Examining the Change in Frontier Communications’ Capex Trend

Frontier Communications (FTR) has been continuously spending on capex to improve its network. In the third quarter, Frontier spent $329 million on capex, with ~75% of its capital spending focused on productivity-enhancing and revenue-generating projects. In order to compete with leading US cable operators such as Comcast (CMCSA) and Charter Communications (CHTR), which have witnessed the maximum broadband net customer additions compared to other companies, Frontier Communications will have to focus on speed superiority.