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Struggling Frontier Expands Cloud VoIP Services


August 09, 2017

It’s been a rough ride lately for Frontier Communications Corp. But the company is still holding on and trying to move forward. And, as part of that effort, it’s talking about a recent expansion of its cloud-based VoIP services.

To that last point, the service provider just announced its Frontier AnyWare cloud-based VoIP service is now available in 50 states. In a recent announcement, the company noted the offering is powered by Mitel technology. And it mentioned the benefits of cloud-based solutions like this one: no upfront capital costs for on-premises equipment, and more scalability.

Speaking of scalability, Frontier just last month completed a 1-for-15 reverse stock split. The company decided to make this move after its stock hit a 34-year low of $1.06, nearing NASDAQ’s $1 per share threshold. That happened in the wake of Frontier’s massive customer churn problems and financial struggles.

Frontier amassed $17 billion in debt from its acquisitions of AT&T and Verizon assets. The company has struggled to hold on to the subscribers it gained through its $10.54 billion acquisition of Verizon assets last year. And rumors have been circulating that Frontier could be headed for bankruptcy.

On the upside, Frontier earlier this month announced that consumer customer churn was down slightly and adjusted EBITDA was up just a stitch in its first quarter. And the $662 million net loss Frontier recently reported for the second quarter of 2017 was narrower than what was expected, according to Zacks Equity Research.

“We were pleased with the progress we made during the second quarter as we executed well on a number of key initiatives stabilizing operations,” Dan McCarthy, Frontier president and CEO, said in a statement the carrier issued Aug. 1. “In particular, we improved churn in our California, Texas and Florida (CTF) market, saw progress in our commercial business, and continued to reduce costs, which resulted in increased adjusted EBITDA margins.”




Edited by Alicia Young




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