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Frontier Admits It Lost 62% of Its Landline Customers in Wash.; 15,310 Departed In the Last 9 Months

Phillip Dampier February 5, 2013 Competition, Frontier, Public Policy & Gov't 2 Comments

frontierFrontier Communications has admitted in a December regulatory filing it lost a combined 60 percent of its residential and business landline customers in Washington over the last decade, with more than 15,000 more departing during the first nine months of 2012.

The company revealed those numbers as part of an effort to win “minimal regulation” in the state of Washington, claiming its cable, wireless, and Voice Over IP competitors have eaten away its customer base. During the period between 2000 and 2011, the number of access lines served by Frontier in Washington declined from 895,435 to 342,869.

Frontier revealed it lost 15,310 more customers from March-September 2012 in cities like Everett (1,302), Marysville (2,009), and Redmond (2,975). Many of those customers took their business to Comcast. Others rely on wireless service Frontier does not provide.

washington-mapFrontier claims it faces robust competition in Washington and should be entitled to deregulation.

“These alternative providers have captured a significant share of the market for business and residential telecommunications services and additional features,” Frontier’s filing says. “Frontier is no longer the largest or predominant provider of telecommunications service.”

In Washington, companies like Frontier now just hold 19% of the voice telephone business. Wireless providers are now the predominant voice service provider, serving 6.1 million subscribers in Washington.

Frontier admits the competition has been beating the company’s pants off:

“The alternative service providers have clearly been successful in competing with Frontier as evidenced by the persistent and continuing loss of access lines by Frontier,” Frontier’s filing says. “As noted above, Frontier has experienced a 62% reduction in the number of access lines it serves in Washington from 895,435 as of January 1, 2001 to 342,869 as of September 30, 2012. This loss of access lines has been ubiquitous across Frontier’s exchanges in that all but one of Frontier’s 102 exchanges has experienced line losses since 2009.”

Deregulation would allow Frontier to increase prices or change how its markets and bundles certain products. It would also reduce the amount of oversight the company faces from state regulators.

The Washington Utilities and Transportation Commission temporarily set aside Frontier’s request at a meeting held Jan. 31. The regulator wants further time to investigate Frontier’s petition and will schedule future hearings on the matter in the future.

Thanks to Stop the Cap! reader Steve who first noticed the regulatory filing.

Special Report: The Obama Inauguration, Brought to You by AT&T

Phillip Dampier January 9, 2013 AT&T, Consumer News, Public Policy & Gov't Comments Off on Special Report: The Obama Inauguration, Brought to You by AT&T

inaugThe inauguration of President Barack Obama for a second term in the White House is brought to you by generous financial contributions from AT&T, Microsoft, and a handful of big health care and pharmaceutical companies that all do business with the federal government.

AT&T, which donated generously to the Romney campaign, has been making amends with the administration remaining in office by underwriting the lavish festivities, despite earlier promises from the Obama Administration not to accept corporate money for the inauguration.

The telecom giant is among seven corporations that have found their way around federal laws that bar contractors from spending money to influence elections. No law stops them from writing big checks for inaugural events or political conventions (see here, here, here, and here for our earlier reports).

special reportAT&T is among the most powerful special interests in Washington, with more than $14 million spent lobbying Congress and federal agencies like the FCC in just the first nine months of 2012, according to The Center for Responsive Politics’ website, Open Secrets.

AT&T handed out nearly $2 million to political action committees, parties, and secretive independent groups that run campaign ads without disclosing who pays for them. Candidates did not suffer for money either. Direct AT&T contributions totaling $3,297,096 were handed to members and would-be members of Congress, with the company heavily favoring Republicans.

Among those winning AT&T checks valued at $10,000 or more were 65 Republicans and 16 Democrats:

Romney, Mitt (R) Pres $211,914
Obama, Barack (D) Pres $198,046
Boehner, John (R-OH) House $160,350
Leppert, Thomas C (R-TX) Senate $35,200
McConnell, Mitch (R-KY) Senate $31,250
Hoyer, Steny H (D-MD) House $20,650
Paul, Ron (R-TX) House $17,152
Dewhurst, David H (R-TX) Senate $14,750
Amodei, Mark (R-NV) House $14,000
Barrasso, John A (R-WY) Senate $14,000
Perry, Rick (R) Pres $13,500
Roskam, Peter (R-IL) House $13,250
Barton, Joe (R-TX) House $12,700
Denham, Jeff (R-CA) House $12,500
Ros-Lehtinen, Ileana (R-FL) House $12,500
Quayle, Ben (R-AZ) House $12,000
Ryan, Paul (R-WI) House $12,000
Cruz, Ted (R-TX) Senate $11,500
Dingell, John D (D-MI) House $11,500
Lance, Leonard (R-NJ) House $11,300
Allen, George (R-VA) Senate $11,000
Baca, Joe (D-CA) House $11,000
Bachus, Spencer (R-AL) House $11,000
Rogers, Mike (R-MI) House $11,000
Snowe, Olympia (R-ME) Senate $11,000
Walden, Greg (R-OR) House $11,000
Barrow, John (D-GA) House $10,500
Cantor, Eric (R-VA) House $10,500
Blackburn, Marsha (R-TN) House $10,250
Clyburn, James E (D-SC) House $10,250
Gingrey, Phil (R-GA) House $10,250
Griffin, Tim (R-AR) House $10,250
Mack, Connie (R-FL) House $10,250
Schock, Aaron (R-IL) House $10,250
Aderholt, Robert B (R-AL) House $10,000
Bass, Charles (R-NH) House $10,000
Bilbray, Brian P (R-CA) House $10,000
Bono Mack, Mary (R-CA) House $10,000
Burgess, Michael (R-TX) House $10,000
Butterfield, G K (D-NC) House $10,000
Calvert, Ken (R-CA) House $10,000
Camp, Dave (R-MI) House $10,000
Carter, John (R-TX) House $10,000
Christian-Christensen, Donna (D-VI) $10,000
Clay, William L Jr (D-MO) House $10,000
Crowley, Joseph (D-NY) House $10,000
Diaz-Balart, Mario (R-FL) House $10,000
Graves, Sam (R-MO) House $10,000
Green, Gene (D-TX) House $10,000
Hall, Ralph M (R-TX) House $10,000
Heller, Dean (R-NV) Senate $10,000
Hunter, Duncan D (R-CA) House $10,000
Issa, Darrell (R-CA) House $10,000
Jenkins, Lynn (R-KS) House $10,000
Johnson, Eddie Bernice (D-TX) House $10,000
Jordan, James D (R-OH) House $10,000
King, Steven A (R-IA) House $10,000
Kinzinger, Adam (R-IL) House $10,000
Latham, Tom (R-IA) House $10,000
Long, Billy (R-MO) House $10,000
Lungren, Dan (R-CA) House $10,000
McCarthy, Kevin (R-CA) House $10,000
McMorris Rodgers, Cathy (R-WA) House $10,000
Meeks, Gregory W (D-NY) House $10,000
Murphy, Tim (R-PA) House $10,000
Nugent, Richard (R-FL) House $10,000
Nunes, Devin Gerald (R-CA) House $10,000
Pitts, Joe (R-PA) House $10,000
Pompeo, Mike (R-KS) House $10,000
Rahall, Nick (D-WV) House $10,000
Sanchez, Loretta (D-CA) House $10,000
Scalise, Steve (R-LA) House $10,000
Scott, David (D-GA) House $10,000
Sessions, Pete (R-TX) House $10,000
Shimkus, John M (R-IL) House $10,000
Smith, Lamar (R-TX) House $10,000
Sullivan, John (R-OK) House $10,000
Terry, Lee (R-NE) House $10,000
Upton, Fred (R-MI) House $10,000
Whitfield, Ed (R-KY) House $10,000

But the Money Party doesn’t end there. At least 49 members of the House and Senate that vote on legislation that directly affects AT&T’s bottom line also happen to be shareholders of the company:

att-logo-221x300Akin, Todd (R-MO)
Berkley, Shelley (D-NV)
Berman, Howard L (D-CA)
Bingaman, Jeff (D-NM)
Boehner, John (R-OH)
Bonner, Jo (R-AL)
Buchanan, Vernon (R-FL)
Burgess, Michael (R-TX)
Cassidy, Bill (R-LA)
Coats, Dan (R-IN)
Coble, Howard (R-NC)
Coburn, Tom (R-OK)
Cohen, Steve (D-TN)
Cole, Tom (R-OK)
Conaway, Mike (R-TX)
Conrad, Kent (D-ND)
Cooper, Jim (D-TN)
Doggett, Lloyd (D-TX)
Frelinghuysen, Rodney (R-NJ)
microsoftGibbs, Bob (R-OH)
Hagan, Kay R (D-NC)
Hanna, Richard (R-NY)
Hutchison, Kay Bailey (R-TX)
Inhofe, James M (R-OK)
Isakson, Johnny (R-GA)
Johnson, Ron (R-WI)
Keating, Bill (D-MA)
Kerry, John (D-MA)
Kingston, Jack (R-GA)
genentechLance, Leonard (R-NJ)
Marchant, Kenny (R-TX)
McCarthy, Carolyn (D-NY)
McCaskill, Claire (D-MO)
McCaul, Michael (R-TX)
McKinley, David (R-WV)
Perlmutter, Edwin G (D-CO)
Peters, Gary (D-MI)
Renacci, Jim (R-OH)
Rogers, Hal (R-KY)
Sensenbrenner, F James Jr (R-WI)
Sessions, Pete (R-TX)
centeneSmith, Lamar (R-TX)
Tipton, Scott (R-CO)
Upton, Fred (R-MI)
Vitter, David (R-LA)
Webb, James (D-VA)
Welch, Peter (D-VT)
Whitehouse, Sheldon (D-RI)
Whitfield, Ed (R-KY)

AT&T, which Open Secrets deems a “heavy hitter,” also benefits from Washington’s revolving door between public service and private sector lobbying. The group notes at least 63 out of 86 AT&T lobbyists have previously held government jobs, often at the agencies that oversee and regulate the company.

Public Citizen says it is disturbed by revelations companies like AT&T, Microsoft, and various pharmaceutical and health care interests like Centene and Genentech-Roche Pharmaceuticals have been allowed to contribute because all of them are in business with the federal government. AT&T has been awarded more than $101 million in federal contracts this fiscal year. Microsoft, which spent $5.7 million lobbying Washington has earned most of that back with $4.6 million in contracts with the Department of Homeland Security, the White House, and other federal agencies.

Almost none of the companies contacted by USA Today were willing to return calls or comment on the contributions. But Public Citizen did go on the record with the newspaper.

“Such donations are more troubling when they come from companies that have significant ongoing business with the federal government,” said Robert Weissman, the group’s president. “They will expect a very good hearing regarding any concerns, complaints or aspirations they might have.”

Washington Business Community Fed Up With Comcast/CenturyLink, Expands Community Fiber/Wireless

meshThe business community of Poulsbo, Wash., a Seattle suburb of 9,000 in Kitsap County, is fed up waiting around for CenturyLink and Comcast to increase broadband speeds in the area so several have joined forces to share the city’s underused, existing fiber-optic cables to offer free Internet access for area businesses and residential users.

The Kitsap Public Utility District has launched a public-private partnership that offers free wireless mesh antennas to businesses willing to host them and pay any power costs incurred, so long as they agree to let customers and others in range of the network use it at no charge. The wireless mesh technology, more robust than traditional Wi-Fi, costs the public utility district between $7,000-$12,000 per site, but the resulting wireless coverage is cheap compared to wiring individual homes and businesses with fiber.

Local businesses, community leaders and the public consider it a win-win for everyone, especially because the existing institutional fiber network already in place is underutilized. The comparatively inexpensive wireless technology has not created any significant issues for area taxpayers or ratepayers, which effectively underwrite the antenna purchases, installation, and maintenance.

The wireless network offers speedy connections — as much as six times faster than the current broadband speeds sold by Comcast and CenturyLink in the county.

So far, four antennas have been installed downtown at local restaurants and a Lutheran church.

Poulsbo_WAStephen Perry, the PUD’s superintendent of telecommunications, says the new network is a pilot program to test if an economic model can be created to sustain the service and eventually expand it.

“The whole idea was to have it be a community network. It’s community based and owned so to have the community step up and want to take ownership of it … thought we’d have to force it on people,” Perry told the Kitsap Sun, noting district workers “can’t go fast enough” responding to fiber-optic interest.

The surprising support from the local business community has helped drive the project and publicize it. Local businesses love the new service, which they consider more reliable than paying for and maintaining a Wi-Fi network and Internet connection from Comcast or CenturyLink. The service does not require a password or complicated setup to access and has proved more reliable than older Wi-Fi solutions. Customers also enjoy the higher speeds.

Ed Stern, a member of the city council, said wireless mesh technology represents a major improvement over traditional Wi-Fi.

“It’s not a typical ‘hot spot’ limited to that business or specific location, but rather like ‘umbrella’ coverage, in that the antennas join together to create seamless coverage of everything and everybody throughout the area,” Stern said, adding network expansion is now inching into residential neighborhoods as well. “It’s really exciting.”

With countless towns and cities equipped with underutilized institutional fiber broadband networks lacking money to install direct fiber connections to homes or businesses, the wireless mesh option can offer an affordable introductory solution to expand service, publicize the community broadband initiative, and build support for even more ambitious public broadband opportunities in the future.

One local resident told the newspaper it was about time.

“The privatization business model has proven a failure,” wrote one reader. “Kitsap PUD needs to offer retail broadband to residents and businesses. These fiber cables are just sitting there doing nothing. There is one at the end of my driveway, but no one will sell me the service. Why would CenturyLink bother when they can continue to get overpaid for very slow speeds. In most places, there aren’t choices.”

Comcast’s Erroneous Billing and Collection Actions Ruin D.C. Man’s Credit, Costs Him $26,000 Penalty

Phillip Dampier December 18, 2012 Comcast/Xfinity, Consumer News, Public Policy & Gov't 1 Comment

comcast-suxComcast’s error correctly noting the return of a customer’s cable modem has cost a Washington, D.C. man his credit rating and $26,000 in additional mortgage fees. Now the man is suing Comcast to get his credit restored and his money back.

In June 2010, Marc Himmelstein bid Comcast adieu. The cable giant informed Himmelstein he was due a refund of $123.19 after the company’s equipment was removed from his home. But the company’s cable modem was left behind by mistake, costing Himmelstein $220 in unreturned equipment charges.

Himmelstein claims nobody from Comcast notified him about the missing modem, nor did he receive a bill for the difference between the equipment fee and his credit balance. He learned about his debt to Comcast when he called the company in August wondering where his refund was.

Once he discovered Comcast’s problem, Himmelstein says he returned the modem. Comcast promised to remove the unreturned equipment charge and assured him the matter was now resolved.

But Himmelstein ultimately never received his $123.19 refund. Instead, Comcast transferred his “past due” account to Credit Protection Association, which reported Himmelstein delinquent to the country’s three largest credit-reporting agencies.

That was bad timing. Himmelstein discovered Comcast’s hit on his credit in the spring of 2011, just as he was refinancing his mortgage. The mortgage lender insisted he pay an additional point in interest — $26,000 — because of the delinquent item.

Boasberg

Boasberg

Himmelstein filed a breach of contract claim and negligence against Comcast in D.C. federal court. Also named is Credit Protection Association, charged with negligence and violation of the Fair Credit Reporting Act. Himmelstein wants both companies to cover the $26,000 paid to the mortgage company, all attorney fees, and the $123.19 remaining credit balance Comcast still has not refunded.

In October, Comcast moved to dismiss all charges, and District Judge James Boasberg last week agreed to throw out claims of constructive fraud and “bad faith” breach of contract, but left the central claim of negligence stand. The case will either now proceed in court or Comcast and the collection agency will offer to settle.

Consumers canceling service should always insist on a printed receipt whenever company equipment in returned, and that receipt should be kept safe for at least six months in case of discrepancies. If an expected refund does not materialize or if a dispute arises, always write down the name of the representative spoken to on the phone or in person. Most cable companies do not refer past due accounts for outside collection activity until they are 90-120 days past due. If a collection company contacts you, demand written verification of the debt, which will force them to produce proof of the amount owed.

Lingering billing disputes should be referred to executive level customer service. Most cable operators have these specialized customer service representatives available to address red tape and special circumstances. Calling the company’s corporate office and asking to speak to the CEO will almost always get transferred to executive level customer service. Filing a complaint with the Better Business Bureau will also be answered by an executive level representative. In the case of Comcast, e-mailing [email protected] may also prove worthwhile.

Va. Congressman: Verizon Deserves a ‘D’ for D.C. 911 Service; Wants FCC to Step In if Telco Won’t

Phillip Dampier December 10, 2012 Consumer News, Verizon, Video Comments Off on Va. Congressman: Verizon Deserves a ‘D’ for D.C. 911 Service; Wants FCC to Step In if Telco Won’t

Rep. Gerry Connolly (D-Va.) is fed up with Verizon Communications. The company handles most of the region’s 911 calls and has performed that task poorly in the last few years, argues Connolly.

“The whole purpose of 911 is that when you need it, it works,” Connolly told WUSA-News.

After several high profile 911 failures during significant storm events, Connolly and a few other congressmen are demanding Verizon resolve its 911 problems or face an intervention from the Federal Communications Commission.

The elected officials want Verizon to voluntarily comply, but if they won’t, all suggest it is time for the FCC to strengthen regulations and oversight to assure residents they will be met with a 911 operator when they call instead of a busy signal or nothing at all.

Verizon countered it takes its role in handling calls to 911 seriously, and when an issue arises, the company is quick to investigate, correct and apply any lessons learned across their system.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WUSA Washington Gerry Connolly Va- Democratic Congressman critical of Verizon for its 911 performance 12-6-12.flv[/flv]

WUSA reports Connolly has grown tired of repeated failures with Washington, D.C.’s 911 system, handled by Verizon Communications. He wants the company to make changes to increase the service’s reliability, especially during storms when demand on the 911 system is greatest. (2 minutes)

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