IP: ISP Survey Results released. --- Internet Providers Are Receiving Sub-standard Customer Services...

[David Farber <farber () cis upenn edu>]

> X-Priority: 3
> Date:         Wed, 12 Apr 2000 01:34:04 -0400
> Reply-To: Telecom Regulation & the Internet 
> <CYBERTELECOM-L () LISTSERV AOL COM>
> Sender: Telecom Regulation & the Internet 
> <CYBERTELECOM-L () LISTSERV AOL COM>
> From: Kushnick <bruce () NEWNETWORKS COM>
> Subject:      ISP Survey Results released. --- Internet Providers 
> Are Receiving
>               Sub-standard Customer Services...
> To: CYBERTELECOM-L () LISTSERV AOL COM
>
> Dear Cybertelecomers,
>
> I thought many of you would like to see this report.  Also, I've 
> been asked by staffers at the FCC what laws are being violated and 
> what next steps should be proposed. I hope some of you will take a 
> crack at the answer on this forum. Also, for balance we've added a 
> short piece at the NNI site "Putting the Survey into Perspective", 
> that should answer some of the questions about the survey's results.
>
> Bruce
>
> New Networks Institute
> To Read the Report or Summary
> http://www.newnetworks.com
>
> INTERNET SERVICE PROVIDERS (ISPs) ARE RECEIVING SUB-STANDARD 
> CUSTOMER SERVICES, COMPETITION STIFLED, NEW SURVEY FINDS
>
>
> DSL CUSTOMERS WHO USE COMPETITIVE ISPS ARE BEING HARMED
>
> New York--April 12th, 2000 --- New Networks Institute (NNI) today 
> released the results of a survey of America’s Internet Service 
> Providers, focusing on their relationship with the local phone 
> companies, including the Bell companies (Bell Atlantic, BellSouth, 
> SBC Communications (Pac Bell, Ameritech and Southwestern Bell) and 
> US West), and GTE.
>
> "Small and mid-sized ISPs represent almost half (46%) of all online 
> customers (source: Boardwatch Magazine), and this group has 
> generated some of the real innovations of the Internet and World 
> Wide Web. However, based on the findings of this survey, the local 
> Bell companies and GTE are causing serious harm to the Internet 
> Providers and their customers. This includes not only a loss of 
> revenues, but the Bells are also stifling competition and the growth 
> of America's Digital Future" stated Bruce Kushnick, Executive 
> Director of NNI.
>
> Primary Findings:
>
>
>     a.. SMALL ISPs Are Receiving Substandard Customer Services From 
> The Local Phone Company. Across the board, the ISPs rated their 
> services as "sub-standard" in virtually all categories, and only 8% 
> of ISPs gave the Bells an overall passing grade (above 6.5 out of a 
> possible 10). On a scale of one to ten, the survey respondents gave 
> the Bells an overall average of just 3.7, a seriously failing grade.
>     a.. There is a Litany of Problems Being Created by Bells. 
> According to the respondents, 62% of ISPs claim that phoneline 
> problems happen frequently or continually, 57% state that trying to 
> have orders fulfilled takes months, while 46% state it can take days 
> or longer for repairs.
>     a.. These Problems Are Not Isolated. There is a Clear Pattern of 
> Abuse Throughout The Entire Bell System And GTE. From Texas to 
> California, New York to Florida the problems encountered are 
> happening throughout the Bell System and GTE
>     a.. DSL Deployment Is Being Stifled By The Bells There are a 
> litany of problems facing the marketing of DSL and the interface 
> with the Bell companies. For example:
>         a.. 71% of ISPs have had lost orders by the local phone company
>         b.. 59% have had their customers "slammed" by the Bell 
> (meaning that their customer was changed over to the local Bell 
> without their permission)
>         c.. 53% have had their customers told they wouldn’t have 
> problems if they switched to the Bell company product.
>
>     a.. ISPs That Are Using CLECs (Competitive Local Exchange 
> Companies) Feel That The Competitors Deliver Better Services, But 
> That They Are Also Hampered By The Bell Companies. Throughout the 
> responses, those who use a CLEC gave the companies almost double the 
> rating of their Bell/GTE counterparts. However, as most of the ISPs 
> point out, the CLEC still has to interface with the Bell company and 
> this still causes problems.
>     a.. The Majority Of Small ISPs In Secondary Markets Across 
> America Do Not Have A Choice Of Providers, And Are Being Priced Out 
> Of The Bell’s DSL. In many states, non-urban ISPs are still totally 
> dependent on the local Bell to provide services and the majority 
> point out that the Bells has either freezed them out of the market 
> by offering services below cost, or they are not giving the ISP 
> adequate services.
>     a.. The Majority Of ISPs Are NOT Receiving Adequate Help From 
> Their Local Public Service Commissions To Stop Bell’s Abuses, Even 
> Though The Bells are Violating The Telecom Act of 96 And State Laws. 
> Almost 75% of ISPs have attempted to get help from their state 
> Commissions regarding their problems with the local Bell. However, 
> the majority, 63% of those who approached the Public Service 
> Commission to get help got no results.
>     a.. Customers of the Internet Providers are Being Harmed by the 
> Bells Actions. When phonelines aren’t working or the phone company 
> doesn’t show up for an installation, this has a direct impact on the 
> customers who are using the ISPs’ services.
> "With 89% of ISPs believing (and documenting) that they are being 
> harmed, NNI believes that the FCC and the states should immediately 
> investigate the ISP’s claims of inadequate customer services and 
> anti-competitive practices by the Bells and GTE, " states Kushnick.
>
> NNI acknowledges that even though this survey was conducted using a 
> random mailing to ISPs by the United States Internet Service 
> Providers Alliance (USISPA), any survey that is conducted online and 
> is "self –selecting", has its limitations.  However, findings by the 
> FCC and the Department of Justice   corroborates  the serious 
> problems facing ISPs when dealing with the Bell companies. See: 
> http://www.newnetworks.com
>
> For more information, please contact Bruce Kushnick at 
> bruce () newnetworks com or 212-777-5418. NNI also can supply a list of 
> Internet Service Providers around the country who are available for 
> press/media interviews.
>
>  To Contact Internet Providers, survey () newnetworks com