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Can Frontier Communications Keep Lowering Its Churn Rate?

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Frontier’s customer retention rate

Frontier Communications (FTR) has been trying to retain its subscribers and maintain a lower churn rate amid a highly competitive telecommunications sector. Customer churn is a measure of subscriber losses, and the lower the churn, the better.

In the first quarter, Frontier’s customer churn rate was ~1.9%, which was better than its churn rates of ~2.4% in Q1 2017 and ~2.0% in Q4 2017.

In the first quarter, the churn rates were ~1.7% for Frontier Legacy and ~2.3% for its CTF (California, Texas, Florida) operations. In the previous quarter, the company reported a churn rate of ~1.8% for Frontier Legacy and a churn rate of ~2.2% for its CTF operations.

In comparison, Verizon (VZ) posted a postpaid phone churn rate of ~0.80% in the first quarter, while rival AT&T (T) reported a postpaid phone customer retention rate of ~0.84%.

Telecom companies struggling to retain subscribers

Telecommunications companies are struggling to retain customers in the saturated US wireless space. AT&T and Verizon have started offering unlimited data plans to compete with smaller companies such as Sprint (S) and T-Mobile (TMUS) to increase their customer bases. Rising competition in the online video streaming space has further pressured telecommunications companies.

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