Frontier Chairman & CEO Welcomed by Ohio State University President
MARION, Ohio, Aug 30, 2010 (BUSINESS WIRE) --
During a business community luncheon at The Ohio State University at Marion, Frontier's Chairman and CEO Maggie Wilderotter highlighted Frontier's commitment to Ohio, focusing on broadband deployment, capital investment, service improvements and job retention/creation. These commitments were established when the Public Utilities Commission of Ohio (PUCO) approved Frontier's transaction with Verizon earlier this year. Mrs. Wilderotter was joined by Dr. E. Gordon Gee, President, The Ohio State University, who welcomed Frontier and the educational and economic opportunities afforded by future broadband expansion.
The highlights of Frontier's Ohio plan include:
- By December 31, 2013, Frontier will take household broadband availability in its service areas to 85%; and
- To accomplish this, Frontier will make capital investments of $50 million per year for each of the next three years. Furthermore, if broadband isn't available to 80% of the households within Frontier's service area by 2012, the agreement will be extended an additional year, i.e., Frontier will be required to invest an additional $50 million.
During her remarks, Mrs. Wilderotter announced the first round of investment. "Our local engineering and operations teams have been identifying locations for broadband deployment, with the first new areas scheduled to come on line starting the fourth quarter of this year. We'll be sharing the specific areas in the coming weeks. To accomplish the roll-out, we are already upgrading our physical plant and equipment and training employees so that we can bring high-speed Internet to the underserved and unserved in Ohio."
In addition to broadband expansion, Frontier committed to maintaining and/or improving service quality metrics throughout Ohio.
Mrs. Wilderotter also commented on job retention and growth. "We know that jobs matter. We are retaining the more than 1,000 employees here in Ohio. Recently, we announced the hiring of more than 30 positions including technical managers, technicians and splicers who will be supporting our network. These are well paying jobs that provide solid benefits in addition to a career path." Mrs. Wilderotter emphasized the company's commitment to a 100 percent U.S.-based workforce and stated that as part of the transaction, Frontier is bringing back to the United States 500 jobs outsourced to India by Verizon Communications.
"We appreciate that news of broadband expansion is vitally important to the people and businesses of Ohio who need fast, reliable communications; to those who dream of accessing the resources of The Ohio State University from their homes via distance learning; and to communities whose residents await access to the Internet's financial, educational, commercial and health opportunities and information."
In welcoming Frontier, President Gee stated: "We are grateful for the long-term investment in Ohio that Frontier Communications is making," said President E. Gordon Gee. "In this age of information and innovation, we must assure that all Ohioans have full access to essential digital resources. I am grateful for the company's good partnership in moving our state forward."
Frontier Communications Corporation (NYSE: FTR) offers voice, High-Speed Internet, satellite video, fiber to the home, wireless Internet data access, data security solutions, bundled offerings, specialized bundles for small businesses and home offices, and advanced business communications Access Solutions for medium and large businesses in 27 states and with approximately 14,600 employees. More information is available at www.frontier.com and www.frontier.com/ir.
About The Ohio State University
Founded in 1870, The Ohio State University is a world-class public research university and the leading comprehensive teaching and research institution in the state of Ohio. With more than 63,000 students enrolled statewide, 14 colleges and 175 majors, the university offers its students exceptional breadth and depth of opportunity in the liberal arts, the sciences and the professions. A national research powerhouse, the university ranks tenth among all universities in research expenditures and a remarkable second place when it comes to industry-sponsored research.
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: For two years after the merger, we will be limited in the amount of capital stock that we can issue to make acquisitions or to raise additional capital; our indemnity obligation to Verizon may discourage, delay or prevent a third party from acquiring control of us during the two-year period following the merger in a transaction that stockholders might consider favorable; our ability to successfully integrate the Verizon operations into Frontier's existing operations; the effects of increased expenses due to activities related to the integration of the Verizon operations; 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 acquired from Verizon to enable us to operate the acquired business on an ongoing basis; our ability 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 that cannot be offset by increases in high-speed Internet subscribers and sales of other products; our ability to sell enhanced and data services in order to offset ongoing declines in revenues 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 changes in the availability of federal and state universal funding to us and our competitors; the effects of competition from cable, wireless and other wireline carriers (through Voice over Internet Protocol (VOIP), DOCSIS 3.0, 4G or otherwise); our ability to adjust successfully to changes in the communications industry and to implement strategies for 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; continued reductions in switched access revenues as a result of regulation, competition or technology substitutions; the effects of changes in both general and local economic conditions on the markets 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; our ability to effectively manage service quality in our territories; our ability to successfully introduce new product offerings, including the ability to offer bundled service packages on terms that are both profitable to us and attractive to customers; changes in accounting policies or practices adopted voluntarily or as required by generally accepted accounting principles or regulations; our ability to manage effectively our operations, operating expenses and capital expenditures, and to repay, reduce or refinance our debt; the effects of bankruptcies and home foreclosures, which could result in difficulty in collection of revenues and loss of customers; the effects of technological changes and competition on our capital expenditures and product and service offerings, including the lack of assurance that our 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, 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 2010 and thereafter; declines in the value of our pension plan assets, which could require us to make contributions to the pension plans in 2011 and beyond; our ability to pay dividends on 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 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 natural disasters.
SOURCE: Frontier Communications Corporation
Frontier Communications Corporation Patricia Amendola, 570-631-6013 PR/Communications, Frontier Patricia.Amendola@ftr.com or David Davidson, 216-956-3112 SVP/GM -Ohio, Frontier Dave.firstname.lastname@example.org or Ohio State University Amy Murray, 614-292-8385 Asst. Director, Media Relations email@example.com