Frontier Communications 2009 Annual Report Download - page 8

The following table sets forth the aggregate number of our access lines and HSI subscribers by state as of
December 31, 2009 and 2008.
State 2009 2008
Access Lines and High-Speed
Internet Subscribers at December 31,
New York .................................................... 782,700 825,700
Pennsylvania .................................................. 487,900 506,100
Minnesota. .................................................... 276,500 280,500
Arizona . ...................................................... 189,600 192,800
West Virginia ................................................. 189,100 188,200
California ..................................................... 188,100 193,200
Illinois. . ...................................................... 129,000 127,900
Tennessee..................................................... 102,100 105,300
Wisconsin. .................................................... 77,600 79,100
Iowa.......................................................... 56,000 56,900
Nebraska...................................................... 50,000 51,400
All other states (13) ........................................... 224,900 227,200
Total . ...................................................... 2,753,500 2,834,300
Change in the number of our access lines is one factor that is important to our revenue and profitability.
We have lost access lines primarily as a result of competition and business downsizing, and because of
changing consumer behavior (including wireless substitution), economic conditions, changing technology and
by some customers disconnecting second lines when they add HSI. We lost approximately 136,800 access lines
(net) during the year ended December 31, 2009, but added approximately 56,000 HSI subscribers (net) during
this same period. With respect to the access lines we lost in 2009, 104,700 were residential customer lines and
32,100 were business customer lines. Without taking into account the Verizon Transaction, we expect to
continue to lose access lines but to partially offset those losses with an increase in HSI subscribers during 2010.
A substantial further loss of access lines, combined with increased competition and the other factors discussed
in MD&A, may cause our revenues, profitability and cash flows to decrease during 2010.
Our Company, like others in the industry, utilizes reporting metrics focused on units. Consistent with our
strategy to focus on the customer, we also utilize residential customer metrics that, when combined with unit
counts provides additional insight into the results of our strategic initiatives outlined above.
2009 2008
As of or for the year ended
December 31,
Residential:
Customers . . .................................................... 1,254,500 1,347,400
Revenue (in ‘000’s) . . . .......................................... $ 899,800 $ 949,284
Average monthly residential customer revenue per customer. ...... $ 57.62 $ 56.42
Percent of customers on price protection plans ................... 53.2% 44.6%
Customer monthly churn ........................................ 1.47% 1.57%
Products per residential customer* ............................... 2.54 2.37
* Products per Residential Customer: Primary Residential Voice line, HSI, Video products have a value of 1.
FTR long distance, POM, second lines, Feature Packages and Dial-up have a value of 0.5.
Regulatory Environment
General
The majority of our operations are regulated by the FCC and various state regulatory agencies, often called
public service or utility commissions.
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES