Frontier Fires Up Verizon Acquisition PR Campaign Promising rural users 'next generation' upgrades Tipped by herdfan 
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 The fear is the deal will end just as Verizon's Fairpoint and Hawaii Telcom deals did: bankrupt carriers, outdated networks, and shoddy service.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. Frontier meanwhile has launched a new public relations offensive. The company has started running a series of TV ads supporting the deal in key states, and has also launched a new website in West Virginia, informing them the deal will "get them into the digital fast lane, faster." The site urges customers to write their lawmakers, and offers a note to customers from Frontier CEO Magie Wilderotter in which she promises to do a better job than Verizon did: Weve already made broadband available to more than 92 percent of our current customers. By way of comparison, broadband is available to only about 60 percent of Verizon customers. We offer download speeds of one to 10 megabits per second (Mbps), depending on technical limitations and customer requirements. Verizons fastest download speed today is seven Mbps, and thats only in limited areas. Frontier wants to hit the accelerator and give you the broadband availability, speed and reach you need and deserve. Given Verizon spent the better part of the last decade neglecting West Virginia infrastructure almost entirely in order to focus on more affluent markets, doing a better job shouldn't be that hard. The problem is (just as it was with Fairpoint and Hawaii Telcom), that once Frontier takes on the debt required under the deal, integrates all new systems, and tackles the certain influx of confused customers -- they may be in no financial position to upgrade much of anything. But Frontier's new website doesn't just promise to extend DSL, it promises to offer "next-generation broadband Internet services." One problem with that claim is that even before the Verizon deal, Frontier has had a hard time delivering anything more than current generation 3 Mbps DSL to many users. You'll also recall that Frontier has tinkered with the ideas of imposing 5GB a month caps on all user tiers. Frontier's been about as far from "next generation" as a carrier can get -- be it in urban, suburban or rural markets. The company's now promising to effectively triple its size, keep all of those customers happy, extend DSL deeper into rural markets, and deliver next-generation broadband upgrades. It's certainly ambitious, and some might argue impossible.
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 guppy_fishPremium join:2003-12-09 Lakeland, FL kudos:1 | If its so bad ... What is in this for Frontier? all the doom and gloom doesn't fit with the purchase? | |
|  |  Host: Road Runner PC gaming GAMES PC gaming Tech
| Re: If its so bad ... Stock bump aside, they get a huge influx of customers, most of whom are in uncompetitive markets and can't leave you even if you really suck at what you do. Who wouldn't want that?
The problem has been these carriers eyes are bigger than their stomachs and they've underestimated the impact on customer support and the technical hurdles of system integration... | |
|  |  |  | | Re: If its so bad ... said by Karl Bode:Stock bump aside, they get a huge influx of customers, most of whom are in uncompetitive markets and can't leave you even if you really suck at what you do. Who wouldn't want that? The problem has been these carriers eyes are bigger than their stomachs and they've underestimated the impact on customer support and the technical hurdles of system integration... Plenty of other choices in the Washington and Oregon markets if Frontier decides to impose the 5GB caps. They will lose out on a ton of business if this happens. | |
|  |  |  |  n2ubp join:2007-07-13 Middletown, NY | Re: If its so bad ... Every month for the last 6 months my Frontier ADSL service has died, usually for a 24 hour period, always forced to run thru the level one help desk script, always has been resolved mysteriously the next morning with no on site repair, always with a phone call from the help desk saying it was a central office problem. If they can't get it right over a 6 month period with existing plant and infrastructure, what makes anyone think the overhead of new former Verizon customers combined with the typical corporate mentality of firing a ton of people after this kind of merge will result in "Space Normal" operations? | |
|  |  |  |  Mark F join:2007-08-01 Fort Wayne, IN | And, FIOS TV customers in Indiana, Oregon and Washington should be afraid, very afraid, because Frontier has zero experience in delivering the type of quality TV service that we have come to expect.
Losing FIOS is something that every TV lover should dread, and being taken over by a company that may not be able to provide us with anywhere near the TV service that we are used to getting has us worried. But, what more can we do but pray. Mark F | |
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 |  |  iansltx join:2007-02-19 Golden, CO kudos:2 Reviews:
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| Out of curiosity, how big were HT and FP relative to their purchases from Verizon? Were they less than half the size of the networks they took on? Granted, Frontier's new customer base will be triple what it is now, but if I recall correctly they're the largest provider yet to do this thing.
Additionally, Frontier will have a lot of easy growing room if they're taking areas where Verizon historically hasn't deployed DSL. Put up an RT here and there and you suddenly start getting $40 per month from customers that wouldn't get wireline internet service before.
Of course, that's assuming there's cash left over after the $8.5 billion purchase goes through... | |
|  |  |  ThrowDemsOutIf you can't convince 'em, confuse 'emPremium join:2002-03-03 Mullica Hill, NJ kudos:4 1 edit | said by Karl Bode:Stock bump aside, they get a huge influx of customers, most of whom are in uncompetitive markets and can't leave you even if you really suck at what you do. Who wouldn't want that? The problem has been these carriers eyes are bigger than their stomachs and they've underestimated the impact on customer support and the technical hurdles of system integration... If the PUC's involved allow for the higher prices that need to be charged to make this work(i.e. fix and improve the long ignored infrastructure) from the get go, then this would go much better than the Frontier deal.
But we all know the PUC's will play politics to keep the voters happy; make unreasonable demands on holding the line on prices; and then get higher prices in the end after the shit hits the fan. -- My BLOG .. .. Internet News .. .. My Web Page
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 |  tim_kButtons, Bows, Beamer, Shadow, KaseyPremium,VIP join:2002-02-02 Stewartstown, PA kudos:8 Reviews:
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| said by guppy_fish:What is in this for Frontier? all the doom and gloom doesn't fit with the purchase? The executives figure if they can quickly triple the size of the company they can triple their own pay. -- RIP my babies Buttons 1/15/94-2/9/07, Beamer 7/24/08, & Bows 12/17/94-10/11/09 | |
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 patcat88 join:2002-04-05 Jamaica, NY kudos:1 | Frontier's third generation network quote: But Frontier's new website doesn't just promise to extend DSL, it promises to offer "next-generation broadband Internet services."I bet its going to be THIRD generation broadband, not just next generation, courtesy of Verizon Wireless.  | |
|  |  jmn1207Premium join:2000-07-19 Reston, VA | Re: Frontier's third generation network Maybe they mean upgrades will be available to the next generation of people?  | |
|  |  | | Or perhaps new space age satellite broadband functionality (featuring a new, space age 250MB daily usage cap -- FROM SPACE). | |
|  |  guppy_fishPremium join:2003-12-09 Lakeland, FL kudos:1 | Well part of the deal is some existing FIOS, so that would be true | |
|  |  |  | | Re: Frontier's third generation network I've heard quite often that this deal is going to include some FIOS deployments, but have never heard specifically what areas would be included. Any info on what areas of FIOS are proposed to be sold? | |
|  |  |  |  darciliciousCyber LibrarianPremium join:2001-01-02 Forest Grove, OR kudos:1 | Re: Frontier's third generation network Oregon, Washington, Indiana and I forget the fourth now unless there's already some FiOS in WV somewhere?
The first three have FiOS TV in addition to FiOS internet... | |
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 dsless join:2001-05-16 Pittsburgh, PA | Adds look nice but - My sister's DSL in Huntington will just get slower. If frontier gets their way they can't afford to fix the narrow band in WV. | |
|  SteveConIBEW 2222 Boston, MAPremium join:2004-09-02 Burlington, MA | Not so fast... Remember:
Those that forget history are destined to repeat it (1) (2) (3) (4).
(1) Hawaiian Telecom (2) FairPoint Communications (3) PUCs (4) Former Vz customers -- UNIONS: The anti-theft device for working people. | |
|  cacoPremium join:2005-03-10 Whittier, AK | So what happens if deal is not approved? Verizon does minimum to keep regulators off their back in the cities and towns and folks are still screwed.
IMO deal should be approved with some iron clad requirements and a mix of some hefty fines if service levels go down from where they currently are at. -- »www.seabee.navy.mil | |
|  |  papawjim join:2007-01-05 West Terre Haute, IN | Re: So what happens if deal is not approved? As a current Verizon customer who has been trying to get some form of broadband other than satellite (tried that, did not go so good), I am for anyone who will provide me the service I require. Granted there is some massive hurdles for Frontier to overcome to achieve this goal.
However; maybe they should be given chunks of the Verizon network a little at a time until they are able to it going and providing the services that folks want.
Yes there is still some of us who do no have access to reliable broadband, I know that will be hard to believe for some whom have always had that luxury. It looks like the only way the rural areas will see it, is with a deal like this or some form of it.
All I know is that if the deal crashes, Verizon will still not deploy the needed equipment to provide the service, they are to entrenched in providing service to select areas where the ROI is much higher.
Just my two cents worth. | |
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 | | Eminent Domain is looking like the only real solution... At least for the short term. Here in Western Mass we are working on a non-profit, customer-owner cooperative fiber-to-the-home solution. People in east central Vermont are also working on this sort of solution.
The so-called 'Free Market', is simply not working in terms of rural telecommunications. I don't think it ever will (and I am not really sure it ever did). | |
|  DampierPhillip M Dampier join:2003-03-23 Rochester, NY 1 edit | Don't Get Stuck With Yesterday On The Rural Frontier We've been exhaustively covering the Frontier-Verizon deal on Stop the Cap!, particularly as it impacts West Virginia, where nearly the entire state would be stuck with Frontier for phone and, for many, their only wired choice for broadband service.
As a person living in Frontier's largest service area - Rochester, NY - I can say many of us have signed petitions begging Verizon to buy out Frontier locally and get out of town. The reason? The broadband backwater Frontier will saddle NY's second largest economy with indefinitely. As Buffalo, Syracuse, Albany, and NYC are all being prepared for Verizon FiOS fiber to the home, Rochester lives with Frontier's slow DSL service (they managed to deliver 3.1Mbps to my home less than 1/2 mile from the city line) which actually costs MORE than Time Warner's Road Runner service once taxes, fees, and modem rental is accounted for (and being stuck with a 1-3 year service commitment Time Warner doesn't have).
If they aren't doing fiber in Rochester, forget it West Virginia.
As we've noted, Frontier's DSL service is even worse than Verizon, with slower speeds, and that pesky 5 gigabyte "acceptable use limit" language that just won't go away.
After reading hundreds and hundreds of pages of testimony from earlier deals and the current one on the table, it's just one more disaster waiting to happen with a company that will be saddled in debt, still insisting on paying dividends to stockholders, and have to magically conjure up financing to deliver this wonderful world of DSL broadband they promise even while planning to cut $500 million a year in "expenses" to help make the deal more palatable to investors on Wall Street.
By the way, nothing stops Verizon Wireless from continuing to pelt West Virginians, among others, with those "cut the phone cord" letters telling people to switch to their mobile phone and dump the wired phone line for good.
How many failed spinoffs does it take to get regulators to wise up? Three spinoffs = three bankruptcies. We've got hours of video on Stop the Cap! going back two years with endless details of the disastrous FairPoint Communications deal, which forced some businesses to threaten to leave the state just to get phone service!
Yes, there is something worse than Verizon. -- Phillip M. Dampier Editor, Stop the Cap! »stopthecap.com | |
|  |  spewakR.I.P DadkinsPremium join:2001-08-07 Elk Grove, CA kudos:1 Reviews:
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| Re: Don't Get Stuck With Yesterday On The Rural Frontier said by Dampier:Yes, there is something worse than Verizon. Phillip, could not have summed it up better than that! Frontier CEO Wilderotter is at best a dreamer, at worst delusional. Frontier will NOT increase speeds, will NOT be able to fund infrastructure repairs or upgrades. Her saying otherwise is pure folly!  -- The weekend is here, grab a can of beer!
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| if frontier gets wv i will be studying alternatives If frontier takes over for verizon in west virginia I can just see the eyes of comcast and suddenlink lighting up big dollar signs. Frontier will have a very hard time convincing customers to stay when comcast and suddenlink offer fronter customers everything but the kitchen sink to join their triple play. Heck verizon can't offer TRUE cable,internet and phone now in west virginia. All they offer is satellite, internet and phone what makes frontier believe they can compete when 90% of west virginia can't get local channels on satellite, something frontier HAS NO CONTROL OVER? | |
|  bac522 join:2003-08-04 Manchester, NH | How ironic... Clearly Frontier didn't learn from Fairpoint's mess up! Trying to sell the public the same way Fairpoint did and look where that got them! | |
|  | | 1 to 10mbps? Unlimited? Sold! I rather have that then Hughesnet.
even if their tech hardware is little behind. | |
|  |  | | Re: 1 to 10mbps? Unlimited? Sold! said by yolarry:I rather have that then Hughesnet. even if their tech hardware is little behind. I think I'd have to go back to dial up, over using Hughesnet!!
Not keeping up with this topic very well, but from what I've read, I sure hope this deal DOESN'T go through!! -- The Firefox alternative. »www.mozilla.org/projects/seamonkey/ | |
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 | | Get Real I love it when all you folks who have never stepped foot in West Virginia, much less done business here, pontificate about the Frontier transaction and oppose it. And you call us ignorant. Stop the deal so Verizon can invest more? Do more broadband? Grow jobs? Yes, rural broadband is challenging but unless someone like Frontier -- who has done rural broadband -- steps in, the likelihood of Verizon taking West Virginia back and showing us love is nil. They are not going to change a business strategy so it stands to reason they will simply look for another buyer, one that is not already in the state and knows how to do broadband here. Not invest. I understand more than half of all Verizon jobs here are not necessary just to serve the state, so guess what is likely to happen? Complain all you want about them, but we hillbillies need someone to do broadband who wants to do it for us. Wants to be here. These folks at Frontier serve some of the most remotest areas of the state, so they have a clue. I will take them warts and all. | |
|  |  | | Re: Get Real looks like someone has been fed frontier's bs. Until frontier comes out with a list of areas to be upgraded to offer higher speed internet and cable tv service I will continue writing my state representatives to OPPOSE the buyout. | |
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