Frontier Communications 2007 Annual Report Download - page 37

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Directory services revenue for the year ended December 31, 2006 increased $1.0 million, or 1%, as
compared with the prior year due to growth in yellow pages advertising.
Other
Other revenue for the year ended December 31, 2007 decreased $2.3 million, or 2%, to $93.9 million as
compared to the prior year. Excluding the additional other revenue due to the CTE and GVN acquisitions of
$13.9 million, other revenue for the year ended December 31, 2007 decreased $16.2 million, or 17%, as
compared with the prior year, primarily due to a $9.9 million increase in bad debt expense, the impact of a $3.4
million reduction in revenue for our free video promotions with a multi-year customer commitment in some of
our markets, a decrease in service activation billing of $2.5 million and a decrease of $1.8 million in wireless
revenue from the Mohave Cellular Limited Partnership.
Other revenue for the year ended December 31, 2006 decreased $11.6 million, or 11%, as compared with
the prior year, primarily due to an increase in bad debt expense of $7.5 million and decreases of $2.3 million for
promotional credits, $1.8 million in sales of customer premise equipment (CPE) and $1.6 million in “bill and
collect” fee revenue. The decreases were partially offset by an increase of $2.5 million in cellular roaming
revenue from the Mohave Cellular Limited Partnership.
OTHER FINANCIAL AND OPERATING DATA
As of December 31, 2007
As
Reported Acquisitions Citizens (excluding
CTE and GVN) % Change As of
December 31, 2006 % Change 2005
Access lines ...... 2,431,676 435,438 1,996,238 -6% 2,126,574 -5% 2,237,539
High-speed internet
(HSI)
subscribers ..... 523,845 63,971 459,874 17% 393,184 24% 318,096
Video subscribers . . 93,596 9,080 84,516 34% 62,851 94% 32,326
Long distance
subscribers ..... 1,569,620 197,632 1,371,988 -1% 1,382,411 0% 1,381,238
For the year ended December 31, 2007
As
Reported Acquisitions Citizens (excluding
CTE and GVN) % Change For the year ended
December 31, 2006 % Change 2005
Switched access
minutes of use (in
millions) ....... 10,592 1,186 9,406 -8% 10,227 -9% 11,226
Average monthly
revenue per
average access
line ........... N/A N/A $ 81.50* 6% $ 77.25 5% $ 73.39
* For the year ended December 31, 2007, the calculation includes the $38.7 million favorable impact from the
first quarter 2007 settlement of a switched access dispute. The amount is $79.94 without the $38.7 million
favorable impact from the settlement.
NETWORK ACCESS EXPENSES
2007 2006 2005
($ in thousands) As
Reported Acquisitions Citizens (excluding
CTE and GVN) $ Change % Change Amount $ Change % Change Amount
Network access .... $228,242 $35,781 $192,461 $21,214 12% $171,247 $14,425 9% $156,822
33