Frontier Communications Statement Regarding FCC Fact Sheet on Business Data Services
October 07 2016 - 01:38PM
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161007005693/en/
Frontier Communications CorporationInvestors:Luke Szymczak,
203-614-5044Vice President, Investor
Relationsluke.szymczak@ftr.comorMedia:Peter DePasquale,
203-614-5097Vice President, Corporate
Communicationspeter.depasquale@ftr.com
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