With its integration of Verizon's (NYSE: VZ) rural assets complete, Frontier Communications (NYSE: FTR) is now, not surprisingly, turning its focus to new revenue-generating opportunities such as wireless backhaul.
To deliver wireless backhaul in up to 20 U.S. markets, the service provider has deployed Cisco's (Nasdaq: CSCO) Aggregation Services Router 9000 Series (ASR 9000).
While wireless backhaul is clearly the focus here, the new routers will be able to serve various purposes. In addition to wireless backhaul, Frontier can use the new gear and its ongoing fiber network deployments to provide backhaul for its residential DSL services and traditional Ethernet-based services for businesses.
Providing wireless backhaul comes at a time when Frontier saw its Q1 2012 revenues fall 5 percent to $1.27 billion due to ongoing declines in its FiOS video business and a 7.9 percent decline traditional landline voice services.
However, the move to expand its Ethernet and fiber footprint to serve businesses and provide wholesale services to wireless operators is proving to be the right call for the independent telco.
During Q1 2012, business ARPU grew sequentially as Ethernet, Dedicated Internet Access (DIA), wireless backhaul, and CPE rose 6.6 percent annually. In particular, metro Ethernet revenues rose 5.6 percent year over year, while wireless backhaul revenues rose 16 percent year.
- see the release
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