FYBR may face the challenge of funding its fiber expansion goal in a rising rates environment. Frontier expects to have 1.3 million fiber homes in 2023 (a 6% y/y increase), which is lower than the 1.6 million homes it had previously projected (a 30% y/y increase). As previously mentioned, the trajectory of fiber construction for the year 2023 has been reduced from 1.6 million locations to 1.3 million, that said management still reiterates the progress it has made toward its 10 million goal, with 5.2 million passings by the end of 2022. Management believes that the smaller cohort will result in greater returns, and they have restated an asking price of $900–$1,000 per house. Additionally, management has stated that so a smaller build will help alleviate supply chain and pressure on resources issues. I am leaning towards being positive about management strategy on this, for a few reasons. First, there are fewer low-cost locations for passing than management had hoped for, so they are prioritizing those before moving on to more expensive locations with the possibility of assistance from other partners or resources. Second, the business is running at near capacity in many departments (including installation, sales, and marketing), so keeping the same penetration level will require much more efforts and resources.
FYBR reduced fiber build goal, mixed results for 4Q22, and guidance for better financials in 2023 have left me uncertain about the near-term. While the company has made progress toward its 10 million goal, increased competition, inflation, ongoing supply constraints, and the rising rates environment are all headwinds that investors are debating. Given these factors, it may be best to wait and see how FYBR navigates these challenges before investing.
WATCH FOR FIBER TECHNICIAN FORCE REALIGNMENTS TO START IN Q4 TO CITIES WITH NEW FIBER BUILD OUTS. SOME YARDS OVER HIRED BY 20% UNFORTUNATELY. IMAGINE THE DRIVE FROM MENIFEE TO MANTECA😉☺️😝🥸😎🤓
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"And they have restated an asking price of $900–$1,000 per house", what does this mean?
Means what Frontier estimates for total cost on Fiber installation to a single home including install of ONT and EERO.
If you remember Verizon’s cost was around $1500 mainly because of the video aspect of installs.
"And they have restated an asking price of $900–$1,000 per house", what does this mean?
"MORE FLUFF FROM HR. The only penetration comes from HR. Bend the F over sheeple!"
Luckily, FTR's miserably failing at their attempts at PENETRATION...
Failing how exactly? Please be specific with numbers so we can all see the basis for your comment. Thank you.
This is the typical KR-P the CEO/CFO's come up with. It makes zero difference how many homes you pass. It does make a difference how many homes you penetrate. You must SELL THEM. PASS THEM. Verizon talked the same rhetorical horse manure.
For the armchair generals here, if you read the company quarterly reports I think they also publish penetration rates. And give more transparency on this than any other ISP. I say Frontier is doing better than everyone on this.
Almost a year since the build behind my home. Two terminals and no drops. Is it the technology or the customer service.
"MORE FLUFF FROM HR. The only penetration comes from HR. Bend the F over sheeple!"
Luckily, FTR's miserably failing at their attempts at PENETRATION...
This is the typical KR-P the CEO/CFO's come up with. It makes zero difference how many homes you pass. It does make a difference how many homes you penetrate. You must SELL THEM. PASS THEM. Verizon talked the same rhetorical horse manure.
MORE FLUFF FROM HR. The only penetration comes from HR. Bend the F over sheeple!