Frontier Stock Falls After Q1 Results; CEO Eyes FCC CAF Phase III
Frontier Communications stock closed down Wednesday 22 percent at $2.21 after reporting (see 1904300217) Q1 sales and operating income fell from the year-ago period as some customers departed. CEO Dan McCarthy said Tuesday the telco may add customers because of…
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broadband buildouts it's doing, some with government subsidies such as through USF. It has about 30 percent penetration of Connect America Fund households, he told analysts: "We do like it. We think that there is more room to really drive that" trying to get customers "in different ways." The carrier likely will pursue what he called the CAF Phase III program. "We think there are opportunities to work with the" FCC for better targeting of such households and having higher speeds, McCarthy said. "You’ll see us actively participate with industry and industry groups." Frontier "should still be able to grow into that 50-60 percent penetration over time" of such dwellings, the CEO said. A $20-some billion Rural Digital Opportunity Fund would repurpose funding from CAF, FCC Chairman Ajit Pai said. The agency Tuesday assigned a docket to the proceeding (see 1905010029).