Frontier Communication’s Churn Rate (2016-2021)

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This statistic highlights Frontier Communication’s Churn Rate, reported on a quarterly basis from Q1 2016 onwards.
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This statistic highlights Frontier Communication’s Churn Rate, reported on a quarterly basis from Q1 2016 onwards.

Frontier Communications is a telecommunication company in the United States of America. They have had a couple of name changes from Citizens Utilities Company until 2000 to Citizens Communications Company until 2008 and now Frontier Communications. The company started off with serving only the rural areas but now offers it’s service in large metropolitan cities as well. Along with local and international telephone service, they offer broadband Internet, television service, and computer support to residential and commercial customers in more than 29 states in the US. They are the eighth largest providers of broadband Internet in the US with 3,735,000 subscribers and the eleventh largest television provider with 838,000 subscribers. Its strongest coverage areas are Long Beach, Tampa, Durham, Fort Wayne, and Lakeland.

In April 2016, Frontier bought some of Verizon’s operations, along with landline phone service, in Texas, California, and Florida, and the switchover was a mess. Frontier communications are trying to retain their customers and maintain a low churn rate in the highly competitive telecommunication industry. The churn rate is a measure of the customers lost. As of 2019 Frontier’s Churn rate was 1.99%, which was higher than the preceding years.

A higher rate of loss in the video customers compared to the previous year lead to a higher churn rate in 2019. On the other hand, the company managed to improve on the losses in terms of broadband customers. Frontier reported a 2.24% churn rate in the third quarter of 2019 marking an increase in customer loss quarter on quarter. Customer revenue is also declining sequentially. Broadband revenue showed steady growth while video services show a decline in both subscribers and advertising revenue. The ARPC (average revenue per customer) has also reflected the decline in video subscribers.

The other big players in the telecommunication’s sector Reported lower churn rates in comparison to Frontier i.e.- Verizon reported a churn rate of 0.84% in the first quarter of 2019, T- Mobile had a customer retention rate of 0.88% and AT & T reported a churn rate of 0.93%.

Telecommunication firms are struggling to retain subscribers in an ever-demanding and growing US market. The increasing popularity of video streaming services like Netflix and Amazon prime is drastically affecting the television provision services of telecommunication companies. Disney, AT &T, Apple, and many other players in this sector are coming up with their own video streaming services. The increase in the number of online streaming services is putting a lot of pressure on the players in the market.

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