Verizon is not accepting funding of $144 million total per year for six years to expand broadband in the rural areas it serves from the second phase of the FCC's Connect America Fund (CAF-II), fueling new rumors that it's considering a sale of another large piece of its wireline asset portfolio.
Frontier Communications will soon debut a new 100 Mbps service tier in the Connecticut markets the company acquired from AT&T. During the company's earnings call earlier this month CEO Daniel McCarthy confirmed those plans but did not reveal any pricing details for the new service.
Frontier is seeing growing demand for wholesale Ethernet services, particularly from regional ISPs that need off-net access for their business customers in the secondary and tertiary markets the telco serves.
Frontier Communications may have seen a $5 million revenue decline in Connecticut revenues, a factor it anticipated due to broadband pricing migrations, but it is fighting that trend by introducing a new 100 Mbps residential DSL speed tier.
Frontier plans to revamp its FiOS platform and expand the FTTH network in the three markets it will enter once its pending acquisition of Verizon's wireline assets takes place.
Frontier Communications has reached an agreement with California workers represented by the Communications Workers of America District 9 union, clearing another obstacle to complete its acquisition of Verizon's wireline business in the state.
Frontier Communications said in an FCC filing that it is on track with the broadband expansions it promised to make when it purchased Verizon's rural assets in 2010 and AT&T's Connecticut wireline assets in 2014.
AT&T is bringing its 1 Gbps FTTH U-verse with GigaPower service to Durham, N.C., a market where it currently does not operate as a wireline provider, laying a challenge to incumbent provider Frontier Communications and eventually Google Fiber.
Frontier has agreed to accept $283 million in annual Connect America Fund (CAF) Phase II support from the FCC that it says will enable it to build out broadband service to over 650,000 rural locations that it could not economically reach before.
Frontier Communications has launched a $450 million offering of its shares, and an offering of $1.75 billion of its preferred stock, all in an effort to raise $2.5 billion in cash for its proposed purchase of Verizon's wireline assets.