Frontier: Failing On All Cylinders
John Zhang • 38 Comments
John Zhang • 38 Comments
Frontier Communications: Bull Case Is Deeply Flawed
John Zhang • 31 Comments
John Zhang • 31 Comments
Fri, Aug. 19, 1:03 PM
- The FCC has gathered a "strike force" of companies in telecommunications and technology to try to put an end to the "scourge" of unsolicited automated phone calls.
- The agency holds its first meeting today with its "Robocall Strike Force," a coalition that includes AT&T (NYSE:T), Verizon (NYSE:VZ), T-Mobile (NASDAQ:TMUS), Frontier Communications (NASDAQ:FTR) and Comcast (NASDAQ:CMCSA) along with tech partners in Alphabet, Apple, and Microsoft -- more than 30 companies in all.
- AT&T chief Randall Stephenson is serving as the group's chairman. It will provide a report by Oct. 19 on how to get new tools and solutions into consumers' hands.
- Currently, the FCC doesn't require providers to offer blocking and filtering tools for robocalls, but has strongly urged them to make tools available for free to customers.
- "It's vital that carriers move quickly to offer robocall blocking tools," Wheeler says. "This scourge must stop."
Thu, Aug. 11, 8:12 PM
- A new report is giving ammunition to "cord-haver" investors in an increasing high-profile TV industry debate.
- SNL Kagan sees a moderation in the cord-cutting trend, noting the "rate of decline stayed about constant versus the past couple of quarters."
- Meanwhile, at least some key companies are responding to the change: Even as pay TV bundle customers decline, they can see big new residential revenues from upticks in broadband Internet subscriptions.
- The firm forecasts broadband subscriptions will swell by more than 8M over 10 years, hitting 71M (ending up at 1.6 times the video sub numbers). Meanwhile, basic video subscriptions are expected to drop by annual compounded growth rate of 1.5% (to 45.4M by 2026), slower than last year's expected 1.7% decline, SNL Kagan says.
- It expects residential revenues to rise from $108.38B this year to $117.7B in 2016, and contributions from commercial services to push industry revenue from $130.57B today to $140.99B in 2026.
- On the other hand, Jan Dawson at Jackdaw Research warns that more people are cord-cutting than you think, pointing to six straight quarters of Y/Y declines in pay TV subs.
- "I’ve lost track of how many headlines I’ve seen over the last couple of years which posit that cord-cutting is somehow slowing down off the back of a small number of providers’ quarterly results," Dawson says, mainly due to observers focusing on quarterly net adds rather than annual changes, and looking at too small a sample size.
- Cable players have done well lately, but at the expense of telcos -- and even in cable, it's an example of the rich getting richer, with smaller players suffering. And Dish Network (NASDAQ:DISH) is seeing worsening results despite its creation of streaming service Sling TV.
- Cord/no-cord players: CMCSA, CHTR, OTCPK:ATCEY, T, VZ, DISH, FTR, CTL, NFLX, DIS, FOX, FOXA, TWX, CNSL, AMZN, WIN, CCOI
Wed, Aug. 10, 2:35 PM
- In another victory for broadband Internet providers, a federal appeals court ruled in favor of two states seeking to set limits on municipal broadband networks.
- The FCC had sought to pre-empt state laws that put onerous restrictions on cities' rights to build and expand their own high-speed networks -- which can reduce demand from private-sector Internet service providers.
- The appeals court said the FCC couldn't block Tennessee and North Carolina from restricting cities that were seeking to expand their muni networks.
- Updated 2:45 p.m.: FCC Chairman Tom Wheeler in a statement: "The efforts of communities wanting better broadband should not be thwarted by the political power of those who, by protecting their monopoly, have failed to deliver acceptable service at an acceptable price. The FCC’s mandate is to make sure that Americans have access to the best possible broadband."
- U.S. ISPs/carriers: VZ, T, CMCSA, OTCPK:ATCEY, S, TMUS, WIN, CTL, FTR, CHTR, CCOI
Tue, Aug. 2, 10:04 AM
- July monthly performance was: +2.99%
- 52-week performance vs. the S&P 500 is: +7%
- $0.24 in dividends were paid in July
- Top 10 Holdings as of 6/30/2016: ONEOK Inc (OKE): 2.68634%, Mattel Inc (MAT): 1.37579%, CenterPoint Energy Inc (CNP): 1.3705%, Frontier Communications Corp Class B (FTR): 1.18302%, Coach Inc (COH): 1.12088%, CMS Energy Corp (CMS): 0.94653%, SCANA Corp (SCG): 0.91588%, Macquarie Infrastructure Corp (MIC): 0.89711%, Helmerich & Payne Inc (HP): 0.8648%, Digital Realty Trust Inc (DLR): 0.85433%
Mon, Aug. 1, 5:37 PM
Mon, Aug. 1, 4:27 PM
- Frontier Communications (FTR -2.3%) has slipped 2.8% further after hours after posting Q2 revenues that missed expectations by nearly 5%.
- Revenues nearly doubled with the help of adding operations in California, Texas and Florida it acquired from Verizon; excluding those, revenues fell about 3.1% compared to Frontier legacy operations.
- Residential customers grew to 5.24M from a year-ago 3.28M, and average monthly residential revenue was up to $83.20 from $64.43. Residential churn grew slightly, to 1.91%.
- On the business side, customers grew to 528,000 from a year-ago 299,000; average monthly business revenue per customer dropped to $658 from $689.21.
- For the full year, Frontier's forecasting capex of $1.275B-$1.325B, cash tax refunds of $10M-$20M and adjusted free cash flow of $825M-$900M. For 2017, it's guiding to EBITDA of greater than $4B (consensus is for $3.67B).
- Conference call to come at 4:30 p.m. ET.
- Press Release
Mon, Aug. 1, 4:03 PM
Mon, Aug. 1, 3:03 PM
Sun, Jul. 31, 5:35 PM
- ADUS, AEGN, AEIS, AMKR, APU, ARE, ATW, BDE, BLKB, CEMP, CGNX, CHGG, CKEC, CONE, CUTR, DAC, DNB, ENH, ENSG, EXAC, FTR, GGP, GKOS, GPRE, HTA, IDTI, ININ, IPHS, KMT, LNT, MCEP, MTGE, NGHC, NLS, OFIX, OGS, OLN, PLOW, PPS, PQ, QUAD, RAIL, RXN, RYAM, SBRA, SYKE, TEX, THC, TNET, TREX, TSE, TTOO, TXRH, UGI, VECO, VNO, WMB, WSTC, XOXO
Fri, Jul. 29, 10:27 AM
- After losing a decision from a three-judge panel in June, challengers of the FCC's Open Internet order (led by trade group USTelecom) are requesting the full Court of Appeals for D.C. to reverse course and consider striking down the order.
- USTelecom, joined by CenturyLink (NYSE:CTL), is objecting to the net neutrality orders that would regulate Internet providers as common carriers under Title II. It's requested an en banc review of the legal challenges at that court.
- Those two are joined in the challenges by wireless group CTIA as well as cable association NCTA.
- Legal challenges to the rules mounted last year starting the day after the FCC voted on the matter.
- Related tickers: T, VZ, TMUS, S, CMCSA, CHTR, OTCPK:ATCEY, CTL, FTR, CCOI, DISH
Fri, Jul. 15, 10:10 AM
- Wells Fargo ticks off 20 S&P 500 stocks with the most upside potential vs. consensus, and the 20 with the most downside risk vs. consensus.
- The list is compiled by comparing the midpoint of Wells Fargo Securities valuation ranges to consensus fair value estimates, volatility adjusting the percentage difference, and ranking the resulting score.
- Upside: AEE, BEN, CCL, DVA, EIX, ES, EXC, FTR, HUM, INTC, JNJ, LNT, PEG, PNW, SCG, T, WEC, WU, XEL, XOM.
- Downside: ANTM, C, CI, COF, EQT, FOXA, FSLR, GS, KIM, LH, MON, MSI, MYL, NVDA, NWSA, SLG, TIF, TSO, UA, WLTW.
Thu, Jul. 14, 1:40 PM
- FCC Chairman Tom Wheeler says in a blog post that he won't offer up new rules regarding retransmission-rights negotiations between TV programmers and providers.
- The stance comes alongside an increasing environment for disputes and lengthy blackouts of TV service as pay-TV companies and content creators tussle over the increasing costs of programming.
- Based on staff review, "it is clear that more rules in this area are not what we need at this point ... So, today I announce that we will not proceed at this time to adopt additional rules governing good faith negotiations for retransmission consent."
- Wheeler says Congress could yet expand the FCC's scope of authority which could provide for more action. But "What we need is not more rules, but for both sides in retransmission consent negotiations to take seriously their responsibility to consumers."
- Dish Network (NASDAQ:DISH) and Tribune Media (NYSE:TRCO) are in the middle of an ongoing fight, including a blackout.
- Pay TV players: CMCSA, TWC, CHTR, CVC/OTCPK:ATCEY, T, DISH, VZ, FTR, CTL
Wed, Jul. 13, 7:31 PM
- House testimony today indicates that an FCC proposal to open the market for TV set-top boxes may be losing its majority.
- FCC Commissioner Jessica Rosenworcel -- considered a swing vote here -- acknowledged under questioning that the proposal (voted to move forward on party lines in February) was flawed.
- Asked by Rep. Marsha Blackburn to answer only yes/no, Rosenworcel and GOP commissioners Ajit Pai and Michael O'Rielly said "yes" to the question "Do you agree that the initial FCC set-top proposal is flawed?" Rosenworcel also said "yes" to "Do you agree that if the FCC is to move forward, it should follow a different approach than outlined in the NPRM?"
- FCC Chairman Tom Wheeler admitted that a "Ditch the Box" counter-proposal from the TV industry, focused on using apps, showed "promise," but said "One page is not a proposal; it is a press release."
- Pay TV players: CMCSA, TWC, CHTR, CVC/OTCPK:OTCPK:ATCEY, T, DISH, VZ, FTR, CTL
Tue, Jun. 14, 10:46 AM
- 16 months after the FCC voted 3-2 to impose tough net neutrality rules through its Open Internet order, a federal appeals court has upheld the ruling.The lawsuit challenged the FCC's ability to classify Internet providers as common carriers under Title II regulations, as well as to govern wired and wireless services via the same rules.
- The FCC's rules prohibit the blocking of legal content, the throttling of legal traffic based on content type, and the creation of "fast lanes" for certain types of content. The rules exclude services such as T-Mobile's BingeOn and Verizon's Go90, which don't count against a user's mobile data cap.
- Shares of major U.S. ISPs haven't moved much (if at all) in response to the ruling.
- The full ruling (.pdf)
- U.S. ISPs/carriers: VZ, T, CMCSA, CVC, S, TMUS, WIN, CTL, FTR
Fri, May 27, 1:21 PM
- Frontier Communications (NASDAQ:FTR) has extended an exchange offer for $6.6B in senior debt to give holders of its "Old Notes" more time to tender them.
- The deal was set to expire yesterday at 5 p.m. ET, but has been extended to that time next Thursday.
- The offer is to exchange up to $1B in 8.875% senior notes due 2020; up to $2B of 10.5% senior notes due 2022; and up to $3.6B of 11% senior notes due 2025.
- AS of yesterday, the company says, about $998.5B of the 2020 notes had been tendered, along with $1.99B of the 2022 notes and $3.59B of the 2025 notes.
Wed, May 18, 6:20 PM
- Frontier Communications (FTR -2.3%) is acknowledging what others have already been putting together -- that outages in three states are tied to a rough takeover of wireline operations it took over from Verizon.
- The company began operating the former Verizon operations (3.7M voice connections, 2.2M high-speed Internet customers) in Texas, California and Florida on April 1 after spending $10.5B to acquire them. But some Internet outages have lasted for weeks.
- Speaking at a California hearing today, Frontier says it inherited corrupt data from Verizon, an issue that caused outages and the complaints that its technicians weren't trained to handle.
- Frontier apologized earlier this week to customers in the Dallas/Fort Worth area for outages there, and promised multiple remedies, including more trained technicians, U.S.-based call centers and a "SWAT Team" for troublesome areas.
- Since the Verizon cutover last month, FTR is down 10.2%.
- Now read Frontier's 8% Yield: Uncle Sam Pays It »
Frontier Communications Corp. is a communications company, which provides services to rural areas and small and medium-sized towns and cities in the U.S. It offers a variety of voice, data, Internet, and television services and products. The company provides both regulated and unregulated voice,... More
Industry: Telecom Services - Domestic
Country: United States