Consumer advocates, unions and state regulators are worried that Verizon's plan to sell a massive chunk of their DSL and landline networks to Frontier Communications won't go very well. The $8.5 billion deal, if approved, would infuse Frontier with 4.8 million new residential and small-business phone lines across 14 states, 1 million broadband connections, and 11,000 former Verizon employees. Frontier, who currently has just 2.3 million customers, would become a giant player literally overnight, and fears that they'll struggle with the load seem legitimate.

The fear is the deal will end just as Verizon's Fairpoint and Hawaii Telcom deals did: bankrupt carriers, outdated networks, and shoddy service. Unions are worried about layoffs and pay reductions, and have been running a series of ads illuminating how Verizon's particular method of offloading unwanted customers doesn't usually work out well for the customers.

At the same time, Frontier has been traveling state to assure regulators that they're far more financially stable than Hawaii Telcom and Fairpoint. West Virginia state PSC consumer Advocate Division for one isn't buying it, this week advising against the deal. Why? The PSC argues that Frontier's financial projections are based on "overly optimistic assumptions," they won't have the funds to handle network problems, and that they haven't laid out concrete plans to deal with increased complaint volume.

Ask and ye shall receive. Windstream has confirmed to Broadband Reports that the company has raised the upstream speed of their DSL tiers. Windstream says they're responding to a request in our forums by users who found 386 kbps to be a little dated for 2009. Both the company's 3 Mbps and 6 Mbps tiers have seen the upstream side of the equation nudged from 384 kbps to 768 kbps -- at no additional price. The upgrades apparently started in early November and will be ongoing through December -- so if you haven't seen them yet, Broadband Reports readers can apparently nudge Windstream to get the upgrade now.

With the problems faced by Fairpoint and Hawaii Telcom after integrating Verizon's unwanted DSL networks, Verizon's even more ambitious plan to offload an even bigger chunk of rural customers to Fairpoint is getting added scrutiny. The $8.5 billion deal, if approved, would infuse Frontier (which currently has 2.3 million customers) with 4.8 million new residential and small-business phone lines across 14 states, 1 million broadband connections, and 11,000 former Verizon employees.

The unions employees who warned regulators that Fairpoint wasn't equipped to handle the acquisition of Verizon's New England DSL and landline networks last year are rightfully saying "we told you so." As Fairpoint teeters toward possible bankruptcy, union officials tell Vermont locals that they can thank Verizon for all the fun everyone's having. Instead of simply selling to the highest bidder, Verizon used a Reverse Morris Trust to incur huge tax savings while dumping a huge debt load on Fairpoint.

Oregon Live has the interesting tale of 83-year-old Dennis Streed, who only wanted to pay $77.99 a month for broadband, TV and phone service. So Streed drew up his own contract that ensured this was as much as he'd ever have to pay. More interesting perhaps is that Verizon agreed -- though as Verizon sometimes has a tendency to do -- a billing mixup wound up with Verizon charging him consistently twice the amount that was agreed to. While they've issued a refund, Verizon now seems like they're waffling on the agreement moving forward, and the article explores whether Streed will have any luck getting the massive operator to adhere to a non-routine customer created contract.

Back in June, Sprint, Covad, T-Mobile, Clearwire and several other smaller carriers and consumer groups joined forces to create something known as the No Choke Points Coalition. Collectively, the group has been arguing that AT&T and Verizon have abused their dominant position as gatekeepers of massive backhaul and core networks, imposing unreasonable special access charges on smaller operators requiring cross connectivity. The age-old debate over these charges has heated up lately with discussions over whether special access reform should be included in the broadband stimulus plan. In a win for the group, the FCC yesterday announced they'd be taking a look at special access pricing.

New York Attorney General Andrew Cuomo has announced that his office has reached an agreement with Frontier Communications, who'll have to pay consumers $50,000 for failing to properly inform them about early termination fees (ETFs). In a statement, the AG says they've been investigating the telco since early 2009 after fielding consumer complaints.

One person's collapsing telecom empire is another person's expansion opportunity. According to the New York Post, some "big name players" are watching Fairpoint Communication's flirtations with bankruptcy with great interest. Citing a "source with direct knowledge of the process," the Post says Windstream Communications may be buying up debt with an eye on acquiring the company's assets. Fairpoint CEO David Hauser last week talked rather casually about the very real possibility for a Fairpoint bankruptcy, after the company continues to struggle with the debt acquired from Verizon. Windstream meanwhile announced last week they'd be laying off 3% of their workforce to offset continued landline losses.

According to an announcement by DSL provider Windstream Communications (see our user reviews here), the company will be laying off roughly 5% of their workforce (350 out of 7,100 jobs) in order to "offset revenue pressure in the residential voice business." In other words Windstream, like larger telco Verizon, is making cuts to help counter the continuing death of the copper landline. The company, originally spun off from Alltel Communications (now part of Verizon), passed the one million broadband subscriber mark last Spring.

Earlier this month we noted how Fairpoint Communications would miss most of their New England broadband expansion goals as the carrier continues to deal with fleeing customers and a high debt load. Over the weekend Fairpoint CEO David Hauser talked with the New Hampshire Union Leader.

If you've paid attention, you know the modern "network neutrality" debate took off in 2005, when then AT&T CEO Ed Whitacre proudly, though dumbly, proclaimed that Google got a "free ride" on his network. According to Ed, this unfairness could only be rectified by charging companies who already pay for bandwidth money to ensure their traffic reaches AT&T consumers quickly.

Saul Hansell over at the New York Times has picked up that paper's telecom beat, and offers an interesting piece from a recent Goldman Sachs investors conference. While AT&T Boss Randall Stephenson and Qwest boss Ed Mueller are keeping their heads buried in the sand telling investors that the landline defections will eventually stop, Verizon boss Ivan Seidenberg has basically admitted the obvious: the landline, as we know it, is dead.

Back in May, Verizon announced that they'd be selling a laundry list of rural DSL markets in a deal worth around $8.5 billion. The deal, if approved, would infuse Frontier (which currently has 2.3 million customers) with 4.8 million new residential and small-business phone lines across 14 states, 1 million broadband connections, and 11,000 former Verizon employees.

Sonic.net CEO Dane Jasper tells us the California-based ISP has dropped prices on their new Fusion ADSL2+ services, which the company is now offering over their own network. According to a blog post by the CEO, their static or dynamic IP ADSL2+ packages have seen price cuts ranging from $5 to $25, depending on the speed of the package. The company started offering ADSL2+ service over their own network last fall, offering tiers in 6Mbps, 8Mbps and 18Mbps flavors. Earlier this summer the company started tinkering with line-bonded ADSL2+, which should allow the company to offer downstream speeds up to 30Mbps.

AT&T this morning announced that the carrier is offering a new bundle promotion that gives consumers U-Verse broadband service free for six months if they also take U-Verse TV and either U-Verse VoIP or wireless phone service. According to the company, users have to sign up for at a U200 U-Verse TV package or above, or a Nation 450 plan or above to get the deal. At the moment the promotion is only available in Illinois, Indiana, Wisconsin, Michigan, Ohio, but AT&T insists the deal will hit all U-Verse markets in short order.

Last year, Bell Canada started throttling wholesale customer ISPs without telling them, ensuring that these smaller operators couldn't offer an un-throttled connection to consumers that was better than Bell's throttled Sympatico service. As their back up plan against competitors in case regulators stopped them, Bell Canada started devising a usage-based billing (UBB) system smaller Canadian carriers worried could drive them out of business.

Back in the Spring you'll recall that Fairpoint unveiled a plan to "turn things around," after the telco struggled to integrate acquired Verizon DSL and phone networks in Maine, New Hampshire and Vermont. One problem? As part of an agreement with regulators, the public wasn't allowed to see the plan, or how well the struggling telco was adhering to a weak plan they themselves designed.

Frontier Communications issued their second quarter financials this week, which indicate the company's earnings were slashed nearly in half, dropping to $30 million from $56 million one year ago. According to the company, the carrier lost 27,700 access lines (2,189,100 total), but added 13,800 DSL customers (613,800 total) and 11,400 DISH Network subscribers (157,400 total). Of course before long Frontier's going to jump from struggling niche operator to major rural player. In May the company announced they'd be paying $5.3 billion in common stock and taking on $3.3 billion in debt in order to acquire Verizon's DSL and landline networks in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin

In 1915, in order to spur deployment of phone service to under-served areas of the State, Massachusetts lawmakers exempted phone company poles and cables from property taxes when they passed through public property. Nearly a century later, the state is trying to change that and as you can imagine -- it doesn't sit well with Verizon.

For those companies who've sadly decided to milk copper (or have no financial choice), line-bonding is one way to grab additional bandwidth at greater loop lengths out of both ADSL2+ and VDSL. It's something both Qwest and AT&T are eager to begin implementing next year, and Dane Jasper, CEO of California ISP Sonic.net, tells us they're having good luck with ADSL2+ bonding in the labs and in employee trials.