Frontier Is Fixing Verizon's Problems

You know, I'm starting to think that Frontier Communications (NYSE: FTR) is run by some smart people. When the rural telecom operator first announced that it was paying $8.5 billion to Verizon (NYSE: VZ) to take over Big Red's wireline operations in 14 states, the plan seemed a bit bonkers. Economies of scale are one thing, but nearly tripling in size overnight while almost doubling the company's debt load and diluting its stock something fierce simply couldn't be a good idea. After all, Verizon was selling these assets for a reason. It's difficult and expensive to run a mostly small-town network of voice and data communications. Why would Frontier do a better job at it than Verizon?... Read more