Frontier Communications 2009 Annual Report Download - page 7

marginal operating costs necessary to offer such services. We believe that our ability to integrate these services
with other services will provide us with the opportunity to capture an increased percentage of our customers’
communications expenditures (wallet share).
Long distance services. We offer long distance services in our territories to our customers. We believe that
many customers prefer the convenience of obtaining their long distance service through their local telephone
company and receiving a single bill. Long distance network service to and from points outside of our operating
territories is provided by interconnection with the facilities of interexchange carriers (IXCs). Our long distance
services are billed either as unlimited/fixed number of minutes in advance or on a per minute-of-use basis.
Data and internet services. We offer data services including internet access (via high-speed or dial up
internet access), portal and e-mail products frame relay, Metro Ethernet, asynchronous transfer mode (ATM),
switching services, hard drive back-up services and 24-7 help desk PC support. We offer other data
transmission services to other carriers and high-volume commercial customers with dedicated high-capacity
circuits ranging from DS-1’s to Gig E. Such services are generally offered on a contract basis and the service is
billed on a fixed monthly recurring charge basis. Data and internet services are typically billed monthly in
advance.
Directory services. Directory services involves the provision of white and yellow page directories for
residential and business listings. We provide this service through two third-party contractors. In the majority of
our markets, the contractor is paid a percentage of revenues from the sale of advertising in these directories. In
the remaining markets, we receive a flat fee from the contractor. Our directory service also includes “Frontier
Pages,” an internet-based directory service which generates digital advertising revenue.
Television services. We offer a television product in an agency relationship with DISH. We provide access
to all-digital television channels featuring movies, sports, news, music and high-definition TV programming.
We offer packages of 100, 200 or 250 channels and include high-definition channels, premium channels, family
channels and foreign language channels. We also provide access to local channels. We bill the customer for the
monthly services and remit those billings to DISH without recognizing any revenue. We in turn receive from
DISH and recognize as revenue activation fees, other residual fees and nominal management, billing and
collection fees.
Wireless services. During 2006, we began offering wireless data services in certain markets. As of
December 31, 2009, we provided wireless data WiFi networks in 19 municipalities and to five colleges and
universities and over 360 business establishments. Certain contracts are billed in advance on an annual or semi-
annual basis. Colleges, universities and businesses are billed on a monthly recurring basis for a fixed number of
users. Hourly, daily and weekly casual end-users are billed by credit card at the time of use.
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES