FTC sues Frontier Communications for not delivering promised DSL speeds
Having recently emerged from Chapter 11 with a promise to build more fiber to the premises (FTTP) networks, Frontier Communications (NASDAQ: FYBR) may now have another reason to wish it had committed to fiber sooner. The U.S. Federal Trade Commission (FTC), joined by law enforcement agencies from six states, has filed a 50-page complaint against the service provider in the U.S. District Court for the Central District of California. The FTC alleges that Frontier did not deliver the DSL-enabled broadband service speeds it had promised its customers and charged “many” such customers for “more expensive and higher-speed service than Frontier actually provided,” in the words of an FTC release. Frontier has denied the charges.
The FTC states that it files such complaints “when it has ‘reason to believe’ that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest.” Here, the FTC alleges that, since 2015, “thousands” of Frontier customers complained to the company and government agencies that they were not receiving the services levels for which they had paid. The FTC alleges that Frontier violated the FTC Act and various state laws by misrepresenting the internet speeds it would provide and also engaged in unfair billing practices by charging consumers for a more expensive level of service than they actually received.
The commission notes that Frontier offers DSL-based services to approximately 1.3 million customers across 25 states. The states that joined the suit include Arizona, Indiana, Michigan, North Carolina, and Wisconsin as well as Los Angeles County and Riverside County on behalf of the State of California.
Frontier asserted that the suit is without merit and that they will respond with a “vigorous” defense. “The plaintiffs’ complaint includes baseless allegations, overstates any possible monetary harm to Frontier’s customers, and disregards important facts,” said the company in a statement. Among those alleged facts are the rural nature of many of the territories make them difficult to serve; these rural services were warmly received when they were launched and continue to enjoy satisfied customers; and the speeds for the different tiers of service were accurately described in its marketing materials.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.