Frontier Communications Corp (NASDAQ:FTR) has announced the expansion of its broadband service to cover additional not previously served.
Frontier’s senior VP of operations, Elena Kilpatrick recently announced the expansion of the company’s broadband service in new areas including West Virginia, Tennessee, North Carolina and South Carolina. The firm hopes that the new expansion efforts will give strong and reliable internet access to 6,900 rural homes. About 3,400 of those households will receive the services courtesy of the FCC’s Connect America Fund (CAF).
“Through ongoing network investments, Frontier is providing broadband and faster speeds to residents in our service areas. We have been aggressively deploying and upgrading our broadband service and look forward to serving more residents,” stated Melanie Williams, the senior VP of Frontier Southeast market.
Frontier investing heavily towards expanding market thanks to the FCC
Frontier communications was able to extend its broad band service to most of the new areas courtesy of the CAF as well as its capital investments. The latter was established in 2011 by the FCC so as to facilitate the deployment of broadband services to millions of people who reside in rural areas. The company started receiving roughly $8.4 million from the CAF every year as of 2016. This amount is supposed to help the company expand its infrastructure in rural areas.
Frontier communications plans to upgrade and expand its network to cater to more than 25,000 locations in Tennessee, North Carolina and South Carolina over the next three years. This means that more households will receive broadband services by 2020. The CAF has been of great help to the company because of the expanded broadband network as well as the fact that it brings more customers on board.
Expanded broadband in the rural areas will spur development through the creation of business opportunities. Rural resident will gain access to more entertainment options as well as online education, making it a win-win situation for the people living in those areas and for Frontier communication. It also brings the FCC closer to the goal of accessible broadband in the rural areas.
Frontier stock closed the latest trading session on Tuesday at $1.40.
