2022 Internet News

In 2022, when inflation is near 40-year highs, consumers who are selecting an internet service say price is more important than ever.

The J.D. Power 2022 U.S. Residential Internet Service Provider Satisfaction Study found that the monthly cost of service now trumps performance and reliability, although all continue to be strong factors.

“More than half – 58% –  of a customer’s satisfaction is driven by the quality and consistency of the internet connection, and how the customer perceives the value of that connection,” said Ian Greenblatt, managing director at J.D. Power. “With customers being least satisfied with cost of service, a consistent experience at a reasonable price is table stakes for providers. Each outage or other problem causes a customer to review that price-driven choice for real value.”

The major internet service providers (ISP) ranking highest with consumers include Verizon, Midco, AT&T, Centurylink, and Xfinity. Verizon ranks highest in the East region for the 10th consecutive year with a score of 758, the only provider besting the regional average of 707.  Xfinity was second with a score of 706.

‘It just works’

“I quit Optimum Internet and went back to Verizon for my home wifi,” Naresh, of Madison, N.J., wrote in a ConsumerAffairs review. “The reason was very simple, they offered a much better price ($75 vs. $125), and the service is a workhorse, it just works.”

AT&T made a strong showing throughout the rest of the U.S. It was second to Midco in the North Central Region and ranked highest in the South region for the fifth straight year.

“This is a very concise and well-done internet experience,” Chace, an AT&T customer in Hinton, Tex., told us. “The other internets were expensive and failed miserably all the time! I have never had a failure or problem with this internet experience and I am very pleased with the service.”

AT&T also ranked highest in the West region with a score of 729, followed by Xfinity. 

ConsumerAffairs reviewers not that high on Verizon

Consumers posting ISP reviews at ConsumerAffairs don’t view Verizon as the best, actually ranking it dead last with an overall 1-star rating. Reviewers tend to downgrade Verizon over customer service issues.

AT&T secured the top spot among our reviewers with an overall 4-star rating. Xfinity and CenturyLink tied with a 3.9-star rating while Optimum scored 3.7 stars.

More than 20 internet service providers (ISP) are partnering with the U.S. government to reduce or eliminate the cost of high-speed internet service for millions of Americans.

The White House has announced that the ISPs -- including AT&T, Comcast, and Verizon -- cover more than 80% of U.S. households. Eligible households will pay no more than $30 a month for service. After a refund, millions of households will get free service.

Under the Affordable Connectivity Program (ACP), the government will work with the private sector to increase the number of connected homes in the U.S. and remove cost as a barrier. The program is part of the $1 trillion infrastructure measure Congress passed in 2021.

“From large providers like AT&T, Comcast, and Verizon serving dozens of states, to smaller providers serving rural areas like Jackson Energy Authority in Tennessee and Comporium in North Carolina, the commitments will allow tens of millions of ACP-eligible households to receive high-speed internet at no cost,” the White House said in a statement.

How to qualify

Households can qualify for this new benefit based on income. They can also qualify through their participation in one of several other federal programs, like Pell Grants, Medicaid, or Supplemental Security Income. 

People who are participants in those programs won’t necessarily have to take any action. The White House says the agencies that manage the programs will reach out to households that qualify for ACP through programs they help administer. 

For example, people who receive Supplemental Security Income should be on the lookout for a contact from the Social Security Administration. Contact will be made with participants who have a “My Social Security” account. The White House estimates that there are about 1.6 million people in that program.

Outreach efforts

Contact may also come from city and state governments. The White House said officials in Michigan; Massachusetts; Philadelphia; Mesa, Arizona; and New York City will send text messages to millions of eligible households.

The government has set up a website – GetInternet.gov – to help consumers see if they qualify. It also provides a way for households and individuals to sign up and find the participating ISPs in their local area.

The White House estimates that 48 million households—or nearly 40% of households in the country—qualify for the ACP either because their income is at or below 200% of the Federal Poverty Level, or because a member of the household meets qualifying criteria.

Texas Attorney General Ken Paxton has filed a deceptive trade practices lawsuit against the online used vehicle dealer Vroom Automotive, which saw sales grow rapidly during the pandemic.

In filing the lawsuit, Paxton noted that consumers have filed over 5,000 complaints since 2018 with both the Better Business Bureau (BBB) and the Office of the Texas Attorney General against Vroom and Texas Direct Auto, which Vroom owns.

In a statement, the BBB said it noticed an increase in complaints starting in January 2020 that focused on two areas. Some consumers reported that the cars they received via delivery were not the same vehicles pictured online, or that they were dirty or damaged.

“Consumers also stated they were having customer service and communication issues when trying to reach out to the company to address their concerns,” the BBB said. The organization added that consumers have also reportedly not received paperwork to get their cars registered, faced delayed deliveries for vehicles, and had issues concerning trade-ins.

Unhappy consumers air concerns

Similar reports have been posted at ConsumerAffairs, especially in recent months. Mary, of Davis, Calif., wrote in mid-April that she bought a Lexus in November and has waited five months for the car to be registered.

“Five months after buying my car and three months after the temporary registration expired and I still have no idea if they will ever register my car and no way to find out,” Mary wrote.

Todd, of Aurora, Colo., describes the process of purchasing a vehicle from Vroom as “a headache.” He’s waited even longer than Mary to get his license plates.

“Now six months later and we still do not have our plates,” he wrote in a ConsumerAffairs review. “When I call to inquire why, they say they need to log a ticket and send me an email. The email they send is a no reply email.”

To be fair, not all of Vroom’s ConsumerAffairs reviews are negative. Some consumers report a good experience, though many of the positive reviews are about the experience of selling a car to Vroom.

Rapid growth may contribute to issues

Auto industry analyst Cliff Banks, the publisher of TheBanksReport.com, says Vroom and its competitor Carvana are the only dealers that appear to be producing complaints about delays in titling.

“We're not seeing any issue with new car dealers or even large used chains such as Carmax, Echo Park, or Driveway.com,” Banks told ConsumerAffairs. “I think it's due to them both (Vroom and Carvana) trying to grow quickly and not having the processes in place as they enter new markets to adequately provide the services required in a vehicle transaction.” 

ConsumerAffairs reached out to Vroom for comment, but the company did not immediately reply to our request. In its last annual earnings report, Vroom told investors that it has encountered “operational challenges” due to its rapid growth.

“During the past six months there has been an increase in customer complaints, leading to an increase in such regulatory inquiries,” the report said. “We endeavor to promptly respond to any such inquiries and cooperate with our regulators.”

What to do

For customers dealing with these issues, the only recourse may be to submit a report about their experience. On forums where customers have aired their frustrations, many later amended their submission to say the issue had been resolved. It seems someone at the company is monitoring the reviews and responding.

It may also pay to file a complaint with the state attorney general’s office. WAVE-TV in Louisville recently reported that the Kentucky Attorney General’s office helped two Vroom customers resolve their issues.

In an effort to get broadband everywhere possible, the Federal Communications Commission (FCC) has adopted a rule that will give tenants in apartment buildings and those who work in office buildings better access to high-speed internet.

Going forward, the agency says landlords and building owners who have any sort of exclusive agreement with a broadband provider will need to disclose that to their tenants. The agency will also no longer allow any sort of deal that would block competitive access to alternative providers.

“One-third of this country lives in multi-tenant buildings where there often is only one choice for a broadband provider, and no ability to shop for a better deal,” said FCC Chairwoman Jessica Rosenworcel. “The rules we adopt today will crack down on practices that prevent competition and effectively block a consumer’s ability to get lower prices or higher quality services.”

Consumers finally get change

It’s no secret that consumers have needed more choices when it comes to broadband for the last several years. The FCC had this rulemaking move on its agenda for a while, dating back to 2017 under FCC Chairman Ajit Pai, but it never saw the light of day.

Consumers were clamoring for action long before 2017, though. ConsumerAffairs reviewer Josh, of Tell City, Ind., claimed back in 2016 that he was unable to get high-speed internet in his apartment building.

“[The AT&T rep said] that since they do not provide a product, but do provide a service, they are going to ignore the consumer laws here in America, and not give me the service I paid for,” Josh wrote.

More consumer-friendly rules

When President Biden moved into the White House, he signed an executive order that forced the agency to impose consumer-friendly rules on Big Tech and ISPs that were aimed at increasing competition and lowering prices for consumers. 

With Biden’s infrastructure bill becoming law, consumers should be able to enjoy several benefits, including more transparent prices, more affordable service, and better availability.

Under the order, Biden will encourage the Federal Communications Commission (FCC) to reintroduce a “broadband nutrition label” to provide consumers with greater price transparency and restrict early termination fees. The order will also direct the FCC to restore the net neutrality rules that were undone in 2017 that require broadband companies to treat all internet services equally.

Consumers who are frustrated by all the fine print used by internet service providers got a nice gift from the Federal Communications Commission (FCC) on Thursday. As an add-in to President Biden’s ​​Infrastructure Investment and Jobs Act, the agency unanimously agreed to new rules that would require broadband providers to show easy-to-understand labels that allow consumers to comparison shop for broadband services.  

The new guidelines require broadband providers to display -- at the point of sale online or in a store -- labels that show prices (including introductory rates), plus data allowances, network management practices, and any other information that a consumer would deem important as part of their decision-making process.

This move couldn’t come at a better time. When it comes to the cost of internet service, the U.S. has a long way to go to be competitive. According to the CompareTheMarket, America is the 9th most expensive country for broadband – with it costing consumers an average of $66.13 per month.

Expectations from the proposed rule

If the FCC can get all the broadband companies pointed in the same direction on this initiative, the agency says it will make life easier for consumers when it comes to choosing a provider. It will also encourage those providers to innovate, compete, and offer consumers the lowest prices and the highest quality service.

“Americans today are benefiting from more choice, and they are seeing more competition for their broadband dollars than ever before. As a result, Internet speeds are up while prices are down,” FCC Commissioner Brendan Carr said. 

Carr said the Commission’s latest effort builds on its effort to make transparency a key component of everything consumer-related the agency has a say in.

“Right now, we have rules on the books, for instance, that require broadband providers to publicly disclose accurate information regarding their network management practices, performance characteristics, and commercial terms sufficient to enable consumers, businesses, and entrepreneurs to make informed choices,” Carr stated.

Broadband provider trade group NCTA says consumers can count its members in on the FCC’s proposal. “Cable operators are committed to providing consumers with relevant information about broadband services,” the group said in a statement.

In the internet service world of things where it’s all about speed, AT&T has decided to raise the bar by rolling out new 2Gbps and 5Gbps fiber-optic service – internet that’s effectively two and five times faster than anything out there at the moment, respectively.

The company said the new service will begin in 70 markets across the country to start with, but it plans to make it part of its current fiber footprint throughout 2022, eventually expanding to cover 30 million customer locations by year-end 2025.

AT&T thinks its timing couldn’t be better due to how – and where – people work in the pandemic’s new normal. According to a consumer survey that AT&T commissioned with Recon Analytics, 6 in 10 internet users not only purchased a new connected device in the last year, but they’re also connecting more devices – on average 13 in the average home between computers, TVs, etc. 

“The pandemic has significantly changed how consumers and businesses use the internet and what is required from a broadband provider,” said Roger Entner, Founder and Lead Analyst of Recon Analytics. 

What consumers can expect

Like any major technology shift, there are usually things that consumers need to consider before jumping in and committing to the service. In surveying the new offer, ConsumerAffairs found answers to questions consumers might have before switching to AT&T's new offering. Those include:

How fast? On top of what AT&T claims will make it the “fastest major internet provider,” the new service also brings in a relatively new approach called “multi-gig” speed – effectively making the 2G/5G speed go both ways rather than one speed for uploads and another for downloads. But the company doesn’t plan to rest its laurels there. It said it may offer even higher speeds down the road and has successful tests with 10G to prove that it’s possible.

Do you need new equipment? No. AT&T says you won’t need new equipment to run the service.

How much does it cost? AT&T says that with the new high-speed service, its customers are also getting “straightforward pricing” – no equipment fees, no annual contract, no data caps, and no price increases for 12 months. 

However, “straightforward pricing” does not mean this is a bargain. AT&T Fiber 2 GIG is $110/month + taxes; AT&T Business Fiber 2 GIG is $225/month + taxes; AT&T Fiber 5 GIG is priced at $180/month + taxes; and AT&T Business Fiber 5 GIG goes for $395/month + taxes.

Is there fine print to consider? With any major rollout like AT&T’s, there are little sticky wickets that can eventually surprise customers – like subscription length, additional fees, etc. In reviewing the fine print of AT&T’s new service, here are some things ConsumerAffairs found that are worth considering (note: variations on this might apply, so it's best to confirm these points with AT&T before moving forward):

• The introductory price can change or be discontinued at any time.

• The price for “internet 300” is for residential customers and is after a $5/mo autopay & paperless bill discount. That discount off the monthly rate doesn’t start until the account is active, and the customer is enrolled in both the autopay and paperless option. Up to the point where the discount kicks in (within 2 bill cycles), customers apparently pay the full plan cost. One other little oddity about the discount: customers have to maintain both the autopay/paperless bill option, as well as a valid email address, in order to continue getting the discount.

• There’s an “up to” $99 installation fee that “may apply.”

• One thing to note about speed: In AT&T's fine print, it says "actual customer speeds are not guaranteed."