Frontier thinks it can beat its target of 1 million fiber passings in 2022

Frontier Communications expects to surpass one million new fiber passings by the end of 2022 – hitting 100,000 to 200,000 additional locations – according to CFO Scott Beasley. The accelerated buildout is mainly due to Frontier’s recent move to boost its liquidity to a total of $4 billion, meaning the company has plenty of cash on hand until mid-2024. “First, it sends a strong signal to overbuilders to build somewhere else if they thought we weren’t going to build [fiber]. Secondly, it sends a strong vote of confidence to our supply chain partners in what is largely an allocation environment. Third, it allows us to accelerate on our already ambitious plan we laid out,” Beasley said. Further intending to expand fiber buildout, Beasley said Frontier has a “steep acceleration” built in for next year – a goal of 1.6 million homes passed. Given the capital raise, he said Frontier will “definitely” take the opportunity to reach that number. Despite persisting supply-chain issues, Beasley noted Frontier has a “huge advantage” with suppliers, as the operator touts the second largest fiber build in the country. He said Frontier performed “better than expected” on passing costs so far, as construction efficiency savings have helped offset costs in a challenging macro environment.