Frontier is promising a new round of broadband speed upgrades as the company continues to struggle to keep pace with cable broadband upgrades. Despite spending big money to acquire AT&T's unwanted DSL customers in Connecticut, and Verizon's unwanted customers in California, Texas and Florida, Frontier's latest earnings report once again shows the company actually lost TV subscribers last quarter. The company also posted a net loss of $80 million after spending $10.6 billion to acquire Verizon's unwanted customers in those three states.
While the company added some 2.16 million broadband and 1.2 million video subscribers from Verizon, the company actually lost 20,000 net video subscribers and added just 25,500 net broadband customers during the quarter.
The company majorly botched the integration of Verizon's unwanted customers, resulting in several months of bad press and annoyed customers. Many cable companies quickly rushed to target these annoyed subscribers. Other subscribers may be leaving on their own due to Frontier's continued struggle to provide next-generation broadband speeds, something the company promises it will fix soon.
Speaking on the company's earnings call this week, Frontier promised that it would be upgrading its footprint to deliver 50 Mbps speeds to 2 million additional homes over the next two years, upgrading COs and RTs with upgraded DSLAMs in legacy and newly acquired territories alike. With the FCC recently upgrading the definition of broadband to 25 Mbps, many telcos technically fail to offer "broadband" to a majority of their subscribers, an increasingly embarrassing data point.
“In many of the non-FiOS areas, this will be first-time customers will have the ability to choose a competitive internet service product, and we expect to see strong demand for these new capabilities,” CEO Dan McCarthy said on the earnings call. “Our primary focus will be increasing broadband penetration and offering customers opportunities to access the new speeds and capabilities we will introduce.”
Of course with all DSL, whether you can get this new 50 Mbps service will depend on your loop length and copper line quality. The company says it also plans to continue pushing harder into TV, re-iterating that it plans to deliver its "Vantage" TV service to 7 million subscribers across the company's footprint.