Ahmed Sherif
Research expert covering IT services and gaming hardware
Frontier Communications - statistics & facts
Frontier Communications stands out in the U.S. market with its extensive fiber-optic network, delivering high-speed internet to millions of customers in the United States. The company began operating in rural areas, but today offers local and long-distance telephone services, broadband internet, and digital television services in larger metropolitan areas. As of 2023, the Frontier’s workforce dropped further to around 13.3 thousand people, down from 14.7 thousand the previous year.
Data and internet services generated the bulk of Frontier’s revenue in recent years, bringing in almost 3.5 billion U.S. dollars in 2023. Meanwhile, the firm’s voice services segment, which comprises landline telephone services, has played a reduced role, with that segment’s revenue almost halving within the six-year period up to 2023.
Overall, Frontier’s broadband customer base has increased for the second consecutive year since it filed for bankruptcy, while its revenues have shown signs of stabilizing. Despite its challenges, Frontier still services a formidable base of over three million customers in the United States. Nonetheless, the recently announced acquisition is still subject to further regulatory approval and could significantly impact Frontier's future operations and market position.
Frontier looks to focus on fiber
Frontier Communications, a major telecommunications provider in the United States, has experienced a tumultuous financial history in recent years. Despite filing for Chapter 11 bankruptcy protection in 2020, the company quickly recovered. In 2023, Frontier’s revenue reached 5.8 billion U.S. dollars, representing a slight decline compared to the previous year. Notably, this decline rate is the least recorded in the given period, indicating a potential stabilization in the company's financial performance. In the same year, Frontier reported a significantly lower profits compared to the previous year, at 29 million U.S. dollars.Data and internet services generated the bulk of Frontier’s revenue in recent years, bringing in almost 3.5 billion U.S. dollars in 2023. Meanwhile, the firm’s voice services segment, which comprises landline telephone services, has played a reduced role, with that segment’s revenue almost halving within the six-year period up to 2023.
Customer numbers begin to bounce back
Falling customer numbers were instrumental in Frontier’s slide to bankruptcy. The company’s broadband subscriber base declined by 1.3 million customers between 2016 and 2020. The fixed-line broadband sector lies at the core of Frontier’s recovery strategy over the coming years, with the operator seeking to progress from a provider of legacy copper line services to a leading provider of gigabit fiber. Indeed, subscriptions have since begun to recover, increasing to 3.2 million in 2023. Despite this, Frontier’s average revenue per customer has yet to rebound, standing at 82.5 U.S. dollars per month in 2023. Meanwhile, monthly customer churn remained stable in 2023 at 1.54 percent.AT&T leads the fixed broadband market as a Verizon acquisition looms
Frontier represents a major player in the U.S. broadband market as the third-largest broadband provider in the United States as of 2023. AT&T continues to dominate the market, servicing over 15.3 million broadband customers, while Verizon recorded 7.5 million customers. When it came to customer satisfaction index for fiber internet services, AT&T led the pack in 2024 with a score of 80 out of a possible 100, while ranked fourth with a score of 77. In September 2024, Verizon announced its intention to acquire Frontier Communications in a 20 billion U.S. dollars all cash deal. Such an acquisition would considerably lessen the gap between AT&T's and Verizon's respective broadband customer bases.Overall, Frontier’s broadband customer base has increased for the second consecutive year since it filed for bankruptcy, while its revenues have shown signs of stabilizing. Despite its challenges, Frontier still services a formidable base of over three million customers in the United States. Nonetheless, the recently announced acquisition is still subject to further regulatory approval and could significantly impact Frontier's future operations and market position.
Ahmed Sherif
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Sep 26, 2024
Ahmed Sherif
Research expert covering IT services and gaming hardware
