As the big players (T and VZ) continue to divest of their landline business, FTR is picking up the pieces.
Commercial business, HSI, data backhaul, home security, and video services are being relied on to stop the revenue declines and grow the business.
WIN and CTL (the other two large companies in the landline industry) have made big plays in data, cloud, and wireless. Some see this as one of FTR's shortcomings. Time will tell to see if this is the case. I'm wondering how WIN and CTL are going to compete with the likes of T, VZ, IBM, GOOG, AMZN, Rackspace, etc. in the data/cloud arena. This is fast becoming a commodity and priced accordingly.
All that glitters is not gold.
From CC transcript....
Hi Simon. Yes we do have more options and opportunities with U-verse than we did with FiOS. I think in the Verizon deal, Verizon really wanted to keep it where FiOS already was and not necessarily give us expanding capability with that platform on the flipside, because we have such a strong partnership with AT&T and have had a strong partnership over the years. We’ve actually talked to them about FiOS transition to U-verse, we’ve talked to them about expanding U-verse to our other markets and they are very open and amenable for us to do that.
The other thing we like about U-verse is that works on DSL not just fiber. So it gives us the opportunity to also look at expanding in our DSL footprint, if in fact we choose to do that. Our goal right now is to put our heads down and to get Connecticut converted and to continue the momentum of U-verse in the state. And during that period of time, we’ll look at what it takes to expand U-verse but having that optionality is very important for the company in the long run.
Oh yes and while we are at it, the dividend has ONLY been cut two times, not three as you assert.
1.00 to .75 = 1 cut
.75 to .40 = 2nd cut
You're losing it BS.
This deal has 900000 access lines with 2700 employees for 2 bil. Which would be about 333 employees per line.
If this were the case then....
900,000 lines x 333 employees per line = 299,700,000 employees.
Or, by chance, id you mean to say 333 lines per employee or
900000/2700 = 333 lines per employee.
That would be 300 employees per line.
Which would be about 333 employees per line.
Hmmm....don't you have that backwards BS???
1 employee per 300/333 lines.
Normally I wouldn't point out this sophomoric mistake, but you absolutely love to find fault in others, so you get what you give.
And the recovery rolls on....
SAGINAW, MI — TRW Automotive is closing its Saginaw manufacturing plant, located at 2328 E. Genesee, and as many as 600 jobs will be affected.
A spokesman for the company said TRW would issue a statement later this afternoon.
John Wilkerson, senior communications manager for TRW, said details of the announcement were released Tuesday, Dec. 17, to employees and local officials.
The plant has about 600 workers.
Formerly a Delphi Chassis plant, TRW Saginaw supplies parts for GM vehicles, including the Chevrolet Camaro, Buick Lacrosse, Chevrolet Equinox and GMC Terrain.
Agree, but read the CC transcript. FTR is going to do more business with T down the road. Uverse works on DSL. FTR is very interested in this. they may migrate FIOS customers to Uverse if it works as well as they think it will.
Never did understand their business model, thanks for the post prime.
Must admit I didn't think FTR would be in the market so soon for an acquisition.
Conn. property is robust and heavily invested in capex by T, so FTR will not need to spend a lot. Geographically it no longer fit well for T and its in FTR's backyard, so it makes good business sense.
Same conversion team in place as VZ, so should go smoothly.
Getting the vibe that FTR feels burnt by VZ and is establishing good relationship with T for future. U-verse offers good service platform as it uses DSL. Some talk of converting existing FIOS customers over to Uverse.
Geesh....cry me a river.
Haven't you ever been through a buyout before?
Some older T employees will no doubt retire, while the vast majority will stay on and work under the FTR banner.
Its a little tough to stomach all this nostalgia when T just sold you to the highest bidder.
Almost 50 million traded so far today.
Hint- When the share price goes up there are more buyers than sellers.
Why was the dividend cut 3 times?
From .25 to .18 = 1 cut (Announced)
From .18 to .10 = 2 cuts (BOD-Unannounced)
So....where's the 3rd cut you are so intent on?
Or why did they cut the dividend two more times since the VZ deal.
Incorrect BS. A dividend cut was announced at the time of the VZ deal, from .25 to .1875. Then once more to the current .10/quarter.
VZ was a big risk. The dividend had to be cut because shares outstanding tripled.That is why the share price went from $7 to just under $5 now.
The current T deal is much more manageable, and will integrate quickly.
Why did they have to hire all those contractors?
Well....I can think of a few reasons.
Some came with the deal, while others were brought on to help with network upgrades and cleaning up VZ's mess (service/work orders). Much less expensive than permanent workers. Or maybe to finish a year early, or do you also dispute this?