Frontier Communications has expanded its residential fiber broadband product portfolio by launching a new 7Gbit/s series that bundles several advanced add ons, including home Wi Fi and Wi Fi 7 gateways.

The new service starts at $299.99 per month (with automatic transfer).

The new package is a supplement to Frontier’s 1G package and two other multi gigabit packages -2Gbit/s ($99.99 per month) and 5Gbit/s ($129.99 per month), both based on the operator’s XGS-PON platform. Frontier is still testing 100G broadband network speed with Nokia. At the low end, Frontier offers a plan of 200 Mbit/s to help get through the recent end of the Affordable Connectivity Program (ACP).

Frontier confirms that if a user is already using an XGS-PON network and has a 7G compatible router, there is no need for a new client equipment (CPE) to achieve 7Gig speed.

Frontier did not disclose how many fiber subscription users have adopted a specific speed level, but the company disclosed earlier this month that in the second quarter of 2024, over 60% of new fiber customers adopted speeds of 1Gbit/s or faster.

Although speed is key to Frontier’s unlimited new products, the operator hopes to attract customers to consider 7Gig products by bundling some premium services, including Wi Fi 7 supported eero Max 7 routers, full home Wi Fi supported by a second eero Max 7 device, Wi Fi security (also known as eero Secure or Wi Fi Secure), free professional installation, and three years of new technology upgrades. Update: For example, if Frontier launches a faster router within three years, customers can upgrade to it.

Frontier estimates that the 12-month value of these paid add ons is $899, which means the monthly value is close to $75. As long as they are 7-Gig users, Frontier users can benefit from bundled services.

As new high-end products emerge, Frontier is advancing its strategy with a focus on fiber optics.

Frontier has deployed fiber optics in over 7 million approved locations, bringing the company one step closer to its goal of reaching over 10 million locations. Frontier added a record breaking 388000 fiber optic transmissions in the second quarter, putting it on track to lay fiber optic to 1.3 million locations by 2024.

In the second quarter, Frontier added a record 92000 fiber optic subscribers, expanding the total to 2.18 million. The company’s average revenue per user (ARPU) for fiber optic in the second quarter reached $65.32 per month, a year-on-year increase of 3.5%.

Frontier is conducting a strategic evaluation of its business and hopes to reduce deployment costs through the self installation option launched in July.

The cost of each connection for Frontier ranges from $600 to $800. Frontier CFO Scott Beasley pointed out during the company’s Q2 2024 earnings conference call earlier this month that this price is currently at the high end, but it will decrease over time as new self installing options become more popular.

According to reports, Frontier is exploring the establishment of a joint venture with Stonepeak, which may provide a capital injection of $500 million to $1 billion for fiber optic investment.

Frontier has another 5 million “third wave” sites as candidate locations for fiber optic upgrades, but their economic appeal is much smaller compared to the current construction target of 10 million sites. Frontier may collaborate with partners or joint ventures to expand the coverage of Wave 3.