Frontier Communications Corp (NASDAQ:FTR), a leading regional telecommunication firm in the U.S., is all set to release third-quarter 2016 report on November 1, after market close. In 2Q2016, the company recorded an impressive 60% positive earnings surprise. Additionally, the firm’s earnings exceled the Zacks Consensus projection in the preceding four quarters.
The anticipations
Zacks reported that Frontier focus to generate more profits through client retention, new product launches, broadband expansion, improved marketing and sales measures, and market share gain is remarkable. The firm is striving to get benefits from the rising Business Service division, particularly the SMB division. As part of its marketing strategy, the firm introduced its retail outlet in Southern California.
Acquisition of Verizon Communications Inc.(NYSE:VZ)’s wireline properties in California, Texas and Florida although bodes well as it has extended company’ landline business, voice, FiOS, broadband and video services in the region. Meanwhile, reports on poor telephone service, billing problems and outages, raise concern.
Additionally, Frontier is struggling with slow economic recovery in service territories and decline in fixed telephony business to growing wireless market and other offerings. It is primarily due to client migration to Ethernet offerings at lower price points. The firm anticipates to continue experiencing drop in wireless backhaul sales following customer migration to Ethernet offerings at lower price points.
The Federal Communications Commission split on party lines in implementing stringent new privacy guidelines on broadband Internet providers, procedures that need an opt-in prior to sharing customer data. For example, under the reported measure, a broadband provider has to seek a customer’s consent before it can disclose an advertiser precisely where that client is by tracking phone.
It could present an issue mounting advertising for big firms including AT&T Inc.(NYSE:T), Verizon, Comcast Corporation (NASDAQ:CMCSA) and Charter Communications, Inc.(NASDAQ:CHTR).
The vote approved 3-2 with strong disagreements from the board’s 2 Republican commissioners. More details will be treated tolerantly, but providers will require to seek permission before getting more sensitive data. The new guidelines, while scaled back, have received heavy criticism from telecom/cable and advertising divisions, with firms that worry that the move will reorganize the web’s free-content approach.
