A very frustrated employee of Frontier Communications working in one of their Ohio offices sent Stop the Cap! a detailed report on some of Frontier’s problems with customer service, unfair fees, and other horror stories. In this second part, a look at Frontier’s fees, service commitments, and the caliber of customer service. (Stop the Cap’s comments appear in italics.)

Installation fees can be a significant component of a customer’s first bill — a rude surprise for anyone choosing a promotional offer and experiencing bill shock when that first bill arrives. That triggers complaint calls to customer service, where a Frontier representative will ultimately decide whether you will get the free installation you were promised.

How much will your first bill be? The broken promises of “free installation.”

If you order today, your installation will be free… or not.

Let me share a little secret. I believe most representatives will always quote free installation to get the sale. Most believe the payoff for the company in the long run is better than the temporary hit we take on installation expenses. It also makes our commission checks a little fatter the following month. Unfortunately, in the rush to make the sale, I believe the majority of reps fail to note what they promised on the customer’s new account, which means they get charged some expensive install fees. Many quickly call in,  accusing us of reneging on our offer.

We handle these as if we were playing some version of Russian Roulette, straight out of Deer Hunter. One out of every six customers will not get their installation fees waived simply because we refuse. Sometimes it becomes a game of using your gut and flipping a coin. Other times it is the amount of the refund.

It is much easier on us if the fees we reverse are under $100, because we have the authority to issue an immediate credit. If the fees are over $100, things get complicated because the request must be approved by a regional office manager who relies entirely on the notes left by the customer service representative. If the request is denied, it is our job to call you back with the bad news. But the good news is the odds are still in your favor if you persist asking for the fees to be reversed.

I hate to say it, but it all comes down to the mood of the rep you get on the line and how much he or she is willing to fill out those forms for you. It sucks, but there is no full-proof system to prevent this and it frustrates me to no end.

Stayed home all day waiting for a Frontier technician who never showed up? They marked your problem solved anyway. 

Waiting for the service technician that claims he rang your doorbell and nobody answered.

This is truly the one that bugs me the most. I deal with at least 15 calls a day (this number has increased since July) where either the technician does not call a customer to notify them they can’t make it, or simply does not show at all and writes off the service order as “completed.”

The latter irritates customers and our call center to no end. Customers are infuriated when we tell them the technician knocked on your door, nobody answered, so they left you a note. Of course, the customer insists nobody ever actually showed up and they don’t have any note. We tend to believe the customers when they tell us they do not have working service, if only because they are calling us on their cell phones.

Customer service representatives can be audited and disciplined by Frontier for not clearly including a phone number where the customer can be reached, all for the benefit of Frontier technicians. Despite this, we find our techs rarely contact the customer to keep them informed about the progress of their service call.

Our worst problems are currently in Michigan and Indiana where the majority of our missed commitments stem from. No call, no show — a technician can do this to a customer and still have his job the next day. I would get a pink-slip marked “customer mistreat” and shown the door if I pulled this trick. But many technicians just don’t care and do not have to take the angry calls from customers wondering where the hell the technician is. We see it in tech notes left on the account that say things like ‘didn’t make it to the job on time – leaving to go home.’  They never bothered to ask the customer to reschedule or call them to let them know they won’t be coming.

I understand that their job is just as stressful as ours, but they need to pull their weight as well and stop marking incomplete orders as “finished” or avoiding the customer on a missed commitment. It infuriates customers and makes the company look bad.

The Race to the Bottom: Lower wages = inferior customer service

Over the past few years, Frontier has been consolidating its call centers — moving to locations where average wages and benefits are notoriously low and politicians push a “pro-business” agenda that hands out favors in the form of tax credits and incentives to companies willing to relocate.  For Frontier, this spells doom for employees that were paid enough to earn a living in places like Coeur d’Alene, Idaho ($15-21/hr) in favor of cheap labor staffing new call centers in states like South Carolina ($11-12/hr with a five year wage freeze). That is bitter news for former Frontier employees in Idaho who saved the company an estimated $84 million successfully converting an inherited Verizon computer system to the one Frontier uses in other states. Employees were thanked with termination notices and a cheap, plastic travel mug with the company’s logo. Paying a good wage or cutting paychecks to the least amount possible may make all the difference between a good customer service experience or an embarrassment for the company.

I am going to name a call center that every other Frontier call center loathes: DeLand, Florida.

This is one of our main sources of broken promises, bad orders and misinformation. In DeLand, you are considered a lifer if you’ve worked there for more than two years. They pay near-minimum wage to fresh-out-of-high-school students to sit on the phones, most of them quitting before their six month probationary period ends. Working for Frontier customer service is a summer job to the kids down there. They could care less if they write an order for someone in an area we don’t even service, provide customers inaccurate pricing, or just cold-transfer the customer back into the call queue if they are too ignorant to help the customer out.

Thankfully, not everyone in DeLand is doing a bad job. Some of our DeLand supervisors and representatives are earnest about delivering good customer service. But too often that is the exception, not the rule. DeLand is notorious for “cherrypicking” customers. That is a term Frontier call center workers know all too well. It means picking incoming calls that are most likely to generate commission-rich sales for the employee while throwing other callers back on hold for someone else to deal with.

The drive to make the sale is so intense, representatives sometimes start writing the order before they even verify the customer is actually in a Frontier service area. We use a simple verification system called CERT to check whether a potential customer is served by us or another phone company. But the orders for customers actually served by AT&T, Windstream, Verizon or CenturyLink still show up, and the customer has to be told later. We have heard about 60 percent of the orders placed in DeLand do not actually go through, either because of this problem or customers calling back changing their mind after they discover they were mislead about something.

Management does not seem to mind the aggressive sales tactics, because it brings the opportunity for new revenue, but customers left waiting or given bad information might.

Tomorrow: Frontier’s broadband service speeds, fees and some new facts about Frontier FiOS you shouldn’t miss.

AT&T has finally gotten around to following Verizon Wireless’ footsteps to fewer customer returns as it joins Big Red cutting “no hassle” returns to just two weeks.

Starting this month, if you return a phone to AT&T within 14 days, the company will charge you a $35 restocking fee or 10% of the purchase price for accessories over $199. Return it after 14 days and you may not be hassled, but you will be out as much as $325.

Consumers (including Individual Responsibility Users) – Device/Accessory Returns

Cosmetic blemish items are considered closeout items and are not eligible for return or exchange. 

CenturyLink runs specials on their website that offer extra savings when ordered online.

Your $50 monthly broadband bill has been burning a hole in your wallet and you think there should be a cheaper price available somewhere, right?

The answer is, for most of us, there is.  You just have to look.

The most expensive Internet access around comes when you buy broadband-only service from a provider.  Both cable and phone companies have been incrementally punishing their “broadband-only” customers for years, tacking on $5, $10, even $15 to the price because you have chosen not to bundle broadband with other services the company sells.  It is not unusual to see some cable companies charging $55-60 for standard Internet service.  When you call to inquire, they are sure to begin aggressively upselling you to a bundled service package, arguing you can add cable TV and phone service for $20-30 more a month.  That sounds like a better deal, unless you honestly don’t care about either service.

Welcome to the world of marketing, where the “value perception” is key to driving the average revenue collected from each subscriber higher and higher.  You end up buying services you probably would not have considered, but because they seem so inexpensive when compared with the price of the service you are interested in, why not?

Phone companies do the same thing, but many of them also love to bury hidden charges in the fine print and commit you to 1-3 years of service to guarantee the advertised price.  Companies like Frontier Communications may pitch DSL service for just $15 a month, but keep reading and you will discover the taxes and fees raise that price substantially.  In fact, that particular phone company is notorious for charging substantial modem rental fees and what they call a “High Speed Internet” surcharge.  To get the lowest price from them, you will be a Frontier customer for at least a year, depending on the promotional offer selected.

Frontier redefines "value": This attractive looking offer "fine prints" the $6.30 modem rental fee, is for service "up to" 1Mbps (so much for "high speed"), has a one-year service commitment with a $50 early termination fee, and does not include unspecified "taxes and surcharges" which run extra.

You can break free of the marketing circus by concentrating on finding the best possible deal for the service(s) you really care about.

1. Check advertising offers on television and in newspapers, but always read the fine print;
2. Visit the website of each local provider and look for “Internet-only” offers that may deliver extra savings, but only when you order online;
3. Call providers and ask them about their various deals and inquire “is this the best offer you have right now?;”
4. Use search engines and type in your provider’s name and words like “deals,” “offers,” or “promotion.”  Third party authorized resellers may have an offer that works better for you.

Sometimes you can get excellent results playing providers off each other.  Try contacting the social media representatives of different providers in your area to unlock hidden deals, and more importantly, customer retention offers.  One Rochester reader of ours got Time Warner Cable to open negotiations to keep his business with this tweet:

Getting ready to schedule my @TWCable disconnect after rate increase – should I go with @dishnetwork over @DirecTV or vice versa?

He received a substantial retention offer within hours of alerting Time Warner of his discontent (he’s also a rabid hockey fan, and the ongoing MSG-Time Warner Cable dispute made satellite an attractive alternative.)

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KNXV Phoenix Which broadband provider saves you the most money 2-7-12.mp4[/flv]

KNXV in Phoenix helped residents in that Arizona city figure out who was cheaper, CenturyLink or Cox Cable.  And what about using mobile broadband for a home broadband replacement?  (3 minutes)

The network envisioned with the help of a $30 million federal broadband grant, now in jeopardy.

A consortium of 15 rural north Florida counties awarded a $30 million federal broadband grant to provide a “middle-mile” wireless broadband network for the region has spent almost $7 million of its federal grant on consultants, design engineers, land acquisition and staffing without breaking ground on a single construction project.

In February 2010, the Obama Administration announced the broadband grant to deliver rural Florida residents a way to finally obtain high-speed access to the Internet within three years.  Now, a year-and-a-half later, not a single tower of the wireless network has been built, residents have been told they will never receive Internet service directly from the project, and one of the key members of the North Florida Broadband Authority charged with constructing the network has called one of the major contractors “incompetent.”

Last week, federal officials suspended the grant amid growing accusations of wasteful spending and lack of oversight.

NFBA was supposed to be building a wireless wholesale-access network across 15 counties that would deliver ISPs, government agencies, libraries, and other institutional users packages of 6, 12, 25, 60, 150Mbps or faster service, linked with fiber to Orlando and Tampa.

Although media coverage touted the project as delivering improved access to residential customers in Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette, Levy, Madison, Putnam, Suwannee, Taylor, Union and Wakulla counties, the NFBA project will not directly make broadband service available to consumers.  Would be residential customers will have to hope an incumbent Internet Service Provider chooses to participate and resells access to the network across the region.  Otherwise, those taxpayers will only be able to use the network they paid for at a local library.

That is, if the project ever gets completed.

To date, financial statements from the NFBA reflect the biggest checks paid to-date have gone to architecture and design consultants, which have received a total of more than $3.37 million dollars.  In contrast, NFBA has paid $0.00 for on-site construction and site work as of the end of the last quarter.  Money has also been spent on “Administrative and Legal Expenses” amounting to more than $863,000, and $1.54 million has been spent on property appraisal, acquisition, and expenses related to establishing rights-of-way.

When questions began to be raised about why the project had spent so much on so little, the fur began to fly, according to the North Florida Herald:

Christopher Thurow of Bradford County, accused [contractor] Government Services Group of being “incompetent.” Government Services Group answers to the Authority and is in charge of managing the project.

Then Rapid Systems, one of the project’s engineering companies, began making accusations of not getting paid. But GSG pointed to what it said was inadequate documentation by Rapid Systems and not following payment procedures.

Adding to the controversy was that GSG had been let go from managing the Florida Rural Broadband Authority (FRBA), a program similar to the North Florida Broadband Authority.

Multiple FRBA meetings were canceled, and the project was behind schedule, said Rick Marcum, chairman of FRBA.

“We felt like we needed to move in a different direction,” he said.

Since then, Government Services Group has filed a lawsuit against FRBA, saying there is a breach of contract.

At the North Florida Broadband Authority, some members allege a conflict of interest between GSG and Capital Solutions, which was contracted by GSG to oversee the administration of the grant money.

The apparent conflict comes from the accusation that Government Services Group CEO Robert Sheets is 25-percent owner of Meridian Services group, where Lisa Blair is CEO and president. Blair also is the CEO of Capital Solutions.

NFBA project members seem content to blame most of the problems on others, as well as on a sudden discovery their initial network design would not meet the performance requirements of potential wholesale customers.  That meant a wholesale re-design of the project into a “interconnected-ring network” design topology.  The rest of the delay, according to the NFBA, was because the project was sitting around waiting for government approvals:

This entire process (which included design re-evaluation, engineering services procurement, and network redesign) was carried out over a period of two to three quarters, which was the period of time designated in the original Baseline Plan for the turnkey link design phase as well as for subsequent equipment procurement, site acquisition, and pre-deployment activities. Additional variance from the Baseline Plan resulted substantial delays that were incurred awaiting wage-rate determinations (more than 3 months), awaiting a response to a waiver request to allow eligibility of Long term Operational leases (requested process in December, 2010, AAR submitted in April 2011, received in June, 2011); and comments from the Program Office on a Route Change Request (2 months).

That explanation did not pass muster with grant administrators at the National Telecommunications and Information Administration, the federal agency overseeing broadband grants.

“NFBA has experienced a number of external and internal delays on its project and, as a result, NTIA has serious concerns regarding the project’s long-term viability and, in the short-term, its ability to implement and deploy the proposed project during the grant award period,” the NTIA wrote in a statement.

As a result, the NTIA has suspended the program, ending all work, pending some sort of oversight agreement with the NFBA being concluded before Oct. 10.

The NTIA wants all invoices and disbursements from the $30 million grant approved directly by them before any more money is spent on the project.

To date, filings indicate the project has no signed customers of any kind, institutional, commercial or otherwise.  NFBA anticipates it will “outline service to 308 anchor institutions by project closeout,” with “outline” at this point defined as “offer.”

However, NFBA claims to have received a “Commitment Letter for a substantial monthly service commitment from one of our last mile partners, and we expect to receive additional Commitment Letters over the next quarter as we continue to actively engage last mile providers in the network region.”

Last-mile partners are the ones that will ultimately deliver service to residential and business customers.

Dixie County resident and Stop the Cap! reader Jimmy Dixon, who alerted us to the latest developments, calls it “a good government program hijacked by greedy consultants and incompetent local officials.”

“This was supposed to be about serving the unserved — we the people — and instead the project will only sell to government buildings and libraries, and whatever ISPs choose to buy access,” he writes. “But when an ISP won’t sell DSL to your home today, nothing about this grant will make them sell it tomorrow.”

Indeed, Dixon says the local phone company in his area continues to have no plans to wire his neighborhood for DSL, grant or no grant.

“They frankly told me it did not make economic sense to extend DSL here, and unless the government directly defrayed those expenses, they never will service us,” Dixon shares. “But I guess until recently it was just fine to line the pockets of consultants with millions in taxpayer dollars to not deliver service to anyone else, either.”

“We’re all in the same boat, and it’s sinking fast.”

Read the special investigative report published by the North Florida Herald here.

Verizon's Herd Mentality

Saturday will be the final day Verizon Wireless customers will be able to sign up for one-year service contracts and still get a discount on new equipment.

Effective April 17, customers will have just two choices for service — the ubiquitous two year contract with a steep early termination fee or month-to-month service priced artificially high to recover equipment subsidies off-contract customers do not receive.

Verizon claims the changes will “reduce consumer confusion,” which suggests customers couldn’t make up their minds between contracts for one year or two.  But the company claims most subscribers managed soon enough, usually choosing two year contracts to maximize discounts on equipment.

Some media outlets suggest the change is to discourage customers from abandoning Verizon Wireless for AT&T by holding them to longer two year contract terms.  But with AT&T losing customers to Verizon, that is an unlikely reason.

More likely is the company’s ongoing “simplification” of service plans, which has the unfortunate side effect of herding customers into plans that may not serve them well.  Verizon earlier did away with their popular “New Every Two” handset bonus plan which rewarded loyal customers renewing their contracts with additional $50 discounts.  The company also has cut back on other discounts on equipment, driving an increasing number of customers to third party retailers like Wirefly.

The one year service plan was established to let customers get some discount on wireless equipment without tying them down to a 24 month service commitment.  Since wireless providers build in cost recovery of the subsidies they “give” customers, you effectively pay back those discounts over two years by in the form of overpriced service plans.  Month to month “off-contract” customers do not get the benefit of any discounts for new equipment, but pay the same high prices for service everyone else does.

If your contract has recently expired, or you never had one, you might do better with Page Plus or Wal-Mart’s “Straight Talk” which both rely on Verizon’s network, but sell service at much lower prices, without a contract.