Frontier Communications 2007 Annual Report Download - page 12

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
the annual certification required by Section 303A.12(a) of the NYSE Listed Company Manual. In addition, the
certifications of our Chief Executive Officer and Chief Financial Officer required under Section 302 of the
Sarbanes-Oxley Act of 2002 are included as exhibits to this Form 10-K.
We make available, free of charge on our website, our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q, Current Reports on Form 8-K and amendments to these reports filed or furnished pursuant to
Section 13(a) or 15(d) of the Exchange Act, as soon as practicable after we electronically file these documents
with, or furnish them to, the SEC. These documents may be accessed through our website at www.czn.net under
“Investor Relations.”
We also make available on our website, or in printed form upon request, free of charge, our Corporate
Governance Guidelines, Code of Business Conduct and Ethics, and the charters for the Audit, Compensation, and
Nominating and Corporate Governance committees of the Board of Directors. Stockholders may request printed
copies of these materials by writing to: 3 High Ridge Park, Stamford, Connecticut 06905 Attention: Corporate
Secretary. Our website address is www.czn.net.
ITEM 1A. RISK FACTORS
Before you make an investment decision with respect to our securities, you should carefully consider all the
information we have included or incorporated by reference in this Form 10-K and our subsequent periodic filings
with the SEC. In particular, you should carefully consider the risk factors described below and read the risks and
uncertainties related to “forward-looking statements” as set forth in the “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” section of this Form 10-K. The risks and uncertainties
described below are not the only ones facing our company. Additional risks and uncertainties that are not
presently known to us or that we currently deem immaterial or that are not specific to us, such as general
economic conditions, may also adversely affect our business and operations.
RISKS RELATED TO COMPETITION AND OUR INDUSTRY
We face intense competition, which could adversely affect us.
The telecommunications industry is extremely competitive and competition is increasing. The traditional
dividing lines between long distance, local, wireless, cable and internet services are becoming increasingly
blurred. Through mergers and various service expansion strategies, services providers are striving to provide
integrated solutions both within and across geographic markets. Our competitors include CLECs and other
providers (or potential providers) of services, such as internet service providers, or ISPs, wireless companies,
neighboring incumbents, VOIP providers and cable companies that may provide services competitive with ours
or services that we intend to introduce. Competition is intense and increasing and we cannot assure you that we
will be able to compete effectively. For example, excluding the impact of the CTE and GVN acquisitions, at
December 31, 2007, we had 130,300 fewer access lines than we had at December 31, 2006, and we believe
wireless and cable telephony providers have increased their market share in our markets. We expect to continue
to lose access lines and that competition with respect to all our products and services will increase.
We expect competition to intensify as a result of the entrance of new competitors, penetration of existing
competitors into new markets, changing consumer behavior and the development of new technologies, products
and services. We cannot predict which of the many possible future technologies, products or services will be
important to maintain our competitive position or what expenditures will be required to develop and provide
these technologies, products or services. Our ability to compete successfully will depend on marketing and on
our ability to anticipate and respond to various competitive factors affecting the industry, including a changing
regulatory environment that may affect our competitors and us differently, new services that may be introduced,
changes in consumer preferences, demographic trends, economic conditions and pricing strategies by
competitors. Increasing competition may reduce our revenues and increase our costs as well as require us to
increase our capital expenditures and thereby decrease our cash flow.
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