STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NYSE: FTR) today announced that it
has completed its acquisition of Verizon Communications’ (NYSE: VZ)
local wireline operations in 14 states. The combined operations will
provide voice, High-Speed Internet, wireless Internet data access,
satellite video, FiOS and other services to more than 4.0 million
residential and business customers in 27 states using the Frontier
Communications brand. This transaction positions Frontier as the largest
pure rural telecommunications carrier in the United States.
Ivan Seidenberg, Chairman of the Board and Chief Executive Officer of
Verizon Communications, stated, "Frontier continually defines its
success in terms of customer and employee satisfaction, and it's obvious
they care deeply about the communities they serve. Under the leadership
of Maggie Wilderotter and her senior team, Frontier is the right partner
for these markets. Customers will continue to be served by some of the
best employees in the industry. I thank them for their dedication as
they make this transition to Frontier."
About Frontier
Frontier Communications Corporation (NYSE: FTR) offers voice, High-Speed
Internet, satellite video, wireless Internet data access, data security
solutions, bundled offerings, specialized bundles for small businesses
and home offices, and advanced business communications Access Solutions
for medium and large businesses in 27 states and with approximately
14,600 employees. More information is available at www.frontier.com
and www.frontier.com/ir.
Forward-Looking Language
This presentation 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: For two
years after the merger, we will be limited in the amount of capital
stock that we can issue to make acquisitions or to raise additional
capital; our indemnity obligation to Verizon may discourage, delay or
prevent a third party from acquiring control of us during the two-year
period following the merger in a transaction that stockholders might
consider favorable; our ability to successfully integrate the Verizon
operations into Frontier’s existing operations, which integration is
ongoing; the effects of increased expenses due to activities related to
the Verizon transaction; 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
acquired from Verizon to enable us to operate the acquired business on
an ongoing basis; our ability 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 that
cannot be offset by increases in high-speed Internet subscribers and
sales of other products; our ability to sell enhanced and data services
in order to offset ongoing declines in revenues 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 changes in the
availability of federal and state universal funding to us and our
competitors; the effects of competition from cable, wireless and other
wireline carriers (through Voice over Internet Protocol (VOIP), DOCSIS
3.0, 4G or otherwise); our ability to adjust successfully to changes in
the communications industry and to implement strategies for 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; continued reductions in switched access revenues as a result
of regulation, competition or technology substitutions; the effects of
changes in both general and local economic conditions on the markets we
serve, which can affect demand for our products and services, customer
purchasing decisions, collectability of revenues and required levels of
capital expenditures related to new construction of residences and
businesses; our ability to effectively manage service quality in our
territories; our ability to successfully introduce new product
offerings, including the ability to offer bundled service packages on
terms that are both profitable to us and attractive to customers;
changes in accounting policies or practices adopted voluntarily or as
required by generally accepted accounting principles or regulations; our
ability to manage effectively our operations, operating expenses and
capital expenditures, and to repay, reduce or refinance our debt; the
effects of bankruptcies and home foreclosures, which could result in
difficulty in collection of revenues and loss of customers; the effects
of technological changes and competition on our capital expenditures and
product and service offerings, including the lack of assurance that our
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, 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 2010 and thereafter; declines in
the value of our pension plan assets, which could require us to make
contributions to our pension plans in 2011 and beyond; our ability to
pay dividends on 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 and liquidity; 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 natural disasters.
Source: Frontier Communications Corporation
Contact:
Frontier Communications Corporation
Steve Crosby
SVP,
Government and Regulatory Affairs
916-206-8198
steven.crosby@ftr.com
or
David
Whitehouse
SVP & Treasurer
203-614-5708
david.whitehouse@ftr.com