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| Frontier's profitable Unbonded second line for $20 |
| Thursday, 02 February 2012 21:43 |
 Think one line for downloading teenager, one for adults watching Netflix. Frontier has found a very lucrative niche product: a second DSL line to the same household, without bonding. Bonding of 2 three megabit lines yields six megabit service to the home. Unbonded second lines max out at 3 megabits each, but the TV watchers on one line aren’t affected by the TV downloads on the other line.
It costs something like $8/month, all in, to add a new connection to an existing broadband network. So at a price of $20, this is a very profitable. Bonding the two lines is now a routine offering at many carriers but the bonded offering does add a moderate extra complexity to the network. An additional modem type needs to be stocked and the OSS needs to have an additional offering. Today’s DSLAMs are designed to bond easily, but a company like Frontier has many 10 year old obsolete units in the field.
I don't think the feds would accept two 2 megabit lines, unbonded, as 4 megabit service, the minimum for the federal CAF program. But my reading of the CAF rules would suggest that the upgrade of customers currently getting 2-3 megabits so that they now can get 4 megabits would be subsidized. Probably 100,000-200,000 of the 1.8M broadband lines are in this category. They include many outliers, so that many of them are not served by cable. Frontier would have to do a careful survey to be sure, but I'd guess there are 30,000-50,000 "unserved" lines that if bonded would meet the new 4 megabit threshold. This could be accomplished for under $300 each, well under the $775 maximum in the CAF regulations that Frontier is having trouble meeting.
Only a limited number of customers are paying for the bonded speeds where available, so even modest cost savings from simpler unbonded operation may be worthwhile. For those companies that aren’t offering bonding, this may be a way to offer higher speeds and keep the regulator happy. Here’s the company pr. Note the actual price is $22.99. That comes down as low as $19.20 with various discount plans. They separately price out the required second modem rental ($7) and advertise the cost as $12. End the Battle for Broadband with Frontier Second Connect Two dedicated Internet connections double the bandwidth in the home STAMFORD, Conn., Nov 02, 2011 (BUSINESS WIRE) -- Frontier Communications' (NYSE: FTR) Second Connect ends the "battle for broadband" that can often erupt between adults and children or children vs. children over who controls the home's dedicated connection to the Internet. Frontier Second Connect offers a second dedicated, blazing fast High-Speed Internet connection professionally installed by a trained technician. Say good riddance to the hassle in the home about "Whose High Speed is this anyway?" Leona Lindner, Vice President of Commercial Marketing for Frontier, advises, "If your house now has a single dedicated Frontier connection to the Internet and you are tired of sharing bandwidth to get your work done at home with the kids' schoolwork, gaming, social networking and streaming video, call Frontier today at 800-921-8101 or visit Frontier Second Connect for more information. We can help!" The Frontier Second Connect package will make your on-line home life even more pleasant and offer you Peace of Mind knowing it's backed by Frontier's 2-hour appointment windows, 24/7 technical support and first-call resolution, all delivered by a 100 percent U.S.-based workforce. About Frontier Communications Frontier Communications Corporation (NYSE: FTR) offers voice, High-Speed Internet, satellite video, wireless Internet data access, data security solutions, bundled offerings, specialized bundles for small businesses and home offices, and advanced business communications for medium and large businesses in 27 states and with approximately 15,200 employees. Frontier is included in the S&P 500 Index and is the largest provider of communications services focused on rural America. It has a 100 percent U.S.-based workforce. Frontier's landline service is reliable, safe and accessible. More information is available at www.frontier.com and www.frontier.com/ir. SOURCE: Frontier Communications Corporation Frontier Communications Corporation Steve Crosby, 916-686-3333 steven.crosby@ftr.com
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| Last Updated on Tuesday, 18 September 2012 22:46 |