Attached files
file | filename |
---|---|
8-K - FORM 8-K - Frontier Communications Parent, Inc. | lfareleasecover.htm |
[Frontier Communications Logo]
Exhibit 99.1
Frontier
Communications
3
High Ridge Park
Stamford,
CT 06905
203.614.5600
www.frontier.com
Contact:
Steve
Crosby
SVP,
Government and Regulatory Affairs
916.206.8198
steven.crosby@frontiercorp.com
FOR
IMMEDIATE RELEASE
FRONTIER
COMMUNICATIONS RECEIVES ALL NECESSARY LOCAL FRANCHISE AUTHORITY APPROVALS
REQUIRED FOR
VERIZON
TRANSACTION
STAMFORD, Conn., January 27, 2010
– Frontier Communications Corporation (NYSE:FTR) today
announced that Verizon Northwest Inc. has received all local franchise approvals
from authorities in Washington state and Oregon that are required to transfer
control of local cable TV franchises from Verizon Communications to Frontier. In
addition to several independent local authorities, three cable consortia
unanimously approved the transfer: the Metropolitan Area Cable Commission
(MACC); the Mount Hood Cable Regulatory Commission (MHCRC); and the
Verizon/Frontier Transfer Consortium in Washington. Under the approvals,
Frontier will be required to meet certain conditions for the transfers to become
effective.
The 41
approvals relate to the transaction between Frontier and Verizon Communications,
announced May 13, 2009, that includes Verizon’s local exchange businesses in 14
states, including parts of California, and certain customer relationships for
long distance services, broadband Internet access and broadband
video. The transaction is still subject to certain conditions,
including approval by The Washington Utilities and Transportation Commission,
The Public Utility Commission of Oregon, utility regulators in four other states
and the Federal Communications Commission. Hearings have been
completed in all states except Washington, which is scheduled to hold hearings
next week. Frontier has already received approvals from the
California Public Utilities Commission, the Public Utilities Commission of
Nevada and the Public Service Commission of South Carolina.
"We are
very pleased to have obtained all required local transfer approvals in such a
timely fashion,” said Steven Crosby, Senior Vice President, Government and
Regulatory Affairs for Frontier. “This is an important step towards
providing great services, continued upgrade of broadband in many communities and
delivering an excellent customer experience. Local leaders in Oregon
and Washington have given a strong vote of
confidence to Frontier’s financial strength, network technology and
customer-first approach, and we look forward to serving
them.”
The local
authorities in Washington state that approved the franchise transfers to
Frontier are Bothell, Brier, Camas, Edmonds, Lynnwood, Marysville, Mill Creek,
Mountlake Terrace, Mukilteo, Redmond, Shoreline, Snohomish County, Washougal,
Woodinville, Woodway, Everett, Kenmore and Kirkland.
In
Oregon, the approving local authorities are Damascus, Dundee, McMinnville,
Cornelius, Rivergrove, Durham, Wilsonville, Newberg, Beaverton, Gresham,
Sherwood, Fairview, King City, Clackamas County, Forest Grove, Wood Village,
Troutdale, Tigard, Washington County, Hillsboro, Happy Valley, Tualatin and Lake
Oswego.
About
Frontier Communications
Frontier
Communications Corporation (NYSE: FTR) is a full-service communications provider
and one of the largest local exchange telephone companies in the country serving
rural areas and small and medium-sized towns and cities. Frontier is included in
the S&P 500 Index. Frontier Communications offers telephone, television and
Internet services, including wireless Internet data access, as well as bundled
offerings, specialized bundles for small businesses and home offices, and data
security solutions. Additional information about Frontier products
and services is available at www.frontier.com.
More information about the transaction with Verizon may be found at www.frontier.com/ir.
Forward-Looking
Language
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: Our ability to complete the acquisition of access lines from
Verizon; the failure to obtain, delays in obtaining or adverse conditions
contained in any required regulatory approvals for the Verizon transaction; the
failure to receive the IRS ruling approving the tax-free status of the Verizon
transaction; the ability to successfully integrate the Verizon operations into
Frontier’s existing operations; the effects of increased expenses due to
activities related to the Verizon transaction; the ability to migrate Verizon’s
West Virginia operations from Verizon owned and operated systems and processes
to Frontier owned and operated systems and processes successfully; 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 to be acquired from Verizon to enable us to operate the acquired
business; disruption from the Verizon transaction making it more difficult 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 and
High-Speed Internet subscribers; our ability to sell enhanced and data services
in order to offset ongoing declines in revenue 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 competition from cable, wireless and other wireline
carriers (through voice over internet protocol (VOIP) or otherwise); our ability
to adjust successfully to changes in the communications industry and to
implement strategies for improving 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; reductions in switched access revenues as a
result of regulation, competition and/or technology substitutions; the effects
of changes in both general and local economic conditions on the markets we
serve, which can impact demand for our products and services, customer
purchasing decisions, collectability of revenue and required levels of capital
expenditures related to new construction of residences and businesses; our
ability to effectively manage service quality; 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 our
customers; changes in accounting policies or practices adopted voluntarily or as
required by generally accepted accounting principles or regulators; our ability
to effectively manage our operations, operating expenses and capital
expenditures, to pay dividends and to repay, reduce or refinance our debt; the
effects of bankruptcies and home foreclosures, which could result in increased
bad debts; the effects of technological changes and competition on our capital
expenditures and product and service offerings, including the lack of assurance
that our ongoing 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, and/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 2009 and
thereafter; declines in the value of our pension plan assets, which could
require us to make contributions to the pension plan beginning no earlier than
2010; our ability to pay dividends in respect of 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 our 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 severe
weather. These and other uncertainties related to our business are
described in greater detail in our filings with the 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 undertake
no obligation to publicly update or revise any forward-looking statements or to
make any other forward-looking statement, whether as a result of new
information, future events or otherwise unless required to do so by securities
laws.
Additional
Information and Where to Find It
This
presentation is not a substitute for the definitive prospectus/proxy statement
included in the Registration Statement on Form S-4 that Frontier filed, and the
SEC has declared effective, in connection with the proposed transactions
described in the definitive prospectus/proxy statement. INVESTORS ARE URGED
TO READ THE DEFINITIVE PROSPECTUS/PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT
INFORMATION, INCLUDING DETAILED RISK FACTORS. The definitive
prospectus/proxy statement and other documents filed or to be filed by Frontier
with the SEC are or will be available free of charge at the SEC’s website,
www.sec.gov, or by directing a request when such a filing is made to Frontier, 3
High Ridge Park, Stamford, CT 06905-1390, Attention: Investor
Relations.
This
communication shall not constitute an offer to sell or the solicitation of an
offer to buy securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such
jurisdiction.
Frontier’s
stockholders approved the proposed transactions on October 27, 2009, and no
other vote of the stockholders of Frontier or Verizon is required in connection
with the proposed transactions.
###