps of any kind, Comcast obviously doesn’t care what their customers think. But they care very much about what the FCC thinks about regulatory issues like data caps and set-top box monopolies. How do we know this? Because Comcast’s chief financial officer this week told the audience attending the JPMorgan Technology, Media and Telecom Broker Conference Comcast always pays attention to regulator headwinds.

“I think it’s our job to make sure we pivot and react accordingly and make sure the company thrives whatever the outcome is on some of the regulatory proposals that are out there,” said Comcast’s Mike Cavanagh. We suspect if Chairman Wheeler goes just one step further and calls on ISPs to permanently ditch data caps and usage billing, many would. We will continue to press him to do exactly that.

Stop the Cap! supports municipal and community-owned broadband providers.

Stop the Cap! supports municipal and community-owned broadband providers.

Other companies are also still making bad decisions for their customers. Besides Comcast’s ongoing abusive data cap experiment, Cox’s ongoing data cap trial in Cleveland, Ohio is completely unacceptable and has no justification. The usage allowances provided are also unacceptably stingy. Suddenlink, now owned by Altice, should not even attempt to alienate their customers, particularly as the cable conglomerate seeks new acquisition opportunities in the United States in the future. We find it telling that Altice feels justified retaining usage caps on customers in smaller communities served by Suddenlink while denying they would even think of doing the same in Cablevision territory in suburban New York City. Both Suddenlink and Cablevision have upgraded their networks to deliver faster speed service. What is Altice’s excuse about why it treats its urban and rural customers so differently? It frankly doesn’t have one. We’ll be working to convince Altice it is time for Suddenlink’s data caps to be retired for good.

We will also be turning more attention back on the issue of community broadband, which continues to be the only competitive alternative to the phone and cable companies most Americans will likely ever see. The dollar-a-holler lobbyists are still writing editorials and articles claiming “government-owned networks” are risky and/or a failure, without bothering to disclose the authors have a direct financial relationship to the phone and cable companies that don’t want the competition. We will be pressing state lawmakers to ditch municipal broadband bans and not to enact any new ones.

We will also continue to watch AT&T and Verizon — two large phone companies that continue to seek opportunities to neglect or ditch their wired services either by decommissioning rural landlines or selling parts of their service areas to companies like Frontier. AT&T specializes in bait-n-switch bills in state legislatures that promise “upgrades” in return for further deregulation and permission to switch off rural service in favor of wireless alternatives. That’s great for AT&T, but a potential life-threatening disaster for rural America.

We continue to abide by our mandate: fighting data caps and consumption billing and promoting better broadband, regardless of what company or community supplies it.

As always, thank you so much for your financial support (the donate button that sustains us entirely is to your right) and for your engagement in the fight against unfair broadband pricing and policies. Broadband is not just a nice thing to have. It is an essential utility just as important as clean water, electricity, natural gas, and telephone service.

Phillip M. Dampier
Founder & President, Stop the Cap!

AT&T Ghostwritten Bill Would Allow End of Rural Landline/DSL Service in California

att californiaIn California, AT&T’s money and influence has the power to bend reality for some members of the California legislature.

This spring, AT&T is lobbying hard for a bill it largely wrote itself that vaguely promises 21st century technology upgrades if the state’s politicians agree to near-total deregulation and permission to scrap landline service and DSL for rural residents.

Assembly Bill 2395, introduced by Assemblyman Evan Low (D-Silicon Valley), allows AT&T to decommission wired service across the state, so long as the company replaces it with any alternative capable of connecting customers to 911. Smoke signals might qualify, but most suspect AT&T’s true agenda is to replace its legacy wireline network with wireless service in areas where it has no interest upgrading its facilities to offer U-verse.

Members of the Assembly’s Utilities & Commerce Committee were easily swayed to believe the company’s claims this will represent a massive upgrade for California telecommunications. At least that is what the company is saying in their lobbying pamphlets. In April, committee chairman Michael Gatto (D-Los Angeles), one of the bill’s strongest advocates, told his fellow committee members it was safe to trust AT&T’s assurances it was not using the bill to kill rural landline telephone service.

“We have a very, very good perspective on history in this committee and you can rest assured that nobody will tear up any copper line infrastructure,” said Gatto, who gradually became less sure of himself as he pondered the impact of AT&T scrapping the one option many rural Californians have to connect to the outside world. “The cost of it, to tear up every street in the United States and take out the copper is not going to happen. At least, I don’t think it’ll happen…. This committee will not let it happen.”

Low

Low

Despite that less-than-rousing endorsement, and the fact the bill’s language would allow AT&T to do exactly that, the bill sailed to approval in the committee. It was also endorsed by a range of non-profit and business groups, including the Boys & Girls Club, Black Chamber of Commerce, Do It Yourself Girls, The Latino Council, NAACP-Los Angeles, San Jose Police Officers’ Association, and the United Women’s Organization — almost all regular recipients of “contributions” from AT&T.

Consumer groups are largely opposed to the measure, because it gives AT&T near carte blanche to disconnect rural residents and leave them with inferior and more expensive wireless alternatives. It also scraps most oversight over AT&T’s business practices in the state, which are not stellar. Those living in rural areas are opposed even more.

The Rural County Representatives of California, representing the interests of local leaders in 35 rural counties across the state, came out strongly against AB 2395, pointing out earlier deregulation efforts and a largely hands-off California Public Utilities Commission (CPUC) helped create the digital divide problem that already exists in the state, and AT&T’s bill proposes to make it worse.

S

Frentzen

“While AB 2395 offers the promise of a more modern communications system for California, the bill devises a scheme that minimizes consumer protections and provides avenues for telecommunication providers to abandon their current subscribers from ever experiencing these modern telecommunications options,” said the group. “RCRC would have far more comfort with relinquishment proposals if California’s telecommunications stakeholders, including the CPUC, had met their obligations in providing near universal access. And that access included quality, demand-functions found in other areas of the state. Unfortunately, much of California has either no connectivity (unserved) or inferior connectivity (under-served). Until this digital divide is eliminated, we cannot support changes in the regulatory and statutory environment which furthers this gulf between who gets access and who does not.”

While AT&T continues to deny it will do anything to disconnect rural California, the company vehemently opposes efforts to drop language from the bill that would grant them the right to retire landline service. AT&T’s lobbyists insist the legislature can still trust the company, an idea that failed to impress Shiva Frentzen, the supervisor of El Dorado:

Trust is something that you earn. It’s built over time. We have a rural county each constituent, all your consumers, pay into the infrastructure, but we don’t see the high-speed coming to the rural parts of the county because it does not pencil out. For larger companies to bring the service in those areas – the infrastructure costs a lot and the monthly service does not pay for it. So that is the experience we’ve had with larger providers like yourself. We have not had the trust and the positive experience for our rural county, so that’s why we are where we are.

Editor’s Note: My apologies to Steve Blum, who didn’t get full credit for gathering most of the quotes noted in this piece. We’ve linked above (in bold) to several of his articles that have followed the AT&T lobbying saga, and we’ve added his blog to our permanent list of websites we can recommend.

Google Fiber Announces $10 Landline Phone Service

google phoneAlthough tens of millions of Americans have pulled the plug on landlines in favor of their mobile phones, there is still a market for affordable landline phone service, especially if you hate talking on cellphones.

Today Google Fiber has announced Fiber Phone, a new $10 phone line with unlimited local/nationwide calling, Google Voice rates for international calls, and package of phone features and voicemail that includes reliable access to 911.

Customers signing up will get a portable Voice Over IP box similar in style to those supplied by cable companies and VoIP providers like Vonage. It is designed to connect to your home’s existing phones and your Google Fiber service, but can also be taken with you on trips.

“We’ll be introducing Fiber Phone in a few areas to start,” Google writes in a blog post. “Over time, we’ll roll out Fiber Phone as an option to residential customers in all of our Fiber cities. Once we bring the service to your area, you can sign up and get the service through a simple installation process. To stay updated on the latest, sign up here.”

Google Fiber has offered TV and broadband service in a “double play” package since its start, but steered clear of phone service due to the complexity of local, state and federal regulations, especially pertaining to 911 service. Google apparently has overcome those challenges.

Verizon Takes N.Y. Landline Customers to the Cleaners: Finds $1,500

Phillip Dampier March 28, 2016 Consumer News, Public Policy & Gov't, Verizon, Video Comments Off on Verizon Takes N.Y. Landline Customers to the Cleaners: Finds $1,500

ShakedownVerizon’s loyal landline customers are subsidizing corporate expenses and lavish spending on Verizon Wireless, the company’s eponymous mobile service, while their home phone service is going to pot.

Bruce Kushnick from New Networks Institute knows Verizon’s tricks of the trade. He reads tariff filings and arcane Securities & Exchange Commission corporate disclosures for fun. He’s been building a strong case that Verizon has used the revenue it earns from regulated landline telephone service to help finance Verizon’s FiOS fiber network and the company’s highly profitable wireless service.

Kushnick tells the New York Post at least two million New Yorkers with (P)lain (O)ld (T)elephone (S)ervice were overcharged $1,000-$1,500 while Verizon allowed its copper wire network to fall into disrepair. Kushnick figures Verizon owes billions of dollars that should have been spent on its POTS network that provides dial tones to seniors and low-income customers that cannot afford smartphones and laptops.

Verizon’s copper network should have been paid off years ago, argues Kushnick, resulting in dramatically less expensive phone service. What wasn’t paid off has been “written off” by Verizon for some time, Kushnick claims, and Verizon customers should only be paying $10-20 a month for basic phone service. But they pay far more than that.

To ensure a proper rate of return, New York State’s Public Service Commission sets Verizon’s basic service charge of regulated phone service downstate at $23 a month. Deregulation has allowed Verizon to charge whatever it likes for everything else, starting with passing along taxes and other various fees that raise the bill to over $30. Customers with calling plans to minimize long distance charges routinely pay over $60 a month.

Unregulated calling features like call waiting, call forwarding, and three-way calling don’t come cheap either, especially if customers choose them a-la-carte. A two-service package of call waiting and call forwarding costs Verizon 2-3¢ per month, but you pay $7.95. Other add-on fees apply for dubious services like “home wiring maintenance” which protects you if the phone lines installed in your home during the Eisenhower Administration happen to suddenly fail (unlikely).

verizonIn contrast, Time Warner Cable has sold its customers phone service with unlimited local and long distance calling (including free calls to the European Community, Canada, and Mexico) with a bundle of multiple phone features for just $10 a month. That, and the ubiquitous cell phone, may explain why about 11 million New Yorkers disconnected landline service between 2000-2016. There are about two million remaining customers across the state.

New York officials are investigating whether Verizon has allowed its landline network to deteriorate along the way. Anecdotal news reports suggests it might be the case. One apartment building in Harlem lost phone and DSL service for seven months. Another outage put senior citizens at risk in Queens for weeks.

“They don’t care if we live or die,” one tenant of a senior living center told WABC-TV.

Verizon claims Kushnick’s claims are ridiculous.

“There is absolutely no factual basis for his allegations,” the company said.

[flv]http://www.phillipdampier.com/video/WABC New York Seniors vent against Verizon after phone service outage 3-9-16.flv[/flv]

WABC’s “7 On Your Side” consumer reporter Nina Pineda had to intervene to get Verizon to repair phone service for a senior living center that lasted more than a month. (2:50)

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