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Frontier Downplays Growing Worries About Bankruptcy

Frontier Communications executive leadership is under fire as the company's debt obligations mount -- and the company's customers continue to flee from lack of meaningful network upgrades. You'll recall that Frontier has been acquiring unwanted DSL customers in Connecticut (AT&T) and Florida, California and Texas (Verizon) -- apparently in the belief that bigger automatically meant better. But the company horribly bungled its acquisition of Verizon's assets, resulting in prolonged outages and a customer service nightmare for many of its subscribers last year.

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Merger integration issues, slow speeds, high prices and limited upgrades resulted in another 102,000 departing subscribers last quarter, leaving many watching closely to see if things got worse or better during the traditionally slow second quarter.

And company executives have been consistently under fire for blaming everything but themselves for the ongoing issues.

That includes the company's own employees. Frontier CEO Dan McCarthy recently directed the company to slash bonuses and merit pay increases -- but only for lower-level employees. As a result, employee morale at the company has reached an "all time low" in recent months.

And as concerns begin to mount among investors and customers alike, Frontier is putting on a brave face. Frontier didn't want to talk to LA Times Reporter David Lazarus when asked whether the company's future was at risk, instead offering a prepared statement.

"Frontier Communications is committed to improving the customer experience, reducing churn, stabilizing revenue and generating cash flow," the company insists. "Our new capital allocation policy will allow us to pay down debt and lower our leverage ratio, while still paying a meaningful dividend. We are investing in our networks, growing our commercial business segment and reducing costs.”

The statement added that "we have learned hard lessons and are doing what it takes to become better."

In other words, according to Frontier, everything's fine, and there's nothing whatsoever to worry about.

Most recommended from 27 comments



Deafboy91
join:2017-03-30

21 recommendations

Deafboy91

Member

This Is Fine

elray
join:2000-12-16
Santa Monica, CA

9 recommendations

elray

Member

No one wants to talk to David Lazarus...

Not just Frontier.

While we might all be rooting for bankruptcy - so as to roll the dice and see who picks up the assets, Lazarus just wants to pick at the scab.

Like the rest of his colleagues at the LA Times, he knows nothing about running a business.

His column belongs on the op-ed page, or as a "Consumer" page, not in the business section.

TIGERON
join:2008-03-11
Boston, MA
Motorola MG7550

4 recommendations

TIGERON

Member

The stock is making a recovery

Or so it seems to. I honestly don't understand these complicated numbers these wall street "analysts" give. This is no more than running a legalized gambling casino where bets are made and everyone is full of shit.

I hope the executives at Frontier get their act together otherwise it will be several of them being ousted to come. NO ONE wants to buy this company.
SArcanine
join:2009-11-09
New York

4 recommendations

SArcanine

Member

Chapter 7

Does anyone think that 7 bankruptcy for frontier would be best for everyone?

treich
join:2006-12-12

3 recommendations

treich

Member

Crap you guys fire upper mgt etc

You guys fire upper management or force them to retire then not speading any money to fix the network or fixing issues.
Heck I am still waiting on them to fix bad cross connect down few houses from me on there main feeder line.

I had to cancel my business line with them since my bill was not correct and daily disconnects due to that bad cross connect.

No wonder frontier is so bad I hope they go under.