REGIONAL— The state’s Department of Commerce has launched another investigation into Frontier Communications, this time focusing on the company’s billing and customer service practices.
The latest investigation is set to determine whether Frontier failed to inform customers of their service options and whether Frontier enrolled customers in long distance service plans that customers did not want or use.
“We are concerned about Frontier’s practices when customers are signing up for service and the prospect that Minnesotans are being overcharged for their phone service,” said Commerce Commissioner Steve Kelley.
Minnesota consumers should reach out to the Department of Commerce at 651-539-1883 or telecom.commerce@state.mn.us if they have experienced any of the following, or other issues related to Frontier’s billing and customer service:
If you only want basic telephone service and have no need for additional features, but Frontier did not offer stand-alone local telephone service to you as an option;
If you have been told that you cannot disconnect local telephone service without losing your internet service;
If you have been told you cannot purchase internet service without also purchasing local telephone service;
If your bill shows you have been paying $29.99 for the Digital Phone Essentials package, which includes 30 minutes of long distance service, but you were unaware that you can subscribe to Digital Essentials for $21.99 if you only want to pay for long distance service when it is used;
If your bill shows you have been paying $39.99 (or more) for the Digital Phone Unlimited package, which includes unlimited long distance service, but you were unaware that you can subscribe to a lower price local service plan where you pay for long distance service only when it is used;
If long distance service was added to your account without your knowledge or consent;
If you have long distance service from Frontier, but were not informed that the service could be provided by the company of your choice;
If Frontier does not identify the long-distance service provider on your bill.
The latest probe comes on the heels of a settlement between the company and the department in late October, which followed an earlier investigation that concluded that Frontier had failed to provide adequate, reliable phone service to Minnesota customers. According to the department, the settlement aims to hold Frontier accountable for its service quality and reliability issues, as well as providing tangible remedies to Minnesota consumers. Once the Minnesota Public Utilities Commission issues an order enforcing the settlement, the department will be able to assist Minnesota consumers in filing claims for the remedies outlined in that settlement.
The department launched its investigation back in early 2018 in response to reporting in the Timberjay about the company’s unreliability within its northeastern Minnesota service territory.
The new investigation into sales and billing practices is getting underway as Frontier Communications teeters on the edge of bankruptcy. The company’s common stock, which traded at $125 per share as recently as 2015, was hovering at less than 65 cents per share as of this past week. Recent media reports have indicated the company is planning to file for Chapter 11 bankruptcy as early as the first quarter of 2020. It’s not clear how a Frontier bankruptcy could impact its ability to serve its Minnesota customers. A Chapter 11 filing would give the company time to reorganize its business operations and restructure or discharge its debts.
Commerce Department spokesperson Emmalyn Bauer said state officials are aware of the speculation surrounding Frontier’s possible bankruptcy. “However, Frontier has not communicated that directly to Commerce, and the agency expects the company will continue to serve its customers. If Frontier were to go into bankruptcy, the agency would actively work to protect the interests of consumers,” said Bauer.
Frontier Com-munications of Minnesota, Inc., and its affiliate, Citizens Telecommunications of Minnesota, LLC, provide telephone service to approximately 90,000 Minnesota households and businesses, as well as internet service to many more households, in many parts of rural Minnesota and the Twin Cities metro area.