Seeking Alpha

Frontier Communications Corporation (FTR)

  • Oct. 24, 2014, 11:02 AM
    • Frontier's (FTR -0.7%) $2B purchase of AT&T's Connecticut wireline assets has officially closed. Connecticut's AG had signed off on the deal in August.
    • The purchase gives Frontier 875K voice, 415K data, and 215K video connections, and 2.5K employees. Frontier respectively had 1.93M and 393K broadband and video subs, and 13.9K employees, at the end of Q2.
    • Frontier has promised to invest $63M over the next three years to expand U-verse service coverage and increase broadband speeds in the state. The telco predicts it will "realize significant cost savings from leveraging its current infrastructure in supporting the new Connecticut business operations."
    | Comment!
  • Aug. 12, 2014, 6:44 PM
    • The Connecticut Attorney General has signed off on Frontier's (NASDAQ:FTR) $2B purchase of AT&T's wireline assets in the state, following a series of commitments.
    • Among other things, Frontier has promised not to hike "the basic primary residential rate in effect for transferred [local] exchanges" for 36 months, and to offer its basic and standalone broadband services at or below current prices.
    • Frontier is also committing to $63M in broadband-related capital investments within Connecticut from 2015-2017.
    • Connecticut's public utilities regulator still has to sign off. Frontier originally planned for the acquisition to close during 2H14.
  • Jul. 29, 2014, 12:14 PM
    • "I’m skeptical it can be replicated," says Elevation LLC's Stephen Sweeney about Windstream's (WIN +12.9%) REIT spinoff plans. "It’s very unclear if other large cap companies can have their companies viewed by the IRS as real estate."
    • UBS also has its doubts: It thinks AT&T (T +3.3%) and Verizon (VZ +1.8%) would have to open up their networks to rivals if they were spun off into REITs, something it doesn't think the carriers will be keen on doing.
    • Oppenheimer's Tim Horan is more positive, albeit while cautioning Windstream's spinoff isn't a done deal. "If successful with this restructuring, and there are obviously high regulatory barriers, this will be a game changer for the valuation of non-REIT infrastructure stocks in our industry.”
    • AT&T, Verizon, Windstream, Frontier (FTR +11.7%), and CenturyLink (CTL +4.2%) have pared their morning gains a bit amid volatile trading on very heavy volumes. AT&T has seen 66M shares trade vs. a daily average of 19.3M; Frontier has seen 89M trade vs. an average of 6.9M.
    • Enthusiasm about Windstream's spinoff stems not only from the tax benefits provided to REITs - American Tower's tax expense has been halved since it converted into a REIT in 2012 - but also from the potential for spinoffs to spark new M&A activity.
    • Windstream CFO Tony Thomas: "The REIT is going to be uniquely positioned to be in a great spot to help unlock value at other companies ... We have a good understanding of how the REIT opportunity could work in the telecom landscape."
    • Earlier: Telcos soar following Windstream's REIT announcement
  • Dec. 17, 2013, 7:38 AM
    • Frontier Communications (NASDAQ:FTR) buys AT&T's (NYSE:T) wireline residential and business service that serves Connecticut for $2B in cash and related assets.
    • The company expects the transaction to be accretive in the first year following the closing which is targeted for the second half of 2014 following regulatory approvals.
    • FTR +13.8% premarket.
  • Apr. 2, 2013, 2:32 PM
    Verizon Wireless (VZ, VOD) has purchased Frontier (FTR) and Rio Virgin Telephone's ownership stakes in Mohave Wireless, a rural 3G carrier operating in Arizona. Verizon, whose 4G LTE network covers nearly 89% of the U.S. population, says it will upgrade Mohave's network to 4G, now that it fully owns the carrier. Terms of the deal haven't been disclosed.
Visit Seeking Alpha's
FTR vs. ETF Alternatives
Company Description
Frontier Communications Corporation provides communication services to rural areas and small and medium-sized towns and cities in the U.S. Its offerings include data and Internet services, local and long distance voice services, and access services.