Dead Stock Walking: Frontier Communications Has Nowhere to Go but Down
With Frontier Communications (NASDAQ: FTR), it has become a question of when, not if, the company runs out of money. The internet, phone, and cable provider has been steadily sinking since it spent $10.5 billion on Verizon's (NYSE: VZ) wireline businesses in California, Texas, and Florida (CTF).
That deal was an attempt by the company to gain the scale it needed to compete with its bigger rivals. The problem is that Frontier's purchase has coincided with a general decline in the cable business as cord cutting accelerated. Making matters worse is that telco or wireline providers have not been compensating for their pay-television losses with broadband gains.
Frontier has been steadily losing video customers. Image source: Getty Images.
Source: Fool.com
