Frontier Communications 2009 Annual Report Download - page 33

demand for our or its 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 existing territories, and if the Verizon
Transaction is completed, in our new territories;
•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 regulations;
•Our ability to effectively manage our or, if the Verizon Transaction is completed, the combined
company’s operations, operating expenses and capital expenditures, and to repay, reduce or refinance
our or the combined company’s 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 or, if the Verizon Transaction is completed, the capital expenditures and product and
service offerings of the combined company, including the lack of assurance that the 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 or, if the Verizon Transaction is
completed, the combined company’s ability to transfer cash among our or the combined company’s
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 or, if the Verizon Transaction is completed, the
combined company’s pension plan assets, which could require us or the combined company to make
contributions to the pension plan in 2011 and beyond;
•Our ability to pay dividends in respect of our common shares or, if the Verizon Transaction is
completed, the combined company’s common shares, which may be affected by our or the combined
company’s cash flow from operations, amount of capital expenditures, debt service requirements, cash
paid for income taxes and our or the combined company’s liquidity;
•The effects of any unfavorable outcome with respect to any current or future legal, governmental or
regulatory proceedings, audits or disputes with respect to us or, if the Verizon Transaction is completed,
the combined company;
•The possible impact of adverse changes in political or other external factors over which we or, if the
Verizon Transaction is completed, the combined company, would have no control; and
•The effects of hurricanes, ice storms or other natural disasters.
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
report on 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.
Overview
We are a full-service communications provider and one of the largest exchange telephone carriers in the
country. As of December 31, 2009, we operated in 24 states with approximately 5,400 employees.
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES