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
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?
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