Frontier Communications 2010 Annual Report Download - page 15

Communications Assistance for Law Enforcement Act, a decision that the United States Court of Appeals for
the District of Columbia Circuit has upheld. The FCC has also required VOIP providers to provide enhanced
911 emergency calling capabilities.
In October 2009 the FCC issued a proposed rulemaking looking at rules to “Preserve a Free and Open
Internet”, including proposed restrictions on broadband network management practices. On December 21, 2010,
the FCC adopted an order providing such regulations on Internet service providers. These regulations affect
fixed and mobile broadband providers differently. While we believe we are already in substantial compliance
with the new regulations their complete effect on our business is not yet known.
Video programming. Federal, state and local governments extensively regulate the video services
industry. Our fiber optic video service is subject to, among other things, subscriber privacy regulations;
requirements that we carry a local broadcast station or obtain consent to carry a local or distant broadcast
station; rules for franchise renewals and transfers; the manner in which program packages are marketed to
subscribers; and program access requirements.
We provide video programming, on a limited basis, in Oregon, Washington and Indiana pursuant to
franchises, permits and similar authorizations issued by local franchising authorities utilizing fiber optic
delivery transport to the home. Most franchises are subject to termination proceedings in the event of a material
breach. In addition, most franchises require payment of a franchise fee as a requirement to the granting of
authority.
Many franchises establish comprehensive facilities and service requirements, as well as specific customer
service standards and monetary penalties for non-compliance. In many cases, franchises are terminable if the
franchisee fails to comply with significant provisions set forth in the franchise agreement governing system
operations. Franchises are generally granted for fixed terms of at least ten years and must be periodically
renewed. Local franchising authorities may resist granting a renewal if either past performance or the
prospective operating proposal is considered inadequate.
For information regarding approvals by local franchising authorities in connection with the transactions,
see “—Regulation of our business.”
Environmental regulation
Like all other local telephone companies, the local exchange carrier subsidiaries operated by us are subject
to federal, state and local laws and regulations governing the use, storage, disposal of, and exposure to
hazardous materials, the release of pollutants into the environment and the remediation of contamination. As an
owner and former owner of property, we are subject to environmental laws that could impose liability for the
entire cost of cleanup at contaminated sites, including sites formerly owned by us or the Acquired Business,
regardless of fault or the lawfulness of the activity that resulted in contamination. We believe that our
operations are in substantial compliance with applicable environmental laws and regulations.
Segment Information
We currently operate in only one reportable segment.
Financial Information about Foreign and Domestic Operations and Export Sales
We have no foreign operations.
General
Order backlog is not a significant consideration in our business. We have no material contracts or
subcontracts that may be subject to renegotiation of profits or termination at the election of the Federal
government.
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES