Frontier Communications Corporation FTR launched its latest line of services branded as ‘Vantage’ – a premium digital platform to deliver HD TV, ultra fast broadband and enhanced Voice over Internet Protocol (VoIP) services. The services will be made available to customers as Vantage TV, Vantage Internet, and Vantage Voice, respectively. Frontier aims to introduce Vantage TV to more than 3 million households over the next 3 to 4 years.
Opportunities
Recently, Frontier received the final approval from the California Public Utilities Commission (CPUC) for its proposed acquisition of leading wireless carrier Verizon Communications Inc.’s VZ local wireline operations in California, Florida and Texas. Frontier hopes to leverage the wireline assets to introduce Vantage TV in these regions.
Initially, Frontier will focus its Vantage brand in areas where it aims to launch its IPTV services and replace the current Frontier TV service. Vantage Internet will feature broadband tiers that begin at 12 Mbps and offer speeds of up to 1 Gbps, depending on the location. The Vantage brand will however not replace the existing Frontier FiOS brand, which provides fiber and Internet TV services at present. The Frontier FiOS exists due to past and current Verizon FiOS territory acquisitions, and uses the fiber to the premises (FTTP) platform. Meanwhile, Frontier’s Vantage platform will use fiber to the network (FTTN) to deliver its services.
The Bottom Line
Companies often turn to premium branding strategies to differentiate its services. With the launch of the Vantage brand, Frontier will join the likes of AT&T Inc T and Comcast Corp. CMCSA, which have witnessed success with their respective U-Verse and Xfinity brands. Moreover, in September last year, Frontier had introduced its OTT (over the top) services – ‘Freedom TV’ – which enables its customers to watch their favorite local channels and TV shows via on-demand streaming on their personal devices. We believe, the new Vantage line, along with its existing OTT and FiOS services, will help Frontier grow its footprint substantially, moving ahead.
Frontier Communications currently carries a Zacks Rank #2 (Buy).
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