Activity in the telecom arena has been fast and furious in recent years, as companies jockey for position between the high-growth and traditional areas of the business. For rural telecom Frontier Communications (NASDAQ: FTR), growth opportunities abound, yet questions about its strategic vision remain and have weighed down the stock. Let's look at three of the key factors that could push shares of Frontier Communications higher.

1. Prospects for a big secondary stock offering have pressured Frontier's stock price downward.
Frontier has traditionally grown by acquisition, with several past purchases helping to boost its presence across the nation. Yet the most recent deal Frontier has made is a huge one, with the company paying Verizon (NYSE: VZ) $10.5 billion to acquire wireline assets in the three key markets of Florida, California, and Texas.

With the company already having substantial debt on its balance sheet, Frontier chose earlier this month to make a sizable secondary offering of shares, with plans to sell $750 million in common stock and another $1.75 billion in preferred shares that have mandatory conversion provisions. With another $2.5 billion in equity coming into the market on top of Frontier's existing $5 billion market capitalization, investors have been concerned about the impact of the offering on the stock price.

On June 5, Frontier announced it had priced its secondary stock offering at $5 per share. With the equity-raise complete, Frontier no longer has this overhang weighing down its stock price, and the removal of uncertainty about the financing for the Verizon asset purchase could serve to allow Frontier's share price to push higher.

2. New leadership could accelerate Frontier's growth plans.
In March, Frontier announced that longtime CEO Maggie Wilderotter would step out of her role at the company, instead moving to take a new position as Executive Chairman of the Board. In her place, President and COO Dan McCarthy was named to become the telecom's new chief executive officer.

Some investors criticized Wilderotter's mixed performance in hanging onto customers acquired in various asset purchases in the past, and McCarthy has been vocal in expressing his vision for the future. McCarthy's list of priorities puts customer retention at the top, but he also wants to grow Frontier's broadband share, increase the amount of revenue it gets from commercial customers, and more effectively integrate its acquisitions to minimize the loss of customers in transition.

The nature of the business will make it challenging for McCarthy to achieve all of his priorities. Nevertheless, new leadership can sometimes inspire a company toward greater success, and Frontier shareholders should look at results in the coming quarters to see if the stock benefits from a honeymoon period for McCarthy.

3. Acquiring more tech-savvy customers could bring in more revenue for Frontier -- and higher dividends for shareholders.
Frontier's latest deal is a lot different from past acquisitions. In this case, the company is acquiring extremely modern networks from Verizon, with a considerable amount of FiOS business coming with it. This isn't Frontier's first experience with FiOS, as it has acquired assets from Verizon before, but the concentration of higher-end service is a departure from most of its past transactions.

The benefits of this particular deal include that Frontier will get more diversification in its revenue stream, with a greater number of urban customers and a chance to get exposure to more business and enterprise customers as well. As a result, McCarthy says that the deal will add to Frontier's overall earnings immediately, and he expects a drop in Frontier's adjusted dividend payout ratio of 13 percentage points. If the deal goes well, that could leave Frontier in a position to boost its dividend a second time in the near future, and that's something that Frontier's income-hungry shareholders are likely to reward with higher demand as well.

Frontier Communications hasn't gotten good performance from its stock recently. But with these three factors potentially helping to pull the telecom company out of its doldrums, Frontier shares have a good chance of rising in the future.

The next billion-dollar Apple secret
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Dan Caplinger owns shares of Apple.

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