On the cusp of a reorg and a possible bankruptcy filing, Frontier Communications acknowledged that a "significant under-investment" in fiber and an over-reliance on DSL played critical roles in putting the company in its currently tenuous position.
"Significant under-investment in Fiber deployment and limited enterprise product offerings have created headwinds that the Company is repositioning itself to reverse," Frontier explained in this presentation to investors (PDF).
Under strategic initiatives being weighed, Frontier envisions new fiber builds to about 3 million incremental households, with about $1.4 billion in estimated cumulative build capex requirements through 2024. On the wireless backhaul side, Frontier is envisioning about 9,000 new sites won by 2024.
Frontier noted that 29% of its residential broadband housing units are served on fiber, with the rest on DSL – 6% on "fast" DSL (greater than 24 Mbit/s), 35% on DSL at speeds between 13 Mbit/s to 24 Mbit/s, and 30% on DSL speeds up to 12 Mbit/s. About 11 million of the 14 million homes served by Frontier's are on DSL (or 79%), with the remaining 3 million (or 21%) on fiber.
In a 10-K filing, Frontier acknowledged that its ability to "continue as a going concern is dependent" on its ability to restructure with enough liquidity to meet its obligations and operating needs. Discussions on a restructuring got underway in January.
Over the next two years, approximately 60% of service providers (both large and small) will adopt virtualization on a wide scale across their networks, according to the latest survey report from Ovum. Why are providers making these moves? Is there an easy way to start?
Learn how and why service providers are using virtualization to transform their networks. This webinar will look at how providers are leveraging virtualization to create more flexible and agile networks while also providing a better customer experience. Expert speakers from netElastic and Heavy Reading will address the industry drivers for network virtualization, the benefits that can be realized, the challenges to face and the results of virtualization being achieved by providers today.
Key topics will include:
Current network infrastructure and the move to virtualization
Benefits and challenges of network virtualization
How providers can get started
Service provider success stories: the decision to virtualize, the solution, and results