About Frontier West Virginia Inc.

Serving city dwellers and country folk alike, Frontier Communications provides phone, internet, video, and satellite TV (through a partnership with DISH Network) services in about 30 US states. The company has more than 5.4 million residential and business voice subscribers, about 4.35 million broadband internet customers, and some 1.4 million video subscribers. Frontier is active mostly in rural and small to mid-sized markets, where it is the incumbent local-exchange carrier (ILEC). About 7% of the company's revenue comes from government support for serving rural areas. In 2016 Frontier acquired the wireline operations of Verizon Communications in California, Texas, and Florida for about $10.5 billion.

Operations

Frontier Communications' data and internet services contribute more than 40% of revenue while local and long distance services account for about a third of the company's revenue, followed by switched access and subsidy revenue, about 10%, and other services, less than 5%.

The company offers broadband, video, voice, and other services and products to residential customers over a combination of fiber and copper-based networks. For business customers, Frontier offers broadband, Ethernet, traditional circuit-based services, and voice services. The company also sells customer premise equipment and related maintenance services.

Geographic Reach

Frontier Communications has operations in Alabama, Arizona, California, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Washington, West Virginia, and Wisconsin. The acquisition of Verizon's wireline operations in California, Texas, and Florida expanded Frontier's activities in those states.

Sales and Marketing

Residential customers account for about 50% of Frontier Communications' revenue and business customers contribute more than 40% while the rest comes from the access and subsidy segment.

Financial Performance

For 2016, Frontier Communications reported $8.9 billion in revenue, a 60% increase from 2015, boosted by the inclusion of the Verizon operations acquired in 2016. Not counting the acquired sales, Frontier's revenue fell 5% in 2016 from decreases in revenue from voice services and switched and non-switched access. Frontier continued to see lower voice revenue in the consumer and business segments as customers switch to wireless services. On the plus side, data services revenue increased in 2016.

Costs associated with the acquisition led to a net loss of $373 million in 2016, which was greater than the $196 million loss posted in 2015.

Cash flow from operations increased to $1.7 million in 2016 from $1.4 billion in 2015. The addition of the Verizon operations helped raise cash flow, but that was somewhat offset by negative changes in working capital along with higher interest expense and acquisition and integration costs.

Strategy

When Frontier Communications bought Verizon Communications properties in California, Texas, and Florida (CTF) in 2016, the deal brought opportunity and costs. The CTF operations added about $3.6 billion in revenue in 2016, as well as the expenses of integrating those widespread operations into Frontier. The company said it has worked through some service issues that occurred after the acquisition and that it was well on its way of finding some $250 million in savings through a thorough inventory of each company's operations.

The acquisition brought Frontier opportunities in the three of the biggest -- and still growing -- US states and the company reconfigured some of its sales and marketing organizations to take a more customer-centric approach. Frontier concentrates field sales teams where its network and market opportunity offer the highest potential for growth among business customers. The company has identified more than 30,000 fiber-fed multi-customer buildings and footprint for a sales push. Frontier's call center and field operations also have been revamped (including relocating call centers in the US from overseas) to offer better service and customer experience.

Frontier continues to expand its network infrastructure to offer faster internet speeds to more customers. In 2016, about half of its capital expenditures went to broadband expansion, speed upgrades, and fiber-to-the-home expansions. The company enabled more than a million households with 50 mbps and higher speeds in 2016 and it added some 200,000 copper broadband builds in the CTF areas.

Mergers and Acquisitions

The Frontier Communications acquisition of Verizon Communications' wireline operations in California, Texas, and Florida for $10.5 billion closed in 2016. The acquisition brought about 3.3 million voice connections, 2.1 million broadband connections, and 1.2 million FiOS video subscribers and the related incumbent local exchange carrier businesses to Frontier. The deal expanded Frontier's presence large but still fast-growing states and improved the revenue mix by increasing the percentage of revenue generated by segments with promising potential.

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Frontier West Virginia Inc.

1500 Maccorkle Ave Se
Charleston, WV 25396-0002
Phone: 1 (304) 344-6409
Fax: 1 (304) 344-6831

Stats

  • Employer Type: Public
  • Controller: Edwin F Hall
  • Epoc: Stephanie London
  • Treas: David R Whitehouse
  • Employees: 1,900

Major Office Locations

  • Charleston, WV

Other Locations

  • Beckley, WV
  • Bridgeport, WV
  • Elkins, WV
  • Foster, WV
  • Morgantown, WV
  • Poca, WV
  • Ripley, WV
  • Salem, WV
  • Wheeling, WV
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