SUMMARY REPORT OF THE ISP SURVEY (PDF
Version)
Executive Summary
Internet Service Providers (ISPs) are mostly comprised of a rare breed of entrepreneurs who, at their own expense, clearly saw the need to supply customers with the foundations of the Digital Age -- Internet and web service provision and everything from e-mail to the creation of web sites.
With an estimated 7,000 providers throughout the US, small and mid-sized ISPs represent almost half (46%) of all online customers (source: Boardwatch Magazine), and it has been this group that has been the real innovators of our Digital Future, not the monopolies who supply local phone service, such as the Bell companies or GTE.
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 is causing not only a loss of revenues to competitors, but is also stifling competition and the growth of America's Digital Future.
Primary Findings:
- 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 there was only 8% of ISPs who gave the Bell an overall passing grade (above 6.5 out of a possible 10). And though the highest scores were for the "friendliness of telephone representatives", on a scale of one to ten, the survey respondents gave the Bells an overall average of just 3.7, a seriously failing grade.
- 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, and this includes even get a straight answer about the installation or the price of service, while 46% believe that even when something is advertised, there is no guarantee that the ISP can order it. And of the phonelines that are already installed, 46% state it can take days for repairs.
- 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, of the 50 states represented, the problems encountered are happening throughout the Bell System and GTE
- DSL Deployment Is Being Stifled By The Bells
About 40% of the ISPs state that they offer DSL services
or are planning to in the near future. However, there are
a litany of problems facing the marketing of DSL and the
interface with the Bell companies. For example,
- 71% of ISPs have had lost orders by the local phone company
- 59% have had their customers "slammed" by the Bell (meaning that their customer was changed over to the local Bell without their permission)
- 63% of ISPs have had the Bell recommend their product over their current ISPs' products.
- 53% have had their customers told they wouldn't have problems if they switched to the Bell company product.
- 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 Who Supply The CLEC Access As Well. Throughout the responses, those who use a CLEC gave the companies almost double the rating of their LEC counterparts. However, as most of the ISPs point out, the CLEC still has to interface with the Bell company and this still causes many problems.
- 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. (NNI has filed a separate complaint with the New York Attorney Generals office demonstrating that Bell Atlantic (like the other Bells) are subsidizing their DSL services and offering the service below the costs to competitors.
- 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. However, it should be noted that these violations cost the Internet providers both a loss of revenues, including the loss of customers, as well as the damaging of the company's reputation.
- 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. (NNI has filed a separate complaint with the New York Attorney Generals office about the Bells impacts on DSL customers who use an independent ISP.)
Conclusion
With 89% of ISPs believing (and documenting) that they are being harmed, NNI believes that the FCC and the states should immediately create a "code of standards and conduct" that protects Internet Providers and their customers from harm. This includes the enforcement of laws currently in place, as well as the payment of penalties and fines that compensates the ISP and their customers for the harm the Bells are creating with their sub-standard customer services and phone provisioning.