Frontier Promises No Change in Pricing After Verizon Acquisition Frontier says it learned its lesson after its acquisition of AT&T's DSL and POTS customers in Connecticut, and won't be raising rates on the new Verizon customers it acquires in Florida, Texas and California. After the AT&T deal Frontier thought it would be a good idea to almost immediately raise rates on those users. The result was a $5 million decline in Connecticut revenues as customers looked elsewhere for service.

Frontier CFO John Jureller insists they won't make the same mistake twice "The biggest lesson learned from Connecticut in late Q4 and in Q1 was the pricing migration that we allowed to happen," Jureller told attendees of the Wells Fargo Securities Technology, Media & Telecom Conference. "I'd say the month of March was our low month from a residential revenue perspective, but we have been stable ever since then." The CFO stated that they've already set prices that support staff will adhere to in all territories for once the deal finalizes early next year. "What we're doing with our Verizon properties is we are instituting the pricing and packages today in our Verizon footprints that we'll bring in with the customers so that once we close there will be no change or no migration to which we will have an issue when we bring on new customers," Jureller said. "Dan [McCarthy] and his team, including our call center team and video team are completely aligned to make sure it's a similar experience." Historically, companies wait about a year or so before making too many dramatic changes to acquired companies to avoid spooking employees and customers alike. Expect Frontier rate hikes later on, after the company better analyzes which areas see less notable broadband competition. Still, at least Frontier wants these customers, after AT&T and Verizon spent years neglecting them. Historically, companies wait about a year or so before making too many dramatic changes to acquired companies to avoid spooking employees and customers alike. Expect Frontier rate hikes, after the company better analyzes which areas see less notable broadband competition. Still, at least Frontier wants these customers, after AT&T and Verizon spent years neglecting them.







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Most recommended from 31 comments

jorcmg

join:2002-10-24

USA 15 recommendations jorcmg Member life support Frontier, fairpoint and century link are hospice for the bell system. VTarm

join:2015-01-25 5 recommendations VTarm Member Story is slightly misleading What appears to have happened is that Frontier took over in Connecticut with little plan to deal with promo-rolloff. They took over around the end of October. Lots of folks sign up during the holiday sale promo window, so in December and January Frontier had a boatload of folks rolling off promos and didn't really have a plan on how to deal with it. What didn't help was that Frontier also had some parts of it's cutover botched, including issues sending out bills for November and a bit in December so some folks were seeing bills for two months of service plus an increase from promo rolloff. Such is life in acquisition land I guess.

kdwycha

join:2003-01-30

Ruskin, FL 2 recommendations kdwycha Member Well.... In a year in the Tampa market raise those rates to the ceiling. And in 5-7 years enjoy losing every last FiOS customer to Google Fiber and exit the market. Should be good for short term profits for investors anyway before Google Fiber crushes them in Tampa and companies

only care about the next quarter, not 5-7 years in the future.