For years, Frontier Communications has been a shining beacon of how not to spend money as a telecom company. They have one of the worst reputations for customer service, they struggle mightily with debt obligations and are known as one of the last providers to offer basic service upgrades.
After spending $8.5 billion to acquire a large portion of Verizon’s DSL assets in thirteen states in 2009 and all of AT&T’s DSL assets in Connecticut back in 2013, Frontier has struggled to impress investors (hence the stock dropping 60% after the Verizon purchase) who see the company as getting bigger just to get bigger.
Or as Seeking Alpha puts it:
Frontier’s debt soared and continues to rise at an unsustainable rate. From a cash flow perspective, it is hard to view Frontier as anything but a disaster. Frontier barely has enough cash to meet its liabilities and invest in CAPEX to sustain growth.
Customers bear the brunt of these financial catastrophic moves. For example, after acquiring AT&T’s assets in Connecticut, many expected Frontier to expand U-Verse service. Did they?
Frontier COO Daniel McCarthy stated that Frontier won’t be expanding U-Verse in Connecticut anytime soon. – FierceTelecom
Or how about when Frontier acquired Verizon’s assets and immediately slammed customers with across the board bill increases that saw some paying almost 50% more per month. This was followed by Frontier admitting that they wanted to push off a number those new customers to DirecTV.
So, maybe I shouldn’t be that surprised when I see that, according to the Connecticut Sun, Frontier is spending a million dollars for three years to put their logo on a WNBA jersey.
This after Frontier continues to struggle with even the most basic customer service programs. Last month, Frontier had to shutdown any online ordering from their web-site because they couldn’t get it working. Yes, in 2015, a telecom provider can’t seem to figure out how to put together a basic online ordering web-site.