Frontier Extends its Cutting-Edge Products & Services to
Connecticut
STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NASDAQ:FTR) today announced
completion of its $2 billion acquisition of AT&T Inc.’s (NYSE: T)
wireline business, statewide fiber network, and U-verse operations in
Connecticut. As part of the acquisition, Frontier also acquired AT&T’s
DISH satellite TV customers in Connecticut. As a result of the
transaction, Frontier will offer broadband, voice, video and other
products to residential and business customers in Connecticut, the 28th
state in the company’s portfolio.
“Frontier is excited to offer our products and services to customers in
our home state,” said Maggie Wilderotter, Frontier’s Chairman and Chief
Executive Officer. “We look forward to bringing our local engagement
management model to Connecticut and empowering all Frontier employees to
provide high-quality service to their friends and neighbors and to
become active contributors to their communities.”
Wilderotter added, “Our expansion into Connecticut shows Frontier is
growing strategically in addition to organically in our suburban and
rural markets. We offer great broadband products that include customer
protection for their online experience. Frontier is a leader in offering
comprehensive end-to-end online protection. It sets Frontier apart, and
it demonstrates that focusing on our customers will maximize shareholder
value.”
“Frontier’s solid reputation and track record for providing high-quality
products and service to customers across the country was a major
consideration in our decision to sell them our Connecticut operations,”
said Randall Stephenson, AT&T Chairman and CEO.
Frontier’s customers, local communities, employees and shareholders will
benefit substantially as a result of this transaction:
-
Frontier is implementing its proven local engagement
community-oriented go-to-market strategy in Connecticut led by General
Managers and a Senior Vice President for the state.
- Connecticut customers will have the same products and services that
they enjoyed with AT&T, including U-verse, plus new products such as Frontier
Secure, a suite of services to protect all aspects of customers’
online lives, including identity theft protection.
-
Frontier has committed to capital investments to expand and further
upgrade the high-quality broadband network.
-
The all-cash transaction means Frontier shareholders receive the
benefit of increased diversification of assets and operations without
any dilution in ownership.
-
Frontier is retaining the transferred AT&T Connecticut workforce and
is in discussions with the state’s Department of Economic and
Community Development about bringing a substantial number of new jobs
to Connecticut.
Since the transaction
was announcedDecember 17, 2013, Frontier received approval from the
U.S. Department of Justice, the Federal Communications Commission, the
Connecticut Public Utilities Regulatory Authority and other state
regulatory authorities. Additionally, the company received the full
support of Communications Workers of America (CWA) Local 1298 and signed
a new agreement with the Local that will add 85 jobs to the workforce in
Connecticut.
Frontier will make capital investments of $63 million over the next
three years for U-verse expansion and broadband network speed
enhancements to increase speeds to 10Mbps or greater for more than
100,000 households. It will also construct an ultra-high-speed middle
mile fiber network connecting central offices across the state and
dedicate at least $3 million of capital to expanding broadband to areas
currently unserved or underserved.
Frontier acquired approximately 415,000 data, 875,000 voice, and 215,000
video connections (counts as of 6/30/14) in Connecticut, including
AT&T’s local business connections and existing carrier wholesale
relationships. Frontier is welcoming approximately 2,500 former AT&T
Connecticut employees to the company, ensuring continuity of existing
customer relationships and a trained and trusted workforce.
Frontier is proud that 13 percent of its workforce comprises veterans
and military families. It will continue its strong support through
veteran-focused initiatives in the state, including a pilot program to
improve the adoption and utilization of the Department of Veterans
Affairs MyHealtheVet and home Telehealth. Frontier will work with the
Attorney General and Office of the Consumer Counsel to provide
subsidized broadband service to eligible low-income veterans and host
veteran-focused job fairs.
Beginning October 25, 2014, the company will undertake a full conversion
of AT&T’s Connecticut wireline, broadband and video operations into
Frontier’s systems, providing residential and business customers with
seamless, high-quality performance and enhanced customer service.
Frontier has successfully completed numerous complex system and network
migrations, most recently converting former Verizon operations in 14
states. Frontier estimates that it will realize significant cost savings
from leveraging its current infrastructure in supporting the new
Connecticut business operations.
About Frontier Communications
Frontier Communications Corporation (NASDAQ: FTR) offers broadband,
voice, video, wireless Internet data access, data security solutions,
specialized bundles for residential customers, small businesses and home
offices, and advanced communications for medium and large businesses in
28 states. Frontier's approximately 16,400 employees are based entirely
in the United States. More information is available at www.frontier.com.
Forward-Looking Statements
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
include, but are not limited to: the ability to successfully integrate
the Connecticut operations into our existing operations and the
diversion of management’s attention from ongoing business and regular
business responsibilities to effect such integration; the effects of
increased expenses or unanticipated liabilities incurred due to
activities related to the AT&T transaction; the risk that the cost
savings from the AT&T transaction may not be fully realized; the
sufficiency of the assets to be acquired from AT&T to enable the
combined company to operate all aspects of the acquired business;
disruption from the AT&T transaction making it more difficult to
maintain relationships with customers or suppliers of the Connecticut
operations; our ability to meet our debt and debt service obligations,
which have increased as a result of the AT&T transaction; the effects of
greater than anticipated competition from cable, wireless and other
wireline carriers that could require us to implement 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 voice customers that we cannot offset with increases
in broadband subscribers and sales of other products and services; our
ability to maintain relationships with customers, employees or
suppliers; the effects of ongoing changes in the regulation of the
communications industry as a result of federal and state legislation and
regulation, or changes in the enforcement or interpretation of such
legislation and regulation; the effects of any unfavorable outcome with
respect to any current or future legal, governmental or regulatory
proceedings, audits or disputes; the effects of changes in the
availability of federal and state universal service funding or other
subsidies to us and our competitors; our ability to successfully adjust
to changes in the communications industry and to implement strategies
for growth; continued reductions in switched access revenues as a result
of regulation, competition or technology substitutions; our ability to
effectively manage service quality in our territories and meet mandated
service quality metrics; 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
customers; the effects of changes in accounting policies or practices
adopted voluntarily or as required by generally accepted accounting
principles or regulations; our ability to effectively manage our
operations, operating expenses and capital expenditures, and to repay,
reduce or refinance our debt; the effects of changes in both general and
local economic conditions on the markets that 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; the effects of
technological changes and competition on our capital expenditures,
products and service offerings, including the lack of assurance that our
network improvements in speed and capacity will be sufficient to meet or
exceed the capabilities and quality of competing networks; the effects
of increased medical expenses (including as a result of the impact of
the Patient Protection and Affordable Care Act) and pension and
postemployment expenses, such as retiree medical and severance costs,
and related funding requirements; the effects of changes in income tax
rates, tax laws, regulations or rulings, or federal or state tax
assessments; our ability to successfully renegotiate union contracts;
changes in pension plan assumptions and/or the value of our pension plan
assets, which could require us to make increased contributions to the
pension plan in 2015 and beyond; the effects of economic downturns which
could result in difficulty in collection of revenues and loss of
customers; 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 to us; our cash flow from operations, amount of capital
expenditures, debt service requirements, cash paid for income taxes and
liquidity may affect our payment of dividends on our common shares; the
effects of state regulatory cash management practices that could limit
our ability to transfer cash among our subsidiaries or dividend funds up
to the parent company; and the effects of severe weather events such as
hurricanes, tornadoes, ice storms or other natural or man-made
disasters, which may increase our operating expenses or adversely impact
customer revenue. These and other uncertainties related to our business
are described in greater detail in our filings with the U.S. 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.
Frontier Communications Corporation
INVESTOR:
Luke
Szymczak
Vice President, Investor Relations
203-614-5044
luke.szymczak@ftr.com
or
MEDIA:
Steve
Crosby
SVP, Corporate Communications
916-206-8198
steven.crosby@ftr.com
or
Brigid
Smith
AVP, Corporate Communications
203-614-5042
brigid.smith@ftr.com
Source: Frontier Communications Corporation