Frontier Communications has received over $100 million in federal grants to improve rural broadband in Minnesota over the past four years, yet complaints about its internet service suffuse a state investigation of the company.
Minnesota regulators last year commissioned an inquiry into Frontier after fielding numerous complaints. In January, the Minnesota Department of Commerce issued a report concluding Frontier may have broken at least 35 state laws and failed its customers with shoddy service and inadequate network investment.
The report also questioned how Frontier used the federal grant money. Information submitted to the state by Frontier "has been too minimal" for utility regulators to certify that the grants from the Federal Communications Commission's (FCC) Connect America Fund were used appropriately, the Commerce Department said.
"It is obvious to anyone who bothers to look that Frontier is a terrible investment for the federal government," said Christopher Mitchell, community broadband director for the Minneapolis-based nonprofit Institute for Local Self-Reliance.
Frontier strongly disputes the entire Commerce Department report and expects this week to file a formal response with the Minnesota Public Utilities Commission (PUC). The company said in a statement that it is in compliance with all FCC requirements for the Connect America money.

The Stamford, Conn.-based company rejected the characterization that its work wasn't a good investment, saying it has extended faster internet to 28,635 homes in Minnesota through the Connect America program and is committed to connect 46,910 homes by the end of 2021.
The company, which also operates under the name Citizens Communications, is Minnesota's second largest wireline phone provider with 90,000 to 100,000 customers, many in rural northeastern and southern parts of the state.
Not alone collecting millions
It is one of several large phone companies collecting hundreds of millions of dollars from the Connect America Fund, and it says it has filed all requisite FCC reports and met all its obligations.