Frontier’s broadband customers
In the third quarter, Frontier Communications (FTR) lost a net 61,000 broadband subscribers as compared with a net loss of 63,000 in the same period a year earlier and a net loss of 32,000 in the prior quarter. The company’s broadband subscribers fell ~5% YoY to reach 3.8 million at the end of September 30. This reduction is mainly driven by the migration of Frontier’s broadband subscribers to the top US cable operators such as Comcast (CMCSA) and Charter Communications (CHTR).
During the UBS Global Media and Communications Conference held earlier this month, Dan McCarthy, Frontier’s president and CEO, spoke about the broadband business. McCarthy stated, “On the broadband side, the big opportunities are in the FiOS markets, all the FiOS markets that we operate also in the CAF II markets that we’ve turned up and doing a better job on offering a product selectively for higher speeds and certain markets as a value play in other places.”
In the quarter ended September 30, Charter gained 266,000 residential net broadband customers, while Comcast added 334,000 residential net broadband customers.
Frontier’s broadband net additions in CTF and legacy markets
In the third quarter, Frontier lost a net 2,000 CTF (California, Texas, Florida) Fios broadband customers and lost a net 11,000 CTF copper broadband customers as compared to net losses of 11,000 and 19,000, respectively, in the same period a year earlier. Meanwhile, in legacy markets, the telecom company lost a net 48,000 broadband subscribers in the third quarter as compared with a net loss of 33,000 in the same period a year earlier. This increase in legacy broadband subscriber losses is mainly due to seasonality and lower gross additions.