In an effort to boost its network speed,
Frontier Communications Corporation
), which offers voice and high-speed Internet services to rural
areas and small and medium-sized towns and cities has deployed ADSL
2+ Bonding technology across Appalachian Ohio serving 28
This new technology will offer a speed of 12 MEG download/2 MEG
upload for residential customers and 15 MEG download/2 MEG upload
for small medium business (SMB) customers.
Deployment of such technology will not only double its earlier
network speed but will also enable subscribers to stream HD videos
and play online games without any disturbance. Moreover, it also
provides lightening speed to the SMB customers to transfer large
files and video conferencing facility.
Last month Frontier Communications announced its second-quarter
2012 financial results where its data and Internet services segment
experienced a slight drop in business. Moreover, the company's
business segment registered a year-over-year decline of 5.8%.
So, in order to boost its business segment as well as generate
higher revenue from its data and Internet services business the
company is deploying advance technology to offer faster speed.
Frontier Communications continues to receive funds from Federal
Communications Commission's (FCC) in order to boost broadband
infrastructure support in rural areas. Within a span of two years,
the company has utilized nearly $1.5 billion of funds it had
received from FCC to set up broadband infrastructure across
its footprints. Hence, deployment of ADSL 2+ Bonding technology is
also a part of that investment programme.
Frontier focuses on generating new revenues through customer
retention, customer wins, new product deployments, tiered pricing,
broadband expansion, and profitability and cash flow management
through reductions in operating expenses and capital expenditures.
In addition, the reduction of access line losses would boost
Frontier's profitability and provide cost synergies going
However, intense competition from peers like
), a highly leveraged balance sheet, regulatory pressure as well as
integration risks in converting the acquired properties into its
own system might limit the earnings potential of the company in the
upcoming quarters. We, thus maintain our long-term Neutral
recommendation on Frontier Communications.
We are currently Neutral on the stock, backed by a Zacks #3
FRONTIER COMMUN (FTR): Free Stock Analysis
WINDSTREAM CORP (WIN): Free Stock Analysis
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