Frontier Communications Must Repair Brand To Grow: Jeff Kagan

Jeff Kagan  |

Frontier Communications ( FYBR) has come through a rough several years. Its brand has been damaged because of it. The company did not follow other larger telephone companies like Verizon ( VZ) and AT&T ( T

Frontier must successfully repair its damaged brand. Then it must be able to build and quickly. I believe the company has the opportunity to do this and to thrive moving forward, but only if it does something no one is talking about first.

Building brands takes time, but losing it happens very quickly

Good, solid brands are a tough business. They can take years to build, yet they can disappear in the blink of an eye.

Frontier Communications has been a small telephone company. Years ago, it looked like a smaller version of the major baby bells like Verizon and AT&T. Since that time, the baby bells have changed and grown. Frontier has not. It has stayed in its lane.

Decades ago, we had seven baby bells and several long-distance giants. Over time these companies and sectors have merged. Today, there are fewer, larger companies offering many different services across a variety of sectors.

To expand, the baby bells started offering new technologies like Internet, wireless, pay TV and more.

Some of these moves were successful, like wireless and Internet. Others were not, like pay TV.

So, the baby bells are currently in the same process of repairing their brands as well. Their brands have been damaged trying to expand into areas in which they had no expertise, but their damage, however, is more easily repaired.

Damage to Frontier brand is significant, but repairable

The damage to the Frontier brand is much more extensive and severe, but that does not mean it is irreparable.

Remember, T-Mobile ( TMUS) damaged its brand years ago by not moving from 2G to 3G. That lasted quite a few years before the company finally did the right thing and started to rebuild. Now, T-Mobile, especially after merging with Sprint, is a strong competitor.

If Frontier does the right thing moving forward, it can indeed repair its brand and build its business once again.

If Frontier does not change its strategy, it will not recover

There will have to be some real changes, however, in order for this to happen. If it continues to do business as it always has, it will not work.

So, what should Frontier do moving forward?

First, it can continue to offer traditional communications services. The company must offer high quality and technically advanced services at a competitive price.

Second, it must hang onto existing customers and start to acquire new ones as well. Frontier must grow its market share.

Third, it would also be helpful if Frontier would move into wireless as an MVNO reseller like Xfinity Mobile ( CMCSA), Spectrum Mobile ( CHTR) and Altice Mobile ( ATUS). If cable TV companies can be successful offering wireless, Frontier can as well.

Frontier must change and improve advertising, marketing and PR

Fourth, the one key thing Frontier needs to do is in marketing, advertising and public relations. The company needs to fire up that engine. Something we have never seen from them. Not yet anyway.

This is the only way to change the thinking about Frontier in the marketplace today for investors, customers, workers and all corners of the industry.

That’s what needs to happen for the company to be successful going forward.

If it can successfully embrace what I am advising, Frontier can not only repair, but it can also reinvent itself and start real growth moving forward. If it does not, it will continue to be stuck in the mud.

Brand identity must change now for Frontier to succeed

The image of what Frontier means to investors, consumers and business customers must change. And in fact, a dramatic re-thinking of this must happen immediately.

Frontier needs to become a fire breathing dragon. It needs to be a leader, not a follower, in this industry. It needs to create its own strategy and successfully execute its own growth plan.

If it does not put a growth plan into the marketplace, the media, investors and their competition will create a set of growth expectations for the company that may be much harder to achieve.

Frontier has a unique, one-time opportunity to change the marketplace vision of who it is and whether or not it will be successful and grow going forward.

I hope the company understands what it must do. This is its only chance for success going forward.

 

Jeff Kagan is an Equities News columnist. Kagan is a Wireless Analyst, Technology Analyst and Commentator who follows Telecom, Pay TV, Cloud, AI, IoT, TeleHealth, Healthcare, Automotive, Self-Driving cars and more. Email him at jeff@jeffKAGAN.com. His web site is www.jeffKAGAN.com. Follow him on Twitter @jeffkagan and on LinkedIn at www.linkedin.com/in/jeff-kagan/.

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Equities News Columnist: Jeff Kagan

Source: Equities News

 

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