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Frontier Looks to Broadband to Improve Sales

Frontier Communications CEO Dan McCarthy expects broadband subscriber losses to slow over the next four to six months as the company makes a concerted effort to improve network capabilities and address churn. “We’re looking at what bundles are profitable,” he…

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told a webcast JPMorgan conference on Tuesday, noting that some of the systems Frontier acquired came with unprofitable video programming deals. Adoption of over-the-top video services is accelerating while linear video service rates are dropping. McCarthy said Frontier remains agnostic and wants to deliver the video experience that customers want, adding the company aims to protect the broadband experience. Wireline phone subscriptions continue to decline, and McCarthy said it’s too soon to say whether the decline will continue at its current pace or stabilize. The company acknowledges it must focus on new products in an attempt to offset an expected decline in voice. The telco seeks to reduce subscriber churn acknowledged in its Q1 report (see 1905010027) through focus on standardizing customer service and tech support practices. That could not only reduce customer wait times but also reduce the need for contractors, an often unpredictable expense, the CEO said.