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Telecom Dividend Cash Bonanza – Landline Customers Drop, But Stockholder Payouts Rise

Phillip Dampier February 10, 2011 AT&T, Bell (Canada), Frontier, Qwest, Rural Broadband No Comments

The telephone landline business is hardly a growth industry, as an average of 5-7 percent of customers disconnect their home phone service every quarter, but you wouldn’t know that from the dividends being paid to stockholders.

From AT&T, Bell Canada, Frontier to Qwest — the companies that speak in terms of keeping their customer defection rates down are paying dividends that often exceed earnings.

Among the worst of all — Frontier Communications, whose outsized dividend is expected to reach 75 cents a share.  That, despite the fact analysts predict the phone company will earn only 40 cents a share or so this year.

Where do these phone companies expect to make their money?  Their broadband and wireless divisions.  AT&T and Bell Canada are able to cover landline losses with enhanced profits from their IPTV services like U-verse and Fibe.  Frontier and Qwest expect to survive on providing cheap-to-deploy DSL service in rural areas avoided by cable operators.

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  • LG: Truly disgusting. Every time something like this happens, it further erodes trust and belief in our government. At this point, I think 3/4 of this c...
  • George: 802.11ax with 8x8:8 MIMO streams are hitting the market, and Comcast is stuck in the past with 2 stream MIMO on 802.11ac, playing ping-pong with high ...
  • K Richner: These apparently are just Plume Pods with custom Firmware I own 12 Plume Pods! That are not locked to a isp this is a rip off since they cost about th...
  • Paul Houle: There is hope for fixed wireless, at least for me, since I have no hope for Frontier. I have investigated some wireless offerings from MVNOs and si...
  • Ian Littman: Counterpoint: mmWave based 5G is going to be a bear to deploy, to the point that 5G NR from T-Mo et al will likely have nationwide coverage before mmW...
  • Butch Kara: We still have Centurylink DSL (or should I say, we have it when it works) supposedly 1.5Mbps, but usually 0.6 or slower (right now around 0.2). and ha...
  • Lee: Seems I need to amend my post about the closed fiber optic loop system. Frontier Communications is not installing it. It is an expansion of the Elkhar...
  • James: In the beginning I was hopeful of Frontier a good review but I just zcan't do it.. we switched from comcrooks recently oct. '17, the phone reps screwe...
  • Lee: Change the name from Spectrum to Speculum....
  • Lee: I am in Indiana. I used my Street Atlas program to figure they are installing 6.5 miles of underground fiber optic along the roads between the two sch...
  • Bob: I have Mohu Leaf antennas on both TV's and I get the locals that way also. All I know is that as a former regular DirecTV customer, they are trying v...
  • Phillip Dampier: Institutional broadband. Frontier owns the network that taxpayers subsidize and Frontier gets to charge whatever it wants for service on that network....

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