uploads///Telecom Frontier Q Broadband Subscribers

What’s Happening with Frontier in the Broadband Space?


Mar. 31 2017, Updated 7:35 a.m. ET

Frontier’s broadband subscribers

In this part of the series, we’ll look at the performance of Frontier Communications (FTR) in the broadband space. In 4Q16, customer losses continued, with the company shedding 91,000 broadband customers and 84,000 video subscribers. Its broadband customers fell ~2.1% sequentially to 4.3 million at the end of the quarter.

In 4Q16 on a net basis, Frontier lost 91,000 broadband customers compared to 100,000 broadband net losses in 3Q16. Subscriber losses are primarily the result of Frontier’s falling market share to cable companies that are offering higher speeds. Frontier’s biggest threats are cable companies such as Comcast (CMCSA) and Charter Communications (CHTR), which added the most broadband subscribers.

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Frontier’s broadband net additions in CTF and legacy markets

Frontier noted that in 4Q16, broadband net additions for CTF (California, Texas, Florida) and legacy markets improved sequentially, excluding the impact of non-paying account resolutions. CTF broadband subscriber net losses fell from ~71,000 in 3Q16 to ~65,000 in 4Q16. The figure was adjusted for account cleanup. Legacy markets had 7,494 broadband subscriber net losses in 4Q16 compared to 24,325 net losses in 3Q16.

Frontier’s acquisition of Verizon’s (VZ) wireline assets in CTF gives the company a larger customer base for its services and the opportunity to return value to shareholders by extracting cost synergies. The company remains confident that as it ramps up its marketing and adjusts its offers, it will see continued improvements in net subscriber performance going forward.


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