Frontier, a telco that's focused on serving Tier 2 and Tier 3 markets, may see a large revenue gain in the next year by expanding broadband services through the second phase of the Connect America Fund (CAF-II). Financial analyst firm Jefferies said in a research report that out of all of the telcos that accepted CAF-II funding, Frontier should benefit the most with "2016 revenue/EBITDA up +2.8 percent /+6.8 percent relative to the prior support mechanism."
A number of service providers may have set the amount of money they will accept from the FCC's CAF-II program, but the NTCA said that the regulator should require that non-subsidized carriers be required to provide reasonably priced broadband and voice services.
Frontier Communications reported in a Securities and Exchange Commission (SEC) 8-K filing that the wireline assets it is acquiring from Verizon in California, Texas and Florida performed well during the second quarter with revenues rising year-over-year to $1.45 billion.
CenturyLink is accepting $500 million in the second phase of the FCC's Connect America Fund (CAF-II), enabling it deliver broadband services to about 1.2 million rural households and businesses in 33 states over the next six years.
FairPoint has accepted $37.4 million in funding from Phase II of the FCC's Connect America Fund (CAF-II), enabling it to build network infrastructure that will bring 10/1 Mbps broadband services to nearly 105,000 locations in 14 states.
As service providers continue to expand and enhance their last mile networks, a new Point Topic report revealed that residential broadband pricing worldwide has dropped 9 percent in the past year.
A group of industry trade organizations and service providers, including COMPTEL, Sprint, XO and BT, have launched a campaign to encourage the FCC to drive further competition in the broadband market.
Fibertech, which is in the process of being acquired by Lightower Fiber Networks, has just been awarded a $1 million grant from the state of Delaware to expand its own network in the state while serving as an onramp to increase broadband services in rural areas.
CenturyLink, Frontier Communications and a number of other Tier 2 telcos that have struggled to bring broadband services to hard-to-reach rural areas will now have another aide with the second phase of the FCC's Connect America Fund (CAF-II), which is offering service providers about $1.7 billion in funding.
Frontier Communications has completed the first phase of its network upgrade in eastern Washington and northern Idaho as part of a broader effort to increase broadband speeds in both regions.