Frontier lures small businesses away from cable with broadband price lock-in

Frontier is giving its small to medium business (SMB) customers the option to lock in their broadband price with its "Price for Life" promotion whereby the price of business customers' Internet and phone services will never go up as long as they remain with the telco.

Available as part of a limited-time promotion, the offer is available to customers that select qualifying broadband Internet and business phone packages.

The Price for Life special is offered on symmetrical Internet speeds of up to 150 Mbps and single- and multi-line voice packages with unlimited long distance. Service prices start at $59 a month for qualifying packages.

"Price for Life gives small business owners `budget certainty' that their pricing for fast and reliable Internet and phone service will remain the same next month, next year, and for so long as they are a Frontier customer," said Cory Jones, VP of commercial marketing at Frontier.

The service provider's promotion is clearly focused on luring SMBs away from cable operators like Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) -- two MSOs that have made continued inroads into this market -- or winning back lost customers.

This promotion comes after Frontier saw its overall business revenue decline sequentially 1.7 percent to $617 million during the third quarter. However, the telco reported that the average monthly business revenue per customer was $693.58, an increase of 0.6 percent over the second quarter, as the business customer decline was primarily from the small business customer set.

"Revenues from small, medium and enterprise were once again very encouraging, as we grew SME revenue sequentially in Q3," said Dan McCarthy, CEO of Frontier, during the earnings call. "This adds to the track record that we discussed last quarter of six consecutive quarters of stable SME revenues; for a total of seven quarters of very favorable SME results at legacy."

McCarthy added that "We also continued to see solid SME results in Connecticut as well."

For more:
- see the release

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