Frontier Communications 2006 Annual Report Download - page 22

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
• Our ability to sell enhanced and data services in order to offset ongoing declines in revenue from local
services, switched access services and subsidies;
• Changes in accounting policies or practices adopted voluntarily or as required by generally accepted
accounting principles or regulators;
• The effects of changes in regulation in the communications industry as a result of federal and state
legislation and regulation, including potential changes in access charges and subsidy payments, and
regulatory network upgrade and reliability requirements;
• Our ability to comply with federal and state regulation (including state rate of return limitations on our
earnings) and our ability to successfully renegotiate state regulatory plans as they expire or come up for
renewal from time to time;
• Our ability to manage our operations, operating expenses and capital expenditures, to pay dividends
and to reduce or refinance our debt;
• Adverse changes in the ratings given to our debt securities by nationally accredited ratings
organizations, which could limit or restrict the availability and/or increase the cost of financing;
• The effects of bankruptcies in the telecommunications industry, which could result in potential 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 expiring union contracts covering approximately 1,526
employees that are scheduled to expire during 2007;
• Our ability to pay a $1.00 per common share dividend annually may be affected by our cash flow from
operations, amount of capital expenditures, debt service requirements, cash paid for income taxes
(which will increase in 2007) and our liquidity;
• The effects of any future liabilities or compliance costs in connection with worker health and safety
matters;
• The effects of any unfavorable outcome with respect to any of our current or future legal, governmental
or regulatory proceedings, audits or disputes; and
• The effects of more general factors, including changes in economic, business and industry conditions.
Any of the foregoing events, or other events, could cause financial information to vary from management’s
forward-looking statements included in this report. You should consider these important factors, as well as the
risks set forth under Item 1A. “Risk Factors” above, in evaluating any statement in this Form 10-K or otherwise
made by us or on our behalf. The following information is unaudited and should be read in conjunction with the
consolidated financial statements and related notes included in this report. We have no obligation to update or
revise these forward-looking statements.
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