SOURCE: Rothman Research

Rothman Research

August 25, 2010 08:34 ET

Research Reports on Frontier and Qwest -- Are Domestic Telecos Adapting to the New Product Trend?

JOHANNESBURG, SOUTH AFRICA--(Marketwire - August 25, 2010) -  www.RothmanResearch.com provides members a complete scrutiny of the domestic telecom services industry with thorough research on Frontier Communications Corporation (NYSE: FTR) and Qwest Communications International Inc. (NYSE: Q). Sign up now on www.rothmanresearch.com to access these free reports.

It comes as little surprise that more and more consumers prefer mobile phones to land lines. Regional telecommunications companies identified this trend and began offering customers package deals that include phone, Internet and cable at a discount. This strategy is not a novel one and has been employed for years to maintain phone revenue but it now appears to have only slowed the narrowing of profit margins. 

www.rothmanresearch.com is a source for investors seeking free information on the domestic telecom services industry; investors and shareholders of Frontier Communications Corporation, Qwest Communications International Inc. and other companies in the industry are encouraged to sign up for free at http://www.rothmanresearch.com/index.php?id=6&name=Register.

In addition to the loss of landline revenue, regional telecommunications companies are also contending with heavy market saturation of rival products. Companies are competing for the same customers with discounts, further exacerbating the profit margins dilemma. However, in some countries, like Canada for example, the lack of saturation is a huge advantage and drastically increases growth potential.

In areas where landline revenue and market saturation are significant issues, telecommunications companies are employing several strategies to combat them. Some companies have added a 4th element (wireless products) to the package deal to make up for the lost revenue of landlines. Other companies are opting for buyouts and mergers to lower customer leverage in highly saturated areas. Only yesterday, the fifth largest U.S. telephone company confirmed its takeover of Qwest Communications International Inc. with a 97% approval vote from shareholders of both companies. Qwest Communications is the third largest telecommunication in the U.S., but as with CenturyLink they have both been battling the tides as cell phone usage continues to outpace landlines. www.rothmanresearch.com research team provides investors with insight about Qwest Communications International Inc. by registering now at

http://www.rothmanresearch.com/article/q/23900/Aug-25-2010.html

In early August, Frontier Communications Corporation announced that lower expenditures during the second quarter 2010 helped the company offset losses incurred with a decrease in landlines usage. The company saw its earnings surge by 26% whilst revenue fell by 3% with a loss of 192,000 lines. www.rothmanresearch.com research team provides investors with insight about Frontier Communications Corporation by registering now at

http://www.rothmanresearch.com/article/ftr/23899/Aug-25-2010.html

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