Frontier Extends its Cutting-Edge Products
& Services to Connecticut
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 announced December 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 CorporationINVESTOR:Luke
SzymczakVice President, Investor
Relations203-614-5044luke.szymczak@ftr.comorMEDIA:Steve
CrosbySVP, Corporate
Communications916-206-8198steven.crosby@ftr.comorBrigid SmithAVP,
Corporate Communications203-614-5042brigid.smith@ftr.com
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