Player Avatar valueinvesting12 (< 20) Submitted: 1/17/2013 3:56:28 PM : Outperform Start Price: $3.81 FTR Score: +34.13

Many people on Wall Street don't understand Frontier, because they think it's still a telephone company. Actually it's become a broadband internet company with a legacy voice business attached. The real metric to look for each quarter is the expansion of Frontier's broadband internet access. For example, at year end 2011, 28% of the households in its territories had 20+ Mbps broadband access, and by 9/30/12 it was 34%. Look for this number to get higher and higher over time. Eventually, Frontier will have this powerful high-speed infrastructure built, and it will be essentially like the toll collector on the superhighway. Ongoing operating expenses for Frontier will be low, because most of the costs are spent out front.

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