Frontier provides service to all but around a half dozen communities in West Virginia.

A comprehensive independent audit of Frontier Communications operations in West Virginia found the phone company is not keeping up with network maintenance, causing increased service problems for the company’s customers.

The significantly redacted 164-page report produced by Schumaker and Company found plenty of room for improvement for Frontier’s landline and broadband services.

The report was commissioned under order by the West Virginia Public Service Commission after the regulator received almost 2,000 customer complaints about Frontier’s service. The PSC’s demand for an audit also received the support of over 700 Frontier customers in the state.

Despite several redactions, the report offers clues about the quality of Frontier’s infrastructure for landline and internet services in West Virginia.

Frontier provides service for all but a half dozen localities in the state. Because of West Virginia’s mountainous topology, significant portions of the state do not receive adequate cellular service, making wired landlines still an essential safety tool in some areas. Despite that, Frontier’s relatively poor performance has driven away a significant number of its customers. Some subscribe to cable phone service, but most now depend on cell phones.

A Frontier crossbox in use in West Virginia.

The PSC allowed Frontier to offer a redacted public version of the auditor’s report after Frontier cited confidential business information and the Commission’s lack of regulatory oversight over the company’s DSL internet service. The redactions were substantial, blotting out significant information such as the age of Frontier’s network and equipment in different corners of the state, the condition of the company’s large number of utility poles, outage statistics, budgeting and investment numbers, repair programs, and basic information about the company’s employees and its broadband service offerings. The PSC staff filed its own recommendation that such redactions be rejected, noting Frontier is the unique carrier of last resort in West Virginia, with no competitor likely to attempt similar service. Staff members also claimed the telecom industry would find data specific to West Virginia not very useful elsewhere.

Despite the redactions, it is easy to deduce Frontier has a significant problem. Its copper landline network is gradually succumbing to a lack of regular maintenance, which can cause prolonged service degradation and outages. The audit specifically cites Frontier’s growing challenges dealing with a copper wire network that has been on utility poles for decades. Some wiring is likely to have been installed during the Johnson or Nixon Administration. The audit found that previous owner Verizon embarked on two significant copper line replacement programs, one in 1974 and the other in 1983 — 46 and 37 years ago, respectively. No large scale replacements have been undertaken since.

Phone companies like Frontier have been losing landline customers for years. The audit estimated that “more than half (57%) of American homes only have wireless communications. The displacement is even more pronounced when viewed through the prism of demographics. Over three quarters (76.5%) of young adults (aged 25-34) live in homes with only wireless connections.” In 2018, Frontier told the PSC 37 percent of its access lines were permanently disconnected between 2010 and 2017, bringing the number of customers down from 613,443 to 385,832. A 2017 Center for Health Statistics study found that roughly 53 percent of all West Virginia adults use wireless services exclusively, while another 10 percent use wireless services most of the time, with almost 22 percent of West Virginia adults still using landline services exclusively or most of the time. Frontier holds on to a larger percentage of customers than that with the sale of its rural DSL internet service.

Frontier heavily redacted the independent audit about its performance.

Frontier’s largest service problems result from its indefinite reliance on splicing damaged or degraded line pairs servicing individual customers. With fewer customers, the company has more choices of alternative line pairs it can use to restore service for customers affected by service interruptions. The audit found many line splices were decades old and often were responsible for eventual larger scale service outages, especially when repairs were inadequately completed exposing the entire cable to the elements. The audit also found no formal tree trimming operation was in place at the company, which meant trees inevitably overgrew into the company’s lines. In storms, trees can disrupt service by blowing into cables or even tearing wires off utility poles. The report also noted that technicians often drove around and spotted network defects and other problems likely to eventually cause service outages, but there was no formal reporting and mitigation strategy, which often left repairs delayed for months or years.

Frontier is also facing a talent flight, as network engineers that have serviced the lines since they were operated by Verizon are preparing to retire in large numbers. That could create even greater problems as inexperienced new technicians unfamiliar with the state of Frontier’s network gradually replace them.

Despite these problems, the auditors found Frontier was still earning a healthy amount of revenue in West Virginia. Oddly, that assertion was hotly disputed by Frontier itself, claiming that conclusion was “flatly wrong” and it had been losing money in the state every year since 2012.

“The auditors did not properly account for pensions, post-employment healthcare, and other benefits paid by Frontier nor for interest costs on the money Frontier borrowed to invest in West Virginia,” wrote Allison Ellis, Frontier’s senior vice president of regulatory affairs. “When those expenses are taken into account, it is clear that Frontier has invested more in the state than it has recouped.”

Auditors recommend that Frontier establish a more robust network engineering effort, aggressively repairing line issues before they become apparent to customers and improving its reporting systems to track service problems from start to finish. It also recommended increasing the amount of fiber in the network to reduce service issues and maintenance expenses and allow for better internet speeds. Finally, it recommends customers receive additional compensation for repeated service outages.

In Steubenville, Ohio some residents fear Frontier’s alleged neglect of their utility poles is putting people’s safety in jeopardy. WTOV reports that Frontier is attempting to “pass the buck” to Ohio taxpayers to keep trees and brush clear from their poles. (2:45)

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.

Verizon Wireless has sued the City of Rochester, N.Y. in a potentially precedent-setting case, for demanding excessive and discriminatory fees to use public rights-of-way to deploy a fiber backhaul network and hundreds of small cells to support the introduction of 5G wireless service in the community.

The lawsuit, Cellco Partnership (d/b/a Verizon Wireless) v. City of Rochester seeks a declaratory judgment acknowledging that local laws regarding the use of rights-of-way by telecommunications companies have been largely overridden by the Trump Administration’s Federal Communications Commission. Under FCC guidelines, the maximum compensation rate a city can generally collect is $270 annually for each small cell site, far less than what the City of Rochester hopes to collect from telecommunications companies planning to dig up streets and place hundreds of small cell antennas on utility and light poles across the city.

The two parties are far apart on what defines fair and just compensation. In early 2019, the City of Rochester introduced a new fee schedule that seeks $1,500 annually for the use of each publicly owned utility or light pole, and $1,000 per standalone “smart pole” erected by a wireless company to support a small cell. Verizon Wireless wants to pay no more than $270 annually for either type.

The City also wants compensation to cover “administrative costs for retaining and managing documents and records,” “costs for managing, coordinating and responding to public concerns and complaints,” and “the costs of the City’s self-insurance.” Verizon Wireless’ attorneys argue that the FCC’s “presumptive limit” of $270 annually is all-inclusive, and therefore the fees requested are inherently unreasonable.

The City ordinance is also designed to discourage providers from installing cables on existing utility poles, preferring underground installation.

“Aerial installation of fiber or other telecommunications facilities and accessory equipment strung between poles, buildings, or other facilities, is strongly discouraged due to area weather, safety concerns, limited capacity, and aesthetic disturbances,” the ordinance reads. But Verizon Wireless argues the extra fees demanded by the City for underground burial of fiber optic cable are illegal under federal law.

“The Code’s ‘underground’ fee structure is not a reasonable approximation of actual cost, is not objectively determined, and is discriminatory,” Verizon Wireless argues.

The City’s fees for fiber optic cable installation are significant. Verizon Wireless’ lawsuit notes fees start at $10,000 for up to 2,500 linear feet of installed fiber optic cable, plus an additional $1.50 for each additional foot from 2,500-12,500 feet and $0.75 for each additional foot above 12,500 feet. After the first year, fees continue at $5,000 annually for up to 2,500 feet, $1 for each additional foot from 2,500-12,500 feet, and $0.50 for each additional foot above 12,500 feet. Somewhat lower fees apply if Verizon places its fiber cables in an existing conduit with other cables, or if it uses directional boring to place conduit and wiring without disturbing lawns, roads, or sidewalks.

Curtin

Verizon Wireless’ attorneys argue the fees cannot possibly reflect the City’s true costs because the charges are the same regardless if Verizon installed three feet or 2,000 feet of fiber optic cable.

But City Corporation Counsel Tim Curtin told the Democrat & Chronicle the city’s new fee schedule is comparable to what other cities are charging, and the City is planning more restrictions to keep providers from repeatedly digging up streets and yards to place new cable and equipment.

“This is a serious problem with people digging up the same right of way every other day and not repairing it,” Curtin told the newspaper.

The City is also exploring passing a new “dig once” policy that would incentivize providers to coordinate fiber installation to place wiring and equipment in a single shared conduit in return for lower fees. But providers like Verizon Wireless consider it in their competitive advantage to wire cities like Rochester before their competitors do.

“To better serve its customers and the City and to begin to serve new customers and provide new services, Verizon Wireless seeks to extend, densify, and upgrade its wireless network infrastructure [in Rochester], including to install additional Small Wireless Facilities to support the provision of current and next-generation telecommunications services such as 5G and to deploy fiber to connect these facilities. To successfully do this, Verizon Wireless requires new approvals from [the City of Rochester] to access City property,” Verizon’s lawsuit states. Because of the City’s fees and policies, “Verizon Wireless has been, and will continue to be, damaged and irreparably harmed, […] [including] an effective prohibition on Verizon Wireless’s ability to provide telecommunications services in the affected area of the City.”

In short, Verizon Wireless is threatening not to deploy 5G service in the area if the City successfully defends its fees and requirements.

Curtin argues Verizon Wireless is the only provider unwilling to comply with the City’s requirements, while others are moving forward under the new ordinance. One provider likely covered by Curtin’s claim is residential fiber overbuilder Greenlight Networks, which has installed fiber to the home service across several city neighborhoods for the past several years. But in 2019, Greenlight began focusing on installations in suburbs west of Rochester, and several city neighborhoods proposed for service have languished for years with “easements required” status, which could reflect Greenlight’s reluctance or ability to pay the City’s new fees.

Verizon has been the most aggressive wireless provider in Western and Central New York with respect to the proposed 5G service expansion. In addition to being the incumbent local telephone company in several New York cities (excluding Rochester), it has also offered spotty FiOS fiber to the home service in several suburbs of Buffalo and Syracuse.

A small cell

In contrast with Rochester, the City of Syracuse decided to effectively “partner” with Verizon Wireless to deploy 5G small cells to be considered America’s “first fully 5G city.” To win Verizon over, the City mothballed its existing fee policy in 2019 that charged $950 per small cell tower, resetting the rate to match the FCC’s presumed maximum of $270 annually. In return, Verizon has tentatively agreed to place up to 600 smart cell poles around the city, paying $162,000 a year. Verizon also agreed to pay a $500 application fee for each pole project (covering up to a maximum of five poles per project). Nobody is certain whether 600 smart cells are enough to saturate the city with 5G coverage, where exactly Verizon will ultimately place the small cells, or exactly when.

Ken Schmidt, president of Steel in the Air, a consultant to public and private landowners and municipalities on matters related to wireless infrastructure valuation, offered to advise the City of Syracuse for free about its agreement with Verizon Wireless, but the City never returned his calls, despite his direct experience working with other cities that negotiated with Verizon Wireless over 5G smart cells, pole attachment fees, and antenna placement rules.

“Syracuse seems to have bent over backward for Verizon,” Schmidt argues on his blog. “Make no mistake, there are benefits to becoming a 5G city, but this agreement does no more for Syracuse than it does for other cities where Verizon promised the same thing. At least some of the other cities didn’t enter into such a one-sided agreement. For example, Sacramento, San Diego and San Jose negotiated better terms and conditions than Syracuse did, and will have a similarly robust small cell deployment.”

Many consultants recommend that cities consider whether Verizon’s threats not to deploy 5G service are real, especially considering the company’s PR claims that moving forward with 5G is essential to Verizon’s network expansion.

Schmidt

Schmidt acknowledges the current FCC has a vested interest in helping large wireless companies deploy 5G infrastructure with a minimum of interference or fees from local governments.

“While the City could have negotiated a higher amount for the pole access rights or permit fees, it would have had to demonstrate that its actual costs in reviewing small cell applications and maintaining the rights-of-way were higher than the nominal fees allowed by the FCC,” Schmidt said.

Verizon’s lawyers appeared to outmaneuver the City’s attorneys by winning a number of concessions for Verizon that Syracuse will have to live with for up to 45 years. Schmidt’s recommendations may be useful to other cities, including Rochester, wrestling with these issues.

Schmidt:

Syracuse granted rights to Verizon for upward of 45 years when it didn’t have to. The city signed a master license agreement for 20 years, which allows Verizon to install poles under individual pole licenses that run up to 25 years from the date the pole was installed. Thus, if a pole is installed in year 20, it will be there for another 25 years. In short, the city is entering a possible 45-year agreement even though there is no legal requirement to do so by the FCC or any other agency. While Verizon surely prefers a much longer agreement, other cities are entering much shorter, 10-year agreements with Verizon. Verizon retained the right to terminate “at any time for any reason or no reason by written notice to the city,” but the city does not have the same right. So, the city is now committed to this specific agreement legally, regardless of what happens with technology in the future.

The agreement entered into by the city concedes unnecessary rights to Verizon under contract law. The agreement is substantially the same as other agreements proposed by Verizon to other cities. It attempts to incorporate many of the standards from the FCC Order into the license agreement. From a legal perspective, these clauses did not need to be in the license agreement. If Verizon felt the city was not adhering to the FCC order, Verizon by default has the option of requesting relief from the FCC or filing in federal court for injunction or damages. However, by adding the language in the license agreement, Verizon can now file in state court on a civil claim if Verizon believes the city is in breach of the agreement and collect monetary damages. This is absolutely of no benefit to Syracuse.

Other cities have received additional compensation in the form of public safety or “internet of things” monitoring and services, and higher fees to help pay for additional staff to review small cells applications. Syracuse received nothing. In fairness, the other cities are bigger and more important to Verizon than Syracuse. Nonetheless, the only concession Verizon appears to have made to Syracuse is the requirement for Verizon to monitor a limited set of small cells for compliance with applicable radio frequency emission standards. Verizon did not commit to deploying a certain number of small cells by any date. It is not required to deploy in the poorer areas of the city. And it did not commit to smart city initiatives or research on how 5G can benefit the residents of Syracuse.

The agreement gives the city limited rights to terminate, even if health risks are identified and proven. The city, in what appears to be an effort to appease its citizens that small cells are safe, inserted language that requires Verizon to test up to 5% of the small cells annually to confirm that they meet the minimum applicable health, safety and radio frequency regulations. The city could also test on its own, but only to confirm compliance with applicable FCC standards. By agreeing to a long-term license with limited rights to terminate, the city could be legally committed to Verizon small cells in the public right of way even if there is ample evidence that they should be removed, unless the FCC revokes its order.

By agreeing to such a one-sided agreement, the city has condemned itself to agree to similar agreements with any company providing wireless services who want to deploy in the right-of-way. Under the FCC Order and previous case law regarding the Telecommunications Act of 1996, the city may not discriminate between similar providers of wireless services. By agreeing to the terms with Verizon, the city will have a difficult time agreeing to different terms with other providers.

Vermont residents want better internet service and protection for universal access to phone service, even if customers have to pay a surcharge on their bill to make sure the traditional landline is still available in 100% of the state.

In contrast, some residents complain, Vermont regulators want to make life easier for a telecom industry that wants to abandon universal service, fails to connect rural customers to the internet, and has left major cell phone signal gaps around the state.

In 2017, Vermont commissioned two surveys that asked 400 business and 418 residential customers about their telecommunications services. It was quickly clear from the results that most wanted some changes.

Vermont is a largely rural, small state that presents a difficult business case for many for-profit telecom companies. Verizon Communications sold its landline business in northern New England, including Vermont, to FairPoint Communications in 2007. FairPoint limped along for several years until it declared bankruptcy and was eventually acquired by Consolidated Communications, which still provides telephone service to most of the state.

Many rural areas are not furnished with anything close to the FCC’s definition of broadband (25/3 Mbps). DSL service at speeds hovering around 4 Mbps is still common, especially in areas relying on Verizon’s old copper wire infrastructure.

Comcast dominates cable service in the state, except for a portion of east-central Vermont, which is served by Charter Communications (Spectrum). Getting cable broadband service in rural Vermont remains challenging, as those areas usually fail the Return On Investment test. Still, 85% of respondents said they had internet service available in their home. Vermont’s Department of Public Service (DPS) estimates about 7% of homes in Vermont have no internet provider offering service, with a larger percentage served only by the incumbent phone company.

The majority of residents own cell phones, with Verizon (47.5%) and AT&T (31.8%) dominating market share. Sprint has 0.6% of the market; T-Mobile has a 1.2% share, both largely due to coverage issues. But even with Verizon and AT&T, 40% of respondents said cell phone companies cannot deliver a signal in their homes. As a result, many residents are hanging on to landline service, which is considered more reliable than cell service. Some 40% of those relying on cell phones said they would consider going back to a landline for various reasons.

With the FCC ready to cut support funding for rural landline service, residents were asked if the state should maintain funding to assure continued universal access to landline service. Among respondents, 87.8% thought it was either “very important” or “somewhat important.” The study also found 51% would accept a general statewide rate increase to cover those costs, while 29% preferred rate increases be targeted to rural ratepayers only. About 16% did not like either idea, and 4% liked both.

When asked whether residents would be interested in having a fiber connection in their home, 80% of respondents said “yes,” but 30% were unwilling to pay a higher bill to get it.

Ironically, the state’s most aggressive residential fiber buildouts are run by some of the smallest community-owned internet providers, rural electric or telecom co-ops, and small independent phone companies. What makes these smaller providers different is that they answer to their customers, not shareholders.

Comcast and Charter are the two largest cable companies in Vermont.

Recently, the DPS released a 100+ page final draft of its 2018 Vermont Telecommunications Plan, setting out a vision of where Vermont should be a decade from now, especially regarding rural broadband expansion, pole attachment issues, and cell tower/small cell zoning.

The report acknowledges the state’s own existing rural broadband expansion fund is woefully inadequate. In 2017, the Vermont Universal Service Fund paid out $220,000 to assist ISPs with building out networks to rural areas.

“The amount of money available to the fund pales in comparison to the amount of funding requests that the Department receives, which is generally in the millions of dollars,” the draft report states. “With approximately 20,000 unserved and underserved addresses in Vermont, the Connectivity Initiative cannot make a meaningful dent in the number of underserved locations.”

Much of the report focuses on ideas to lure incumbent providers into volunteering to expand their networks, either through deregulation, pole attachment reform, direct subsidies, or cost sharing arrangements that split the expenses of network extensions between providers, the state, and residents.

A significant weakness in the report covered the forthcoming challenge of upgrading a state like Vermont with 5G wireless service:

Small cell deployment has been attempted along rural routes with very limited success and the national efforts to expand small-cell, distributed-antenna systems, and 5G upgrades have focused on urban areas. The common refrain on 5G is that ‘it’s not coming to rural America.’ 5G should come to rural Vermont and the state should take efforts to improve its reach into rural areas.

A small cell attached to a light pole.

To accomplish this, the report only recommends streamlining the permitting process for new cell towers and small cells. The report says nothing about how the state can make a compelling case to convince providers to spend millions to deploy small cells in rural areas.

Where for-profit providers refuse to provide service, local communities and co-op phone or electric providers often step into the void. But Vermont prohibits municipalities from using tax dollars to fund telecommunications projects, which the law claims was designed to protect communities from investing in ‘unprofitable broadband networks.’

The draft proposal offers a mild recommendation to change the law to allow towns to bond for some capital expenditures on existing or starting networks:

Vermont could use a similar program to help start Communications Union Districts as well as allow towns to invest in existing networks of incumbent providers. Limitations on the authority to bond would need to be put in place. Such limitations should include focusing capital to underserved locations only, limiting the amount (or percentage) of tax payer dollars allowed to be collateralized, and setting technical requirements for the service.

Such restrictions often leave community broadband projects untenable and lacking a sufficient service area or customer base to cover construction and operating expenses. Instead, only the most difficult and costly-to-serve areas would be served. The current law also prevents local communities from making decisions on the local level to meet local needs.

At a public hearing last Tuesday in Montpelier, the report faced immediate criticism from a state legislator and some consumers for being vague and lacking measurable, attainable goals.

“This plan does not appear to move Vermont ahead in a way that enables it to compete effectively,” said state Sen. Mark MacDonald (D-Orange). “It doesn’t seem to be moving forward at the pace we’re capable of.”

Clay Purvis, director of telecommunications and connectivity for the DPS, defended the plan by alluding to how the state intends to establish a cooperative environment for internet service providers and help cut through red tape. But much of those efforts are focused on resolving controversial pole attachment fees and disputes, assuming there are providers fighting to place their competing infrastructure on those utility poles.

Montpelier resident Stephen Whitaker was profoundly underwhelmed by the report.

“There is no plan at all here,” Whitaker said at Tuesday’s public hearing. “There is some new background information from the 2014 version, but there’s no plan there. There is no objective to reach the statutory goals.”