) expects to expedite investments in rural America for broadband
deployment upon the receipt of funding worth $71.9 million from the
Federal Communications Commission's (FCC) Connect America Fund
The CAF was set up by the FCC to primarily accelerate broadband
infrastructural development in rural areas and to serve the 18
million U.S. rural population. With the funds provided by the FCC,
Frontier expects to expand its data services to an additional
92,876 customers across 27 states. The funds add to the 1.5 billion
investments made by Frontier over the past two years to deploy
broadband services in 80% of its operating regions.
The company is also working on increasing data speed by ramping
up its broadband Internet speed of 3 megabits per second (Mbps) in
at least 85% of households by the end of 2013. It also plans to
increase Internet speed to at least 4 Mbps by the end of 2015.
Last year, Frontier expanded its broadband availability to
40,000 new customers, bringing the total number to 1.8 million. As
of March 31, 2012, 84% of the households were covered under
Frontier's broadband services. Additionally, the company deployed
broadband in excess of 3Mbps, 6 Mbps, and 20 Mbps to 84%, 76% and
28% households, respectively.
With regard to new products, Frontier is committed to sell
) products over the next three years that support its strong
portfolio of broadband, voice and satellite TV services. Along with
AT&T's mobile broadband network, Frontier will offer a broad
range of smartphones, tablets and applications from the former's
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
Consequently, we maintain our long-term Neutral recommendation
supported by a Zacks #3 Rank (Hold).
CENTURYLINK INC (CTL): Free Stock Analysis
FRONTIER COMMUN (FTR): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
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