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Home > Telephone Service > Ratewatcher Telecom Guide Ratewatcher Telecom GuideVolume 23, Fall 2010
Download the Fall 2010 Ratewatcher Guide (PDF) (1.1mb). Requires the free Adobe Reader.You can download the print version of the newest guide using the link to the right.Telephone News and RatesFairpoint Update — Down But Not OutDSL Service Expands and Customer Service ImprovesFairpoint’s troubles after acquiring verizon-maine are well-known. Those troubles led FairPoint to file for bankruptcy reorganization — a proceeding that is still pending and not expected to be completed until late 2010 or early 2011. When it emerges from bankruptcy, FairPoint will have gotten rid of $1.7 billion in debt, it will have new owners, and it will have a substantially changed management team. FairPoint now has a new CEO, Paul Sunu, based in FairPoint headquarters in Charlotte, North Carolina. However, Mr. Sunu’s major focus will be FairPoint’s problems in New England. Mr. Sunu has extraordinarily relevant experience — he was the chief financial officer of Hawaiian Telecom, which has a story that is eerily similar to that of FairPoint. After Verizon sold its Hawaii telephone system, the systems did not operate properly, customers left in droves, costs increased, and the company ended up in bankruptcy. Verizon and FairPoint gave assurances that Maine, New Hampshire and Vermont would not suffer a similar fate, but, of course, we did. Mr. Sunu seems to have the right experience, competence, and sincerity. Whether that will be enough to turn FairPoint into a profitable and well-performing operation, remains to be seen. In order to protect most of the benefits that we helped to negotiate at the time of acquisition, the Public Advocate entered into a new “regulatory settlement” with FairPoint that allowed for slightly less stringent goals for broadband expansion. If the bankruptcy plan is approved by the New York Court, FairPoint will be obligated to expand DSL service to 87% of its customers instead of the 90% level to which it originally agreed. There were a few other minor concessions. However, for the most part, FairPoint remains obligated to provide the promised benefits that were achieved by the Public Advocate and the Public Utilities Commission, including payment of 100% of the substantial service quality penalties due to all of its customers. In October, FairPoint asked the PUC to avoid paying a portion of the service quality penalties that our rules required after FairPoint’s dismal performance last year. This new petition comes after FairPoint agreed, in our bankruptcy settlement, to pay 100% of last year’s penalty to its customers. The Public Advocate successfully opposed that proposal in order to preserve the refunds that are due to all FairPoint customers (in the former Verizon territory). Where FairPoint Needs to ImproveFairPoint’s WebsiteThe Public Advocate has complained to FairPoint that its website should provide better, clearer, and more helpful information. FairPoint’s website fails to mention the rate for its most basic service — local telephone service, which is priced at a reasonable $14.69 (plus $6.23 subscriber line charge). Instead, FairPoint chooses to mention only its higher-priced bundled services which are not the best choice for many of its customers. FairPoint also fails to mention the federal $6.23 subscriber line charge that telephone customers are automatically charged in addition to the advertised price of its bundles and local service. Broadband Expansion Information The Public Advocate (as well as many potential Internet customers) has been disappointed in FairPoint’s inability to provide specific information about which customers can expect to have new DSL broadband service in the near or distant future. FairPoint’s Financial StatusWhile the regulatory commissions in Maine and New Hampshire approved settlements that allow the bankruptcy case in New York to proceed, the Vermont Public Service Board refused to sign on. The Vermont Board based its decision, in part, on its doubts that FairPoint will be economically viable even after shedding $1.7 billion of its debt. The Public Advocate is similarly concerned about FairPoint’s financial health going forward, and we will be keeping a close eye on FairPoint’s financial circumstances. However, concerns about FairPoint’s financial strength should not be of major concern to current or potential customers. The Public Advocate and the Public Utilities Commission will work hard to ensure improvement in service quality to customers, regardless of financial results. Financial risks should remain with investors, not customers. New High Quality Voip Telephone Service from 207ME207ME is a small local Maine telecommunications company providing some innovative services. 207ME began as a dial-up Internet service provider with rates as low as $7/month. Now, it offers DSL service (as a reseller) in a variety of towns, as well as VOIP-based telephone service in most of the State. As with nearly all VOIP telephone services, it is necessary to have an underlying broadband connection in order to use a VOIP telephone service. 207ME’s VOIP services are worth considering based on its reasonable pricing and high-quality of service. Service from 207ME should be superior to typical national VOIP services because 207ME interconnects to the public telephone network within Maine, as opposed to typical VOIP services which ride the public Internet for longer distances. This service should be on par with the telephone services offered by Time Warner and Comcast. However, 207ME’s rates are substantially lower. The prices listed in the VOIP chart on page 9 represent the total bill — no taxes or surcharges are added. Make Telephone Calls Through Gmail (For Free)Customers with a broadband connection who desire a convenient free way to make telephone calls can take advantage of one of the latest innovations from Google. The last Ratewatcher covered Google Voice, a free VOIP service that allows you to choose a telephone number and receive calls to that number on all or any of your telephones or wireless devices. As we reported, it also allowed you to make calls from your computer. Now, Google Voice works through Gmail, but you don’t even need a Google Voice account to make outbound calls from Gmail. If you have a free Gmail (email) account, all you need to do is sign into your email account and download the voice program (which takes about 20 seconds). Then, whenever you are logged into Gmail, you can click on the voice program (“dial phones”) and a dialpad will appear on your screen. From there, just click or type any number in the U.S. and you’ll be talking for free. If you sign up for a free Google Voice account and get your own phone number, you can link it to your Gmail account and set it to ring you in Gmail when your Google Voice number is dialed by another party. International calls can also be made — those are charged at very low rates (typically 2 cents/minute). If your computer does not have a built-in microphone, you will need to buy one (under $10) in order to use this service. Bottom Line a good, convenient and free way to turn your computer into a telephone. Touchtone Raises Rates to Customers of Rural Local Phone CompaniesAre there alternatives?For many years, the Ratewatcher has recommended Touchtone as a top choice for long-distance customers served by rural local phone companies — because Touchtone was one of the only long-distance phone companies that charged low rates and did not discriminate against customers of our rural phone companies. Recently, Touchtone has begun to raise its typical rate from 3.9 cents per minute to 6.9 cents per minute for customers in certain parts of the State. It does cost a bit more for a long-distance company to serve in independent local company areas because transaction costs are a bit higher and because the per-minute access rates paid by the long-distance company are also a bit higher. However, the reason that small long-distance companies like Pioneer and Touchtone need to charge higher rates in certain rural areas is because they must accept the wholesale rates of big carriers such as AT&T, Qwest, FairPoint and others. Unfortunately, even if the price discrimination against customers in independent areas is not justified, these large long-distance telephone companies have the right to set their own prices without approval from the Public Utilities Commission because the Commission de-regulated long-distance rates. Without such regulation, customers in these rural areas are subject to what may be arbitrary pricing policies because the market is not sufficiently competitive. Although customers of these small telephone companies have the disadvantage of fewer services and higher prices, those customers do get the benefit of local rates that are subsidized by the federal Universal Service Fund and, in some cases, by the Maine Universal Service Fund. It costs more to serve customers in more sparse areas while those small local phone companies are obligated to serve every last customer. Alternatives Unfortunately, Touchtone was one of the few low-cost long-distance carriers that, until recently, did not discriminate against customers of independent telephone companies. Now, it appears that low, nondiscriminatory rates for those customers are available only from certain prepaid long-distance services such as Onesuite.com. That may very well be the best long-distance option for independent-area customers who want to keep their rate around 3 cents per minute (see page 8). Pioneer Telephone Now Offering Local Calling Plans as an Alternative to FairpointThe Ratewatcher has long recommended Pioneer Telephone to long-distance customers in the “new” FairPoint (i.e., former Verizon) territory. Now, as of December 1, 2010, those customers have the opportunity to choose Pioneer for local and long-distance service and have it all on one bill. Is Pioneer’s Local Service A Good Deal? It depends, because Pioneer’s plans all come with 150 minutes of long-distance service and bundles of calling features. Therefore, for customers who don’t care about subscribing to call features such as Caller ID, Call Waiting and others, FairPoint offers the best value at a state-regulated rate of $14.69 (total bill for unlimited local service is approximately $23, minus service quality rebates). See page 4 for the rates and details of Pioneer’s new local telephone service. Fairpoint May Still Be the Best Choice for Many CustomersFairPoint Versus Time Warner and Wireless ServicesFairPoint has lost a substantial number of its customers to Time Warner (and Comcast), to VOIP companies, and to mobile phone carriers. However, as FairPoint’s latest round of marketing points out, there are advantages to FairPoint’s telephone service. Traditional telephone service (including such service from alternative local phone companies) remains the most reliable, trouble-free communications service available, and it will usually work during a power interruption (if you have at least one non-cordless phone). Unlike those of cable and wireless companies, FairPoint’s local rates are regulated, set at a reasonable level, and cannot be increased without approval from the Public Utilities Commission. Unlike cable and wireless companies, FairPoint is subject to strict customer service standards and rules, which is why every customer is now seeing a rebate for the poor service quality provided last year. Finally, customers who do not use many long-distance minutes can save money with FairPoint because its basic unlimited local service is less expensive than the local and long-distance bundles sold by cable companies. Of course, cable phone service and wireless services have their advantages, but both have minimum prices that are higher than FairPoint’s minimum price for low-volume users. Alternative Local Phone CompaniesThe following competitive local telephone companies (CLECs) offer an alternative to FairPoint’s local service in the former Verizon territory. Business customers are more likely to find savings here than residential customers. However, residential customers seeking a package of optional features and pay-as-you-go long-distance, along with local telephone service, may find some of these offers attractive. All rates include a $6.50 line charge where applicable. Compare to FairPoint’s Local Rates — $21.08 for residential customers ($14.69 + $6.39 subscriber line charge) and $38.67 for business customers ($32.28 + $6.39 subscriber line charge).
Note: Local service is also provided by VOIP telephone companies. Dead Calls Are a Growing ProblemRecently, we have received several complaints from customers in various places in the U.S. that their calls to Maine telephone numbers cannot be completed. When those customers call their local telephone companies to complain, those companies often blame the Maine local phone company. However, Maine’s local phone companies are not the problem. Telephone networks have been getting increasingly complex and involve the interconnection between Internet Protocol (digital) traffic, wireless traffic, and traditional circuit-switched telephone traffic. Many calls pass through various routers and switches in order to route calls at the speed of light. However, all of the routers and switches must be programmed correctly in order for calls to be properly routed to their destination. Investigations are now underway to track down the carriers that are failing to properly program their equipment to recognize the electronic path to some of Maine’s smaller phone companies. It’s Time to Do Something About Unfair and Confusing Billing PracticesIn the next legislative session, the Public Advocate plans to pursue a law that would prevent cable and cellular companies from inventing sneaky line item surcharges that raise the rates you pay on your bills. In a recent legislative session, we successfully pushed for a new law that limits line items from regulated telephone companies to items that are actually requested by the customer or mandated by federal or state law. We think that it’s only fair that cable and wireless carriers adopt that same “fair billing” rule. Since cable and wireless rates are not regulated, those companies are free to recover any costs within their advertised rates, and make as much profit as they can. However, we object to the practice of advertising one rate and then charging a higher one based on its addition of confusing bill surcharges. The Public Advocate is also taking a close look at how surcharges are applied by telephone companies. It appears that some companies are calculating surcharges differently from others even though they should all be playing by the same rules. We think it is time for FairPoint and other phone companies to stop advertising rates that omit the Subscriber Line Charge of $6.23 to $6.50. This charge is simply part of the rate that goes directly to the phone company just the same as the advertised portion of the rate. So, when you see an advertised introductory rate for a bundled service from FairPoint for $56.99, the rate is really $63.22 plus other legitimate taxes and regulatory fees. Always ask for a realistic estimate for the total bill before agreeing to any new services. Sadly, we have had many reports that customer service representatives of many large communications firms are simply unable to provide a simple response to such a reasonable question. It’s also sad that currently, there are no State or federal regulations that would require a straightforward answer to the question, “how much will I have to pay each month?” Always ask about the “permanent” rate when you sign up for a new bundle with an “introductory rate.” Advertisements often completely omit the higher rate that you will be paying for the vast majority of time during which the service will be provided. Time Warner and Comcast Are Now Regulated Telephone Companies in the State of MaineEver since Time Warner began offering Digital Phone and Comcast began offering Digital Voice telephone services in Maine, there has been an uneasy ambiguity about whether those companies were subject to regulation and consumer protection rules that normally apply to telephone service in Maine. In October, the Public Utilities Commission finally put an end to that ambiguity after approximately two years of litigation. The Commission agreed with the Public Advocate and the Telephone Association of Maine, and ruled that the telephone services of cable providers meet the State’s definition of telephone utility service and that no federal law or policy preempts the State from regulating the telephone services of cable providers. The practical result of this ruling is that cable operators now need to be licensed to provide telephone service and that various consumer protection and billing rules will apply to those cable companies. In addition, the Commission’s Consumer Assistance Division will have the authority to resolve billing and disconnection disputes between customers and cable operators. The Commission has deregulated pricing by competitive telephone companies, so we won’t be seeing rate proceedings involving Time Warner’s or Comcast’s phone services, or any other burdensome regulation of those services. Bundled Plans: Residential (Local, Long-Distance, and DSL)
Prepaid CallingThere are literally thousands of prepaid phone offers available – from cards in local convenience stores to web sites specializing in calls to foreign countries. In many cases, a phone company, such as AT&T, may offer many different rates for prepaid minutes depending on which store or web site is selling it (buy an AT&T card at Walmart and you’ll be paying nearly double the rate of the Sam’s Club card). In the chart below, we selected prepaid offers based on a combination of their rates and their availability in Maine. Special calling cards marketed for calling to individual countries may be priced much lower for those international calls, but many of those cards may come with hidden charges or come from a less-than-reputable company. Note that calls to mobile phones in foreign countries can be priced much higher than the rates shown.
Long-Distance Plans
(Rates apply in “new” FairPoint territory) VOIP services and plans
Note: FCC has required full service retail VOIP providers to comply with E-911. Some services listed here are not required to provide E-911. What Is “Enhanced” Voip Service?Our VOIP chart separates VOIP into three “flavors” — free/low cost, national, and enhanced. “Enhanced” VOIP services offer the ability to port local Maine numbers and provide a reliable interconnection to the public telephone network at a point within the State. National services such as Vonage generally work well but are less reliable because their voice traffic rides on the public Internet for a longer distance. While “enhanced” VOIP services are more reliable, they are not portable. That is, they require that your VOIP adapter remain at your home or business location. Of course, this is important for purposes of registering your location for emergency E911 service. With “national” services such as Vonage, you can take your adapter anywhere in the world and it will ring you there. “Free/low cost” services are also portable and often rely on a personal computer. In Maine, enhanced services are offered by the cable operators, by 207ME, and by Redzone Wireless. These companies can offer “local” telephone numbers and reliable interconnection with local phone companies. “National” VOIP companies may offer telephone numbers within Maine’s 207 area code, but not necessarily with a three-digit prefix that makes it a ‘local’ call where your home or business is located. Even “enhanced” VOIP services may not be able to obtain local phone numbers within the territories of certain independent local telephone companies. WirelessLow-Income Customers Now Get Many More Monthly Minutes with Tracfone’s Safelink ProgramThe Lifeline Program provides discounted or free telephone service for low-income customers with funding from the federal Universal Service Fund. Traditionally, Lifeline service has been in the form of a discount from the rates normally charged by the local telephone company. However, in recent years, cellular carriers such as US Cellular and Tracfone have become eligible to offer Lifeline service. Tracfone is a prepaid wireless provider that offers a free wireless phone and 250 free minutes of service per month (increased from 68 minutes per month under the initial offering). It also offers two other options of interest to some customers — 125 minutes with 125 text messages or 68 minutes of calling with 204 text messages and calling to 60 international destinations. Unused minutes carry over to following month under all three plans. Additional minutes, if needed, would need to be purchased at Tracfone’s normal rates. Lifeline customers may not receive multiple Lifeline services — customers must choose between their normal Lifeline discount from the local phone company, a US Cellular wireless plan discount, or the Tracfone (Safelink) prepaid wireless free service. To sign up, call 1800 SAFELINK (1800 723-3546). Resellers of Cellular Service Offer Some Attractive PlansSometimes, the best prices are available from smaller telephone companies who use facilities owned by larger companies. This seems to be the case in today’s cell phone market. Although the big carriers have the vast majority of the market share for cellular service, it is worth checking out two resellers that provide service in Maine — Tracfone and Consumer Cellular. Tracfone In addition to its traditional prepaid services, Tracfone now offers a plan called “StraightTalk,” which is structured much like the traditional monthly fee contract plan — but no contract is required. For $45 per month, Tracfone offers unlimited voice, text and Internet access (data) on your selected smartphone. This is substantially less expensive than similar plans from the larger facilities-based carriers. Consumer Cellular is another reseller using the networks of larger carriers like AT&T, Verizon, and T-Mobile. Consumer Cellular has plans that are friendly to low-volume users and those who prefer not to be obligated under a contract. Prices for plans of both of these resold wireless services are shown on page 15. Are You Risking a $30,000 Wireless Bill?Mobile phones have become a lot more complicated. In addition to the traditional problem of using more than your monthly allowance of minutes, you may be getting separate charges for international calling, texts and data (Internet) usage. So how do you know how much you’re spending before it’s too late? After hearing a number of horror stories, including that of a Maryland resident who came home to a $30,000 bill from T-Mobile after visiting his sister in Haiti, the FCC is proposing new “bill shock” rules. The new rules would, among other things, require that wireless carriers notify you when you are about to exceed the normal monthly limits on your minutes, texts, or megabyte usage. The FCC is also finally getting serious about looking into bogus surcharges found on the bills of wireless carriers, as part of its new more consumer-friendly agenda. Charges by the megabyte are especially confusing for customers — after all, who could possibly know how many megabytes are being used when, for example, you are surfing the web on your smartphone or laptop? Until the FCC adopts new rules to protect consumers, there is a way to at least estimate your usage — try one of the free online meters that converts various Internet activities into megabytes or gigabytes used, such as:
Free Stuff Department (because we love free stuff)Unlimited Free Texting on your iTouch, iPhone or iPad plus a free phone number! www.pinger.com Free Directory Assistance (from landline or wireless) 1800 FREE411automated voice with human backup, short ad, residential or business numbers — now offering government numbers, weather and horoscopes. 1800 INFOFASTlive human, no ad, residential or business numbers. 1800 YELLOWPages (by AT&T) automated voice, short ad, government or business numbers. Google’s 411 by text servicetext 466453 (Google) with the name and location of a business and you will receive a text with the phone number. Free Phone Service Call Phones from Gmail www.google.com/Gmail (click on “New Features”) Requires computer and microphone. Google Voice www.google.com/voice Includes free new phone number. Requires underlying phone or wireless service. Free Cellular Service WiFi NetworksIf you have a Wifi-enabled smartphone, you can avoid going over your quantity of wireless plan minutes or incurring expensive international calling rates, by using the WiFi function when in the presence of a WiFi hotspot. Of course, computer based VOIP services like Skype are also free from computer to computer. SAFELINK(only for Lifeline-eligible customers) 1800 SAFELINK — up to 250 free minutes per month, plus free wireless phone (requires choice between this benefit or another Lifeline discount). What Can You Tell From a Telephone Number?Ever wanted to know if a phone number is local in your calling area? Ever been curious about where the number is located, or what cell-phone or landline phone company uses the number? Until recently, it was a fairly simple matter – the first 3 digits of a 7 digit phone number was a clear indication of the location of the number being dialed. However, with millions of numbers being assigned to wireless phones and VOIP services, it has become much more confusing. It can also cost you money unexpectedly when you call your next door neighbor’s cell phone or VOIP service without realizing that you are making a toll call even if your neighbor is home right next door when you call. Conversely, you could be making a free call to a number in your local calling area but reaching a VOIP phone being used in Europe. The good news is that numbering information is available, along with everything else you’ve ever wanted to know about phone numbers. Check out the website of the North American Numbering Plan Administrator (NANPA )(scroll down to Excel version, and click on “Eastern” for Maine numbers) Prepaid wireless plans
Monthly fee Wireless Plans
InternetFairpoint’S Broadband Expansion Is Coming Soon — But Where?When FairPoint acquired Verizon-Maine, the Public Advocate and others negotiated many conditions of the acquisition, including an aggressive expansion of broadband service throughout the State. FairPoint soon began working on its next-generation network, but fell behind schedule even before filing for Chapter 11 bankruptcy protection in mid-2010. After new negotiations required by the bankruptcy proceedings, FairPoint’s new goal is to provide DSL service to 87% of the customers in its new Maine territory, instead of 90% (Verizon left with DSL service to about 70% of its customers). Until now, FairPoint has devoted its attention to the design and building of the core network, rather than to the last-mile connections to new customers. That stage of its broadband deployment is almost finished, and FairPoint is now working to determine where new services will be connected and turned on. The Public Advocate, and the customers we represent, have been frustrated by FairPoint’s inability to provide specific information about which communities will receive new DSL service within any given time frame. FairPoint has indicated that it is unable to provide that sort of information in advance of new service availability. Because Internet services are unregulated, FairPoint retains substantial discretion in how it manages that part of its business. We expect that, by the end of 2010, all of FairPoint’s central offices will be equipped to provide DSL, and that hundreds of new remote terminals will be turned on in order to provide service to customers who live good distances from a town’s center. FairPoint’s Price Increases for High-Speed Internet FairPoint raised its DSL prices to $21/month for 768 Kbs service and $36/month for 3 Mbs service. Those prices require a one-year contract and require also that you subscribe to FairPoint’s local telephone service. In FairPoint’s ‘classic’ independent local company territories, the current price is $45/month for 3 Mbs service. Is It Time to Unplug Your Cable Service?Cable TV providers such as Time Warner and Comcast offer an attractive set of three services — television, high-speed Internet, and telephone. Like FairPoint and other phone companies, the cable providers like to restrict your options by tying the price of their Internet service to their core service (TV for Cable providers, telephone for telephone companies). So if you give up your TV service, you’ll pay more for Internet service, limiting your total savings. However, there will be some savings if you decide to drop TV service or use the Internet as an alternative to your cable or satellite service. If you have a broadband Internet service and a computer (or dedicated TV streaming device) that you can dedicate to your TV, there are a growing number of television shows available over the Internet. Internet on your TV is made possible by free TV streaming services such as BoxeeTV and Joost and lots of content from sites such as as Hulu, iTunes and Youtube. Movies are available for downloading from companies such as Netflix. Many TV channels also offer direct access to their shows from their own websites. Unfortunately, commercials are still part of the equation. Of course, many customers can still get free over-the air digital broadcast television with a good rooftop antenna (for a suitable antenna at your specific address, see www.antennaweb.org . Whether or not you cancel TV service, many customers would save money by buying individual services from telephone, Internet, and cable providers, instead of bundling. For example, if you don’t make a lot of long-distance phone calls or care about extra calling features, the phone bundle from the cable company or telephone company is probably costing more than the price for basic local telephone service plus a low-cost long-distance service (such as Pioneer Telephone). Unfortunately, Congress has taken no action on proposals to allow consumers to choose television channels instead of being required to take the bundles offered by cable and satellite companies. The Bottom Line A hodgepodge of “do it yourself TV” sources is not as easy as subscribing to your cable or satellite provider, and it is more suited for those who are technologically adept. But it would save you money if you have a suitable computer and Internet connection, or if you get a good signal from over-the-air TV broadcasts. Cable rates have risen steadily, and many customers, initially lured in by low introductory rates, are finding that their cable rates are becoming unaffordable. Therefore, it could pay to check out individual prices instead of bundles, but keep in mind that your cable operator will probably raise the price of your Internet service if you drop TV service. Broadband Internet Service Providers
Note – Mbs = megabits per second Kbs = kilobits per second (1 Mb is approximately 1000 times greater than 1 Kb) Federal Grant For Maine’s “3-Ring Binder” Project Should Speed Up Broadband DeploymentThe “3 Ring Binder” project is “middle mile” telecommunications infrastructure. Large telecommunications companies like AT&T, Verizon, cable companies, and others control much of the U.S. based Internet backbone, while “last mile” retail Internet service providers (ISP) charge you a monthly fee to provide a “last mile” Internet connection to your home or business. In Maine, one of the key roadblocks to the expansion of Internet service has been an infrastructure that is inadequate to allow efficient routing of Internet traffic between local ISPs in rural areas and the Internet backbone. To improve Maine’s connectivity, the 3-Ring Binder project was designed and proposed by a group including the University of Maine and GWI. The federal government, as part of the recent stimulus program, has awarded $25.4 million for this project, supplemented by private investment of $7.5 million from Maine Fiber Company, which will own and operate the facility. Maine Fiber is constructing a new fiber-optic network that will run 1100 miles through some of Maine’s most rural areas, to be completed in 2012. When completed, Maine Fiber will lease these fiber-optic facilities to retail ISPs or to other carriers or businesses that want to supplement their networks. This new fiber optic-cable will be used to enable Internet services in a number of ways, including:
Maine Fiber will charge low uniform rates in a non-discriminatory manner, with open access to any company in need of the facilities. When available, this new Maine infrastructure should speed up broadband expansion throughout the State. Tooting our own horn department…Look How Much Money the Public Advocate Has Saved Maine’s Utility Customers! The following chart shows over $620 million in savings that the Public Advocate has achieved for Maine ratepayers since we began keeping track in 1989. As the accompanying chart shows, we have been especially effective in saving money for customers in recent years. These totals reflect our work for customers of electricity, telecommunications, natural gas, and water services. We take credit for savings only if we were the only party advocating for the result that was achieved. We also help customers achieve substantial savings by providing information and advice to customers, including the information contained in this publication and in our Electricity Guide. In addition to the direct savings that we produce, the Public Advocate works with the State Legislature, the PUC and Federal agencies, advocating for policies that enhance consumer protection while expanding or maintaining quality utility services. Finally, we assist hundreds of individual consumers each year who ask for our help in resolving disputes or navigating the regulatory process. The Public Advocate receives no taxpayer funding — we are funded entirely by required assessments from public utilities. Based on our current annual budget of $1.7 million, we are a pretty good deal for the people of Maine. FairPoint’s Local Telephone Service Rates Decreasing Again As a Result of Service Quality PenaltiesAt the time of FairPoint’s acquisition of Verizon-Maine, the Public Advocate pressed for a meaningful service quality program that would result in rebates to customers if FairPoint failed to meet reasonable customer service standards. Of course, as it turned out, FairPoint did fail to meet various standards after its operational systems performed poorly. Since then, in the face of FairPoint’s attempts to avoid portions of such penalties, the Public Advocate has, in various cases, insisted that FairPoint honor its obligation to pay all of the penalties that have accumulated as a result of the problems that its customers have suffered. Most recently, in mid-November, the Public Utilities Commission agreed with us that FairPoint should have to pay basic service quality penalties plus the “multiplier” effect that is applicable to consecutive years of poor performance. While FairPoint argued that the problems were beyond its control, we argued that all of the decisions leading to its poor customer service were decisions made by FairPoint. The buck has to stop there. As a result, customers are already seeing service quality rebates that decrease their telephone bills and now, those discounts will increase. The current rebate is $1.72 per month, due to expire in February. However, the balance of that older penalty will be spread out for an additional 12 months resulting in a $.43 per month rebate. In addition, the new 2009–2010 penalty will be over $9 million dollars, increasing the rebate by $2.18 per month, for a total rebate of $2.61 per month on FairPoint local telephone bills for the next 12 months, through November 2011.
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