Frontier Communications is embarking upon a major expansion of its fiber network in a move coinciding with its emergence from Chapter 11 bankruptcy.
The Norwalk company”™s Chapter 11 restructuring has reduced debt by about $11 billion and annual interest expenses by about $1 billion. The resulting liquidity of over $1.3 billion will allow it to extend its fiber network to 495,000 locations this year, with 100,000 locations expected to have been completed in the first quarter.
“Frontier is now positioned with operational momentum and industry-leading leverage ratios to capitalize on the major growth forecast in the U.S. fiber market,” President and CEO Nick Jeffery said in a statement.
“At this pivotal moment in the company”™s evolution, we look forward to rapidly expanding our fiber footprint, delivering enhanced customer service offerings and value, and accelerating our efforts to build gigabit America.”
Jeffery vowed to connect more rural areas, upgrade its lower network speeds and increase accessibility to the internet.
The news comes as Frontier reported consolidated revenue for the first quarter of 2021 of $1.68 billion, a 6.3% decline from consolidated revenue reported in the first quarter of 2020.
While overall data and internet services revenue decreased in the first quarter by 1.5%, or $13 million, its fiber broadband revenues grew by $19 million. Consumer fiber net adds were 11,000 in the quarter, the seventh consecutive quarter of positive consumer fiber net adds.
