Frontier Communications Adds TV Channels in Connecticut

Frontier Communications Corp. (FTR) announced the addition of two new channels – Hallmark Channel and Hallmark Movies & Mysteries – for its Connecticut customers. These new channels will be available to both residential and business customers of Frontier TV across Connecticut.

Earlier this month, the company added the fastest growing worldwide sports network in the nation, beIN SPORTS Network, to its Connecticut line-up for Frontier TV customers. beIN SPORTS Network covers a number of sporting events including tennis, rugby, soccer, motorsports, cycling, boxing and handball.

We believe the addition of these new channels to its existing line-up will help the company decrease its churn rate which has been a major hurdle for the company over the past few quarters. In the third quarter of 2014, Frontier Communications’ churn rate increased to 1.86% from 1.81% in the third quarter of 2013.

We appreciate the various strategic initiatives taken by Frontier, which include new product deployment, broadband expansion, new pricing plans and lucrative collaborations. However, we prefer to remain on the sidelines at present on account of strong competition in the telecommunication market, regulatory issues and the effect of high promotional costs as well as access line losses, which continue to pose major threats to Frontier.

Frontier presently carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Better-ranked stocks worth considering in this sector include ViaSat Inc. (VSAT), Chunghwa Telecom Co., Ltd. (CHT) and Vonage Holdings Corporation (VG). ViaSat sports a Zacks Rank #1 (Strong Buy), whereas Chunghwa Telecom and Vonage Holdings carry a Zacks Rank #2 (Buy).

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