Frontier realigns business service unit, plans further Ethernet, IP business expansions

Frontier Communications
Image: Frontier

Frontier may be known traditionally as a consumer-facing company, but the service provider has realigned the structure of its commercial unit to better respond to business customer needs in its legacy and regions it entered via its Verizon wireline acquisition.

Among some of the new changes will be planned expansions of its Ethernet service and additional capabilities to better target small and larger businesses with tailored solutions that can meet the needs of specific vertical segments.

RELATED: Tracking wireline telecom earnings in Q3 2016

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Dan McCarthy, CEO of Frontier, told investors during its third quarter earnings call that the telco has realigned sales, marketing and commercial product management under a single leader, which will report directly to him.

“This builds on the substantial improvements we have been making behind the scenes over the last 12 months, in revamping both our sales and support staff and our commercial marketing platforms,” McCarthy said. “Even before these changes, we had compiled an impressive, consistent, steady performance track record in the SME portion of commercial,” and that this “increased focus and emphasis on the commercial market will enable us to be a more nimble, responsive competitor.”

Frontier’s business services segment could use some sprucing up.

During the third quarter, overall business revenues were $1.04 billion, down slightly sequentially from $1.05 billion in the second quarter. However, the service provider noted that legacy business average revenue per customer (ARPC) was up $13 sequentially as a result of an improved revenue trend in the third quarter.

Frontier said that ARPC in the California, Texas and Florida (CTF) region of $615 was also up sequentially, but is still “substantially below the level of legacy ARPC.”

By acquiring the Verizon wireline assets in the CTF region, the service provider will have an even larger Ethernet footprint, one that will allow Frontier to deepen its retail and wholesale customer relationships.

Frontier plans to extend its interLATA and intraLATA E-Path service offerings into a number of Western and Eastern states in its territory during the next phase of its Ethernet buildout. In the second quarter, Frontier extended these services into Washington, Oregon and the Northern California area, for example.

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