One of the leading communication service provider in rural
) has launched a new game service called "all-you-can-play PC game"
for its internet customers. The company has collaborated with
Exent, a privately held company that provides Games on Demand
globally. The no contract game service is available to subscribers
for $14.99 a month.
The new launch would cater to the U.S. population that plays
online games on social networking sites and other gaming websites.
According to market research, this population consists of
approximately 126 million U.S. subscribers, representing a
potential market opportunity for the company. Frontier's new gaming
service features over 2,300 PC casual games, including
Plants vs. Zombies
Frontier expects to generate revenues by deploying new products
as well as by broadband expansion, which in turn would lead to
customer retention and wins. The company offers attractive packages
of value-added services to local access line customers.
Its bundled services include High-Speed Internet (HSI),
unlimited long distance calling, enhanced telephony features, and
video offerings (direct broadcast satellite services from DIRECTV
and the Dish Network, FiOS services in certain states and
over-the-top video on myfitv.com).
In order to improve its service quality in the broadband market,
the company is ramping up its broadband internet speeds to at least
3 megabits per second (Mbps) in at least 85% of households by the
end of 2013. It also plans to increase the internet speed to at
least 4 Mbps by the end of 2015.
Last year, Frontier expanded its broadband availability to
415,000 new households, bringing the total number to 655,000.
Further, Frontier expanded its broadband availability to 40,000 new
customers, bringing the total number to 1.8 million.
With regard to new products, Frontier is committed to
undertaking sales of AT&T's products over the next three years
that supports broadband, voice and satellite TV services. Along
) mobile broadband network, Frontier will offer a wide range of
smartphones, tablets and applications from the former's product
line. The deal would fuel subscriber growth while retaining the old
customer base. It would also boost Frontier's competitive position
), which has a similar deal with
We currently have a long-term Neutral recommendation on the
stock. For the short term (1-3 months) the stock has a Zacks
#2 Rank (Buy).
CENTURYLINK INC (CTL): Free Stock Analysis
FRONTIER COMMUN (FTR): Free Stock Analysis
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