Frontier Awarded More Than $23M in Grants to Expand Fiber Broadband Service to Unserved and Underserved Communities in California

Rhea-AI Summary

Frontier (NASDAQ: FYBR) has been awarded over $23 million in Federal Funding Account grants to expand high-speed fiber broadband service in California. The grants, provided by the California Public Utility Commission, will enable Frontier to extend its fiber-optic network in San Bernardino and Riverside counties, bringing fast and reliable connectivity to thousands of unserved and underserved homes and businesses. This expansion aligns with Frontier's commitment to bridging the digital divide and supports California's Broadband For All objectives.

The project aims to boost economic and educational opportunities for county residents by providing access to critical digital infrastructure. CPUC President Alice Reynolds emphasized the importance of these broadband projects in bolstering the economy, building durable infrastructure, and generating quality jobs.

Positive

• Secured over $23 million in grants for fiber broadband expansion
• Expanding network coverage in San Bernardino and Riverside counties
• Aligns with company's commitment to serve unserved and underserved communities
• Potential for increased customer base and revenue in new areas

Negative

• None.

Insights

Financial Analyst

Frontier's $23 million grant win is a positive development for the company's expansion strategy. This funding will allow Frontier to extend its fiber network in California, potentially increasing its customer base and revenue streams. However, the impact on the company's overall financials may be , considering Frontier's $5.79 billion revenue in 2022. The grants demonstrate Frontier's ability to secure government funding, which could be a competitive advantage in future expansion efforts. Investors should monitor how efficiently Frontier utilizes these funds and the resulting subscriber growth in the targeted areas. While this news is encouraging, it's important to consider it in the context of Frontier's broader financial performance and market position.

Telecommunications Expert

This grant allocation signifies a strategic win for Frontier in the competitive telecom landscape. By expanding fiber infrastructure in underserved areas, Frontier is positioning itself to capture market share in previously untapped regions. The focus on fiber optics aligns with industry trends towards high-speed, reliable connectivity. This move could help Frontier differentiate itself from competitors still relying on older technologies. However, the real test will be in the execution - timely deployment and quality of service will be crucial. Investors should watch for potential challenges in rural deployments and any impact on Frontier's operational efficiency as it expands into these new areas.

Market Research Analyst

The $23 million grant represents a strategic opportunity for Frontier to expand its market presence in California. By targeting underserved communities, Frontier is tapping into a growth market with potentially lower competition. This aligns with the broader trend of bridging the digital divide, which could enhance Frontier's brand image and social responsibility profile. The expansion could lead to increased subscriber numbers and revenue in the medium to long term. However, investors should consider the potential challenges in rural deployments, including higher costs per subscriber and possible delays. It's important to monitor the project's progress and its impact on Frontier's market share in these regions compared to established competitors.

Company will bring fast, reliable connectivity to thousands of homes and businesses in Riverside and San Bernardino counties

DALLAS--(BUSINESS WIRE)-- Frontier (NASDAQ: FYBR):

What happened? Frontier secured more than $23 million in Federal Funding Account grants to expand high-speed fiber broadband service to unserved and underserved homes and businesses in California. The three grants from the California Public Utility Commission will enable us to expand our fiber-optic network in San Bernardino and Riverside counties.

Why it matters: With these grants, we will bring fast, reliable connectivity to homes and businesses in the San Bernardino and Riverside areas, boosting economic and educational opportunities for county residents. This work strengthens our commitment to bringing high-speed fiber internet to unserved and underserved communities.

Handy quote: “We are thrilled to receive grant funding that supports our commitment to building the critical digital infrastructure California needs to succeed,” said Veronica Bloodworth, Chief Network Officer. “These grants will help us expand access to our high-speed fiber internet to unserved and underserved communities in the state. That means more Californians will be able to benefit from all the opportunities that our fast, reliable fiber connectivity offers.”

Why is this important for California?

“These broadband projects put state and federal funds to work, bolstering our economy, building durable infrastructure, and generating quality jobs,” said CPUC President Alice Reynolds. “This infrastructure will meet the work, education, healthcare, public safety, and social needs of Californians well into the future, bringing us closer to achieving our Broadband For All objectives.”

“These Federal Funding Account grants are an important step to help close the digital divide in rural and urban communities who do not have access or have substandard access to fast and reliable broadband service,” said CPUC Commissioner Darcie L. Houck. “I am excited to support these grants as we take another critical step to ensure broadband for all Californians so everyone can participate in work, school, and daily life.”

About Frontier

Frontier is the largest pure-play fiber provider in the U.S. Driven by our purpose, Building Gigabit America®, we deliver blazing-fast broadband connectivity that unlocks the potential of millions of consumers and businesses. For more information, visit www.frontier.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240829972764/en/

Media

Chrissy Murray

VP, Corporate Communications

chrissy.murray@ftr.com

Source: Frontier Communications Parent, Inc.

FAQ

How much grant funding did Frontier (FYBR) receive for broadband expansion in California?

Frontier (FYBR) received more than $23 million in Federal Funding Account grants from the California Public Utility Commission for broadband expansion in California.

Which California counties will benefit from Frontier's (FYBR) fiber broadband expansion?

Frontier's (FYBR) fiber broadband expansion will benefit San Bernardino and Riverside counties in California.

What is the purpose of the grants awarded to Frontier (FYBR) in California?

The grants awarded to Frontier (FYBR) are intended to expand high-speed fiber broadband service to unserved and underserved homes and businesses in California, supporting the state's Broadband For All objectives.

How will Frontier's (FYBR) broadband expansion impact California communities?

Frontier's (FYBR) broadband expansion is expected to boost economic and educational opportunities for residents in the affected counties by providing fast, reliable connectivity and access to critical digital infrastructure.