STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NYSE:FTR) today announced that
Verizon Northwest Inc. has received all local franchise approvals from
authorities in Washington state and Oregon that are required to transfer
control of local cable TV franchises from Verizon Communications to
Frontier. In addition to several independent local authorities, three
cable consortia unanimously approved the transfer: the Metropolitan Area
Cable Commission (MACC); the Mount Hood Cable Regulatory Commission
(MHCRC); and the Verizon/Frontier Transfer Consortium in Washington.
Under the approvals, Frontier will be required to meet certain
conditions for the transfers to become effective.
The 41 approvals relate to the transaction between Frontier and Verizon
Communications, announced May 13, 2009, that includes Verizon's local
exchange businesses in 14 states, including parts of California, and
certain customer relationships for long distance services, broadband
Internet access and broadband video. The transaction is still subject to
certain conditions, including approval by The Washington Utilities and
Transportation Commission, The Public Utility Commission of Oregon,
utility regulators in four other states and the Federal Communications
Commission. Hearings have been completed in all states except
Washington, which is scheduled to hold hearings next week. Frontier has
already received approvals from the California Public Utilities
Commission, the Public Utilities Commission of Nevada and the Public
Service Commission of South Carolina.
"We are very pleased to have obtained all required local transfer
approvals in such a timely fashion," said Steven Crosby, Senior Vice
President, Government and Regulatory Affairs for Frontier. "This is an
important step towards providing great services, continued upgrade of
broadband in many communities and delivering an excellent customer
experience. Local leaders in Oregon and Washington have given a strong
vote of confidence to Frontier's financial strength, network technology
and customer-first approach, and we look forward to serving them."
The local authorities in Washington state that approved the franchise
transfers to Frontier are Bothell, Brier, Camas, Edmonds, Lynnwood,
Marysville, Mill Creek, Mountlake Terrace, Mukilteo, Redmond, Shoreline,
Snohomish County, Washougal, Woodinville, Woodway, Everett, Kenmore and
Kirkland.
In Oregon, the approving local authorities are Damascus, Dundee,
McMinnville, Cornelius, Rivergrove, Durham, Wilsonville, Newberg,
Beaverton, Gresham, Sherwood, Fairview, King City, Clackamas County,
Forest Grove, Wood Village, Troutdale, Tigard, Washington County,
Hillsboro, Happy Valley, Tualatin and Lake Oswego.
About Frontier Communications
Frontier Communications Corporation (NYSE: FTR) is a full-service
communications provider and one of the largest local exchange telephone
companies in the country serving rural areas and small and medium-sized
towns and cities. Frontier is included in the S&P 500 Index. Frontier
Communications offers telephone, television and Internet services,
including wireless Internet data access, as well as bundled offerings,
specialized bundles for small businesses and home offices, and data
security solutions. Additional information about Frontier products and
services is available at www.frontier.com.
More information about the transaction with Verizon may be found at 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: 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 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; 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 and our 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
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 undertake no obligation to publicly update or revise any
forward-looking statements or to make any other forward-looking
statement, whether as a result of new information, future events or
otherwise unless required to do so by securities laws.
Additional Information and Where to Find It
This presentation is not a substitute for the definitive
prospectus/proxy statement included in the Registration Statement on
Form S-4 that Frontier filed, and the SEC has declared effective, in
connection with the proposed transactions described in the definitive
prospectus/proxy statement. INVESTORS ARE URGED TO READ THE DEFINITIVE
PROSPECTUS/PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT INFORMATION,
INCLUDING DETAILED RISK FACTORS. The definitive prospectus/proxy
statement and other documents filed or to be filed by Frontier with the
SEC are or will be available free of charge at the SEC's website, www.sec.gov,
or by directing a request when such a filing is made to Frontier, 3 High
Ridge Park, Stamford, CT 06905-1390, Attention: Investor Relations.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy securities, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction.
Frontier's stockholders approved the proposed transactions on October
27, 2009, and no other vote of the stockholders of Frontier or Verizon
is required in connection with the proposed transactions.
Source: Frontier Communications Corporation
Contact: Frontier Communications Corporation
Steve Crosby, 916-206-8198
SVP, Government and Regulatory Affairs
steven.crosby@frontiercorp.com