Frontier (FTR -2%) is slumping after receiving a downgrade to Sell from Goldman, which argues...

|About: Frontier Communications Cor... (FTR)|By:, SA News Editor

Frontier (FTR -2%) is slumping after receiving a downgrade to Sell from Goldman, which argues the carrier's cost structure is deteriorating thanks to a mix shift to lower-margin services. Like other wireline telcos, Frontier has to maintain a giant local-loop infrastructure even as the revenue it generates steadily declines due to mobile and VoIP activity. Windstream (WIN +0.2%) has also been downgraded to Sell - Goldman cites margin pressure - but is up slightly.