Frontier Unleashes Network-Wide 7 Gig Speeds to Deliver Ultimate Internet Experience

Rhea-AI Summary

Frontier (NASDAQ: FYBR) has unveiled its new 7 Gig fiber internet service across its entire fiber network, setting a new industry standard. This offering combines ultra-fast speeds with premium services, starting at $299.99 per month with autopay for 12 months. The package includes:

• Upload speeds up to 200x faster than cable
• Whole Home Wi-Fi powered by Wi-Fi 7
• Wi-Fi Security
• My Premium Tech Pro
• 3-Year New Tech Upgrade
• Unlimited Data
• Free expert installation

This move follows Frontier's earlier industry-leading rollouts of 2 Gig and 5 Gig network-wide services, responding to increasing customer demand for faster speeds and additional bandwidth-intensive services.

Positive

• Launch of network-wide 7 Gig fiber internet service, setting a new industry standard
• Over 60% of new fiber customers in Q2 opted for speeds of 1 Gig or faster
• More than half of new customers purchased at least one additional bandwidth-intensive service
• Comprehensive package including premium services valued at $899

Negative

• High monthly cost of $299.99 for the 7 Gig service may limit adoption

Insights

Tech Expert

Frontier's launch of 7 Gig fiber internet service marks a significant leap in residential internet speeds. This move positions Frontier as an industry leader, pushing the boundaries of what's possible in home connectivity. The 7 Gig speed is 3.5 times faster than their previous 2 Gig offering, potentially revolutionizing high-bandwidth activities like 4K/8K streaming, cloud gaming and large file transfers.

However, it's important to note that while impressive, most current consumer devices and home networks aren't equipped to fully utilize such speeds. The inclusion of Wi-Fi 7 technology is forward-thinking but may require users to upgrade their devices to benefit fully. The 200% faster upload speeds compared to cable are a standout feature, particularly beneficial for content creators and remote workers.

While innovative, the $299.99 monthly price point may limit mass adoption, likely targeting high-end users and small businesses rather than average consumers. This service could drive competition, potentially leading to faster, more affordable options industry-wide in the long term.

Financial Analyst

Frontier's 7 Gig offering is a strategic move to capture high-value customers and increase Average Revenue Per User (ARPU). The $299.99 monthly price point, while steep, includes premium services valued at $899, potentially improving customer retention and reducing churn rates. This bundling strategy could significantly boost Frontier's revenue per customer.

The Q2 data showing 60% of new fiber customers opting for 1 Gig or faster speeds indicates a growing demand for high-speed internet, validating Frontier's investment in faster infrastructure. Moreover, with over half of customers purchasing additional bandwidth-intensive services, this 7 Gig offering is well-positioned to meet evolving consumer needs.

However, investors should monitor the capital expenditure required for this network-wide upgrade and its impact on Frontier's financials. The success of this premium offering will depend on adoption rates and whether it can drive sufficient revenue growth to justify the investment. It could potentially improve Frontier's competitive position in the ISP market, possibly leading to increased market share and stock value appreciation in the long term.

Sets new internet standard, again, with 7 Gig offer that combines superior fiber product with premium services

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

(Graphic: Business Wire)

What’s happening: Frontier is unleashing our fastest network-wide speeds with the launch of 7 Gig fiber internet service to consumers across our entire fiber footprint. We led the industry as the first major ISP to roll out 2 Gig and 5 Gig network wide, and now, we are doing it again. We are combining lightning-fast 7 Gig speeds with our premium services to give people the best possible internet experience.

Why we did it: People want faster speeds and additional services to enhance their internet experience. In Q2, over 60 percent of our new fiber customers took speeds of 1 Gig or faster and more than half purchased at least one additional service that requires more bandwidth. Our new 7 Gig offer is designed to meet our customers’ needs today and anticipate their future demands.

Handy quote: “Three years ago, we set out to change the way people experience the internet. With our 7 Gig offer, we are delivering the ultimate internet experience, complete with unrivaled, network-wide speeds and premium services,” said John Harrobin, Executive Vice President of Consumer. “We will never stop innovating for our customers. From YouTube content creators with millions of fans to people who finally ditched cable and everyone in between, we are building the internet for all – once and for all.”

The details: Our 7 Gig offer starts at $299.99 a month with autopay, for 12 months, and includes our most popular additional services, a $899 value with included routers. Here are 7 things you will get with 7 Gig:

• Upload speeds up to 200x faster than cable
• Whole Home Wi-Fi powered by Wi-Fi 7
• Wi-Fi Security
• My Premium Tech Pro
• 3-Year New Tech Upgrade
• Unlimited Data
• Free expert installation

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/20240826610769/en/

Media

Chrissy Murray

VP, Corporate Communications

chrissy.murray@ftr.com

Source: Frontier Communications Parent, Inc.

FAQ

What new internet speed is Frontier (FYBR) offering across its entire fiber network?

Frontier (FYBR) is offering 7 Gig fiber internet service across its entire fiber network.

How much does Frontier's new 7 Gig internet service cost?

Frontier's 7 Gig internet service starts at $299.99 per month with autopay, for 12 months.

What percentage of Frontier's new fiber customers chose speeds of 1 Gig or faster in Q2?

Over 60% of Frontier's new fiber customers chose speeds of 1 Gig or faster in Q2.

What additional services are included in Frontier's 7 Gig internet package?

Frontier's 7 Gig package includes Whole Home Wi-Fi powered by Wi-Fi 7, Wi-Fi Security, My Premium Tech Pro, 3-Year New Tech Upgrade, Unlimited Data, and free expert installation.