Frontier Communications (FTR) is continuously investing in capex to improve its network. In the first quarter, Frontier spent ~$0.3 billion on capex, with more than 70% of its capital spending focused on growth initiatives. Frontier’s management noted that the company is on track with its CAF II (Connect America Fund) network deployment.
Currently, the telecommunications company already has three states exceeding its year-end threshold of 60% broadband coverage of eligible locations. Frontier has enabled broadband in ~357,000 locations in CAF II–eligible areas with the goal of surpassing ~774,000 locations by the end of 2020.
Frontier has been spending a lot to improve its network potential, extend Internet access availability, and make speed upgrades. To compete with top US cable players such as Comcast (CMCSA) and Charter (CHTR), which have witnessed the maximum broadband net customer additions, Frontier will place a focus on speed superiority.
Expected capex investments in 2018
Frontier’s management expects its capex to come in at $1.0 billion–$1.2 billion in 2018. In comparison, Windstream (WIN) is expected to spend ~$0.8 billion on capex in 2018.
If we compare the top telecommunications players in the United States, AT&T (T) expects to spend ~$25.0 billion on capex in 2018, while Verizon (VZ) expects its capex to come in at $17.0 billion–$17.8 billion during the same period.