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story category Windstream To Acquire Frontier?
Rural telecom deals the next wave of consolidation
(old news - 08:31AM Friday Aug 22 2008)
tags: dsl · business · consumers · Windstream · FrontierNet Internet Access
Tipped by Dampier See Profile
Reuters suggests that rural America will be the next hotspot for telecom mergers. Players like Windstream Communications, Embarq, Centurytel, Consolidated Communications Holdings and Iowa Telecommunications Services could all play parts. One deal mentioned is the possibility of Windstream Communications acquiring Frontier. "The most likely takeout candidate for Windstream would be Frontier because of Frontier's size," said Stanford Group analyst Michael Nelson, who sees a $4 billion deal in about six months. Given that Frontier has been hinting at 5GB usage caps starting this fall and Windstream has no such plans, that might be good news for Frontier customers.

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Forums » Windstream To Acquire Frontier?
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inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

someone please buy CenturyTel!

That company needs a workover!

jchambers28

join:2007-05-12
Alma, AR

Re: someone please buy CenturyTel!

yeah they really suck I have no dsl options exact for them
they have blocked out computation for their network for phone and for dsl I would like to have att instead of them

Drvyyne

@prkcorp.com

Actually...

I would say this is not good news for Frontier's customers. Based on my experience with Windstream their customer service and techs are terrible (at least in my area). Oh, and just wait until you get to talk to the "John's" & "Brett's" in their India call centers .
iansltx

join:2007-02-19
Fredericksburg, TX

Re: Actually...

However if your DSL works it'll generally be faster (12/768 overprovisioned) with no weird deals and no stupid caps. That's always a good thing, right? WS took over a company in my area and people still seem to get what they pay for connection-wise.
older dog
Premium
join:2005-06-09
Norwich, NY

Questions

Call me overly suspicious if you wish but I am always curious about the chain of events.

Wouldn't Frontier cooperate have been aware of the possible acquisition of Frontier prior to this article?

If so why would they announce the 5 gig cap just prior.
Is it all a ploy to make the customer feel that anything is better than Frontier.
I just do not believe Frontier cooperate could have been as clueless about how unreasonable a 5 gig cap is.
The s**t is getting deep.

Is it to make the company more profitable since I don't see how Windstream can afford to acquire a company the size of Frontier in the current market without making sure that Frontier territories return a greater profit than is common.

I may not have posed the right hypothesis but I do feel that the consumer, Frontier employees and the N.Y. regulators are all being feed a bunch of bull.

Jim_in_VA

join:2004-07-11
Cobbs Creek, VA

Re: Questions

Whodahell threw the dart and hit the "5GB" circle?!?! Why is this the magic number for all these guys? ... pitiful.
--
»evdo-tips.com/

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest


1 edit
all the mergers and acquisitions will have to be paid for SOMEHOW. where's the savings? when one of these puppies goes bankrupt and Verizon picks it up for a song? This is 10 years from now of course. after they are flush with cash from Fios paying off.
pepperxn

join:2001-02-21

said by older dog See Profile :

Call me overly suspicious if you wish but I am always curious about the chain of events.

Wouldn't Frontier cooperate have been aware of the possible acquisition of Frontier prior to this article?

If so why would they announce the 5 gig cap just prior.
Is it all a ploy to make the customer feel that anything is better than Frontier.
I just do not believe Frontier cooperate could have been as clueless about how unreasonable a 5 gig cap is.
The s**t is getting deep.

Is it to make the company more profitable since I don't see how Windstream can afford to acquire a company the size of Frontier in the current market without making sure that Frontier territories return a greater profit than is common.

I may not have posed the right hypothesis but I do feel that the consumer, Frontier employees and the N.Y. regulators are all being feed a bunch of bull.
Frontier (formerly Citizens Communications, $4 bln marketcap, $12.65/share, 3.0 mln lines, 24 states) vs Windstream ($5.29 bln marketcap, $12.03/share, 3.4 mln lines, 16 states). Windstream is the larger company by marketcap, revenue, net income, and access lines. Seems like a good buy. It allows Win to expand their coverage.
voipdabbler

join:2006-04-27
Kalispell, MT


3 edits

Don't think this is the right match.

Windstream is a much smaller, more regional company. Frontier has a much larger nationwide presence, spanning both coasts and all the hinterland inbetween. If I were to look at these two for merger, I'd say Frontier would be acquiring Windstream. Unless their management is extremely good, I'd suspect that Windstream would possibly have problems coping with the broad geographical reach of Frontier. If rural acquisitions are hot, and let's face it--analysts try to drive their predictions, I'd say companies the size of Windstream are the targets. Frontier is large enough, I think it'd take a small company linking up with an capital investment group (very bad for customers since this type of acquisition generally means quick turn around sale, even breaking up the company acquired to the detriment of service). If Windstream wants to acquire Frontier, then they're in talks with a capital investment group and I suspect the only buyers with pockets deep enough to buy a newly acquired Frontier merged with Windstream and the assets of a capital investment group would be a baby bell (maybe Quest, AT&T or Verizon).
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Don't think this is the right match.

VZ wouldn't want the company pre or after merge. Everyone knows that.

ATT wouldnt want them. Qwest i doubt would- if they did they would already have looked at buying one of them.

Windstream is national though. Regional is more in a few states and not almost the entire south west where VZ and ATT don't want to service.
arkayn71

join:2008-07-30
Golden Valley, AZ

Re: Don't think this is the right match.

I wish Qwest would pick up my area, they are all around it but do not have us.
pepperxn

join:2001-02-21

said by voipdabbler See Profile :

Windstream is a much smaller, more regional company. Frontier has a much larger nationwide presence, spanning both coasts and all the hinterland inbetween. If I were to look at these two for merger, I'd say Frontier would be acquiring Windstream. Unless their management is extremely good, I'd suspect that Windstream would possibly have problems coping with the broad geographical reach of Frontier. If rural acquisitions are hot, and let's face it--analysts try to drive their predictions, I'd say companies the size of Windstream are the targets. Frontier is large enough, I think it'd take a small company linking up with an capital investment group (very bad for customers since this type of acquisition generally means quick turn around sale, even breaking up the company acquired to the detriment of service). If Windstream wants to acquire Frontier, then they're in talks with a capital investment group and I suspect the only buyers with pockets deep enough to buy a newly acquired Frontier merged with Windstream and the assets of a capital investment group would be a baby bell (maybe Quest, AT&T or Verizon).
Based on coverage, yeah, Windstream is more regional. But buying Frontier would give them a more national rural footprint. From what I read Windstream's management handled their mergers good. The news started because last month something expired (don't remember what) that would allow a merger. The buyout would be done with a stock swap. I could only see Qwest buying the newly merged company, otherwise the new Windstream will be on its own. Don't forget there's Embarq, CenturyTel, and the rest are pretty small. These days, in order to survive you gotta merge.
voipdabbler

join:2006-04-27
Kalispell, MT

Re: Don't think this is the right match.

My point is Windstream doesn't have the assets that Frontier does. If they're truly looking to acquire Frontier, they're probably in talks with a capital investment group(s) that would go in on the deal and provide the financial resources that Windstream lacks. If that's the case, then the capital investment group most likely will want a fairly quick return on their money so they'd probably start pressuring for the merged company (Windstream/Frontier) to be sold no more than 1-2 years out (Alltel, which was acquired by a capital investment group, was only held for a year before being sold off). If you merge Windstream, which is really rather small when compared to Frontier, the company starts to be large enough that those with deep enough pockets to buy it are a fairly small group--the baby bells. Contrary to what others think, I suspect a merged company would be of interest to some of the baby bells, especially if they want to roll out WIMAX (don't expect to see 3G outside urban areas)..

stellgod

@alltel.net

Re: Don't think this is the right match.

Windstream is NOT the smaller company. Windstream spun off the WIRELESS portion which resulted in Alltel, then merged with Valor which resulted in Windstream. Windstream sells all Wireless it acquires through mergers/acquisitions. Windstream would be the top dog if a deal were to be reached between Windstream/Frontier. Windstream stock restriction were what ran out in July for the guy above. Also, in regards to WIMAX, I do not foresee that as going anywhere. Which company and city was it that recently tried to get rid of their WIMAX? Verizon and Phildelphia I think? When the company tried to ditch the WIMAX, they were sued by the city.

R a y

@myvzw.com

Internet capacity problems

There's some estimate by US analyst firm Nemertes Research that there will be capacity problems on the Internet by 2010.

You can search for the BBC news article "Net gridlock by 2010 study warns". A similar story is also available on other sites.

That's probably why they're putting caps in place. Plus, it provides a good opportunity to set you up to pay more for less service in the future.

wilon_1

@frontiercorp.com

This is very probable

I have worked for 3 telecom companies that got bought out. These rumors usually came out a few months prior to the actual deal completing and after a few months of actual negotiations. This deal is in the works and will porbably go through very soon. That's why the rumor is out there. It's being worked on. Many will lose their jobs.

inthemix

@hickorytech.net

it could happen

We have thought a acusition would happen soon. Maggie has been setting Frontier up for this to happen. Qwest is way to weak to try to buy another company like Frontier. I have worked for Qwest and I know the employees are looking at rejecting the new contract. Windstream is the second largest rural communications companey and buying Frontier would be a good buy for them. Frontier is just talking about having a cap on dsl. Nothing is set in stone. I know, I work for them.
Forums » Windstream To Acquire Frontier?


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