Daniel J. McCarthy, the CEO of Frontier Communications Corp (NASDAQ:FTR), stated that 2Q2016 had been a very successful and significant quarter for the company. As they have closed initial cutover measures in the new properties, they now have refocused the firm to design plans for upgrading speed offerings in current footprint. They have started to deploy upgrade plans for their copper-based service spread across the new markets.
McCarthy said that the first phase of planned upgrade will be completed over the coming quarters. The plan is to increase speeds in these areas to 50 megabits – 100 megabits from 7 megabits. Following the planned upgrade, they will launch marketing programs and offer speed upgrades to existing customers in selected areas.
The scenario
The CEO of Frontier said that in the existing markets, they continue to make investment in network and provisioning platforms to develop higher speed products. They expect to upgrade almost 1.5 million homes to improved speeds in the coming twelve months. The combination of plans to enhance both the new and current new markets improves speed profile to nearly 2 million households.
After completion, more than 40% of company’s households will be equipped of receiving speeds in over 50 megabits. These enhancements boost 14% of entire households passed and offer a competitive service offering. As the management continues to set their priorities for the new markets, they will release updates on deployment plans.
The launch of these new features and the incorporation of the video enhancements in these markets utilizing Vantage TV platform offers a significant opportunity to provide a differentiated product set in regions that haven’t had different competitive options.
McCarthy concluded that he is very delighted with the shift from integration to normal businesses in the new markets. Frontier has commenced acquisition marketing and project normal gross add levels in the coming quarter.
