NORWALK, Conn.--(BUSINESS WIRE)--
The following statement may be attributed to Frontier Communications
President and CEO Dan McCarthy:
“Today the FCC released a Fact Sheet outlining the framework of a
proposed Order regarding Business Data Services (BDS) regulation. The
Fact Sheet provides clarification regarding proposed reductions in the
TDM BDS rates charged by Incumbent Local Exchange Carriers to companies
seeking access to their infrastructure and clarifies that Ethernet
products and services will not be regulated. In addition, the Fact Sheet
clarifies that the FCC does not propose to disrupt existing contracts.
“While the Fact Sheet indicates less severe rate reductions than
proposed by Verizon/INCOMPAS, Frontier continues to oppose these rigid
rate changes mandated for all carriers without regard to the resulting
impact on smaller price-cap carriers. Frontier projects that these
reductions, if implemented on July 1, 2017, would have a revenue impact
of approximately $10 million in 2017 and $20 million in 2018 and 2019,
with subsequent annual impacts declining.
“As we have previously stated to the FCC, we intend to mitigate the
potential effect of all rate reductions with incremental reductions in
our expenses.”
About Frontier Communications
Frontier Communications Corporation is a leader in providing
communications services to urban, suburban, and rural communities in 29
states. Frontier offers a variety of services to residential customers
over its fiber-optic and copper networks, including video, high-speed
internet, advanced voice, and Frontier Secure® digital
protection solutions. Frontier Business Edge™ offers communications
solutions to small, medium, and enterprise businesses. More information
about Frontier is available at www.frontier.com.
Forward-Looking Statements
This document contains "forward-looking statements," related to future,
not past, events. Forward-looking statements address our expected future
business and financial performance and financial condition, and contain
words such as "expect," "anticipate," "intend," "plan," "believe,"
"seek," "see," "will," "would," or "target." Forward-looking statements
by their nature address matters that are, to different degrees,
uncertain. For us, particular uncertainties that could cause our actual
results to be materially different than those expressed in our
forward-looking statements include: risks related to the acquisition of
properties from Verizon, including our ability to successfully operate
the acquired business, our ability to realize anticipated cost savings,
our ability to enter into or obtain, or delays in entering into or
obtaining, agreements and consents necessary to operate the acquired
business as planned, on terms acceptable to us, and increased expenses
incurred due to activities related to the transaction; our ability to
meet our debt and debt service obligations; competition from cable,
wireless and wireline carriers and satellite companies and the risk that
we will not respond on a timely or profitable basis; our ability to
successfully adjust to changes in the communications industry, including
the effects of technological changes and competition on our capital
expenditures, products and service offerings; reductions in revenue from
our voice customers that we cannot offset with increases in revenue from
broadband and video subscribers and sales of other products and
services; our ability to maintain relationships with customers,
employees or suppliers; the impact of regulation and regulatory,
investigative and legal proceedings and legal compliance risks;
continued reductions in switched access revenues as a result of
regulation, competition or technology substitutions; 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
effectively manage service quality in our territories and meet mandated
service quality metrics; our ability to successfully introduce new
product offerings; the effects of changes in accounting policies or
practices, including potential future impairment charges with respect to
our intangible assets; our ability to effectively manage our operations,
operating expenses, capital expenditures, debt service requirements and
cash paid for income taxes and liquidity, which may affect payment of
dividends on our common and preferred shares; the effects of changes in
both general and local economic conditions on the markets that we serve;
the effects of increased medical expenses and pension and postemployment
expenses; 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, interest rates, regulatory rules and/or the value of our
pension plan assets, which could require us to make increased
contributions to the pension plan in 2016 and beyond; 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 ability, or increase the cost, of financing to us; 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; the effects of severe weather events or other
natural or man-made disasters, which may increase our operating expenses
or adversely impact customer revenue; the impact of potential
information technology or data security breaches or other disruptions;
and the other factors that are described in our filings with the U.S.
Securities and Exchange Commission, including our reports on Forms 10-K
and 10-Q. These risks and uncertainties may cause our actual future
results to be materially different than those expressed in our
forward-looking statements. We do not undertake to update or revise
these forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161007005693/en/
Frontier Communications Corporation
Investors:
Luke
Szymczak, 203-614-5044
Vice President, Investor Relations
luke.szymczak@ftr.com
or
Media:
Peter
DePasquale, 203-614-5097
Vice President, Corporate Communications
peter.depasquale@ftr.com
Source: Frontier Communications Corporation