Serving city dwellers and country folk alike, Frontier Communications provides phone, Internet, and satellite TV (through a partnership with DISH Network) services across more than 27 US states. The company has some 3.1 million residential and business voice subscribers. It also has 1.9 million broadband Internet customers and about 0.5 million satellite video subscribers. Frontier is active mostly in rural and small to mid-sized markets, where it is the incumbent local-exchange carrier (ILEC). The company's top four markets in terms of subscribers are West Virginia, Illinois, Indiana, and New York.
The company has retail store operations in Alabama, Arizona, California, Georgia, Idaho, Indiana, Minnesota, Montana, Nebraska, Nevada, North Carolina, New York, Oregon, Pennsylvania, Tennessee, Washington, West Virginia, and Wisconsin.
Frontier’s local and long distance services contributes about 45% of the company's revenues while its data and internet services contribute about 40%, followed by switched access and subsidy revenues and others.
Sales and Marketing
Frontier is able to remain competitive with other triple-play providers because of the TV service it offers through DISH Network. (Satellite TV operators can't offer digital phone service, which puts them at a disadvantage to cable companies such as Comcast and Time Warner.)
In 2013 the company saw a 5% decrease in revenues mainly due to the decline in voice revenues and lower switched and nonswitched access revenues, partially offset by higher data services sales. Additionally, wireless revenues decreased by $32.4 million in 2013 due to the sale of the company's stake in the Mohave Cellular Limited Partnership.
Net income has been on a downward trend since 2010. In 2013 Frontier's declined by 17% due to decreased revenues and a pension settlement cost of $44.2 million (absent in 2012) offset by a decrease in operating expenses (including network access, other operating , depreciation and amortization) and acquisition and integration costs.
Frontier’s cash flow declined by $56.8 million, or 4%, in 2013, primarily as the result of lower revenues and net income before depreciation and amortization.
Residential landlines may be on the decline as more households switch to a wireless provider for their primary phone service, but Frontier operates mostly in rural markets, where cellular service can still be spotty.
Frontier has decentralized certain departments, such as sales and marketing, in an effort to improve customer retention and average revenue per customer. The company has also realigned certain corporate support functions in order to achieve improved customer service.
In 2014 Frontier partnered with Zipwhip to become the first tier one operator to text enable its landline numbers. It also partnered with Golden Artist Colors to offer a new fiber product for data and voice services.
Mergers and Acquisitions
In late 2013 it agreed to purchase AT&T's wireline operations in Connecticut for $2 billion. The deal -- which includes 415,000 data, 900,000 voice, and 180,000 video residential connections -- will enhance Frontier's services in its home state.
In 2014, Frontier agreed with the Connecticut Attorney General and the Office of Consumer Counsel that will guarantee customer and community benefits resulting from Frontier's proposed acquisition of AT&T's incumbent local exchange operations and statewide fiber network that provides services to residential, commercial and wholesale customers in Connecticut. As part of the transaction, Frontier will also acquire AT&T's U-verse video and satellite TV operations in Connecticut.