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Amazon to Roll Out Frontier Communications' Internet Plans

Zacks Equity Research
Updated

According to a recent report by TechCrunch, an online publisher of technology industry news, Amazon.com Inc. AMZN will start offering Frontier Communications Corporation’s FTR Internet service plans on its product site.

In Mar 2016, Amazon started selling cable TV behemoth Comcast Corp.’s CMCSA Xfinity TV, Internet and landline services, ranging from pay-TV to broadband triple-play bundles, on its newly launched online ‘Amazon Cable Store’. It marked Amazon’s debut with respect to selling services from a pay-TV operator. Since the launch, there have been reports that Amazon is presently in talks to include Charter Communications Inc. CHTR as well.

Toward this end, Amazon recently added Frontier Communications to ‘Amazon Cable Store’, which is now rebranded as ‘Amazon Internet | TV | Phone’.Frontier Communications is a leading regional telecommunication company in the U.S.and is way smaller a company in comparison to Charter Communications, with roughly 4.4 million broadband customers and 1.5 billion video subscribers.

While Frontier Communications sells video, Internet and phone plans in 29 states, Amazon customers can only order Internet services from Frontier Communications. Amazon also helps customers order Double Play (TV and Internet) and Triple Play plans from Comcast.

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Frontier Communications’ services were made available to new customers on Amazon.com starting Nov 15. The terms of the deal have been kept under wraps.

Amazon.com’s Offers

The Amazon online store offers customers a wide range of Internet plans and bundles from both Comcast Xfinity and Frontier Communications, ranging from starter plans for single device (10 Mbps+) to plans which support multiple devices (150 Mbps+).

On the product site, Frontier Communications’ 12 Mbps (for a single device), 24 Mbps (for 2–4 devices), 75 Mbps (for 4–6 devices) and 150 Mbps (for 6–8 devices) broadband plans are being offered along with similar Comcast Xfinity services.  

Prices for both Frontier Communications and Comcast’s products on Amazon.com can be compared to prices if ordered from the operators directly.  Moreover, Amazon is presently offering some lucrative offers to its customers. If a Frontier Communications’ product is purchased, then the customer gets a $50 Amazon gift card and remains a customer for at least 45 days and those who order Comcast’s products will get a $100 Amazon gift card.

Winding Up

We are impressed with Frontier Communications’ focus to rake in more profits through customer retention, market share gain, new product introductions, broadband expansion and improved sales and marketing initiatives.

Both Frontier Communications and Comcast have assured that their products prices offered on Amazon’s site are similar to the individual packages sold by operators. From the business perspective, both Frontier Communications and Comcast can benefit from their online partnerships with Amazon from where millions of customers shop every day. Amazon is not only the biggest online retailer but it also excels in customer services. For Amazon, it seems that the retailer may next look to reselling a broader array of bundles, apart from Internet or TV services.

FRONTIER COMMUN Price

 

FRONTIER COMMUN Price | FRONTIER COMMUN Quote

AMAZON.COM INC Price

 

AMAZON.COM INC Price | AMAZON.COM INC Quote

Both Frontier Communications and Amazon currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
COMCAST CORP A (CMCSA): Free Stock Analysis Report
 
FRONTIER COMMUN (FTR): Free Stock Analysis Report
 
CHARTER COMM-A (CHTR): Free Stock Analysis Report
 
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