Frontier Communications (Nasdaq: FTR) 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.
However, according to DSLReports, members of the company's user forum are reporting that Frontier representatives are quoting a fee of $65 per month with auto-pay or $70 per month without, for the 100 Mbps service tier. There's also an optional one-year contract that includes a year of Amazon Prime service, DSLReports said.
Frontier purchased AT&T's (NYSE: T) ILEC operations in Connecticut in late 2013 for $2 billion. At the time, AT&T had 900,000 voice customers, 415,000 broadband customers and 180,000 U-verse video customers.
Frontier said when it purchased AT&T's Connecticut operations that it would invest $63 million over the next three years to expand the reach of the U-verse video and broadband network to offer speeds of 10 Mbps and higher for over 100,000 households. The service provider also said it would build a fiber-based middle mile network to connect all of its central offices across the state and dedicate about $3 million to expand broadband to areas it says are currently "unserved or underserved."
In other Frontier news, the company announced today that it has a new $1.5 billion senior secured delayed-draw term loan facility that will be drawn upon when it closes on its acquisition of Verizon's (NYSE: VZ) wireline operations in California, Florida and Texas, which is expected to occur at the end of March 2016. Frontier completed the equity portion of its financing plan for this acquisition with a $2.75 billion dual-tranche equity offering in June 2015.
- See this DSLReports article
- See this press release
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