Tag: "bankrupcty"

Posted April 23, 2020 by christopher

Last week, Frontier Communications told the Federal Communications Commission (FCC) that there are 17,000 census blocks in which it is now offering 25 Megabits per second (Mbps) download and 3 Mbps upload. This means well over 400,000 Americans now live in areas no longer eligible for the FCC's Rural Digital Opportunity Fund, a $20.4 billion program to expand rural broadband. The first phase will auction off up to $16 billion in subsidies later this year.

In the filing, the company also identified census blocks where it believes other providers will deploy broadband access through state-funded programs, making those locations ineligible for the federal funds as well.

Frontier is Flailing

Frontier recently declared bankruptcy, following a history of increasingly unsustainable acquisitions. It also just missed its milestone for the Connect America Fund, which required the company to deploy obsolete 10/1 Mbps service to 80 percent of the funded locations by the end of 2019 in return for more than $1.5 billion in subsidies. Some 774,000 locations should have at least 10/1 Mbps service by the end of 2020 from a company Consumer Reports repeatedly finds to be one of the worst Internet Service Providers in the nation.

Frontier is so bad that it went through repeated outages of 911 in Wisconsin, dealt with state investigation after state investigation (including but in no way limited to Minnesota, Ohio...

Read more
Posted December 5, 2012 by christopher

A Stop the Cap! story about Charter cutting customer service positions makes a point we make too rarely. Not that customer service from the national cable and telephone companies is terrible and getting worse, but that some are constantly struggling to make a profit.

Investors don’t think too highly of the company either. Charter reported a wider third-quarter loss in November, losing $87 million compared with $85 million lost during the same quarter last year. Executives tell Wall Street the company was in chaos before new management under Tom Rutledge took over operations. Rutledge’s priorities are to invest in new set top boxes, convert more of its systems to digital, raise prices on services, cut back on promotions and retention offers, and centralize customer support operations.

Imagine that! When communities have to make investments and suffer losses, they are accused of failing. Charter is losing money (and recently emerged from a bankruptcy proceeding) and trying to make changes to correct its condition.

This is what happens to many firms in telecommunications. Only when it happens to those that are owned by communities, they are besieged with claims that such a situation is somehow proof that the public cannot own and operate networks.

Note that others, like Comcast, are actually lauded by Wall Street for operating in areas with so little competition that they can increase their rates at will -- hard not to make a profit in that case. Which is precisely why existing cable and DSL companies push laws to restrict local authority to build better networks.

Subscribe to bankrupcty