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Frontier Adds Insult To Injury After FiOS TV Hikes
Extends free DirecTV offer that DirecTV didn't know existed
by Karl Bode 12:15PM Monday Jan 10 2011
Unable to cross subsidize high programming costs, Frontier Communications last week decided to exit the TV business in an interesting fashion: they jacked up TV prices for FiOS TV customers acquired in their deal with Verizon by a whopping 50%, higher than local competitors. Instead of just shuttering the service, Frontier apparently hopes to milk these consumers for a while -- then shuffle them off to DirecTV bundles, including a year of free DirecTV. Except when many customers called in to get this deal, they were told it wasn't real. Frontier now says that DirecTV wasn't yet on board with the promotion for some reason, and that the deal is only good for triple play FiOS customers:
quote:
DirecTV hadn’t been prepared to honor the promotion to its former customers who switched to Frontier’s FiOS television service, said Stephanie Beasly, a spokeswoman for Frontier. But former DirecTV subscribers who wish to drop their FiOS television service will receive the promotional deal, Beasly said. She said former customers who were told no should call again. On Thursday, Frontier clarified to its promotion. Only FiOS customers who have a three-service bundle — television, Internet and phone — qualify to receive free DirecTV for the rest of the year. Customers with a two-service package — FiOS television and Internet — will receive free DirecTV for six months.
The fact that Frontier can't afford to serve the TV customers (which didn't get much discussion during the Verion deal regulatory approval process) shouldn't be too surprising. With a large rural footprint and Verizon-incurred deal debt, the company will be struggling to nurse aging copper for the next decade, and is barely in a position to be a serious broadband company -- much less a cable TV operator. Fortunately for Frontier, they exist in a large number of markets where they're the only broadband provider in town, which is why they're currently thinking about charging $100-$200 for 3 Mbps DSL.

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HarleyYac
Lee
Premium
join:2001-10-13
Allendale, NJ
kudos:2
Reviews:
·Verizon FiOS
·Verizon Online DSL
·Optimum Online

Can you say

BEND OVER>? The government official(s) who signed this agreement better run.
Alas, this country is full of ignorant people, they will vote them back in .
--
My opinion on religion and science? Science builds airplanes. Religion flies them into buildings.
Chewyrobbo

join:2005-04-12
Tacoma, WA

Re: Can you say

This is why broadband deployment in rural areas is a joke for the most part. Conditions are never enforced, and Verizon rides off with the USF money while leaving the customers to hold the bag.
iansltx

join:2007-02-19
Austin, TX
kudos:2

Re: Can you say

If you're talking about areas with big telcos (like mine) then yes. In areas with smaller telcos/co-ops, quality varies but generally you can get DSL (though it might be expensive) almost anywhere. "Gold plated network" they say...
Lazlow

join:2006-08-07
Saint Louis, MO

Re: Can you say

Most of the geographical US DSL is NOT available due to distance limitations. So it is untrue that DSL is available almost anywhere.
iansltx

join:2007-02-19
Austin, TX
kudos:2

Re: Can you say

I'm talking specfically about areas served by small telcos or co-ops. Trust me, I know about the crapshoot that is getting DSL in rural-ish areas from mainline providers.
tjb122982

join:2009-09-22
Terre Haute, IN

This is why more communities should install fiber themselves

I honestly think it would be a great idea for these communities to install and establish their own fiber networks on their own; of course if they can afford it. Doing it yourselves will be a lot quicker than waiting for the incumbents to do it for you. People it is time to stop complaining about what the cable and phone companies are or not doing and do something about it yourself.
iansltx

join:2007-02-19
Austin, TX
kudos:2

Re: This is why more communities should install fiber themselves

Quicker, yes. However people aren't willing to foot the $2000 per customer cost that that would entail unfortunately.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Why? These customers still have a choice. Fiber is not the answer to everything like people on BBR think. These same areas have access to DirecTV, Dish Network, OTA and the local cable companies. They're are plenty of places to get TV from. And after all- remember according to everyone on here still- Cord Cutting is happening so it doesn't matter if companies provide TV service anymore.

YOU DO NOT NEED FIBER SERVICE!
rifleman69

join:2006-04-12
Beaverton, OR

Re: This is why more communities should install fiber themselves

said by hottboiinnc:

Why? These customers still have a choice. Fiber is not the answer to everything like people on BBR think. These same areas have access to DirecTV, Dish Network, OTA and the local cable companies. They're are plenty of places to get TV from. And after all- remember according to everyone on here still- Cord Cutting is happening so it doesn't matter if companies provide TV service anymore.

YOU DO NOT NEED FIBER SERVICE!

TV is not the primary use for the fiber service, it's very much secondary. Internet is the reason for fiber, tv just tags along as a bi-product.
jjeffeory

join:2002-12-04
USA

Re: This is why more communities should install fiber themselves

Really, it's all data. The purpose of high speed fiber is to push bits as fast as possible. It doesn't matter what the data turns into.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
the point is. You do NOT need Fiber today. Nor any other real options for TV. Both FiOS, U-Verse, DirecTV, DishNetwork and all the other MSOs have raised rates and are ALL the same pricing now for the most part. Why do you need another option in TV?

1 cable and 2 Dish providers are good enough. You don't really need a 3rd that is just going to raise rates anyway. Ever think about that? And a Muni offering TV will see rate hikes JUST like Frontier did.
rifleman69

join:2006-04-12
Beaverton, OR

Re: This is why more communities should install fiber themselves

said by hottboiinnc:

the point is. You do NOT need Fiber today.

Says who?

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet
said by hottboiinnc:

YOU DO NOT NEED FIBER SERVICE!

YES I DO!

Oh wait, Frontier still sucks and I do have Fiber. Fast, delicious FIBER!!
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tjb122982

join:2009-09-22
Terre Haute, IN
said by hottboiinnc:

Why? These customers still have a choice. Fiber is not the answer to everything like people on BBR think. These same areas have access to DirecTV, Dish Network, OTA and the local cable companies. They're are plenty of places to get TV from. And after all- remember according to everyone on here still- Cord Cutting is happening so it doesn't matter if companies provide TV service anymore.

YOU DO NOT NEED FIBER SERVICE!

Don't give me the standard knee jerk "the market will take care of everything" answer. First the internet is mostly in the hands of several major corporations: AT&T, Verizon, Comcast, and Time Warner Cable. Most people only have two main choices, the cable or phone company. If AT&T had their way we wouldn't have YouTube or Facebook or if we did we would have to pay extra for it. 3 or more choices is better than 2.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: This is why more communities should install fiber themselves

2 options?!?! You can't count can you? Cellco Partnership, ATTW, Sprint, T-Mobile, Clear, and countless resellers, Hughes Net, Wild Blue, TWC, WOW, Comcast, ATT, VZ, Frontier and then you have the HUGE amounts of other WISPs in the areas.

That is MORE than 2 providers. So you should learn to count. And YouTube? LMAO! Good point! We all need more ads shoved in our faces huh? And Facebook? Good waste of time on there playing games.

lostinms
Moo

join:2001-11-29
Grenada, MS

Re: This is why more communities should install fiber themselves

lol where i live there are only 3 for tv, Dish, Direct and Cableone. For internet there are only 2 in my area unless you want to count the cell phone company and the Satellite company's (shudders). The 2 that I speak of is ATT dsl (which I am currently using) and Cableone.
tjb122982

join:2009-09-22
Terre Haute, IN
said by hottboiinnc:

2 options?!?! You can't count can you? Cellco Partnership, ATTW, Sprint, T-Mobile, Clear, and countless resellers, Hughes Net, Wild Blue, TWC, WOW, Comcast, ATT, VZ, Frontier and then you have the HUGE amounts of other WISPs in the areas.

That is MORE than 2 providers. So you should learn to count. And YouTube? LMAO! Good point! We all need more ads shoved in our faces huh? And Facebook? Good waste of time on there playing games.

Seriously man? You really want to call me stupid and try to counter my point by pointing out that there are more than 2 options out there? Satellite is not a crappy option because you are paying $50-60 for what 1.5 mpbs and throttling. And I am not going to pay for caps and overages from Verizon or AT&T. Yes, to me there are 2 "real options" but then again they have made a point to not build up speed just because they want to keep more money instead of building their businesses. It's a classic case of dealing everything in a short term fashion.

And how are YouTube and Facebook stupid if million people use them? Maybe you should figure out how to make a decent counterpoint instead of calling others dumb or calling what people do with their time stupid.

DataRiker
Premium
join:2002-05-19
00000

1 edit
said by hottboiinnc:

2 options?!?! You can't count can you? Cellco Partnership, ATTW, Sprint, T-Mobile, Clear, and countless resellers, Hughes Net, Wild Blue, TWC, WOW, Comcast, ATT, VZ, Frontier and then you have the HUGE amounts of other WISPs in the areas.

That is MORE than 2 providers. So you should learn to count. And YouTube? LMAO! Good point! We all need more ads shoved in our faces huh? And Facebook? Good waste of time on there playing games.

You really included satellite and cellular? There's a quick way to not be taken seriously. Fixed wireless is even pushing it.
mrken30

join:2010-06-29
Hillsboro, OR

PUC Response

I am new to all this bureaucracy but has anyone asked for a comment from the PUC for what its worth?

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

1 edit

Re: PUC Response

said by mrken30:

I am new to all this bureaucracy but has anyone asked for a comment from the PUC for what its worth?

PUC The Franchise authority usually doesn't regulate the cost of television service with the exception of the very lowest tier, "Locals only". Now that is going from $12.99 to $24.99, but with all the changes to franchise agreements over the last few years, even that may not be under the control of the AHJ.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: PUC Response

most PUCs do not regulate the state TV agreements anyway. the Dept of Com. does. and TV channels are NOT regulated. its basically service.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: PUC Response

said by hottboiinnc:

most PUCs do not regulate the state TV agreements anyway. the Dept of Com. does. and TV channels are NOT regulated. its basically service.

My brain wasn't thinking. I meant franchise authority, not PUC. Often they had some type of stipulation in the franchise agreement for very basic service with some type of price control. I don't know if such things exist though in very recent years.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: PUC Response

NOPE! all gone! That was the whole point in why the cities didn't want these. I have WOW but i have the option of 4 public access channels. Well Ohio ruled that the cable companies do not need those anymore- WOW uses them for their own advertising now. TWC Ohio offices do the same. And these are the same laws that ATT wrote for other states.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

1 recommendation

Exit and proof?

Okay Karl- where is your proof on them wanting to exit the business besides the rate hike? You have proof this time? And ACTUAL proof. Sources and other blogs and rumors do NOT count as proof.
rifleman69

join:2006-04-12
Beaverton, OR

Re: Exit and proof?

said by hottboiinnc:

Okay Karl- where is your proof on them wanting to exit the business besides the rate hike? You have proof this time? And ACTUAL proof. Sources and other blogs and rumors do NOT count as proof.

Frontier has the option to shut down the tv side of their business in both Washington and Oregon by the end of 2011 if it's not deemed profitable by them. It's probably similar in Indiana as well but am not for certain on that one.
talz13

join:2006-03-15
Avon, OH

Re: Exit and proof?

said by rifleman69:

Frontier has the option to shut down the tv side of their business in both Washington and Oregon by the end of 2011 if it's not deemed profitable by them.

And what better way to make it un-profitable, than to charge $1,000,000 for cable TV, and shut it down when there isn't any demand
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
news flash! VZ has that option in ALL of their areas as well. And guess what! It's NOT a profitable business!

TKJunkMail
Premium
join:2005-12-09

Re: Exit and proof?

Did you accidentally eat your vegan dog food again? You seem to be a bit touchy today.

TKJunkMail
Premium
join:2005-12-09

1 recommendation

Re: Exit and proof?

said by hottboiinnc:

Good one. But actually I don't eat meat in general. Stopped a good 5 years ago.

But touchy? Nope Just tired of Karl on here spreading lies about companies and then refusing to back them up. If anyone on here was doing the same thing people would be calling for proof all day long. But instead with Karl its different. We all have to hail oh mighty Karl. Justin needs to find another "blogger" to take over the "news" and shit can Karl.

I demand proof that you're not eating meat. You must send me the lab results from a stool sample.
rifleman69

join:2006-04-12
Beaverton, OR
said by hottboiinnc:

news flash! VZ has that option in ALL of their areas as well. And guess what! It's NOT a profitable business!

Economies of scale must have been a subject you missed in high school economics?

skuv

@rr.com
I'm not sure why anyone thought Frontier was going to be able to keep an in house TV service for such a small footprint of rural customers.

If it was that inexpensive to run a TV service, everyone would have already been doing it to compete with cable and satellite. It should tell you all you need to know that pretty much only the biggest carriers, Verizon and AT&T, are trying to compete.

In order to support TV, without Verizon being involved, Frontier would need to build, staff, and maintain at least 2 video headends. Then they would need a backbone that could connect all of their rural locations to these redundant headends so that video can be provided as close to outage free as possible. Not to mention, they would need to enter into rebroadcast agreements and contracts with all of the content providers.

They can't have just one headend, because that would mean long outages everytime they needed to upgrade or replace equipment. They can't do a headend per area, because that would be a lot more expensive than building 2 national headends, and it would still leave them without a backup for that area, unless they were connecting the areas together. Which would mean they could go with 2 headends.

So basically, they could go that expensive route. Or go the expensive route of paying Verizon perpetually to offer their TV service. Or they can jack up the price to cover their costs with Verizon for now, and hope that forces everyone to switch to something else.

Really, what do you expect the outcome to be?

HappyAnarchy

@iauq.com
Is he bringing a court case that we don't know about?

He doesn't need proof, he is pointing out signs. A company raises TV rates for fiber through the roof, then offers free TV for six months to a year with a competitor? That is a pretty big sign of wanting out of the TV business.

Unless you think raising rates on customers and offering to have them go with another companies TV service at a discounted rate is some clever marketing ploy to get more FIOS TV adds?

•••••••

Karl Bode
News Guy
join:2000-03-02
kudos:39

1 recommendation

What, the 50% rate hike and them trying to get all tv customers to switch to DirecTV isn't enough for you? Stop crapping in our news comments.
thorataz

join:2009-11-10
USA

there are tons of restrctionis on this offer!

Working for frontier I know this offer really well. To get the "year free" you must be signing up for DTV Choice Ultimate, upgrading your Fios data speed OR 90 days from contract OR month to month you must also add 19.99$ POM Piece Of Mind computer repair virus and back up service and freedom essentials. 3yr contract on phone and data, 2 yr dtv contract 1 yr POM contract. get 6 months "free" if your doing a 2 yr deal for phone and data. Copper can get this too..... free lap top, 32inch lcd tv or free dtv if your adding new hsi still 3 yr deal, or get six months free dtv or hsi with 2 yr deal (no lap top or TV gift) IF you are a NEW DATA or HSI customer you DO NOT need to add POM 19.99 service. I posted the sales blazer here for fios. »Frontier FIOS raising rates in 2011
WHEW!! crazy huh?
Expand your moderator at work

cork1958
Cork
Premium
join:2000-02-26

Covered it pretty well

You people covered it pretty well.
Can't really think of a thing to add except, phew!!
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