Frontier Communications' share price lost more than 23% of its value Monday after the company announced it had deferred by 60 days debt payments due to be made today "and enter a 60-day grace period as it continues constructive discussions with its bondholders regarding Frontier’s capital structure."
The news sent the fixed-line, broadband and video service provider's share price down by $0.08, more than 23%, to $0.26, giving it a market valuation of less than $30 million, though it's fair to point out that stocks tumbled across the board Monday (the S&P 500 index was down 12%).
Frontier, which has more than 4 million customers (residential and business) across its US markets and about 19,000 staff, generates revenues of about $2 billion per quarter but has a debt pile of about $17.5 billion.
The operator currently provides its services in 29 states but is in the final stages of selling off its operations and assets in four states – Washington, Oregon, Idaho and Montana – to WaveDivision Capital and Searchlight Capital Partners for $1.35 billion. (See Rural Is Central to Frontier's $1.35B Broadband Sale .)
— Ray Le Maistre, Editor-in-Chief, Light Reading, special to Broadband World News
Overall peak usage on US cable networks continues to flatten out and even decline slightly, but sustained higher levels of usage on the upstream path have persisted, according to the latest data from the NCTA.
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.
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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