Frontier and AT&T announced a resale agreement where Frontier will resell AT&T wireless and mobile broadband products to customers across their 27 state rural footprint. It’s a three year agency deal which will begin as a trial in the second half of 2012, before rolling it out company wide.
Frontier intends to include the AT&T wireless product portfolio with their broadband, voice, and video bundles, eventually offering all products on a single bill. Frontier also resells DirecTV for video.
“Teaming with one of the most respected brands in global communications will cost-effectively address our customers’ desire for a single-source provider for all their communications needs,” said Maggie Wilderotter, Chairman and CEO of Frontier in a press release. “Frontier, with AT&T Mobility services, brings our customers the best cellular service, combined with Frontier’s High Speed Internet, Video, and other products.”
The deal follows a very similar path to what CenturyLink (a deal that originated with Qwest) does Verizon Wireless. It’s somewhat interesting that Frontier chose AT&T over Verizon for this wireless resale partnership, given Frontier and Verizon’s deal making history. Then again, Frontier seems to want to shed themselves of anything Verizon related, so maybe it does make sense to start fresh with a new global brand.
Deals like this make sense for both parties. Frontier is in no position to build or buy their own wireless network, so reselling it, either as an agent or an MVNO, makes wireless strategy sense. For AT&T, the insatiable need for wireless growth is aided through these resale agreements. It expands their reach with somewhat minimal effort.