Stimulus Funds Could Provide for Expansion of Frontier's Networks
to Make Broadband Connectivity Available to Rural, Unserved and
Underserved Areas in West Virginia
STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NYSE: FTR), one of the nation's
largest providers of communications services to rural areas and small
and medium-sized towns and cities, announced today that it has submitted
two applications for federal funding in West Virginia through the
Broadband Initiatives Program (BIP) and the Broadband Technology
Opportunities Program (BTOP), as part of the American Recovery and
Reinvestment Act of 2009 (ARRA). If granted, the applications for an
aggregate of $55 million, supplemented by Frontier's "match," would
result in $69 million available for expanding broadband availability and
speeds in West Virginia. One application was filed on behalf of the
areas Frontier Communications is authorized to serve as an Incumbent
Local Exchange Carrier (ILEC). The second application was filed on
behalf of the areas throughout West Virginia (outside the ILEC) that
Frontier is authorized to serve as a Competitive Local Exchange Carrier
(CLEC).
$7.2 billion has been allocated for broadband infrastructure in the
ARRA, of that, $4.7 billion is administered by the National
Telecommunications & Information Administration (NTIA) and the remaining
$2.5 billion by Rural Utilities Service (RUS) for specific deployment of
broadband networks and related infrastructure in rural, unserved and
underserved communities across the U.S.
Maggie Wilderotter, Chairman and CEO of Frontier Communications,
commented, "Broadband is essential to our nation's economic well-being
and to providing consumers access to vital educational, medical and
financial information no matter where they live. Broadband drives the
growth of communities and it will help the most remote areas of this
country participate fully in the global marketplace."
She added, "Our applications under the BTOP and BIP programs for rural
broadband deployment are thoroughly researched and financially sound. We
believe we are the best-positioned Company to extend the reach of
broadband in West Virginia." The goal of the Broadband Initiatives
Program is to enhance America's productivity and economic
competitiveness by increasing broadband adoption while creating
sustainable jobs.
Mrs. Wilderotter remarked, "Frontier's plan will ensure that superior
service is delivered to critical community facilities such as schools
and colleges, libraries, primary care centers, nursing homes and other
medical and health care centers and community support organizations. Our
network design will allow businesses and consumers to take advantage of
distance learning, telemedicine and related applications requiring large
amounts of broadband capacity.
"Frontier looks forward to the opportunity of working with the State of
West Virginia and the key federal government agencies to expand
broadband access into rural areas."
More information about Frontier Communications can be found at www.frontier.com.
Forward-Looking Language
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. These statements are made on the basis of
management's views and assumptions regarding future events and business
performance. Words such as "believe," "anticipate," "expect" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements (including oral representations) involve
risks and uncertainties that may cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by such statements. These risks and uncertainties
are based on a number of factors, including but not limited to: Our
ability to complete the acquisition of access lines from Verizon; the
failure to obtain, delays in obtaining or adverse conditions contained
in any required regulatory approvals for the Verizon transaction; the
failure to receive the IRS ruling approving the tax-free status of the
Verizon transaction; the failure of our stockholders to approve the
Verizon transaction; the ability to successfully integrate the Verizon
operations into Frontier's existing operations; the effects of increased
expenses due to activities related to the Verizon transaction; the
ability to migrate Verizon'sWest Virginia operations from Verizon owned
and operated systems and processes to Frontier owned and operated
systems and processes successfully; the risk that the growth
opportunities and cost synergies from the Verizon transaction may not be
fully realized or may take longer to realize than expected; the
sufficiency of the assets to be acquired from Verizon to enable us to
operate the acquired business; disruption from the Verizon transaction
making it more difficult to maintain relationships with customers,
employees or suppliers; the effects of greater than anticipated
competition requiring new pricing, marketing strategies or new product
or service offerings and the risk that we will not respond on a timely
or profitable basis; reductions in the number of our access lines and
High-Speed Internet subscribers; our ability to sell enhanced and data
services in order to offset ongoing declines in revenue from local
services, switched access services and subsidies; the effects of ongoing
changes in the regulation of the communications industry as a result of
federal and state legislation and regulation; the effects of competition
from cable, wireless and other wireline carriers (through voice over
internet protocol (VOIP) or otherwise); our ability to adjust
successfully to changes in the communications industry and to implement
strategies for improving growth; adverse changes in the credit markets
or in the ratings given to our debt securities by nationally accredited
ratings organizations, which could limit or restrict the availability,
or increase the cost, of financing; reductions in switched access
revenues as a result of regulation, competition and/or technology
substitutions; the effects of changes in both general and local economic
conditions on the markets we serve, which can impact demand for our
products and services, customer purchasing decisions, collectability of
revenue and required levels of capital expenditures related to new
construction of residences and businesses; our ability to effectively
manage service quality; our ability to successfully introduce new
product offerings, including our ability to offer bundled service
packages on terms that are both profitable to us and attractive to our
customers; changes in accounting policies or practices adopted
voluntarily or as required by generally accepted accounting principles
or regulators; our ability to effectively manage our operations,
operating expenses and capital expenditures, to pay dividends and to
repay, reduce or refinance our debt; the effects of bankruptcies and
home foreclosures, which could result in increased bad debts; the
effects of technological changes and competition on our capital
expenditures and product and service offerings, including the lack of
assurance that our ongoing network improvements will be sufficient to
meet or exceed the capabilities and quality of competing networks; the
effects of increased medical, retiree and pension expenses and related
funding requirements; changes in income tax rates, tax laws, regulations
or rulings, and/or federal or state tax assessments; the effects of
state regulatory cash management policies on our ability to transfer
cash among our subsidiaries and to the parent company; our ability to
successfully renegotiate union contracts expiring in 2009 and
thereafter; further declines in the value of our pension plan assets,
which could require us to make contributions to the pension plan
beginning no earlier than 2010; our ability to pay dividends in respect
of our common shares, which may be affected by our cash flow from
operations, amount of capital expenditures, debt service requirements,
cash paid for income taxes (which will increase in 2009) and our
liquidity; the effects of increased cash taxes in 2009 and thereafter;
the effects of any unfavorable outcome with respect to any of our
current or future legal, governmental or regulatory proceedings, audits
or disputes; the possible impact of adverse changes in political or
other external factors over which we have no control; and the effects of
hurricanes, ice storms or other severe weather. These and other
uncertainties related to our business are described in greater detail in
our filings with the Securities and Exchange Commission, including our
reports on Forms 10-K and 10-Q, and the foregoing information should be
read in conjunction with these filings. We do not intend to update or
revise these forward-looking statements to reflect the occurrence of
future events or circumstances.
Source: Frontier Communications Corporation
Contact: Frontier Communications
Steven Crosby, 916-686-3333
SVP, Government Affairs & Public Relations
Steven.Crosby@frontiercorp.com
www.frontier.com