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How Frontier Communications Can Prosper: Jeff Kagan

Image: CEO Nick Jeffrey.Source: Frontier Communications

What is Frontier Communications’ future growth plan after bankruptcy? According to new CEO Nick Jeffery, we should expect a very different and visionary company. That’s good news.

As an analyst and columnist in the wireless and telecommunications industry, I have been following the company and its competitors for decades.

In the past, it hasn’t evolved like its competitors. In the future, under the new CEO, the company now has a second chance to do just that and turn things around.

Explore future frontier plans, potential successes, and my recommendations.

Causes of Past Frontier Communications Problems

First, let’s look at the causes of the problems that led to bankruptcy. After all, you need to know where you came from to plan where you are going. Otherwise, you’re just drawing a circle.

Frontier Communications has long been one of the American telephone companies. It’s small in size and range, but it’s like a baby bell with a history dating back to 1935.

The company enjoyed decades of expansion from the 1950s to the 1990s, but the growth year of plain old telephone services (POTS) is over.

Today, wireless, VoIP, internet, broadband, pay TV, entertainment and much more.

The frontier hasn’t expanded into new territories over the last few decades like other local telcos and cable companies.

Start the next wave of Frontier Communications growth

Successful long-term growth companies are on the Growth Wave that I often discuss. It rises as it grows, but eventually reaches its peak and begins to fall.

Successful companies go beyond a single wave of growth. Rather, they spawn the next wave of growth and the next. It keeps them growing.

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Other companies are not creating the next wave of growth and are suffering from long-term consequences.

Let me give you some examples. Think of companies like Motorola, Nokia, and BlackBerry that eventually culminated in a wave of growth and then fell. These companies didn’t have multiple growth waves, so they suffered when the first growth wave collapsed.

Companies such as Apple, Google, Microsoft and Facebook are creating multiple waves of growth. They are prepared with other products and services in their own wave of growth. In this way, they can stay in growth mode as a company.

This was the problem that Frontier had. It was a local telco and was sticking to the gun. Other similar companies have changed and continue to show strong growth and dominance today. Consider companies such as AT & T, Verizon, T-Mobile, and ComcastXfinity.

They all started by serving in a single sector such as local, long haul, wireless, internet and cable TV. Over time, these individual sectors have expanded and merged.

Today, fewer and fewer companies nationwide offer all these services to everyone. As a result, the market is very different and leaders are leaders who have made better innovations and adaptations than they are behind.

That is the path we have taken as an industry for decades.

What Frontier Communications must do today

That’s what the frontier must do first to get out of bankruptcy if he wants to recover and grow.

This can be done.

Other companies have suffered bad decisions in the past and are on the verge of bankruptcy, but today they are growing strongly. Consider T-Mobile and Sprint. They were two wireless companies that had problems a few years ago.

New CEOs Dan Hesse of Sprint and John Legere of T-Mobile have led the two companies into a recovery and final merger. Today, T-Mobile is a strong and vibrant competitor in the wireless space.

That’s what Frontier Communications can do if it does the right thing to move forward.

Frontier Communications’ second chance in broadband

After getting out of bankruptcy, Frontier has a second chance. It can recover, rebuild and grow, but only if the market moves in the direction of the new wave of growth that it is experiencing.

And only if the frontier communicates with the market, it’s another company today. A new company with a new way of thinking. A young company that inherits the changing world.

When John Legere became the CEO of dying T-Mobile, he attacked the market like a tiger. He tried to tear the bigger competitor into pieces with his dirty words. This was very anxious to see, but it worked. He punched T-Mobile back into play. It is prosperous today.

There are many opportunities that can lead to strength and growth, such as wireless, broadband and pay TV. These are areas where frontier competitors have entered and competed over the last few decades.

Frontier’s plan seems to be to provide broadband services on its own network. That’s a good focus. Broadband, both wired and wireless, is one key to the future.

However, wired broadband is just one slice of the pie that can help the frontier move in the right direction.

Wireless is another industry that Frontier should bundle

Wireless is another growth engine on its own and in combination with broadband and other services as part of the bundle.

By offering bundle discounts, customers can maintain relationships with vendors. This benefits both customers, businesses, and ultimately investors and workers.

We commend Frontier’s vision of transforming the company to focus on broadband in the future, but it shouldn’t stop there.

Frontier needs to ignite several different growth waves

There are many examples. Companies such as Xfinity Mobile, Spectrum Mobile and Altique Mobile are cable TV companies that have transformed into broadband providers. It also offers VoIP phone and wireless services.

Keep in mind that these companies do not operate their own wireless networks, but they are competitors in the wireless space.

how?

They are reselling one of the three largest wireless networks. They are MVNO resellers.

I think this will be an important growth path for the frontier as well. Do you want to move in this direction? I have recommended this to the company for many years. Maybe now is the right time to consider this direction as well.

Broadband, MVNO wireless, pay TV create sticky bundles and sticky customers

Broadband and wireless resale makes perfect sense for Frontier Communications. Providing these services can satisfy your customers’ needs and bring them together to create a truly sticky customer.

All of our competitors are expanding into these different areas, which are what consumers and corporate customers expect and demand.

Conclusion: Frontier Communications has passed Ringer, but if you actively enter this new opportunity, the company can turn the corner and start the next wave of growth.

Will the new Frontier Communication continue to thrive?

For now, it’s very important to let us know that the company has returned to the market. It’s time to roar! This is not a once-in-a-lifetime opportunity to change the image of the frontier in the minds of customers, workers and investors.

The frontier must be hit while the iron is hot.

It must immediately inform the market that it has not only returned, but also rejuvenated. Youthful and energetic. We are ready to provide the service our customers want.

If that is possible, and if it extends to other growth areas and enjoys the benefits of bundles and sticky customers, Frontier Communications could become one of the notable turnaround success stories.

I will follow them and write more about this situation in the future. Now we just wait and see how that strategy moves forward. I hope the company has had a lot of success and wants the best.

Jeff Cagan I’m an equity news columnist. Kagan is a wireless analyst, technology analyst and commentator who follows telecom, pay-TV, cloud, AI, IoT, telehealth, healthcare, cars, self-driving cars and more. Email him at jeff@jeffKAGAN.com.His website www.jeffKAGAN.com.. Follow him on Twitter @ jeffkagan and LinkedIn www.linkedin.com/in/jeff-kagan/

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Equity Columnist: Jeff Cagan

Source: Equity news

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The views and opinions expressed in this article are those of the author and are not necessarily the same. equities.com.. Readers should not consider the author’s remarks as a formal recommendation and should consult with a financial adviser before making an investment decision. To read the full disclosure, please visit: http://www.equities.com/disclaimer.. The author of this article, or the company that employs the author, is the holder of the following securities listed in this article: None



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