fiber optics
Point Topic Comprehensive Report: Global Fixed Broadband Connections at 1.377B as of Q1-2023
Global fixed broadband connections reached 1.377 billion as of Q1-2023, up by 83 million from a year earlier and reflecting an annual growth rate of 1.59%, according to Point Topic.
There was a decline in fixed broadband subscriptions in 18 countries[1] which mainly include emerging markets, as well as some saturated markets such as Singapore. However, while there were fluctuations in growth rates across regions and markets, the overall trend indicates a steady expansion of global broadband connectivity.
Highlights:
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Among global regions, Africa, East Asia and America Other saw the fastest growth in broadband connections (2.9%, 2.2% and 1.8%), not least due to healthy increases in broadband subscribers in the vast markets of Egypt, Brazil and China.
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The share of FTTH/B in the total fixed broadband subscriptions continued to increase and stood at 66.7%. Broadband connections based on other technologies saw their market shares shrink further, with an exception of satellite and wireless (mainly FWA).
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VDSL subscriber numbers grew in ten countries, while they dropped in at least 22 markets as consumers migrated to FTTH/B.
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The highest FTTH/B broadband subscriber growth rates in Q1 2023 were in Algeria, Peru and UK.
At 21.6 million, the quarterly net adds were close to the figure we recorded a year ago, though the growth rate (1.59%) was slower, compared to 1.77% in Q1 2022, with global inflation and economic instability having an impact.
East Asia continued to dominate in Q1 2023, maintaining its position as the largest market with a 49.6% share of global fixed broadband subscribers. This substantial market share is primarily driven by China with its vast population.
In Q1 2023, broadband subscriber base grew faster in China, Hong Kong and Korea, compared to Q4 2022. As a result, the region’s net adds share globally went up from 63.2% to 68.8%. Asia Other accounted for 10.8% of the global broadband market, similarly to the previous quarter, though the region’s net adds share went down from 12.8% to 9.4%.
Europe’s market shares remained rather consistent, though Eastern Europe saw their net adds share decline from 3.4% to 0.5%, as a result of slower growth in almost all markets and the decline in broadband subscribers in Russia having an especially significant impact due to its market size.
Similarly, Americas maintained relatively stable market shares of 10.3% and 8.1% respectively, while America – Other’s net adds share increased from 7.8% to 9%, driven by higher growth in such sizeable markets as Brazil, Mexico, Colombia and Chile, to name a few.
Next Point Topic looks at fixed broadband penetration among population, comparing it to growth rates across the regions.
Africa and Asia Other continue to have relatively low fixed broadband penetration rates among their populations. In Q1 2023, this metric in Africa stood at 4.6%, while Asia Other reached 5.6%. These figures indicate the potential for future expansion in these regions. Not surprisingly, Africa also recorded the highest quarterly growth rate of 2.9%.
The markets of East Asia and America Other followed closely with growth rates of 2.2% and 1.8% respectively, despite East Asia already having the highest population penetration at 41.9%. This reflects a widespread adoption of fixed broadband services in East Asia, while America Other showcases steady growth in a region with significant potential, where broadband penetration is among the lowest, at 17.2%.
Eastern Europe displayed a modest growth rate of 0.2% with a population penetration of 24.8%. Some markets in this region still have a lot of headspace when it comes to broadband adoption but the growth was sluggish, likely due to economic pressures. Other European regions showed a slightly higher growth rate, with Europe Other at 0.5%, coupled with the second highest population penetration of 39.4%. These figures indicate a mature market with limited growth opportunities.
Among the largest twenty broadband markets all but one saw fixed broadband subscribers grow in Q1 2023, although in ten of them the growth was slower than in the Q4 2022. There was a slight drop in broadband subscribers in Russia which is under international sanctions.
The less saturated broadband markets of India, Egypt, Brazil and Mexico recorded the highest quarterly growth rates in Q1 2023, all higher than 2%. China recorded an above 2% growth as well. At the other end of the spectrum, the mature markets of Germany, France, Japan, UK, and Italy saw modest growth rates at below 0.5%. At the same time, Italy was among the countries that saw one of the largest improvements in growth rates, from -0.44% in Q4 2022 to 0.04% in Q1 2023, as its GDP growth also went from negative to positive in that period[2]. Mexico, China and Brazil recorded the largest improvements in their growth rates, at +1.14.%, +0.52% and +0.41% respectively.
Between Q4 2022 and Q1 2023, the share of FTTH/B connections in the total fixed broadband subscriptions went up by 0.7% and stood at 66.7%. Broadband connections based on other technologies saw their market shares shrink further, with an exception of satellite and wireless (mainly FWA), which remained stable.
FTTx (mainly VDSL) share stood at 6.7%[3]. VDSL subscriber numbers grew in ten countries (including modest quarterly increase in the large VDSL markets of Turkey, Czech Republic, Greece and Germany, for example), while they fell in 22 other markets as consumers migrated to FTTH/B.
It remains to be seen whether consumers will continue to gravitate toward fibre broadband offerings, particularly as global economies face potential slowdown and inflationary pressures.
In terms of FTTH/B broadband net additions in Q1 2023, China continued to maintain a significant lead with 13.5 million while Brazil added 1.4 million. Mexico is back in the top ten league, having pushed out Argentina this quarter.
Satellite broadband also saw a modest growth of 1.3% while wireless broadband demonstrated continued relevance with a respectable growth rate of 4.9%. These trends can be attributed to the demand for connectivity in remote or underserved areas where traditional broadband infrastructure is not feasible.
The diverse growth rates among different broadband technologies highlight the dynamic nature of the industry as consumers seek more reliable and high-speed connections. The significant increase in FTTH/B connections and the growth of satellite and wireless broadband underline the ongoing efforts to bridge the digital divide and ensure connectivity for all.
The top ten countries by fixed broadband subscribers remained unchanged (Figure 5). As of Q1 2023, China exceeded 0.6 billion fixed broadband subscribers, having added 14.6 million in the quarter. Also, the country is approaching 1.2 billion 5G subscribers, with the service now being used by 84% of the population.
Overall, the latest fixed broadband subscriber data reveals a clear trend towards advanced, high-speed broadband solutions like FTTH/B, while older technologies such as copper-based broadband (ADSL and VDSL) are experiencing a decline, suggesting that the broadband landscape is continuously evolving to meet the growing demand for faster and more reliable connectivity.
References:
https://www.point-topic.com/post/global-broadband-subscriptions-q1-2023
Point Topic: Global Broadband Tariff Benchmark Report- 2Q-2022
Point Topic: Global fixed broadband connections up 1.7% in 1Q-2022, FTTH at 58% market share
Altice Launches Optimum 8 Gig Fiber Symmetric Internet Service
Altice USA’s Optimum is the latest provider to trot out a symmetrical 8-gig fiber tier, which Altice said is now available to more than 1.7 million residents and businesses across the company’s fiber footprint. By year end, Optimum 8 Gig Fiber will be available to nearly 3 million passings and will expand as the Company’s fiber network build continues.
This launch represents the largest deployment of 8 Gig internet speeds in the country and cements Optimum as the nation’s largest 8 Gig internet provider, delivering the fastest Fiber Internet available in its serviceable footprint that is four times faster than Verizon, 60% faster than Frontier, and 32 times faster than T-Mobile 5G Home Internet.
Reliability
“After launching 2 and 5 Gig symmetrical Fiber Internet speeds last year, Optimum is pleased to have invested even further in our network and infrastructure to bring next level 8 Gig symmetrical internet speeds to our fiber footprint,” said Leroy Williams, Chief Growth Officer, Optimum. “Optimum is now the nation’s largest 8 Gig Fiber Internet provider, and availability will continue to increase as we deploy fiber to more homes and businesses as we solidify our position as the connectivity provider of choice across all the communities we serve. We look forward to bringing these reliable and faster speeds, along with an enhanced customer experience, to meet our customers’ growing data needs today and into the future.”
Backed by Optimum’s 100% Fiber Internet network with 99.9% network reliability, Optimum’s 8 Gig Fiber Internet offers 8 Gig symmetrical upload and download speeds to support the most data-intensive applications such as AR/VR, gaming, graphic design, and video production, all while providing increased bandwidth that can simultaneously connect 100+ devices to the internet at once. The service is delivered directly into the home via the Optimum Fiber Gateway to enable fast, reliable WiFi in the home or business, with extenders available for extra coverage.
“Optimum’s Fiber is deployed using XGS-PON, an advanced technology that enables multi-gigabit symmetrical speeds and that is superior to the legacy GPON standard used by many other fiber providers,” said Pragash Pillai, Chief Technology and Information Officer, Optimum. “As we continue to bring faster, more reliable service to customers through this state-of-the-art technology, the strength of Optimum’s Fiber network goes unmatched.”
Optimum continues to be a leader in the deployment of multi-gigabit internet speeds across the nation, having launched 2 and 5 Gig internet service across its fiber footprint in the New York tri-state area last year, and now adding an additional 8 Gig speed tier to more homes and businesses on its 100% Fiber Internet Network.
An Altice rep told Fierce the 8-gig offering is currently live in all markets where multi-gig speeds are available, which is “predominantly” in the New York tri-state area. Consumers can check the Optimum website to see if they’re eligible for the service. “In addition to multi-gig, up to 1 gig speeds are available in more than 90% of the Optimum footprint,” the rep told Fierce.
8-gig speeds come after Altice last year released 2-gig and 5-gig tiers across New York, New Jersey and Connecticut. Altice said “nearly 3 million passings” will have access to 8-gig fiber by year-end, and that number will increase as Altice ramps up its fiber expansion.
For more information on Optimum’s multi-gig speed tiers and other fiber offerings, prospective customers can visit Optimum.com/8Gig. Existing customers can call 1.866.347.4784 to upgrade.
About Optimum:
Optimum is a brand of Altice USA, one of the largest broadband communications and video services providers in the United States, delivering broadband, video, and mobile services to nearly 5 million residential and business customers across 21 states. The company operates a4, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. Altice USA also offers hyper-local, national, international and business news through its News 12, Cheddar News and i24NEWS networks.
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Other 8-gig Network Providers:
Windstream’s Kinetic has also gotten into the 8-gig game, as a spokesperson recently told Fierce it will make 8-gig speeds available to 400,000 households across its 18-state footprint. Others that have rolled out 8-gig tiers include C Spire, Google Fiber, Lumen Technologies and TDS Telecom. Google Fiber is particularly stepping up its speeds, as it’s seeking testers for its nascent 20-gig product.
References:
https://www.fiercetelecom.com/broadband/altice-usa-unveils-8-gig-optimum-fiber-tier
Perú’s First Open Access Wholesale Fiber Optic Network
KKR, Telefónica Hispanoamérica, and Entel today announced agreements under which KKR will acquire a majority interest in PangeaCo and the existing fiber optic networks of Telefónica del Perú and Entel Perú to build Perú’s first nationwide open access wholesale fiber optics company with the mission to bring greater access to fiber optics connectivity across the country. The transaction will combine the existing fiber optic networks of PangeaCo, Telefónica del Perú, and Entel Perú into an independent company controlled by KKR. The newly formed network will be open access, allowing usage to all internet service providers for the first time. KKR plans to make approximately US$200 million of additional investment to more than double the ultra-fast fiber network from more than 2 million homes passed today to reach 5.2 million homes passed across 86 provinces by the end of 2026.
Telefonica did not disclose the value of the transaction but said the deal would cut its debt by 200 million euros ($217.8 million). According to a banking source close to the deal, the transaction valued 100% of the unit at about 550 million euros, including debt.
Under the terms of the agreement, KKR will acquire a controlling interest in PangeaCo, which will subsequently acquire the existing fiber optic networks of Telefónica del Perú and Entel Perú. Through the combination of these networks, KKR will establish ON*NET Fibra de Perú as the new name for the platform which will independently build and operate the nation’s largest fiber optic network with world-class quality standards. KKR will own a 54% interest in ON*NET Fibra de Perú alongside Telefónica Hispanoamérica, which will own 36%, and Entel Perú, which will own 10%.
The entire ON*NET Fibra de Perú fiber optic network will be open to use by all internet service providers, increasing competition in the wholesale market. Telefónica del Perú and Entel Perú will be anchor tenants on the expanded open access network, enabling both providers to reach a greater number of customers with ultra-high-speed offerings. The transaction does not impact the services provided by existing customers of PangeaCo, Telefónica del Perú or Entel Perú. Upon closing of the transaction, customers will benefit from the scale of the larger network.
In Perú, approximately 88% of households have mobile or fixed internet service, but less than 35% have access to high-speed fiber optic networks.1 KKR, as the controlling shareholder, intends for ON*NET Fibra de Perú to more than double the households reached by fiber optic network, including reaching municipal areas outside of Lima as well as middle- and low-income households. This transaction demonstrates continued investor confidence in Peruvian infrastructure and the commitment of the companies to contribute to the sustainable development of the digital connectivity in the country.
Today’s announcement builds on KKR’s success in expanding nationwide connectivity and increasing competition in Chile and Colombia. ON*NET Fibra de Chile has expanded access from 2.4 million homes passed to 3.7 million homes passed since KKR signed the acquisition in February 2021 and ON*NET Fibra de Colombia has increased homes passed from 1.2 million to 2.4 million since signing in July 2021.2 Both companies have attracted multiple internet service providers to utilize their open access networks.
KKR is making the investment through its KKR Global Infrastructure Investors III fund and plans to provide operational support to ON*NET Fibra de Perú through NEXO LatAm, a digital infrastructure business supporting KKR’s Infrastructure strategy across Latin America. KKR and NEXO LatAm have significant experience supporting the successful expansion of open access fiber optic investments. The transaction is subject to regulatory approvals, including the approval of the Peruvian antitrust agency (INDECOPI).
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From telecoms.com:
When Telefonica first sold a stake in its Chilean fibre business to KKR it had a footprint of 2.4 million homes passed. The deal valued the entire business at $1 billion. The Colombian fiber business that KKR bought into was valued at half that amount and just over half the footprint:1.2 million homes. Admittedly, the Colombia deal was inked two years ago and Chile even longer ago, and a fair bit has changed in the economic situation in that time. However, we can get a sense of the scale of spend we might be looking at.
KKR wants to share the progress made by those Chilean and Colombian ventures. ON*NET Fibra de Chile passed 3.7 million homes as of the end of 2022, while ON*NET Fibra de Colombia had doubled the number of homes passed to 2.4 million, it said, adding that both have attracted multiple ISP customers.
That surely bodes well for the new venture’s aims in Peru, where at present around 88% of households have mobile or fixed internet service, but less than 35% have access to high-speed fibre networks, KKR said, citing data from regulator OSIPTEL and market research firm Omdia (owned by Informa).
It should also help smooth the regulatory process. The deal needs a number of approvals, including that of Peruvian antitrust agency INDECOPI, but it’s hard to foresee any major difficulties, given that this is an established model across the region and one that seems to be working.
References:
https://telecoms.com/522583/telefonica-entel-and-kkr-ink-peru-fibre-deal/
AT&T expands its fiber-optic network amid slowdown in mobile subscriber growth
AT&T is expanding its network of fiber-optic cables to deliver fast internet speeds for customers, including those in places where it doesn’t already provide broadband. The plan will cost billions of dollars over the next several years, a price tag that the company—whose debt load outstrips its annual revenue—will not carry alone. AT&T formed a joint venture with BlackRock to fund the project and also wants to access government funding to accelerate the build-out. AT&T and BlackRock have collectively invested $1.5 billion in the venture—named Gigapower—to date, the company said.
Gigapower plans to provide a state-of-the-art fiber network to internet service providers and other businesses in parts of select metro areas throughout the country using a commercial wholesale open access platform. Both companies believe now is the time to create the United States’ largest commercial wholesale open access fiber network to bring high-speed connectivity to more Americans.
AT&T will serve as the anchor tenant of the Gigapower network, but other companies could also provide internet service over the network. That so-called open-access model has become common throughout Europe, but has yet to be widely embraced in the U.S. Gigapower recently introduced plans to build out fiber in Las Vegas, northeastern Pennsylvania and parts of Arizona, Alabama and Florida.
Doubling down on fiber optics sets AT&T on a different path than its rivals Verizon and T-Mobile US, which are relying on improved technology that beams broadband internet service from the same cellular towers that link their millions of mobile smartphone customers. AT&T is testing a similar fixed wireless access service but on a smaller scale, but executives say fiber remains the long-term focus.
AT&T updated shareholders on its vision for fiber internet and 5G cellular networks at its annual meeting, but the documentation/replay was not available at press time. AT&T spent about $24 billion on its fiber and 5G networks last year, and it forecast a similar level of spending this year. The company is confident it will get a very good return on investment (ROI).
The Dallas-based company and its peers face heightened competition in the cellphone business—their core profit engine. After the Covid-19 pandemic brought a surge in new accounts, the cellphone business has cooled, pushing companies to seek alternate paths for growth. AT&T, which has nearly 14 million consumer broadband customers, has provided internet service for years, and executives say that keeping customers plugged in requires faster connections as more data is used.
“We should be putting more fiber out faster, quicker and in more places than anybody else,” AT&T Chief Executive John Stankey said in a recent interview. “If we do that, that means our network is always going to be ahead of anybody else’s.”
Fiber-optic cables, wired directly to or near Americans’ homes, contain easy-to-upgrade glass strands that can carry much more data than radio waves. That higher capacity is crucial for video calls, streaming, videogames and other services, which use more internet data than most smartphone apps. As of last year, fiber was available at some 63 million homes, or more than half of primary residences, according to the Fiber Broadband Association.
AT&T wants its fiber network to cover more than 30 million homes and businesses within its current service area by the end of 2025. In many cases, fiber will replace internet connections over copper wirelines.
Laying the fiber is one thing, but progress in getting customer sign-ups has been slower than some analysts expected. In the first three months of the year, AT&T signed up 272,000 home fiber subscribers, a deceleration from the December quarter and the same period last year.
The results also marked the fourth straight quarter during which residential fiber sign-ups failed to offset declines in broadband customers overall. Stankey said he isn’t expecting the trend to reverse this year.
AT&T offers its fiber service at various speed tiers, starting at $55 a month for downloads up to 300 megabits a second. Prices run as high as $180 a month for 5-gigabit speeds.
In the March quarter, the average AT&T fiber internet customer paid about $66 a month. That total was up 9% from last year but still slightly less than the sums paid by customers of cable rivals Charter Communications and Comcast, according to Roger Entner, the founder of Recon Analytics.
While AT&T’s fiber build-out continues, it hopes its Internet Air service—which uses cell towers to beam broadband to homes—can stem customer defections in the short term. The service, which costs $55 a month, isn’t yet widely available, said Stankey, who took over as CEO in 2020 and unwound AT&T’s bet on entertainment.
Deutsche Telekom’s fiber optic expansion in 140 of the 179 municipalities within the Gigabit region of Stuttgart
Deutsche Telekom said it has deployed its fiber optic network in more than 140 of the 179 municipalities covered by its agreement with the “gigabit region” of Stuttgart. The German network operator has developed its network in the districts of Boeblingen, Esslingen, Goeppingen, Ludwigsburg and Rems-Murr districts.With ongoing expansion efforts at over 58 construction sites, the company is making significant progress, particularly in nine districts in Stuttgart, according to the statement from the company.
Since 2019, Telekom has accounted for more than 90 percent of the growth in fiber optic infrastructure. As the sole company expanding into both rural and urban areas, Telekom has established itself as a reliable partner, delivering on all construction projects and cooperation agreements, according to the broadband officer of the region and managing director of Gigabit Region Stuttgart (GRS).
In Ludwigsburg and Esslingen alone, Telekom has already been awarded contracts for 76 funding projects. The recent collaboration with Stadtwerke Nuertingen serves as a prime example of Telekom’s cooperative efforts.
Currently, approximately 30,000 households in expansion areas under this partnership can already subscribe to Telekom’s fibre optic connections. The long-term goal is to enable 185,000 households within cooperative areas with municipal utilities to choose their preferred communication provider for fibre optic connections by 2030.
The combined efforts of self-expansion, collaborations, and subsidized projects have granted around 335,000 households throughout the region access to the fibre optic network, Telekom said.
The core focus of the gigabit project is to expand the ultra-fast fiber optic network through strategic partnerships. Currently, 177 municipalities, including Stuttgart and the neighbouring districts of Boeblingen, Esslingen, Goeppingen, Ludwigsburg, and Rems-Murr, are participating in the expansion program.
The project aims to provide 50 percent of households, all companies, and schools with fiber optic connectivity by 2025. By 2030, the target is to achieve 90 percent household coverage. With a population of approximately 2.8 million in the conurbation, other companies in the Stuttgart region are also actively involved in fiber optic expansion initiatives said Telekom.
Telekom includes provisions for rapidly expanding the performance of its 5G network. Presently, almost 95 percent of households can already access 5G in Telekom’s mobile network, while over 99 percent of the population can utilize 4G/LTE connectivity.
Significance of DT Tower Sales:
Deutsche Telekom said proceeds from the sale of its tower business helped reduce net debt excluding leases by over 10 billion euros compared with the end of 2022, to 93 billion euros. The transaction was also the main factor behind the near quadrupling of net profit, to 15.4 billion euros, compared with the same period last year, the company said.
Deutsche Telekom had agreed in July 2022 to sell 51% of its tower business in Germany and Austria to a consortium of Canada’s Brookfield and U.S. private equity firm DigitalBridge after they made a surprise last-minute bid that valued the unit at 17.5 billion euros ($17.5 billion).
References:
Infinera trial for Telstra InfraCo’s intercity fiber project delivered 61.3 Tbps between Melbourne and Sydney, Australia
Infinera has completed a simulated intercity network trial for Telstra InfraCo’s intercity fiber project in Australia. The trial delivered 61.3 Tbps of unregenerated data transmission capacity on a fiber pair over the equivalent of 1,240 route km between Melbourne and Sydney, Australia. The network trial was implemented using Infinera’s 800G-capable ICE6 coherent solution [1.] and Corning Incorporated’s SMF-28® ULL fiber with advanced bend, demonstrating the high-performance capability of the express network, which is part of the intercity fiber network Telstra InfraCo is building across Australia.
Note 1. The sixth-generation Infinite Capacity Engine (ICE6), from Infinera’s Advanced Coherent Optical Engines and Subsystems, is a 1.6 Tb/s optical engine that delivers two independently programmable wavelengths at up to 800 Gb/s each. Utilizing a 7-nm CMOS process node DSP and advanced PIC technology, ICE6 leverages ultra-high baud rates, high modem SNR, and innovative features to break performance and spectral efficiency barriers, including 800G single-wavelength performance over 1000+ km in a commercial network. ICE6 is also beating optical transmission expectations at lower rates, including 600 Gb/s and 400 Gb/s per wavelength.
Image Credit: Infinera
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The trial was performed with real-world configurations, including 1,240 kilometers of ultra-low-loss fiber simulating one of Telstra InfraCo’s planned express Melbourne-Sydney routes. Infinera performed an in-service, non-traffic-impacting upgrade from C-band to combined C-band plus L-band as part of the capacity expansion process. With Infinera’s ICE6 and Corning’s optical fiber, Telstra InfraCo achieved 61.3 Tbps total capacity with 6.2 milliseconds latency across the combined C-band and L-band, with wavelengths up to 700 Gbps.
Telstra InfraCo’s express network is designed to be a high-performance national network for customers who need reliable, ultra-high bandwidth between capital cities and international submarine cable landing stations. For hyperscalers, global cloud providers, content companies, and governments, this means access to scalable high capacity and more direct routes, with optional route redundancy.
“Based on these results, Telstra InfraCo’s express network and overall intercity fiber build will lead the world in scale, low latency, and high data transmission performance rate,” said Kathryn Jones, Fiber Executive at Telstra InfraCo. “The simulation exceeds our expectations, offering almost seven times today’s typical capacity of 8.8 Tbps per fibre pair and validates our selection of Corning’s SMF-28 ULL fiber in the cable design. This will enable Telstra to develop market-leading solutions for our customers today and for years to come – a key element of Telstra’s ambitious T25 strategy and transformation goals.”
“To meet the rigorous demands of a vast network over Australia’s unique terrain, Telstra InfraCo needed fiber infrastructure with advanced bend capability and minimal signal loss to deliver ultra-high cable capacity. That’s why they turned to Corning,” said Sharon Bois, Division Vice President, Product Line and Marketing, Corning Optical Fiber and Cable. “Our SMF-28® ULL fiber with advanced bend is designed to meet exactly those needs.”
“Infinera’s 800G-capable ICE6 solution demonstrated industry-leading performance, maximizing fiber capacity and reach on Telstra InfraCo’s express network configuration,” said Nick Walden, Senior Vice President of Worldwide Sales at Infinera. “This achievement underscores the enhanced performance Infinera’s technology can bring to meet Telstra InfraCo’s express network requirements for bandwidth today and into the future.”
Media Contact:
Anna Vue
Tel. +1 (916) 595-8157
[email protected]
Referencs:
Fiber Build-Out Boom Update: GTT & Ziply Fiber, Infinera in Louisiana, Bluebird Network in Illinois
Frontier Communications fiber build-out boom continues: record number of fiber subscribers added in the 1st quarter of 2023
Frontier Communications added record number of fiber broadband customers in the 1st quarter of 2023. The fiber facility based network operator added 87,000 fiber subscribers (including 83,000 residential subs) in the first quarter of 2023, up from +54,000 in the year-ago quarter. Those results beat the 76,000 residential fiber subs Frontier was expected to add in the period. Frontier ended the quarter with 1.76 million fiber customers: 1.65 million residential subscribers and 110,000 business customers.
“We delivered another strong quarter and reached a critical milestone in our transformation. Thanks to our team’s consistent operational performance, we achieved EBITDA growth for the first time in five years,” said Nick Jeffery, President and Chief Executive Officer of Frontier.
“We are creating an internet company that people love. Over the last two years, we have rallied around our purpose of Building Gigabit America, invested in fiber, enhanced our product, put the customer at the center of everything we do and made it easier to do business with us. We are quickly becoming an agile, digital infrastructure company, and I’m confident we will return to growth this year.”
Frontier said it built fiber to an additional 339,000 locations in Q1 2023, up 60% from the 211,000 it built in the year-ago period. Frontier’s Q1 buildout was better than the 300,000 locations expected by the analysts at New Street Research. Frontier ended the quarter with 5.5 million fiber passings and 15.4 million total passings.
First-Quarter 2023 Consolidated Financial Results:
• Revenue of $1.44 billion decreased 0.5% from the first quarter of 2022 as growth in consumer, business and wholesale fiber was more than offset by declines in legacy copper
• Operating income was $143 million and net income was $3 million
• Adjusted EBITDA of $519 million increased 2.0% over the first quarter of 2022 as revenue declines were more than offset by lower content, selling, general and administrative expenses, and cost-saving initiatives
• Adjusted EBITDA margin of 36.0% increased from 35.2% in the first quarter of 2022
• Capital expenditures of $1.15 billion increased from $0.45 billion in the first quarter of 2022 as fiber expansion initiatives accelerated First-Quarter 2023
Consumer Results:
• Consumer revenue of $761 million decreased 1.9% from the first quarter of 2022 as strong growth in fiber broadband was more than offset by declines in legacy copper broadband and voice
• Consumer fiber revenue of $448 million increased 10.1% over the first quarter of 2022 as growth in consumer broadband, voice, and other more than offset declines in video
• Consumer fiber broadband revenue of $298 million increased 17.3% over the first quarter of 2022 driven by growth in fiber broadband customers
• Consumer fiber broadband customer net additions of 84,000 resulted in consumer fiber broadband customer growth of 19.5% from the first quarter of 2022
• Consumer fiber broadband customer churn of 1.20% was roughly flat with churn of 1.19% in the first quarter of 2022
• Consumer fiber broadband ARPU of $61.44 decreased 1.1% from the first quarter of 2022 driven primarily by the autopay and gift-card incentives introduced in the third quarter of 2021 First-Quarter 2023
Business and Wholesale Results:
• Business and wholesale revenue of $657 million decreased 1.4% from the first quarter of 2022 as growth in fiber was more than offset by declines in copper
• Business and wholesale fiber revenue of $281 million increased 6.0% over the first quarter of 2022 as growth in business was partly offset by modest declines in wholesale
• Business fiber broadband customer churn of 1.45% increased from 1.24% in the first quarter of 2022
• Business fiber broadband ARPU of $104.38 decreased 1.2% from the first quarter of 2022
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While Frontier’s fiber growth engine continues to hum along, the company is dealing with higher costs related to its fiber initiative. The company raised its 2023 capex guidance to a range of $3 billion to $3.2 billion, up from an original outlook of $2.8 billion.
Frontier blamed the increase on a couple of factors – a decision to build inventory opportunistically where it saw supply chains ease a bit in the quarter and higher build costs as it scales its build into new geographies. Frontier is also seeing higher labor costs being driven by general inflation and higher rates as some of its multi-year labor contracts come up for renewal.
The anticipated increase in capex this year concerned investors. Frontier shares were down $2.33 (-10.94%) to $19.13 each in Friday morning trading.
Overall, Frontier expects fiber build costs in 2023 to be in the range of $1,000 to $1,100. But it’s confident that total project build costs will remain at about $1,000 per location as it mixes in lower-cost locations in some new-build states and benefits from aerial builds and an increased focus on multiple dwelling units (MDUs), Frontier CFO Scott Beasley said on Friday’s earnings call.
The current capex picture isn’t expected to impact Frontier’s overall fiber buildout/upgrade plan. “We’re confident that the 10 million locations is still attractive to build out,” Beasley said. Frontier is also continuing to explore an additional 1 million to 2 million additional fiber passings beyond the original 10 million target.
Frontier says it’s too early to tell how this year’s cost headwinds might impact future opportunities coming by way of the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program. New Street Research estimates that there are 1.2 million BEAD-eligible locations in Frontier’s footprint. New Street Research expects ARPU pressure at Frontier to ease in the second quarter of the year and return to growth in the third quarter.
Frontier recently initiated several consumer pricing changes for value-added services that were previously free. Whole-home Wi-Fi, for example, now costs $10 per month, its Home Shield Elite product is now $6 per month extra and the company is now charging $50 for professional installs. Those actions are driving new fiber customer monthly ARPU to a range of $65 to $70, the company said.
Frontier is also speeding up its original cost savings target to $500 million by the end of 2024. Its prior target was $400 million by the end of 2024. Frontier is approaching that target through a range of streamlining and simplification initiatives, including improved field operations, self-service capabilities, the consolidation of call centers and an ongoing reduction in copper infrastructure.
Frontier’s guidance for the full year 2023:
• Adjusted EBITDA of $2.11 – $2.16 billion, unchanged from prior guidance
• Fiber build of 1.3 million new locations, unchanged from prior guidance
• Cash capital expenditures of $3.00 – $3.20 billion, an increase from prior guidance of $2.80 billion, reflecting higher inventory levels and fiber build costs
• Cash taxes of approximately $20 million, unchanged from prior guidance
• Net cash interest payments of approximately $655 million, an increase from prior guidance of $630 million, reflecting the $750 million of debt raised in March 2023
• Pension and OPEB expense of approximately $50 million (net of capitalization), unchanged from prior guidance
• Cash pension and OPEB contributions of approximately $125 million, unchanged from prior guidance
References:
Fiber builds propels Frontier Communication’s record 4th Quarter; unveils Fiber Innovation Labs
AT&T to use Frontier’s fiber infrastructure for 4G/5G backhaul in 25 states
Frontier Communications offers first network-wide symmetrical 5 Gig fiber internet service
Frontier Communications adds record fiber broadband customers in Q4 2022
Frontier’s Big Fiber Build-Out Continued in Q3-2022 with 351,000 fiber optic premises added
Frontier Communications sets another fiber buildout record; raises FTTP buildout target for 2022
“Fiber is the future” at Frontier, which added a record 54K fiber broadband customers in 1Q-2022
Frontier’s FTTP to reach 10M locations by 2025; +192,000 FTTP passings in 4Q-2021
Frontier Communications reports added 45,000 fiber broadband subscribers in 4Q-2021 – best in 5 years!
Zayo announces “Waves on Demand,” security enhancements, and network growth
Zayo Group Holdings, Inc (Zayo) today announced a series of expansions and enhancements to its network and services. These include enhanced network protection and an industry-first, on-demand connectivity service, as well as significant growth of its long-haul dark fiber and 400G-enabled routes and modernization of its IP core network. In particular, Zayo plans to build eight new long-haul fiber routes and debuted a new Waves on Demand service for customers looking to rapidly light up added bandwidth. Waves on Demand will initially focus on providing 100G services across eight routes, though a 400G route between Newark, NJ and New York is available. Five additional routes are planned. More details below.
“Yesterday’s network can’t deliver tomorrow’s ideas,” said Andrés Irlando, President of Zayo. “Zayo’s global network provides game-changing performance, scale, security, resilience and value for our customers. Our goal is to revolutionize the industry by constantly improving our network and prioritizing our customers’ needs. Our teams are focused on providing them with the best possible experience.”
Providing an On-Demand Network:
For large bandwidth customers who need data center connectivity quickly and easily, Zayo is launching Waves on Demand to enable same-day turn-up on the most in-demand routes, with significantly shortened delivery times. Zayo will be the only provider to enable customers to provision wavelengths within a day.
This industry-first means customers can quickly provision “Wavelength on Demand” between key data center locations across its market-leading network footprint, including its highest-demand routes. In 2023, Zayo launched 8 new Waves on Demand routes, with 5 additional routes planned for the future.
Zayo’s Completed Waves on Demand routes include:
- Newark, NJ – New York, NY (up to 400G)
- Ashburn, VA – New York, NY
- Hillsboro, OR – Seattle, WA
- Ashburn, VA – Newark, NJ
- Atlanta, GA – Dallas, TX
- Los Angeles, CA – San Jose, CA
- Inter-Los Angeles, CA
- Los Angeles, CA – San Jose, CA (alt)
Zayo’s Planned Waves on Demand Routes include:
- Toronto, ON – Chicago, IL
- San Jose, CA – Seattle, WA
- Newark, NJ – Chicago, IL
- Chicago, IL – Secaucus, NJ
- Englewood, FL – Chicago, IL
Chaz Kramer, Zayo’s VP of Product Management, told Fierce that Waves on Demand will cut the time required to add wavelengths from 45 days or more to just hours. said, “80% of our services right now are 100G services at the moment. Our focus is trying to solve the customer requirement for that time lag in terms of service delivery,” he said.
“The only way to stay ahead of the digital curve is to continuously transform. Transformative ideas need a reliable, resilient and on-demand network,” said Bill Long, Chief Product Officer at Zayo. “Zayo is leading the industry with network automation and self-service options, ensuring customers have unprecedented speed and resilience with more flexibility and elasticity, while enhancing security and value, so our customers can focus on making progress toward their business goals instead of worrying about their network.”
Security Enhancements:
Security has never been more important across the tech industry, and beyond. As more and more companies face the realities of route hijacking, Zayo has taken security protection for customers one step further.
In addition to deploying Resource Public Key Infrastructure (RPKI) filtering – a component of Mutually Agreed Norms for Routing Security (MANRS) compliance designed to secure the internet’s routing infrastructure – Zayo now requires two-factor authentication process for Border Gateway Protocol (BGP) route management. As one of the first communications infrastructure providers to implement a two-factor authentication process for BGP updates, this will provide improved security for the broader internet community and prevent inadvertent or malicious route hijacks from bad actors.
Network Growth and Modernization
This year Zayo began IP Core upgrades to support 400G connectivity, providing better routing performance, stability, high bandwidth and reduced pricing for customers. Zayo has partnered with Juniper Networks®, a global leader in IP networking, cloud and connected security solutions for next-gen IP Core connectivity.
“Juniper Networks is dedicated to delivering state-of-the-art solutions, including systems optimized for our customers’ current and future core throughput demands. We are pleased to partner with Zayo as they construct and fortify their next-generation IP Core network, equipped with 400G,” said Sally Bament, Vice President of Service Provider Marketing at Juniper Networks. “By employing Juniper’s core routers, Zayo can ensure their customers enjoy high-speed bandwidth services that can support growing performance and capacity demands of end users.”
The Growth of Zayo’s Network:
- In 2022, Zayo added 5,200 route miles to its network, resulting in more than 1.35M fiber miles.
- Zayo now has 224 400G-enabled wavelength points of presence (PoPs) and 145 100G-enabled PoPs.
- Zayo deployed 24 long-haul waves routes in 2022 with 926TB of wavelength capacity, enabling 400G services across these routes, spanning more than 20,000 route miles. In 2023, Zayo will exceed the number of new Long Haul Dark Fiber routes deployed in 2022.
- Zayo will complete 8 long-haul construction projects in 2023, totaling 2,951 route miles and 708,000 fiber miles.
- Zayo is estimated to complete 32 400G routes in 2023 with 14 completed in the first half of the year.
Zayo’s 2023 planned new and augmented dark fiber routes:
- New – St. Louis, MO to Indianapolis, IN
- Overbuild – Denver, CO to Dallas, TX
- Overbuild – Chicago, IL to Omaha, NE
- Overbuild – Omaha, NE to Denver, CO
- Overbuild – Seattle, WA to Vancouver, WA
- New – Columbus, OH to Pittsburgh, PA
- Overbuild – St. Louis, MO to Memphis, TN
- New – Columbus, OH to Ashburn, VA
Zayo’s New Tier 1 400G Routes:
- Albany, NY – Newark, NJ
- Bend, OR – Umatilla, OR
- Chicago, IL – Cleveland, OH
- Albany, NY – Boston, MA
- Atlanta, GA – Washington, DC
- Dallas, TX – St. Louis, MO
- Denver, CO – Dallas, TX
- Kansas City, MO – Indianapolis, IN
- Las Vegas, NV – Phoenix, AZ
- Montreal, QC (Canada) – Quebec City, QC (Canada)
- Columbus, OH – Ashburn, VA
- Columbus, OH – Cleveland, OH
- Columbus, OH – Pittsburg, PA
- Chicago, IL – Clinton, KY
- Clinton, KY – Ponchatoula, LA
- Toronto, ON (Canada) – Waterloo, ON (Canada) (Crosslake)
- Toronto, ON (Canada) – Montreal, QC (South) (Canada)
- Toronto, ON (Canada) – Montreal, QC (North) (Canada)
- Indianapolis, IN – Columbus, OH
- Ashburn, VA – Baltimore, MD
- Salt Lake City, UT – Seattle, WA
- Los Angeles, CA – San Jose, CA
Additional tier 2 and 3 routes will also be added throughout 2023, totaling 32 new routes.
“We believe that technology plays a critical role in preparing students for the future. We chose Zayo’s future-ready network because of its resilience and performance,” said Dr. Thomas Weeks, Chief Technology Officer at Hillsborough County Public Schools. “We trust Zayo because they invest in their world-class network. The Zayo team worked with us to tailor a solution that met the unique needs of our school district and enhances our effectiveness to help students and staff achieve.”
Enhancing Service Delivery and Customer Experience:
Zayo has also set out to change the trajectory of customer experience. Zayo optimized its service delivery with rebuilt processes that utilize automation to make working with Zayo easier for customers. Since implementing these changes, Zayo had its largest install quarter in history in Q4 2022.
To learn more about Zayo’s network and how it can help you connect what’s next, please visit https://www.zayo.com/info/network-expansion/
About Zayo Group Holdings, Inc:
For more than 15 years, Zayo has empowered some of the world’s largest and most innovative companies to connect what’s next for their business. Zayo’s future-ready network spans over 16 million fiber miles and 139,000 route miles. Zayo’s tailored connectivity and edge solutions enable carriers, cloud providers, data centers, schools, and enterprises to deliver exceptional experiences, from core to cloud to edge. Discover how Zayo connects what’s next at www.zayo.com and follow us on LinkedIn and Twitter.
References:
https://www.fiercetelecom.com/telecom/zayo-slashes-time-turn-bandwidth-waves-demand
Zayo to deploy 400G b/s network across North America and Western Europe
Digital Realty & Zayo plan next gen fiber interconnection and security capabilities
Telekom Malaysia Berhad launches fiber optic network hub
Telekom Malaysia Berhad (TM) [1.] announced the completion of its new fiber optic network hub or point of presence (PoP) project phase one installations, across northern region, Sabah and Sarawak.
Note 1. Telekom Malaysia Berhad (TM) is a Malaysian telecommunications company founded in 1984. Beginning as the national telecommunications company for fixed line, radio, and television broadcasting services, it has evolved to become the country’s largest provider of broadband services, data, fixed line, pay television, and network services.
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The launch ceremony, which was officiated by YB Fahmi Fadzil, Minister of Communications and Digital, took place at SMK Padang Terap, Kuala Nerang, Kedah. Also present were Dato’ Haji Pkharuddin Bin Haji Ghazali, Director-General of Education and Dato’ Sri Haji Mohammad Bin Mentek, Secretary-General, Ministry of Communications and Digital.
PoP is the location where different devices connect to each other and to the internet. In simple terms, PoP brings fiber optics closer to users. By setting up PoP locations near schools, people in rural and remote areas can get better and faster internet services in their homes, instead of relying on mobile internet. This will improve internet access and connectivity for more people in the community.
During the ceremony, YB Fahmi highlighted the significant benefits and opportunities that the new PoPs would bring. The new PoPs represent a major step forward in the Government’s efforts to narrow the digital gap and promote digital inclusion across Malaysia.
A total of 4,370 PoPs had been planned under the 12th Malaysia Plan (12MP) where 4,323 PoPs will be installed near rural schools and 47 PoPs near industrial area.
Phase one of the project, involves 677 sites. The remaining will be implemented under phase two over the span of three years, 2022-2025. A total of 233 PoP circuits were installed under phase 1, with 100% completion achieved by TM, ahead of other industry players.
“We are thrilled to see the progress and achievements of this project, which will bring significant benefits and opportunities to the community, including improved internet quality, economic development and the development of new infrastructures,” said Shazurawati Abdul Karim, Executive Vice President of TM One.
The PoP will create a more balanced and inclusive regional development, boosting the growth of new technologies like 5G and future generations of communication technologies. Through this initiative, users in TM’s PoP area have now reached over 9,000 and are increasing. A total of 58 of its users are schools that have subscribed to Unifi services. The widespread internet accessibility will not only help to develop the rural economy but more importantly allow learning materials to be downloaded, to improve the quality of education in schools, equipping the future generations with a wealth of knowledge.
“As the nation’s telecommunications leader, and enabler of Digital Malaysia, TM is committed to support the nation’s development agenda through the benefits brought by hyperconnectivity and digital solutions, which will accelerate digital adoption and new economic growth,” added Shazurawati.
“The presence of PoP can attract technology companies, start-ups and other businesses that require a high-speed internet connection to operate. This can create more job opportunities, increase innovation, and stimulate economic growth in local communities,” Shazurawati concluded.
The collaboration between TM and the Government demonstrates the shared commitment to deliver digital inclusivity throughout Malaysia. For phase two of PoP project, TM has been awarded with 174 sites in the central region. This phase is expected to further boost digital connectivity and economic development for Malaysia.
The extensive internet access that PoP provides will not only enhance the rural economy but also enable the download of educational materials, elevating the quality of education in schools and equipping the younger generation with a vast range of knowledge.
References:
https://www.tm.com.my/news/TM%E2%80%99S%20NEW%20FIBRE%20OPTIC%20NETWORK%20HUB
Telekom Malaysia Completes Fibre Optic Network Hub Across Sabah and Sarawak
Fiber builds propels Frontier Communication’s record 4th Quarter; unveils Fiber Innovation Labs
Frontier Communications Parent, Inc. (“Frontier”) reported impressive 4th quarter and full-year 2022 results today. The fiber facilities based carrier added a record 76,000 fiber subs in the last quarter, more than two times what it added in the year-ago quarter. The bulk of those fiber subscriber gains are coming from cable competitors, execs said.
Frontier ended 2022 with 1.7 million fiber customers, a figure that represents the majority of its total base of 2.8 million broadband subs. Frontier also built out a record 381,000 new fiber locations in Q4, ending 2022 with 5.2 million fiber locations. That gets Frontier past the halfway point toward a goal of building fiber-to-the-premises to 10 million locations by 2025.
Total revenues were down year-over-year, but consumer fiber revenues rose 7.7% to $436 million versus the prior year period, offsetting declines in video. Consumer fiber broadband revenues surged 15.5%, to $283 million.
“We ended the year strong with another quarter of record operational results. We now have the fiber engine we need to power our growing digital infrastructure business. This is how we advance our purpose of Building Gigabit America,” said Nick Jeffery, President and Chief Executive Officer of Frontier.
“This year, we will accelerate our fiber build and give customers more reasons to choose the un-cable provider. The team is fired up and ready to return to growth in 2023.”
Frontier expects to accelerate its fiber build to 1.3 million homes in 2023 – about 20% faster than its 2022 pace – and end the year with 6.5 million fiber locations. Frontier is also exploring fiber builds beyond its initial goal of 10 million. The company has identified 1 million to 2 million copper locations where it can upgrade to fiber cost-effectively. There’s another 3 million to 4 million locations in its footprint that remain financially unattractive but could get over the hump with government subsidies or partnerships.
Even with its faster build pace, Frontier expects 2023 capital expenditures to reach $2.8 billion, essentially flat versus 2022’s $2.74 billion. Frontier anticipates its fiber buildout costs will stay in its envelope of $900 to $1,000 per location passed.
Frontier believes it’s set to grow its average revenue per user (ARPU) by 2% to 3% in 2023. Tied in, it’s updating its pricing and looking to upsell customers to higher speeds (more than half of new subs are choosing speeds of 1-Gig or more) while also reducing its reliance on perks such as gift cards.
Source: Frontier Q4 2022 earnings presentation
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On the wholesale side, Frontier has fiber tower deals with AT&T, Verizon and T-Mobile and recently inked an expanded deal with AT&T to connect it to Frontier’s central offices. Company President and CEO Nick Jeffery suggested that the same model could apply to the likes of Amazon, Microsoft and other cloud companies that are distributing data and could make use of cache locations where data is being consumed.
But that handwork with wireless network operators has yet to drive Frontier toward deals that could enable it to add mobile services to the bundle, and follow the path being taken by major cable operators such as Comcast and Charter Communications.
Jeffery reiterated a position that Frontier is keeping close watch on potential MVNO partnerships but that no such agreement is imminent. Such a deal could be a “distraction of our capital,” he said.
“For the moment, we don’t see the need to launch with an MVNO and bundle with our core broadband offer,” Jeffery explained. “We think it’s something we could spin up relatively quickly and efficiently if we needed to.”
Full-Year 2022 Highlights:
- Built fiber to 1.2 million locations, bringing total fiber passings to 5.2 million by the end of 2022 – more than halfway to our target of 10 million fiber locations.
- Added a record 250,000 fiber broadband customer net additions, resulting in fiber broadband customer growth of 17.5% from 2021.
- Revenue of $5.79 billion, net income of $441 million, and Adjusted EBITDA of $2.08 billion.
- Capital expenditures of $2.74 billion, including $1.52 billion of non-subsidy-related build capital expenditures and $0.06 billion of subsidy-related build capital expenditures.
- Surpassed our $250 million gross annualized cost savings target more than one year ahead of plan and raised our target to $400 million by the end of 2024.
4th-Quarter 2022 Highlights:
- Built fiber to a record 381,000 locations
- Added a record 76,000 fiber broadband customers
- Revenue of $1.44 billion, net income of $155 million, and Adjusted EBITDA of $528 million
- Capital expenditures of $878 million, including $517 million of non-subsidy-related build capital expenditures and $33 million of subsidy-related build capital expenditures
- Net cash from operations of $360 million, driven by strong operating performance and increased focus on working capital management
- Achieved annualized run-rate cost savings of $336 million
4th-Quarter 2022 Consolidated Financial Results:
- Frontier reported revenue for the quarter ended December 31, 2022, of $1.44 billion, a 6.9% decline compared with the quarter ended December 31, 2021, as growth in consumer, business and wholesale fiber was more than offset by declines in copper and subsidy.
- Revenue growth was negatively impacted by the expiration of CAF II funding at the end of the fourth quarter of 2021.
- Excluding subsidy-related revenue, revenue for the quarter ended December 31, 2022, declined 2.5% compared with the quarter ended December 31, 2021, an improvement in the year-over-year rate of decline reported for the quarter ended September 30, 2022.
- Fourth-quarter 2022 operating income was $136 million and net income was $155 million.
- Capital expenditures were $878 million, an increase from $559 million in the fourth quarter of 2021, as fiber expansion initiatives accelerated.
4th-Quarter 2022 Consumer Results:
- Consumer revenue of $764 million declined 2.3% from the fourth quarter of 2021, as strong growth in fiber broadband was more than offset by declines in legacy video and voice.
- Consumer fiber revenue of $436 million increased 7.7% over the fourth quarter of 2021, as growth in consumer broadband, voice, and other more than offset declines in video.
- Consumer fiber broadband revenue of $283 million increased 15.5% over the fourth quarter of 2021, driven by growth in fiber broadband customers.
- Consumer fiber broadband customer net additions of 73,000 resulted in consumer fiber broadband customer growth of 17.9% from the fourth quarter of 2021.
- Consumer fiber broadband customer churn of 1.32% was flat with the fourth quarter of 2021.
- Consumer fiber broadband ARPU of $61.20 declined 1.6% from the fourth quarter of 2021, as price increases and speed upgrades were more than offset by the autopay and gift-card incentives introduced in the third quarter of 2021.
- Excluding the impact of gift-card incentives, consumer fiber broadband ARPU increased 0.9% over the fourth quarter of 2021.
4th-Quarter 2022 Business and Wholesale Results:
- Business and wholesale revenue of $659 million declined 2.6% from the fourth quarter of 2021, as growth in our fiber footprint was more than offset by declines in our copper footprint.
- Business and wholesale fiber revenue of $285 million increased 5.5% over the fourth quarter of 2021, driven by growth in both business and wholesale.
- Business fiber broadband customer churn of 1.33% increased from 1.23% in the fourth quarter of 2021.
- Business fiber broadband ARPU of $107.68 increased 0.8% from the fourth quarter of 2021.
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Separately, Frontier introduced its Fiber Innovation Labs yesterday – National Innovation Day – designed for inventing and testing new patents, technologies and processes that will advance its fiber-optic network. Improving the customer experience and driving efficiencies are key to accelerating Frontier’s fiber-first strategy. Frontier’s labs serve as a testing ground to find new technologies and procedures to advance the way it delivers blazing-fast fiber internet to consumers and businesses across the country.
“The work we are doing in our Fiber Innovation Labs will change the way we serve our customers and will ultimately change the industry,” said Veronica Bloodworth, Frontier’s Chief Network Officer. “We have the best team in the business – they live and breathe innovation. They have been awarded several patents and are in the process of bringing those new inventions to life to deliver the best ‘un-cable’ internet experience to our customers. Be prepared to be amazed.”
As part of Frontier’s Fiber Innovation Labs, the company has launched its first-ever outside plant facility in Lewisville, Texas. The facility is designed as a miniature suburban neighborhood that mimics the real-life experiences of its techs serving customers every day. It features roads, sidewalks, a state-of-the-art central office, a small house and a reconstructed manhole system. It also simulates weather elements and temperature changes. Here, the Frontier team can test and learn new methods in real-world environments to install and maintain its fiber-optic network.
References:
AT&T to use Frontier’s fiber infrastructure for 4G/5G backhaul in 25 states
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