Business Analysis of Frontier Communications

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Frontier Communications

FRONTIER COMMUNICATIONS

Business Overview

Frontier Communications Corporation provides communications services to residential, business, and wholesale customers in the United States. It offers broadband, video, voice, and other services and products through a combination of fiber and copper based networks to residential customers. The company also provides broadband, Ethernet, traditional circuit-based, data and optical transport, and voice services, as well as Multiprotocol Label Switching and Time Division Multiplexing services to small business, medium business, and larger enterprises, as well as sells customer premise equipment. In addition, it offers 24/7 technical support; wireless broadband services in selected markets; and frontier secure suite of products, including computer security, cloud backup and sharing, identity protection, and equipment insurance. Further, the company provides satellite TV video services; voice services, including data-based VoIP, and long distance and voice messaging services; and a package of communications services. Additionally, it offers a range of access services that allow other carriers to use facilities to originate and terminate their local and long distance voice traffic. As of December 31, 2016, it served approximately 5.4 million customers and 4.3 million broadband subscribers in 29 states. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was founded in 1927 and is based in Norwalk, Connecticut.

Frontier Communications

Frontier Communications


R&P Rank: 321
Sector: Telecommunications
Industry:Telecom Services
H.Q Location:Connecticut
Website: www.frontier.com
Company Address:
401 MERRITT 7, NORWALK CT 06851
Ph:203-614-5600

Business Analysis of Frontier Communications

The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Frontier Communications compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Frontier Communications to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Frontier Communications with an interactive chart.

  1. Revenue Growth: Frontier Communications reported a revenue growth of 59.5% year-on-year during 2016. Telecom Services Industry grew at 8.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Frontier Communications spent 16.5% of its total revenues on COGS. Telecom Services industry average (COGS share of revenue) in the same period was 37.8%
  3. R&D share of Revenues: Frontier Communications R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Frontier Communications spent 44.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Telecom Services industry average SG&A spending in the same period was 26.6%
  5. Inventory share of Revenues: Frontier Communications Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Frontier Communications invested 7.8% of its total revenues on Accounts Payable (A/P) Telecom Services industry average Accounts Payable investment in the same period was 15.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Frontier Communications invested 10.5% of its total revenues on Accounts Receivable (A/R). Telecom Services industry average Accounts Receivable investment in the same period was 11.4%
  8. PP&E share of Revenues: As a percentage of revenue, Frontier Communications invested 167.5% of its total revenues on Property, Plants, and Equipments (PP&E). Telecom Services industry average PPE investment in the same period was 79.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Frontier Communications invested 138.7% of its total revenues on Intangibles. Telecom Services industry average Intangibles investment in the same period was 116.1%
  10. Net Margins: Frontier Communications Net Margins in the year 2016 were -4.2%. Telecom Services industry average Net Margins in the same period were 6.9%

Sector and Industry Association of Frontier Communications

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Frontier Communications is associated with Telecommunications Sector and Telecom Services Industry.

Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:

  • Telecom Services industry includes providers of fixed-line and mobile telephone services.
  • Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.

Industry Ranking of Frontier Communications

With $8.9 billion revenues, Frontier Communications ranked number 9 of all the companies in the US Telecom Services industry. There were a total of 36 public companies in the US Telecom Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Telecom Services industry by revenues during 2016 were:

  1. AT&T ($163.8 billion)
  2. Verizon ($126 billion)
  3. T-Mobile US ($37.2 billion)
  4. Sprint ($32.2 billion)
  5. Charter Communications ($29 billion)
  6. Liberty Global ($20 billion)
  7. CenturyLink ($17.5 billion)
  8. Dish Network ($15.1 billion)
  9. Frontier Communications ($8.9 billion)
  10. Level 3 Communications ($8.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Frontier Communicationsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of frontier-communications

Liberty Global (LBTYA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Liberty Global Plc with $20 billion revenues in the year 2016 was the number 6 Telecom Services company. Read this report to know the top competitors of Liberty Global and identify growth and cost optimization opportunities of Liberty Global

CenturyLink (CTL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CenturyLink, Inc with $17 billion revenues in the year 2016 was the number 7 Telecom Services company. Read this report to know the top competitors of CenturyLink and identify growth and cost optimization opportunities of CenturyLink

Dish Network (DISH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dish Network Corp with $15 billion revenues in the year 2016 was the number 8 Telecom Services company. Read this report to know the top competitors of Dish Network and identify growth and cost optimization opportunities of Dish Network

Level 3 Communications (LVLT) Business Analysis – Analyze Historical Performance, Strategic...

Level 3 Communications Inc with $8 billion revenues in the year 2016 was the number 10 Telecom Services company. Read this report to know the top competitors of Level 3 Communications and identify growth and cost optimization opportunities of Level 3 Communications

Windstream Holdings (WIN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Windstream Holdings, Inc. with $5 billion revenues in the year 2016 was the number 11 Telecom Services company. Read this report to know the top competitors of Windstream Holdings and identify growth and cost optimization opportunities of Windstream Holdings

Telephone & Data Systems (TDS) Business Analysis – Analyze Historical Performance,...

Telephone & Data Systems Inc with $5 billion revenues in the year 2016 was the number 12 Telecom Services company. Read this report to know the top competitors of Telephone & Data Systems and identify growth and cost optimization opportunities of Telephone & Data Systems

Revenues Analysis

Frontier Communications (FTR) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Frontier Communications Corp (FTR) from 2012 to 2016. Frontier Communications generated a total of $8.9 billion revenues during 2016. Frontier Communications reported a revenue growth of 59.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Frontier Communications (FTR) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Frontier Communications Corp (FTR) from 2002 to 2016. Frontier Communications generated a total of $8.9 billion revenues during 2016. Frontier Communications reported a revenue growth of 59.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Frontier Communications (FTR) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Frontier Communications Corp (FTR) revenue growth with Telecom Services industry growth during the last five years from 2012 to 2016. Frontier Communications reported a revenue growth of 59.5% year-over-year during 2016. The Telecom Services industry growth was 8.6% year-over-year during 2016. Frontier Communications growth was faster than the industry during 2016.

Profit Analysis