Frontier’s fiber-based services boost its Q2 business and wholesale revenues
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And for more on Frontier, check out these articles:
· Frontier crosses 8M locations with fiber in Q1 2025
Frontier scales fiber customer base with 97K new customers in Q4
· Verizon’s CEO sees potential synergies from its pending Frontier acquisition
· Frontier sees broadband deployment savings potential in self-installs
Frontier’s emphasis on fiber-based services isn’t solely a consumer phenomenon. The service provider’s bet on fiber also bears fruit in its business and wholesale segment.
Driven by growth in fiber-based products, Frontier’s second-quarter Business and Wholesale revenue of $697 million increased 3% year-over-year.
Similarly, Frontier’s Business and Wholesale fiber revenue of $330 million increased 4.1% year-over-year, due to growth in data and internet services.
“This increase was driven by increases in data and internet services, partially offset by decreases in voice services revenue, predominantly in business,” Frontier said in its second-quarter 10-Q filing. “The increase in data and internet services was due to unit price increases in network access services and the continued growth of our fiber broadband customer base with a shift towards higher broadband speeds.”
Raising customer counts
Like its consumer business, Frontier continues to rake in fiber customers on its Business and Wholesale unit.
For the three and six months ended June 30, 2025, it added approximately 6,000 and 10,000 business and wholesale fiber broadband customers, respectively, compared to approximately 2,000 and 5,000 net additions for the three- and six-month periods ending June 30, 2024.
However, ARPU and churn were slightly mixed.
While the service provider also saw gains in Business and Wholesale broadband ARPU, churn rose slightly.
Business and Wholesale fiber broadband ARPU was $98.72, up 0.9% year-over-year, but fiber broadband customer churn of 1.37% compared to 1.31% in the second quarter of 2024.
Legacy service battles
While fiber is Frontier’s key growth engine, its Business and Wholesale unit is not immune to the drag of legacy copper declines that all traditional telcos face.
For the three- and six-months ending June 30, 2025, Frontier lost approximately 7,000 and 14,000 business and wholesale copper broadband customers, respectively, compared to a loss of roughly 6,000 and 12,000 in the three- and six-month periods ending June 30, 2024, respectively.
The service provider also saw its traditional voice service revenue decline to $282 million and $68 million.
Regardless of the near-term legacy losses, Frontier has set its sights on using fiber to gain access to more business accounts.
According to Vertical Systems Group’s 2024 U.S. Fiber Lit Buildings LEADERBOARD, Frontier was ranked ninth.
Being a part of this list is notable since to qualify for the LEADERBOARD, a service provider must have an increased threshold of 25,000 or more on-net U.S. fiber lit sites, including commercial buildings and Data Centers. Previously, the threshold was 15,000 or more.
Frontier sees its emphasis on fiber growth as a way to lower customer churn.
“Our focus on expanding and improving our fiber network has contributed to improved customer retention,” Frontier said.
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About the Author
Sean Buckley
Sean is responsible for establishing and executing the editorial strategy of Lightwave across its website, email newsletters, events, and other information products.