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Frontier Communications

From Wikipedia, the free encyclopedia

Frontier Communications Corporation
Formerly
Citizens Utilities Company
Citizens Communications Company
Public
Traded as
IndustryTelecommunications
PredecessorPublic Utilities Consolidated Corporation
Founded1935[1]
Headquarters,
United States
Key people
Dan McCarthy, President and CEO
ServicesLocal and long-distance telephone service, Internet access, wireless Internet access, digital phone, DISH satellite TV, fiber-optic Internet, fiber-optic television
RevenueIncrease US$9.128 billion (2017)[2]
Decrease -US$1.568 billion (2017)[2]
Decrease -US$1.804 billion (2017)[2]
Total assetsDecrease US$24.884 billion (2017)[2]
Total equityDecrease US$2.274 billion (2017)[2]
Number of employees
Decrease 22,736[2] (2017)
SubsidiariesCitizens Cable Company
Citizens Capital Ventures Corporation
Frontier Communications ILEC Holdings
Frontier Subsidiary Telco LLC
Frontier Telephone of Rochester
Southern New England Telephone
SNET America
Websitefrontier.com

Frontier Communications Corporation is a telecommunications company in the United States. It was known as Citizens Utilities Company until May 2000 and Citizens Communications Company until July 31, 2008. The company previously served primarily rural areas and smaller communities, but now also serves several large metropolitan markets.

Frontier is the fourth largest provider of digital subscriber line (based on coverage area) in the United States.[3][4] In addition to local and long-distance telephone service, Frontier offers broadband Internet, digital television service, and computer technical support to residential and business customers in 29 states in the United States.[3][5]

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Transcription

So in the morning, just bring the laptop out to the vehicle. We just plug it in and then we log in. So at the moment we've got an 8-12 appointment this morning. We get provided with our own vehicle, drill, bits and pieces. We've got some spare phones. We carry all our safety gear as well. Different test equipment so we've got meters. We basically carry everything we might need for the day. My name's Tammy. I'm a Telstra cable technician. I did a 9-month traineeship through Skilled Group. They offer in-classroom training and on-the-job training. And now basically I've got my own vehicle and we just work independently throughout the day to complete the jobs for the customer. The customer's having an issue with their fax machine. They're unable to send or receive faxes at the moment. So we just need to have a chat to the customer and find out what's going on. Hello. My name's Tammy and I'm calling from Telstra in Perth. How are you doing today? I've just picked up the job to come and take a look at the line for you. I just want to confirm with you what sort of issues we're having. So we're just having some trouble sending and receiving faxes. Is that correct? OK. All right. It sounds like that could be something to do with the issue. But that's OK. We can come out and have a look at it for you and just sort of see what's going on.. OK. Thanks very much. Bye. I haven't received a fax. That's not unusual. I'm might or might not have but... OK. Everything's plugged in correctly and it's all up and running so it looks OK. Yeah, we've just got a diversion tone. Yes, so we've got normal dial tone again. And the diversion's off. So are you getting sort of any error message like or does it just say unable to send or something? It just comes up 'please ring Telstra'. OK. That's all it said. Then gave me the number. Just wondering if you can give me some details on a customer service. Well, basically, what's happened is the customer's had... Before this I actually worked in retail, so there was a bit of computer work just doing up rosters and you know keeping track of money and all that sort of stuff so there was a bit of computer stuff involved. Just had sort of As and Bs when I finished high school, so it was just a standard sort of thing. Obviously if you have any IT sort of background or anything like that, then that obviously helps you to advance a bit quicker or you'll probably pick up the skills a bit quicker. But yeah... Welcome to Telstra. Tammy speaking. OK. Sounds better. One page sent. Beautiful. OK. Great. All right. Beautiful. Thank you very much. Not a problem. The National Broadband Network which is the NBN is coming through at the moment and that's where they're installing optic fibre. It's going to be from the exchange at this point to the customer's premises. So that's going to make all the copper cabling obsolete. Am, Optic fibre obviously provides a lot faster services and better services than what the copper can and basically means that we shouldn't really have to be doing any work on it. Once optic fibre is in place, there's very little chance of it going faulty or anything going wrong. So it's more of a... I guess an assured service as well, because we're not expecting or anticipating any problems with it once it goes in. Welcome to Telstra. Tammy speaking. Yep. And his number is? So I just got a call from our head office. Amm..One of our other techs actually needs an assist to do some cabling. There's no lead-in cable or any cable inside the building in place as far as he's told me, so I thought I'd go and have a look at what he's doing and give him a hand to run some cabling and hopefully we can put a socket on and get the customer up and running. So you reckon the easiest way is we just dig and put the pipe into there? So, as far as we can gather at the moment, they've put some pipe in but they haven't actually connected it to the pipe coming out of our pit, so when we've put the rods down, it's actually going under the driveway now. So if we were going to connect it how they'd originally done it, we'd have to actually remove the pavers in the driveway and that's going to be quite a big issue. So it might be easier for us if we can dig a trench from here to the wall, we'll just install a pipe in here and just finish installing what needs to be done. The challenge in this job is obviously being outdoors in the weather conditions. So in summer it gets quite hot and obviously in winter we've got to deal with the storms and rain where we can't do a lot of work while that's happening. It's quite physical, so the further you go out, you know, towards the bushland, it becomes a lot harder to find the cable pits. It's in different locations and stuff like that. I'm learning new systems at the moment, different bits and pieces but ideally I would like to move into more sort of complex roles and just learn more skills as we go so there is a lot of opportunity to up-skill and there's different areas within the Telstra company you can actually work in so, you know, if you change - if you don't want to be working on the actual network, there's stuff like network integrity. There's the people in head office so you can do that sort of stuff. It just depends on what you're interested in. Now I am noticing something wrong here where it's disconnected at the back. I just want to test the line to the customer's house and just sort of see if there is any faults in the line and what's actually going on. That doesn't look too bad. I'll just have a look at the rest of it. So I'll just press test on there and we'll just sort of see what results we're getting. So we've got the line open here at the moment so this will test from the exchange to where the line's open here. It'll just give us an idea if there's any issues. At the moment the dial tone is working here and clear here, so we might have to go to the house and just see if anyone's home and just check out what's going on there as well so... So I've just checked the line at the wall box at the side of the house. Now we've got a clear dial tone there, so that generally indicates there could be a problem with the customer's internal cabling inside the building or it could be that the switched legs back at the cabinet was the issue that was cutting off the dial tone and we've fixed that up. So what we'll do is we'll give the customer a few more minutes to see if they're going to come home. If they're still not available we actually leave a card in the letterbox just to say what time we attended and what we found. If they're still having a problem, they can book an appointment when someone can be home and we can come out and have a look inside the house and just find out what's going on for them. So that's the next step.

Contents

History

Originally based in Minneapolis, Citizens Utilities Company was formed from remnants of Public Utilities Consolidated Corporation in 1935. As the post-war years started, the company caught the interest of a New York investors. 30-year-old Richard Rosenthal was named president of the company in 1946, the youngest company president in the industry at that time. From the 1950s through the 1970s the company expanded nationwide.[6]

Telephone line acquisitions

Citizens Utilities began a rapid expansion in 1993, announcing an agreement to acquire 500,000 rural access lines from GTE. In December 1993, it acquired 190,000 lines in four states, Idaho, Tennessee, West Virginia and Utah. Coghest Frontier of DGF City East/West, Contel of the West lines in Utah became part of Citizens Telecommunications of Utah. GTE Northwest lines in Idaho become part of Citizens Telecommunications Company of Idaho. GTE South lines in Tennessee became part of Citizens Telecommunications Company of Tennessee, while lines in West Virginia became part of Citizens Telecommunications Company of West Virginia.

In June 1994, it completed the acquisition of 270,000 lines, formerly part of Contel of New York, which became part of Citizens Telecommunications Company of New York. In November that year, Citizens acquired 38,000 lines. Lines in Arizona, formerly part of Contel of the West, became part of Citizens Telecommunications Company of the White Mountains, while lines in Montana became part of Citizens Telecommunications Company of Montana.

In January 1995, the company acquired 5,000 access lines in California.[7] These lines became a part of Citizens Telecommunications Company of California.[8]

Citizens, in 1994, announced that it would acquire 117,000 telephone lines and cable franchises in eight states from Alltel for $292 million. On June 30, 1995, it acquired two operating companies from Alltel.[9] One of them was in Oregon and merged into Citizens' existing company there. The other, Mountain State Telephone, was in West Virginia and was renamed Citizens Mountain State Telephone. Citizens Mountain State Telephone later absorbed the former GTE operations and took on the Citizens Telecommunications name. On September 30, Citizens completed the acquisition of Alltel's lines in Tennessee, which became a part of Citizens Telecommunications Company of the Volunteer State. On October 31, it completed the acquisition from Alltel of Navajo Communications, which operates lines for the Navajo community in Arizona, California, and New Mexico.

On January 2, 1996, Citizens acquired 3600 lines in Pennsylvania and 20,000 lines in California from Alltel. On April 1 that year, it acquired Alltel Nevada, which included 23,000 telephone lines.[10] The company was renamed Citizens Telecommunications Company of Nevada.

Citizens acquired Ogden Telephone in 1997.

In 1999, Citizens announced that it planned to acquire 187,000 local access lines from GTE for $664 million in Illinois, Minnesota, Nebraska, and North Dakota. The sales were closed following the merger of GTE and Bell Atlantic to form Verizon.

Lines in Nebraska were split from GTE Midwest to become a part of Citizens Telecommunications Company of Nebraska. Lines in North Dakota were split. Some became part of Citizens of Montana while the rest joined with lines formerly part of Contel of Minnesota to become part of Citizens Telecommunications Company of Minnesota. Lines in Illinois became a part of Citizens Telecommunications Company of Illinois.

Proposed acquisition of US West lines

Citizens, in 1999, announced plans to acquire 530,000 rural access lines from US West, a Baby Bell, for $1.65 billion.[11] The sale would not have included US West Dex directories in those territories.

In 2001, Qwest, which acquired US West in 2000, terminated the sale because Citizens refused to complete the transaction.[12]

Utility sales

Citizens sold its non-telephone divisions in the late 1990s and early 2000s. The following divisions were sold:

Global Crossing and Commonwealth transactions

Frontier logo, 1995-2016
Frontier logo, 1995-2016

Citizens Communications acquired the Frontier name and local exchange properties from Bermuda-based Global Crossing in 2001. Global Crossing acquired the local exchange properties in 1999 when it purchased Frontier Corporation, originally Rochester Telephone Corporation.

Citizens acquired the operations from Global Crossing North America for $3.65 billion. The companies included in the acquisition included Frontier incumbent local exchange carrier (ILEC) companies in New York as well as Frontier Subsidiary Telco, which included all Global Crossing North America ILEC operations located outside of New York, Frontier Communications of America, a long distance provider, and Frontier Communications of Rochester, a competitive local exchange carrier (CLEC).[20] The acquisition was completed in June 2001.

In 2006, Citizens acquired Commonwealth Telephone, a Pennsylvania telephone company.[21]

Name changes

Citizens Communications stockholders approved changing the corporate name to Frontier Communications Corporation at the annual meeting on May 15, 2008. The name change became effective on July 31, 2008, and the company's stock symbol on the New York Stock Exchange changed from "CZN" to "FTR". On December 2, 2011, Frontier announced trading of its stock would move from the New York Stock Exchange to the NASDAQ stock exchange. The stock began trading under the same "FTR" symbol on the NASDAQ exchange at the start of the December 16, 2011 trading day.[22][23][24]

Purchase of Verizon lines

In May 2009, Frontier announced the signing of an $8.6 billion agreement with Verizon Communications to acquire Verizon's 4.8 million landlines leased to residential and small business customers.[25] The deal meant Frontier would acquire all wireline assets in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin, placed into a holding company called New Communications ILEC Holdings. Also included were several of Verizon's exchanges in California, including those bordering Arizona, Nevada, and Oregon.[26] In all states other than West Virginia, this takeover primarily involved rural exchanges that were formerly a part of the GTE system when Verizon Communications was formed by the merger of Bell Atlantic and GTE. However, in West Virginia, Frontier acquired Verizon West Virginia, formerly The Chesapeake and Potomac Telephone Company of West Virginia, a former Bell System unit. When combined with its existing subsidiary Citizens Telecommunications Company of West Virginia, Frontier became the local incumbent telephone company for all but five exchanges in the entire state. The CEO at the time was Maggie Wilderotter, who has since taken another position, stated "These properties align with Frontier's disciplined strategic focus and enhanced our footprint with rich fiber-based assets. After acquiring the new states, there were some challenges and some loss in revenue and employees, but Frontier has a great plan in action to have a better year this year and exceed all expectations and rely solely on customer's retention and satisfaction."

On July 1, 2010, the change from Verizon to Frontier took place. In some states, Frontier was required not to raise rates, and in others, broadband access was to be expanded. Ninety-two percent of people in Frontier's existing service area had access to broadband, while just 65 percent did in the newly acquired areas. The goal[who?] was 85 percent in three years.[27]

Previous companies like FairPoint Communications and Hawaiian Telcom went bankrupt after incurring a large amount of debt as a result of similar landline deals with Verizon Communications.[28]

On February 5, 2015, Frontier announced[29] a definitive agreement with Verizon under which Frontier would acquire Verizon's wireline, broadband and FiOS operations that provide services to residential, commercial and wholesale customers in California, Texas and Florida. This includes 3.7 million phone, 2.2 million broadband and 1.2 million FiOs video connections. The network being acquired is the product of substantial capital investments and is 54 percent FiOS-enabled. This consisted of virtually all remaining GTE territories operated by Verizon. Starting on April 1, 2016, these Verizon services in the aforementioned states have been provided by Frontier Communications.[30]

Purchase of AT&T lines

On October 24, 2014, Frontier closed its acquisition of AT&T's wireline, DSL, U-verse video and satellite TV businesses in Connecticut. The deal included the wireline subsidiaries Southern New England Telephone and SNET America and consumer, business and wholesale customer relationships.[31]

Fiber optic and Internet services

Frontier FiOS

In addition to the purchase of copper lines from Verizon, over time Frontier also acquired the fiber-optic system built by Verizon primarily in Fort Wayne, Indiana, around Portland, Oregon, the Tampa Bay Area of Florida, Southern California, some eastern suburbs of Seattle, Washington, the Dallas-Fort Worth Metroplex, and the Greenville area in South Carolina.[32] The company kept the name "FiOS" for the fiber systems and licenses it acquired from Verizon.

The initial transition was rocky, with Frontier initially claiming that it had no plans for changes after the transition, but later attempted to institute a $500 installation fee for new television subscribers, backed out of franchise agreements in some cities in Oregon, and increased rates by 50% in Indiana.[33][34][35] Frontier later retracted the rate increases and installation fee, but has not reclaimed franchises in the cities that it relinquished and not before losing FiOS TV subscribers.[36]

Frontier FiOS service in most markets operates on the same technology and software as the Verizon FiOS system.

Frontier DSL Broadband

In rural areas including parts of upstate New York, Frontier only offers DSL (Digital Subscriber Line) internet service to its customers using traditional copper wires. Frontier's DSL service is considered by many users to be some of the worst in the industry.[37]

West Virginia Class Action Lawsuit

A class action lawsuit was filed in 2014 by Frontier customers in West Virginia alleging that they did not receive advertised download speeds using Frontier's broadband services. In the FCC’s most recent Measuring Broadband America report, the company’s DSL service was one of the worst performers in the survey, only delivering about 85% of the advertised sustained download speeds. Even the Frontier fiber service failed to consistently meet advertised speeds.[38] On December 10, 2015, West Virginian state Attorney General Patrick Morrisey announced that the company agreed to a $160 million consumer-protection settlement, stating that the deal is “a game-changer for the Mountain State”. As terms of that settlement, Frontier admitted no wrongdoing.[39]

Sponsorship

Frontier purchased the naming rights to venues including:

  • Frontier Field, Rochester, New York
  • Frontier Ice Arena, Coeur d’Alene, Idaho[40]
  • Frontier is the title sponsor of the Connecticut Sun WNBA basketball team.
  • Frontier is the title sponsor of the 2017 American Athletic Conference's Men's and Women's basketball championships.

See also

References

  1. ^ Hoover's. "Frontier Communications Corporation". Company profiles. Austin, Texas. Archived from the original on 2011-01-01. Retrieved 2011-03-28. Citizens was incorporated in 1935 to reorganize Public Utilities Consolidated Corp., a subsidiary of W.B. Foshay Co. which had been forced into receivership.
  2. ^ a b c d e f "2017 Frontier Communications SEC Form 10-K". Securities and Exchange Commission. Retrieved 2019-01-04.
  3. ^ a b "Frontier communications Overview and Coverage". Broadband Now. Retrieved 2014-04-28.
  4. ^ Leichtman Research Group, "Research Notes," First Quarter 2012, pg. 6, Frontier (#6) with 3,267,487 residential phone lines.
  5. ^ "Frontier Communications Corporation". National Broadband Map. Retrieved 2014-04-28.
  6. ^ "Citizens Utilities Company History". FundingUniverse. Retrieved May 9, 2017.
  7. ^ (1994-12-30). "Citizens Utilities acquires telephone properties in California" Business Wire. Retrieved 2012-04-28.
  8. ^ Citizens Telecommunications Company of California FCC Corporate History. Retrieved 2012-04-28.
  9. ^ (1995-06-30)."Citizens Utilities acquires Alltel properties in West Virginia and Oregon" Business Wire. Retrieved 2012-04-28.
  10. ^ (1996-04-01) "Citizens Utilities Acquires Alltel's Nevada Properties" Business Wire. Retrieved 2012-04-28.
  11. ^ "Citizens Utilities in $1.65 billion deal with US West". The New York Times. 1999-06-18. Retrieved 2012-04-28.
  12. ^ (2001-07-21). "Qwest cancels deal to sell phone lines" Archived 2013-06-12 at the Wayback Machine Brainerd Dispatch. Retrieved 2012-04-28.
  13. ^ "Atmos Picks Up Citizens' Louisiana Distribution Assets". naturalgasintel.com.
  14. ^ "American Water Works Company Completes Acquisition of Citizens Utilities Water and Wastewater Assets". wwdmag.com.
  15. ^ "Kinder Morgan to buy Citizens' Colorado gas division". Denver Business Journal.
  16. ^ "Gas Company sold in $115 million deal". Honolulu Star-Bulletin Business.
  17. ^ "Az. utility deal means 21-22% rate increases". Tucson Citizen.
  18. ^ Administrator. "Vermont Electric Coop, About Us, About VT Electric Coop, Vermont Electric Cooperative History". Vermont Electric Coop.
  19. ^ "American Public Power Association - Overview of Investor-Owned Utilities". American Public Power Association.
  20. ^ State of New York Public Service Commission, April 25, 2001 Archived May 21, 2004, at the Wayback Machine
  21. ^ Foster, J. Kyle; van de Hoef, Marcel. "Citizens Communications to Buy Commonwealth Telephone (Update5)". Bloomberg. Retrieved 2015-05-13.
  22. ^ "Company press release". Phx.corporate-ir.net. Retrieved 2012-09-04.
  23. ^ "Reuters.com". Reuters.com. Retrieved 2012-09-04.
  24. ^ "News Releases". Phx.corporate-ir.net. Retrieved 2012-05-15.
  25. ^ Walker, Don (2009-05-13). "Article on Frontier's acquisition". Jsonline.com. Retrieved 2012-09-04.
  26. ^ "Verizon's Press Release on Acquisition". Newscenter.verizon.com. 2009-05-13. Retrieved 2012-09-04.
  27. ^ Murawski, John (2010-07-01). "Frontier phone switch starts". The News & Observer. Archived from the original on 2010-07-04. Retrieved 2010-07-01.
  28. ^ Canfield, Clarke. "FairPoint trust suit blames Verizon for bankruptcy". Associated Press. Retrieved 6 November 2012.
  29. ^ "Frontier Communications to Acquire Verizon's Wireline Operations in California, Florida and Texas, Doubling Frontier's Size and Driving Shareholder Value". Retrieved 2016-03-29.
  30. ^ "Frontier Has Exciting News for California, Texas and Florida Residents". 2016-03-25. Retrieved 2016-03-29.
  31. ^ "Frontier Communications to Acquire AT&T's Wireline Residential and Business Services and Associated Assets in Connecticut". Retrieved 17 December 2013.
  32. ^ Butcher, Rob (2010-07-01). "Goodbye Verizon FiOS, Hello Frontier Communications". Kirkland Views. Archived from the original on 2016-03-10.
  33. ^ "Frontier: No Changes For FiOS, DirecTV Customers For 9-12 Months - 2009-05-14 18:26:00 | Multichannel News". Multichannel.com. Retrieved 2012-05-15.
  34. ^ "News and information for McMinnville and Yamhill Valley, Oregon - wine country newspaper". NewsRegister.com. Retrieved 2012-05-15.
  35. ^ "Frontier plans substantial rate hike for FIOS TV". Wane.com. Archived from the original on 2013-05-23. Retrieved 2012-05-15.
  36. ^ "Updated: Frontier's Fiber Mess: Company Losing FiOS Subs, Landline Customers, But Adds Bonded DSL". Stop the Cap!. 2011-08-16. Retrieved 2012-05-15.
  37. ^ "Frontier Communications". ConsumerAffairs. Retrieved 2016-01-01.
  38. ^ Morran, Chris (2014-10-21). "Frontier Customers Sue, Alleging They Don't Get Advertised Internet Speeds". Consumerist. Retrieved 2016-01-01.
  39. ^ Johnson, Shauna (2015-12-11). "Frontier responds to $160M settlement over slower-than-advertised internet speeds". West Virginia Metro News. Retrieved 2016-04-14.
  40. ^ "Ice arena to be named for Frontier Communications - Spokesman.com - Sept. 22, 2011". Spokesman.com.

External links

This page was last edited on 24 April 2019, at 13:23
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